Allergy Obesity Cardiovascular diseases Diabetes. Source: internal data

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Ralf Carroll
7 years ago
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3 Specific nutrition/health needs High Low Growth/ Capital building Babies/ Toddlers Maintenance/ early prevention Adulthood Life stage Aging/ problem solving Elderly/ pathology Source: internal data

4 size (cm) 100 baby growth curve from 0 and 36 months Weight x 5 Size x Brain increases by 2g each day Progressive digestive, kidney and immunity maturation newborn baby 1 year 2 years age Source: internal data

5 Birth 3 years Allergy Obesity Cardiovascular diseases Diabetes Source: internal data

6 Market sizes ( B) growth Bottled water Sauces, dressings, condiments Fresh Dairy Functional drinks Baby Food Pasta 6% 2% 4% 7% 6% 3% Note: Clinical Nutrition includes oral, tube and devices. Manufacturers sales value Source: Euromonitor, external sources

4% 7% 6% 3% Note: Clinical Nutrition includes oral, tube and

7 Milk (Formula) Stage 1 milk (standard milk): 0-6 months Weaning Food Cereals (dried food): >4 months Stage 2 milk (followon milk): 6-12 months Prepared food: >4 months Stage 3 milk (growing up milk): months Other (biscuits, juices): >4 months Source: Baby Food players public information

Prepared food: >4 months Stage 3 milk (growing up milk): 12-36 months

8 Especially in Asia and Eastern Europe Baby Food market 100% 80 Australasia 18B AME With potential also in developed countries 2006 Baby Food growth 10% % Numico 20 2% Baby Food market Blédina France Source: Euromonitor, internal data, Baby Food players public information 2% Baby Food market UK

60 40 6% Numico 20 2% Baby Food market Blédina 0 2006 France Source:

9 High profitability High entry barriers Baby Food player margin (%) Frozen food Pet food Shelf stable food Yogurt Non alcoholic beverages Confectionnery Alcoholic beverages Baby Food 2% 6% 2% 9% 15% 12% 21% 19% 25% % WW Private Labels market share Milk & Food players Milk players Source: Baby Food public information, brokers, Nielsen

Baby Food 2% 6% 2% 9% 15% 12% 21% 19% 25% 0 5 10 15 20 25 30% WW Private Labels market

10 APac WW average 20kg AMEA Latin America Eastern Europe North America Western Europe France Per capita consumption (kg/ baby) Source: Euromonitor, External data APac: Asia Pacific

100 150 200 250 Per capita consumption (kg/ baby)

12 Numico + Blédina Baby Food positions W. Europe E. Europe Asia Africa Middle East

13 2 Russia China Source: Euromonitor, internal data, Numico public information

14 Main countries Netherlands Belgium UK Ireland Germany Eastern Europe Italy China Thailand Malaysia France France Products: Milk Food

15 Blédina: #1 player in France, the largest W. European market Baby Food market ( M) 1,500 Numico + Blédina: #1 player in Western Europe Baby Food Western European market and players ( B) Other 1, France Italy Source: Euromonitor, total market Germany Spain UK Netherlands Portugal Belgium Greece Austria Switzerland Ireland Finland Scale Numico + Blédina #1 After Numico's acquisition

Food Western European market and players ( B) Other 1,000 500 0 France Italy Source: Euromonitor,

16 Portfolio range Blédina Numico Infant : 6-18 months Savory plastic bowls & plates (aseptic technology) Toddlers: months Junior range nutritionally adapted to toddlers Meals, biscuits, flavored milk in bricks, fruit purée in pouches Source: Internal data, Numico public information

nutritionally adapted to toddlers Meals, biscuits, flavored milk in

18 Source: Internal data, Numico public information

19 Danone Numico Dairy: Probiotics Baby Food: Fermented bioactive 140M 800 people + Baby Food: Prébiotics Clinical Enteral Nutrition 45M people ~350 partners ~250 partners Vitapole, France Wageningen, Holland ~20 (5 continents) 4 (3 continents) Note: Does not include biscuits resources Source: Internal data, Numico public information

partners Vitapole, France Wageningen, Holland ~20 (5 continents) 4 (3 continents)

21 Fully integrate and Further leverage scale: Operations: Manufacturing, Purchasing Sales and Marketing: Distribution, A&P Human Resources: development opportunities and talent attraction

22 Same mission: Same corporate ambition: Similar R&D focus: Similar culture: Similar geographic ambitions: Health through food Growth and Innovation Benefit-driven Strong empowerment Asia, Eastern Europe, AME, Latin America A proven successful Baby Food business: Blédina

23 Main sources of M&A errors Integration top key Success Factors, already met by Danone Strategy 20% Valuation 22% Integration 58% Main integration errors: Poor communication Poor integration management Cultural differences not addressed Dedicated Integration Manager Comprehensive & Experienced Integration team Senior Executive Attention Source: Corporate Strategy Board

24 Revenue synergies Defined target: 120M- 140M Main areas: Leverage Blédina s superior food range and juniorization expertise Combine Numico, Blédina and Danone R&D to develop new technologies Strengthen Numico geographic footprint Build continuity with consumers from Baby Food to other Danone products Cost synergies Defined target: 60M Main areas: Headquarters overhead Purchasing Manufacturing A&P

25 Short term Keep the greatness of Numico and Blédina Baby Food alive and deliver short-term objectives Mid-term Leverage scale to fuel growth and sustain profitability Longer-term Unlock value and build the best-in-class Baby Food company: i.e. new product, new geographies, unique science

Foods With Healthy Supplements and Organics Have Room for Growth

Foods With Healthy Supplements and Organics Have Room for Growth Major Perception Gaps Across the Globe Towards Fortified and Organic Foods Popularity Held Back by Pricy Image, Niche Distribution and Credibility