Danone: the Fresh undisputed leader Jordi Constans Dairy: an ~11 billion euros business

Sales 10.9 In € bn

8.7 8.6 8.3 7.5 6.8 6.1 5.6 5.1 5.2 4.6 4.1 3.8 3.5 2.7 2.8 2.9 2.9 2.9 2.3 1.9 1.6 1.8 1.3 1.4 1.4 1.4 1 1.12

1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 PF Trading Operating Margin = 13.95% +120bps since „05

2010 Sales Proforma Unimilk

– 2 – Our uniqueness: an undisputed global and local leadership

#1

#2

Other position

Danone World Market Share in 2010 = 23% Competitor #2 = 7% and Competitor #3 = 6% 78% of Danone Sales from countries where we are #1

Value Market Share FY 2010 – Excl. Unimilk – 3 – The Danone Yoghurt health story

Petit Gervais aux fruits 1967 2004 Danacol First Taillefine light cheese yoghurt 1964 1994 Velouté stirred yoghurt 1962 1987 Bio/ Dany 1st yoghurt with fruit 1937 Y First yoghurt 1919 in pharmacy

1970 Danette The Danone health story - A well balanced portfolio for all needs Nutritional Functional

BLUE CORE RANGE FORTIFIED

DENSIA DANACOL

DANINO ACTIMEL

LOW FAT RANGE TAILLEFINE ACTIVIA

STD BLUE CORE RANGE

FRUIT INNO

COUSINS such as GREEK Daily Healthy Tasty Dairy based food FANTASIA

DANETTE

Indulgent – 5 – Activia, a highly populated country

1.3 bn 1.2 bn 500 mln 345 mln 311 mln

– 6 – Activia is the main growth engine and close to the € 3 bn

Activia Sales Evolution

3500 In € mln

3000

2500

2000

1500

1000

500

0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

– 7 – Taste is everywhere

Indulgent brands: Focus on PLEASURE and TASTE!

Pleasure line extensions of Nutritional and Functional Health brands

– 8 – We are market leaders and we are strengthening our position everywhere

How to further reinforce our unique leadership in the future?

– 9 – Our levers to boost “Y” Global Leadership

PLANET CONNECT

Y

INNOVATION DISTRIBUTION

– 10 – Planet portfolio - Facts & Direction

FACTS Kgs per cap in 2010 Fresh Dairy Products Consumption 50 45 40 35 30 25 20 15 10 5 0

DIRECTION Mature Countries - the base: Keep them growing Brazil, Russia, USA - our growth engines: Focus on them! Middle term / long term: Push Asia and enter Africa…

Source : Euromonitor 2011

– 11 – White Spots Our priority growth engines

Population: 141 millions GDP per cap ‟10 = 15.8K$ Fcst Real GDP growth CAGR ‟11-‟15 = 4.4% Population: 311 millions Fresh Dairy Products PCC: 5.8Kg GDP per cap „10 = 47.4K$ Fcst Real GDP growth ‟11-‟15 = 2.6% Fresh Dairy Products PCC: 6.6Kg

Population: 192 millions GDP per cap ‟10 = 11.3K$ Fcst RealGDP growth CAGR ‟11-‟15 = 4.6% Fresh Dairy Products PCC: 5.9Kg

Big potential Priority for investments

– 12 Unimilk: A significant impact on Danone Dairy and a great complementarity

= 20% of Fresh Dairy Products volumes

Modern Modern Trade Mega Western West Focus Mid to Dairy & Direct Proxi Factory premium

Milk & Russian Mid Focus Multiples Traditional East Focus to Affordable on Proxi Factories Dairy

– 13 – Further growth potential in unexploited regions

Middle term: Push Asia

Long term: Go Africa

World mapping Incl. Exports, Affiliated companies, JV

– 14 – Our levers to boost “Y” Global Leadership

PLANET CONNECT

Y

INNOVATION DISTRIBUTION

– 15 – Connect - Facts & Direction

FACTS Consumers are more demanding 85% want to receive information on the origin of their products (+24pts) Source Ethicity 2010 Consumers are more connected 2 billion connected 30+ billion pieces of content shared to the Internet on facebook/month 34% bloggers post brand 2 billion videos watched or product reviews on YouTube everyday

DIRECTION

Connect with the consumer across all touchpoints

– 16 – Connection with the consumer across all touchpoints

An ongoing trustful dialogue through multiple touch-points to add differentiated value to our brands

ONE WAY BRAND TALKING MULTIPLE TOUCHPOINTS CONVERSATION

TV

KOL / HCPs Events/Sampling

Packaging CRMPR

CRM POS

TV Web

– 17 – A “soft” functional communication platform: The Tummy Loving Care Campaign

Mission: To bring wellbeing to UK women through their digestive health

Pre 2010 2010+ 2010+

From a yogurt „product‟ to a brand consumers love

Functional messaging platform Desire to move to a more engaging, Launch of TLC Featuring real women emotive messaging platform Tummy Loving Care giving testimonials campaign

– 18 – Success of the TLC plan in delivering results

TV and outdoor campaign TLC Plan FREE online 14-day plan

Proven platform for core and subranges Strong brand tracking measures Core Sales +8% Intensely Creamy +13% • Best ever engagement score

• Digestive health score holding up, Activia 4pks despite inability to make claim Baseline AC Nielsen • 60k consumers signed up #1 Chilled and Desserts in the first 3 months brand in the UK

– 19 – Reinvention of our communication model

Copy TV Activia community PR’s / KOL

Emotionnal bond / Recommandation Insight & Brand Territory & Credibility credibility Bought Owned Earned

Brand Love Brand Trust

– 20 – ACTIVIA PROGRAMME 2011 How to get both proximity and credibility?

Huge inputs Huge outputs

1.2m unique visitors (x2 vs ly) 170,000 registered users (x2 vs ly) 50,000 comments on the forum

Dedicated TV COPY with claim

50 Million PR’s contacts

Amazing content on the belly • 160 articles / 80 videos • 4 coaches • all consistent to brand mission Great proximity 88% Satisfied & ready • 12 real users to recommend it • 1 dedicated online community manager

– 21 – DANIO: First multi social media platform

1. Get into 2. Log via your social network

3. Select part 4. Select game

Top FMCG brand fanpage on Facebook 5. Play, have fun & Interact with mates & the brand in Poland with ~300,000 fans

Danio World – multi social Platform: Unique visitors: 1.9 million Avg time spent /site: 02:15” Reaching 1/3 of all teenagers (13-18 y)

– 22 – Go sustainable to reconnect and respond to consumers needs: Milk of our farmers

5 Régions

34% Publicity 10% content 56% Buzz production 147 millions 43 millions 239 millions Bought Owned Earned

Total 430 millions of contacts Repurchase rate : +4.3pts vs LY Market Share “Core” post Milk of our farmers: +1.6pts vs pre Milk of our farmers Results Feb – Apr 2011 – 23 – Our levers to boost “Y” Global Leadership

PLANET CONNECT

Y

INNOVATION DISTRIBUTION

– 24 – Distribution – Facts & Direction

FACTS Overwhelming choice 3 out of 4 purchases < 10” Shoppers spend 77” in a 600 SKUs shelf = 0.10” per SKU (France) For Shoppers, our shelves are REGIMENTED, FUNCTIONAL, UNIMAGINATIVE, STRESSFUL, UGLY, UNENGAGING

DIRECTION EXECUTION For domination and control of the point of sale VISIBILITY In Modern Trade: improve Shelf experience and differentiate packaging On new channels: expand in Direct to Consumer

– 25 – Execution in the point of sale PUMA Spirit

Best in class execution Objectives Products available everywhere Domination and control of the point of sale

Regular Audit system Clear KPIs Well-trained Sales Force Execution pillars Space

Assortment

Layout Blocking and Location IS / IT solution Pricing

Iconization Incentives for the Best Puma.NET – 26 – Visibility in Modern Trade Point of sale Theatralization… Unexpected Innovation through product, theatralization & in store activation!