Investor Seminar October 22, 2018

Delivering Superior Sustainable Profitable Growth

Cécile CABANIS CFO Our journey towards long-term sustainable value creation Accelerated transformation since last three years 2030

2020

2018

2017 2016 2015

Investor seminar 2017, Evian

Danone to acquire WhiteWave, a USD 4 bn sales Global Leader in Organic Foods, Plant-based Milks and related products

July 7, 2016 Nov-2015 Jul-2016 May-2017 Apr-2018 Transformation in motion WhiteWave (closed Apr-17) 2020 objectives 2018 Shareholders meeting

I 2 I Strong track record in delivery and transformation Rebalancing the growth model

Sales Recurring operating margin

€ 24.7 bn 14.4% FY2017 FY2017

+3.7% +180bps 2014-3Q18 CAGR(1) since 2014

(1) Like-for-like New Danone

I 3 I Strong track record in delivery and transformation Enhancing like-for-like recurring operating margin

Like-for-like New Danone : +~160 bps

-160 bps

+590 bps

-730 bps +460 bps

2014 Cost Value Efficiencies Reinvest 2017 Inflation(1) effect & synergies

(1) Material, industrial and logistics costs

I 4 I Strong track record in delivery and transformation Key transformations since 2014

Organization Efficiencies & productivity

One Danone Streamlined Growth & Innovation organization executive organization business services committee

Growth engines Discipline in resource allocation

Innovation process

I 5 I Strong track record in delivery and transformation Double-digit growth in recurring EPS and free cash flow

(1) Recurring EPS Free cash flow

2014-17 CAGR 2014-17 CAGR €2.1bn €3.49 €1.8bn €3.10 % of net sales €2.93 €1.4bn €1.5bn €2.62 8.4% 8.0% 6.6% 6.0%

2014 2015 2016 2017 2014 2015 2016 2017

in H1 2018 (1) Excluding exceptional items

I 6 I Strong track record in delivery and transformation Maximizing proceeds from portfolio management

Aug-2017 Mar-2018

Selling price $875m €1.3bn

Valuation multiple 20x EBITDA (1) 39x net income

Capital gain $630m €700m

Cash-on-cash > 4 x > 4 x (1) 2016 EBITDA (2) 2017 net income

I 7 I Strong track record in delivery and transformation With increasing headwinds

Input cost increase Currencies Boycott in Morocco

1-year evolution vs EUR $73 crude oil

$52 -133% -24% -66%

H2 2017 H1 2018 H2 2018

Source: US Energy Information Administration Source: Banque de France, as of 09/28/2018

I 8 I Reminder of 2020 objectives Sustainable Profitable Growth

Net debt / EBITDA ROIC < 3.0x ~ 12% Consistent EPS Growth LFL sales growth Recurring operating margin 4 to 5% > 16%

I 9 I 2020 objectives Progressing well against our roadmap

Net debt / EBITDA ROIC

4.5 x 10.9% 10.3% 3.9 x Net Debt/ EBITDA excl. one-off items (2) 3.3 x Net Debt/ Reported EBITDA

2016 2017 2016 2017 New Danone(1)

LFL sales growth (3) Recurring operating margin

14.4% 3.1% 13.8% 2.9% 13.2%

2016 9M 2018 2016 2017 Reported New Danone(1)

(1) Combined Danone and WhiteWave as of 31 December 2016 (2) Capital gain from Stonyfield sale and Fonterra reimbursement (3) Like-for-like New Danone

I 10 I Danone model driving value creation Focus on sustainable shareholder value

Short term Reinforcing operating model headwinds

accelerate growth consistent sustainable EPS value growth creation maximize efficiencies

allocate capital with discipline

I 11 I Net debt / EBITDA ROIC

Consistent EPS Growth LFL sales growth Recurring operating margin

I 12 I Net debt / EBITDA ROIC

Consistent EPS Growth LFL sales growth Recurring operating margin

I 13 I 2017-2020: Deleveraging balance sheet

Leverage ratio (Net debt / EBITDA)

Our objective 4.5x

< 3.0x

2016 2020 New Danone(1)

(1) Leverage ratio of combined Danone and WhiteWave as of 31 December 2016, pro forma for WhiteWave acquisition debt

I 14 I Continuing to deleverage the balance sheet Fully on track with pace of deleverage

Net debt / EBITDA

Balance sheet deleverage well on track, from maximized Free Cash Flow delivery - NOPAT expansion 4.5 x - Working capital tight management 3.9 x 3.3 x 3.3 x - Discipline in resource allocation < 3.0 x

Committed to strong investment grade 2016 2017 H1 2018 2020 New Danone(1) Reported Normalized Reported Normalized Objective

EBITDA excluding one-off items (2) Reported EBITDA

(1) Leverage ratio of combined Danone and WhiteWave as of 31 December 2016, pro forma for WhiteWave acquisition debt (2) Capital gain from Stonyfield sale and Fonterra reimbursement

I 15 I Priorities in use of cash Investing for growth and efficiencies, increasing dividends

Invest for Shareholder returns growth & efficiency and dividends

Accelerated level of capex, in the range of 4-5% Increasing dividends

€1.90 €1.70 €1.60 4.2% 4 to 5% €1.50 4.2% 3.9%

2015 2016 2017 2014 2015 2016 2017

I 16 I Confirming our objective 2017 - 2020 deleveraging balance sheet <3x Net debt / EBITDA By 2020

I 17 I Net debt / EBITDA ROIC

Consistent EPS Growth LFL sales growth Recurring operating margin

I 18 I 2017-2020: Continuing to improve ROIC Return on Invested Capital

WhiteWave acquisition: 2017-20: Continue to Our objective ~ - 150bps by 2018 improve capital efficiency ~ 12%

2017 2018 2018 2019 2020 New Danone

I 19 I Sustainable value creation ROIC >> WACC

ROIC – rounded figures

ROIC

10% value creation

WACC

0% 2014 2015 2016 2017

Source : Danone, Bloomberg

I 20 I Sustainable value creation Changes in some assumptions impacting ROIC

Currencies devaluation against euro — IFRS 16: capitalization of operating leases from 1st Jan 2019 — Slower on-boarding of Whitewave

Overall impact on ROIC of -1 to -1.5%

Sources : WACC from Bloomberg, ROIC from information published by Danone

I 21 I Confirming objective Continuing to improve ROIC Adjusting timing ~12% ROIC by 2022 with year-on-year improvement

I 22 I Net debt / EBITDA ROIC

Consistent EPS Growth LFL sales growth Recurring operating margin

I 23 I 2017-2020: Accelerating growth LFL sales growth

Our objective 4 to 5% 2020

2017 MODERATE

> 5% 3-4%

I 24 I Portfolio uniquely positioned on healthy categories Geared to capture superior growth opportunities

> 88% of volume sold recommended for daily consumption(1) Well balanced geographic exposure

Essential Dairy & Plant-based - Noram Waters 18% 20% Europe 33%

% net sales Rest of 46% H1 2018 H1 2018 the world

29% Specialized 33% Nutrition 21% Essential Dairy & Noram Plant-based - International

(1) Refers to water, yogurt and other daily dairy products, baby milks & foods, milks and milk powders, beverages with 0% sugar and medical nutrition. Based on official public health recommendation, these categories are generally suitable for daily consumption.

I 25 I Accelerating Growth Activating powerful levers

Strong portfolio Value innovations

Plant-based to the max

from €1.7 bn sales in 2018 to €5 bn by 2025 Water innovations unit price +50% vs average

Manifesto brands E- business acceleration

10 Manifesto brands growing from €1bn of sales, to €2bn in 2020 3 times faster than average

I 26 I Aligning EDP reporting lines with management organization Confirming 2020 objectives

From 4 reporting units… … to 3 reporting units from 1st January 2019

2020 LFL sales growth Waters

Waters Specialized Nutrition Specialized Nutrition

Essential Dairy & Plant-based Noram

Essential Dairy & Plant-based Int’l Essential Dairy & Plant-based

I 27 I Confirming 2017 - 2020 our objective Accelerating Growth 4 to 5% Like-For-Like Sales Growth by 2020

I 28 I Net debt / EBITDA ROIC

Consistent EPS Growth LFL sales growth Recurring operating margin

I 29 I 2017-2020: Accelerating recurring operating margin improvement

Recurring Operating Margin

Our objective +300bps > 16%

2016 2020 New Danone(1) (1) 2016 Recurring operating margin of combined Danone and WhiteWave on a full year basis

I 30 I Accelerating operating margin improvement Value growth through pricing, mix and innovation

Innovations & Innovations & renovations > 20% in 2018 renovations

Catalyst for consumer engagement Manifesto Brands — 100% brands embarked by 2020

Monitor promotion return on investment Trade terms & promotions — Optimizing trade terms

Pricing Targeted price increase

I 31 I Maximizing efficiencies Accelerating efficiencies through delivery of Protein savings

Overall productivity gains… … of which Protein gross savings

~ €800 m for the full-year 2018 > €600 m ~€600m by 2020

enhancing reinvesting

2016 2017 2018 (e) margin for growth

I 32 I New cycle and procurement organization Enhance value creation in a sustainable manner

From efficiencies …

2014 setting up Dantrade

Milk cycle 2015 establishing critical Water cycle resources cycles Plastic cycle

2018 Sustainable efficiencies to the max functionalizing procurement globally Value focused transformation

… to value creation

I 33 I WhiteWave synergies On track to deliver according to plan

2017 2018 2020 Onboarding phase Second wave Synergies confirmed

2017 delivery 2018 objective delivery on 2020 objective ✓ track Major part in cost synergies Procurement — Sales Force consolidation — G&A / shared back office above objective Topline synergies Distribution expansion — HQ consolidation Commercial scale effect — sales force merge — G&A / shared back-office — procurement

I 34 I Dynamic portfolio management driving additional value creation Constantly upgrading the portfolio

Main asset disposals examples 2014-2018

Dairy Chile 2017 Dynamic portfolio management as part of yearly strategic planning process — Dairy Columbia 2016 + ~40 basis points of margin improvement in 2014-2018 Dumex China 2016

Dairy Indonesia 2014

Dairy China 2014

I 35 I 2017 - 2020 Confirming Accelerating recurring our objective operating margin improvement >16% Recurring Operating Margin by 2020

I 36 I Management long term incentives aligned with strategic objectives Shifting from growth to margin and cash

2015 Performance compensation (“GPU”) 2018 Employee commitment relative to peers 20% Margin > 16% Sales > 4.5% in 2020

80%

2015 Performance shares (“GPS”) 2018

Relative Sales Margin 30% Free Cash Flow 33% Growth improvement > €6.5bn in 2018-2020 50% Relative Sales Growth 67% 20% CDP Climate leadership level 1,500 executives and directors

I 37 I Transformation and delivery towards 2030 Sustainable value creation despite increasing volatility

Like-For-Like 4-5% Sales growth

DOUBLE-DIGIT >16% Recurring operating RECURRING EPS margin GROWTH <3x Net debt/Ebitda ~12% ROIC at constant exchange rate(1) excluding Yakult transaction impact Consistent recurring EPS growth

2018 guidance 2020 2022 2030 Goals

(1) Excluding IAS 29 accounting treatment

I 38 I Disclaimer

• This presentation contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward- looking statements by forward-looking words, such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” “convinced,” and “confident,” the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, statements regarding Danone’s operation of its business, the expected benefits of the transaction, and the future operation, direction and success of Danone’s business.

• Although Danone believes its expectations are based on reasonable assumptions, these forward-looking statements 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 “Risk Factor” section of Danone’s Registration Document (the current version of which is available on www.danone.com).

• Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy Danone securities.

• All references in this presentation to ”Like-for-like (LFL) New Danone” changes, recurring operating income, recurring operating margin, recurring net income, recurring income tax rate, Recurring EPS, Yakult Transaction Impact, free cash flow and net financial debt correspond to financial indicators not defined in IFRS. Their definitions, their reconciliation with financial statements and IAS29 accounting treatment for Argentina are included in the Q3 sales press release issued on October 17th, 2018. Q1, Q2 and H1 2017 reported figures have been restated for IFRS 15. Indicators ROIC and Net Debt / EBITDA are defined on page 64 of Danone’s 2017 registration document

• Due to rounding, the sum of values presented in this document may differ from totals as reported. Such differences are not material.

I 39 I