18 June The New Danone : A unique food company

Transcription

1 18 June The New Danone : A unique food company

2 2 Forward looking statements This document contains certain forward-looking statements concerning Groupe DANONE. Although Groupe 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 sections Risks Factors in Groupe DANONE s Annual Report (which is available on Groupe DANONE undertakes no obligation 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 shares.

3 3 A powerful mission for sustainable, profitable long-term growth To bring health through food to the largest number of people

4 Major M&A activity has created the «New Danone» Biscuit division swapped for Numico Creation of a unique company 100% focus on healthy, value-adding nutrition 4 distinct divisions: Commanding leadership positions through distinct business models Offering clear visibility on future growth and margin potential Delivering above average growth and margins Supported by a state-of-art R&D platform A sustainable business model to continue to deliver LT profitable growth at high margins 4

5 Numico Initial synergies have been identified Revenues Alignment teams synergies Alignment 120 teams mln Alignment Cost synergies teams Alignment teams 60 mln Leverage Blédina s food range and juniorization expertise Leverage Numico s and Bledina s expertise in Infant Formula Utilize Danone s expertise in brand polishing and deployment Combine Numico, Blédina and Danone R&D to develop new technologies 2008: 45 mln Main areas: Headquarters overhead Purchasing (Raws & packs, media buying) Manufacturing 5

6 Danone + Numico: 100% health story at Pro-Forma 2008 Scope Baby Nutrition 3% Biscuits 16% Medical Nutrition 0.8 bn 5% Baby Nutrition 2.4 bn 17% resh Dairy 53% Waters 28% Fresh Dairy 8.3 bn 57% Waters 3 bn 21% Healthy Food Healthy Food 84% 100% 6

7 We play in the most attractive food segments World Market CAGR (volume) Medical nutrition Still bottled water Functional drinks Baby Nutrition Savoury biscuits and crackers Yogurt Sweet biscuits Ice cream Sauces, dressing & condts Frozen processed food Confectionery Cheese RTE cereals Carbonates Soup 0.9% 5.3% 4.6% 4.4% 4.0% 3.7% 3.2% 3.0% 2.8% 2.8% 2.4% 1.9% 6.6% 6.4% 8.8% 0% 2% 4% 6% 8% 10% Source: Euromonitor, Kalorama Information 7

8 8 Key features of our business model All divisions command leadership positions Through well-known brands and value-adding products Our brands have superior pricing power Growth is fuelled through Innovation Roll-out Geographic expansion Strong productivity gains are generated on fixed and overhead costs

9 Fresh Dairy Division 9

10 Fresh Dairy key figures 57% 2007 Vs. 2006* Net Sales ( mln) 8, % Trading Operating Income ( mln) 1, bp Trading Operating Income margin 14.0% 2007 PF 8,299 1, % Value L-f-L Sales Growth Volume 2.2% 3.4% 5.2% 9.3% 5.0% 9.8% 7.8% 6.7% 4.6% 7.2% * On like-for-like basis Q1 Q2 Q3 Q4 FY 10

11 Blockbusters fuel growth and margin Transit Digestion Protection Weight Management Growth 1,900 mln 1,100 mln 900 mln 800 mln 11

12 Activia global model GLOBAL = BACKBONE GLOBAL POSITIONING RW SCIENCE DIAMOND PACK/ICON COMMUNICATION STRUCTURE Icons Brand Name Brand Block Demo Target: Women with digestive disorders Insight: Stress and bad eating can create digestive disorders which have negative impact on our well being (bloated feeling, cave mentality) Benefit: Activia naturally regulates digestive disorders in 15 days RW: Acti-Regularis, Bifidus Regularis Brand Personality: Reliable, confident & friend Key Audio - Selling line: Regulates inside and it shows outside -Music: Barcarola by Offenbach Advertising signature Naturally regulates the digestive disorders caused by stress & bad eating (digestive disorder conso wording & relevant insights adapted to each country) 12

13 13 Activia Global Model LOCAL = DRESS CODE POSITIONING CLUSTER RANGE COMMUNICATION INSIGHTS & SELLING IDEAS FRANCE YOGURT F. CHEESE POLAND YOGURT F.CHEESE MEXICO DRINKS YOGURT AUSTRIA YOGURT KEFIR

14 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Proven Potential to 16% 14 Czech Rep. Romania Canada Slovakia Bulgaria Italy Spain Baltics Brazil Portugal Russia France Ireland Slovenia Hungary Argentina Belgium US Mexico* Poland Austria Canary Islands UK Finland Japan Germany Algeria Saudi Arabia Greece Netherlands Turkey Switzerland Activia value market share on total dairy market

15 FRESH DAIRY PRODUCTS Continued double-digit growth 13.9% 9.5% 8.5% 9.2% 9.6% 12.0% 11.2% 11.9% 10.5% Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08* Fifth consecutive quarter of double-digit growth despite high comparables Growth mainly driven by Latin America, North America and Asia Blockbusters continue to fuel growth at +15% Stable volumes (-0.2%) despite unprecedented price increases *excluding Blédina 15

16 16 Waters Division

17 Waters division key figures 21% 2007 vs. 2006* Net Sales ( mln) 3,535 +4% Trading Operating Income ( mln) bp Trading Operating Income margin 13.6% 2007 PF at , % L-f-L Sales Growth (1) 6.8% 5.8% 8.2% 10.5% 9.7% 9.0% 10.8% (1) excl. Wahaha * On like-for-like basis -3.3% Q Q Q Q Q Q Q Q

18 18 Leading water brands throughout the world UK N 1N Germany N 1N Still water Poland N 1 USA France N 2N Japan N 1 Spain N 1N Turkey N 1 Mexico N 1N Indonesia N 1 Argentina N 1N

19 19 Spring water focus: the brand platforms Relevant rational benefit Rational Emotional Strong emotional benefit Lightness/ Elimination Vitality / Deep Hydration Youth/Body Renewal Body Management

20 20 Sustainable development as part of our water business model Further increase rail & boat transport Continue to further decrease PET weight / Bottle Reduce plastic waste Strong know-how on natural sources protection Engagement in local communities Use of our expertise for Social initiatives around Water

21 WATERS* Healthy underlying trend 6.8% 5.8% 8.2% 10.5% 9.7% 9.0% 10.8% 7.0% Q % Solid overall performance (+7%) predominantly driven by volumes (6.8%) Continued excellent growth in Latin America (+19%) despite social unrest in Argentina Steady growth in Asia (+10%) with strong performance of spring water brands *excluding Wahaha Europe s modest growth (+1%) impacted by Easter phasing and continued sluggish market in France 21

22 Baby Nutrition Division 22

23 Baby Nutrition key figures 17% 2007 PF* Net Sales ( mln) Trading Operating Income ( mln) Trading Operating Income margin 2, ca. 15.4% Numico Only L-f-L Sales Growth Value Volume +8.0% +15.0% 3.5% +12.2% 4.0% Sales impacted by managed reduction of intrade stock-levels +9.7% 2.6% 5.4% 11.5% 8.2% +4.0% 4.9% 5.0% 4.7% -0.9% Q1 Q2 Q3 Q4 FY * Central costs allocation is estimated (based on historical keys) 23

24 24 Leading market positions in Europe and Asia 3 /2 1 Thailand /2 3 Singapore Malaysia 3 Indonesia

25 Numico s Baby Nutrition portfolio is highly complementary to Danone s product lines Main countries Netherlands France UK Ireland Germany Eastern Europe Italy China Thailand Malaysia Products: Milk (75% of sale) Food (25% of sale) Source: Numico public information, Euromonitor 25

26 The barriers to entry are high. Frozen food 25% Pet food 21% Shelf stable food 19% Yogurt 15% on alcoholic beverages 12% Confectionnery 9% Alcoholic beverages 6% Baby Nutrition 2% % Worlwide Private Labels market share Source: Baby Food public information, brokers, Nielsen 26

27 and the category offers significant growth potential WW average 20kg APac AMEA Latin America Eastern Europe North America Western Europe France Per capita consumption (kg/ baby) Source: Euromonitor, External data APac: Asia Pacific 27

28 Source consumption diaries : % of acts of consumption according to the origin of the products 28 Babies and toddlers nutrition today: a major growth opportunity French example % of food intake 6-15 months months Home made food Adult food Baby food Breastfeeding

29 BABY NUTRITION Continuation of strong growth track-record 15.0% 18.8% 12.2% 8.0% 4.0% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08* Very strong performance on the back of rather favourable comparables Broad-based growth across all categories and geographies Strong value effect (+12.5%) due to price increases taken as of Q3 07 Resilient volume performance at +6.3% shows the strength of our brands and the loyalty of our consumers *including Blédina 29

30 30 Medical Nutrition Division

31 Medical Nutrition key figures 5% 2007 PF* Net Sales ( mln) Trading Operating Income ( mln) Trading Operating Income margin ca. 21.8% Value Volume +14.1% 1.5% L-f-L Sales Growth +15.5% 2.0% +14.0% 2.6% +10.2% 1.0% +13.4% 1.4% 12.6% 13.5% 11.4% 9.2% 12.0% Q1 Q2 Q3 Q4 FY * Central costs allocation is estimated (based on historical keys) 31

32 32 Medical Nutrition - Leading market player in every market where we are present China Brazil 1 Argentina Australia New Zealand

33 33 Medical Nutrition consists of two distinct businesses Medical Nutrition Disease Targeted Nutrition

34 34 Medical Nutrition treats malnutrition for various conditions Dementia Inability to eat (stroke) Surgery Swallowing disorders Cancer Diabetes

35 35 Disease Targeted Nutrition Severe Cow s Milk Allergies Metabolic Diseases Paediatrics Epilepsy

36 with a number of LT growth drivers Ageing population Lifestyle diseases exploding Growing role of Nutrition in disease management and prevention Industry in its infancy and growing at a fast rate 36

37 37 MEDICAL NUTRITION Continued strong performance across the board 15.5% 14.1% 14.0% 14.6% 10.2% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08* Continuation of the solid growth track-record Strong growth supported by all geographies and Southern Europe in particular All categories contributed to the growth, specifically "disease targeted nutrition"

38 38 The New Danone Medical Nutrition 0.8 bn 5% Baby Nutrition 2.4 bn 17% Fresh Dairy 8.3 bn 57% Waters 3 bn 21% Sales EBIT Margin mln 14.6%

39 Targets New targets reflect the New Danone Medium Term Target Target 2008 Sales growth +8% to +10% +8% to +10% Trading Op.Profit* (EBIT) growth Faster than sales growth Faster than sales growth EBIT margin improving >+30bp Underlying EPS growth >+15% * On like-for-like basis 39

40 40 The New Danone A unique food company focused 100% on Health