Building the Future. Franck Riboud Groupe DANONE Global Consumer and Food Retail Conference June 11, 2007 Paris

Transcription

1 Building the Future Franck Riboud Groupe DANONE Global Consumer and Food Retail Conference June 11, 2007 Paris

2 Building the Future Become the reference in healthy nutrition Construct a global presence Continue to strengthen our dual project by uniting our people s energy and talent

3 Building the Future Become the reference in healthy nutrition Construct a global presence Continue to strengthen our dual project by uniting our people s energy and talent

4 Health according to the WHO State of physical and mental well-being Absence of illness, infirmity or discomfort

5 Dramatic recent evolution Hunter/ gatherer Monoculture Industrialisation Tomorrow Plants Cereals Fats / Sugar Animals Physical labor + hunting Domesticated animals Physical labor Domestic animals Intellectual labor/ Leisure? Low life expectancy Famine Reduced mortality Deficiency Increased life expectancy Obesity

6 An acceleration of life expectancy Life expectancy 120 Health = age well Health = survival Health = no illness Year

7 Health for today s consumer Live longer Live better Quest for longevity Live happily with your family Stay young and attractive longer A body free on constraints Autonomy One day, we ll live to 120 but we ll also want to live well!

8 A new health Yesterday Wait until you are ill to see a doctor Tomorrow Understand molecular abnormalities 20 years before being ill Healthy people will be treated Each individual as an actor of his/her her own health

9 Food: the first medicine Prevention Treatment Food Medicine

10 The power of food Food Bio Availability Taste and culture Role of Intestinal flora Health Frequency Easy health

11 Danone has legitimacy in addressing new consumer expectations

12 «Les eaux d Evian et Volvic», have long been recognized as serving the general public s health Danone : a strong health DNA For 200 years,, Danone bottles nature

13 Danone : a strong health DNA Yogurt sold in pharmacies for Spanish children suffering from diarrhea Collaboration with E. Metchnikov & l Institut Pasteur

14 Each moment of consumption is a moment of pleasure That s why our logo is a smile Delicious products

15 Innoladder Deployment Consumer equirements Active Ingredients Scientific proof Diamond marketing Launch

16 Main consumer expectations Incidence 18,00 16,00 Energy Defense Overweight 14,00 Transit 12,00 Peau Skin 10,00 8,00 Stress Joints Dentition Cardio 6,00 4,00 2,00 0,00 0,0 10,0 20,0 30,0 40,0 50,0 60,0 Preoccupation

17 The identification of active ingredients: : expertise of R&D and its partners D D Dairy R&D community ~ 450 people Specialized along brand and health benefit lines

18 Scientific evidence: our investment in clinical studies Number of studies Key Figures 4000 subjects in products distributed for clinical tests 50 people internally / 100 partners externally A global approach

19 Health is the heart Natural Health Pleasure Health Affordable Health Segmented Health

20 Dairy: one brand = one health benefit Growth Protection Digestion / Transit Weight Management 800 M 1000 M 1300 M 900 M

21 Dairy: one brand = one health benefit Cardio Beauty??

22 Beverages : Capitalize on the strength of our natural water brands Water Beverages The base Our strongest water brands : Easy to drink Natural Strong Hydration Our developments New drinks : Easy to drink Natural Strong Hydration Combined with the benefits of fruit and plants

23 lear health benefits for each water or beverage bran Elimination Vitality Youth / Body Renewal Weight Management

24 Boost differentiation and innovation based on health & nutrition Fun Energy HarmoniousGrowth Light Vitality Long Lasting Energy Healthy Savory Snacks Indulge without guilt

25 New potential territories? Fruit Plants

26 Building the future Become the reference in healthy nutrition Construct a global presence Continue to strengthen our dual project by uniting our people s energy and talent

27 Broad-based country portfolio: not just relying on New Frontiers and «Mature Home Markets» As percentage of Group Sales New Frontiers Contributors Mature Home Markets Growth (lfl) Contributors Mature Home Markets New Frontiers % < 0% + 18% % + 3% + 20%

28 A new phase of expansion 80 In 10 years Danone present in 80 countries 40 Today Danone present in 40 countries 3 to 5 new countries/year

29 Since early 2006 : New countries and strengthening of our positions Egypt Dairy 74 M inhabitants Algeria Dairy+beverages beverages+biscuits 35 M inhabitants Japan Dairy 128 M inhabitants Scandinavia Beverages 24 M inhabitants China Dairy + beverages 1,3 Bln inhabitants Bangladesh Dairy 150 M inhabitants Thaïland Dairy 65 M inhabitants Colombia Dairy 44 M inhabitants Ukraine Dairy 47 M inhabitants Chile Dairy 17 M inhabitants

30 A Hub Strategy

31 A Hub Strategy

32 Building the future Become the reference in healthy nutrition Construct a global presence Continue to strengthen our dual project by uniting our people s energy and talent

33 Building the Future «A company s responsibility does not stop on the doorstep of its factories or offices. Its actions are felt beyond and throughout its environment. The jobs it provides affect the entire lives of the people concerned. Their future and their children s future depend on the possibilities for promotion that the company offers. Through the energy and raw materials it consumes, it alters the appearance of our planet Growth should never be an end in itself, but a tool which, instead of reducing quality of lif should help to improve it. At the same time, to ensure quality of living implies company performance. A company without performance is a company without means; a managing director who does not foc on his objective of economical performance is not a responsible managing director. Antoine Riboud »

34 Double projet Economic Performance Sales Operating Results Cash flow R.O.I.C. Net Income EPS Societal Performance People Security Training Dialogue Free shares Environment Reindustrialisation Water protection Packaging Danone.communities

35 Free Shares Projects An equal number of shares, regardless of level and geographic location Opportunity to share strategy,, challenges and results with employees

36 Danone.communities: societal innovation An investment fund to sustain «social entreprises» profitable but with a main objective of social impact (public health, poverty) A fund open to the largest number to federate energies and wills A win-win initiative A mutual fund with a money market returns Easier access to shareholders and employees A meaningful savings plan with strong social usefulness Sustainable support to local development A source of innovation and motivation for Danone teams

37 An example : Grameen Danone Foods

38 Financial Objectives Like-for-like sales growth : +6% to +8% EBIT to grow faster than sales: Between +7% and +10%, operating margin in excess of +20 bp for 2007 (on a like-for-like basis) EPS growth >+10% Enhanced shareholder return: Active share buyback program in 2007

39 2006: An Outstanding Year Net Sales 14,073 M +9.7% like-for for-like +8.1% reported 1,914 M Trading operating income +10.1% Trading operating margin 13,60 % + 32 bp like-for for-like + 25 bp reported Underlying EPS (fully diluted) From continuing activities 4.88 Vs 4,14 FY % Free Cash Flow (1) (1) 1,516 M Vs 1,303 M FY % ree Cash Flow: Cash flow from operations less capital expenditure (net of disposals) and change in working capital

40 Q1 2007: broad-based based growth with all business lines and geographies constributing significantly Like-for-like Sales Growth Fresh Dairy Products Beverages +12% +9.1% Biscuits & Cereal Snacks +4.3% TOTAL GROUP +10.1%

41 Building the Future Franck Riboud Groupe Danone

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