Danone // 2020 Universal Registration Document

Overview of activities, risk factors 2.6 Risk factors DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 26 DESCRIPTION MANAGEMENT MEASURES low External growth & integration Danone’s strategy consists in holding strong positions in each of the markets in which it operates, involving the pursuit of growth opportunities through joint-ventures or acquisitions in attractive markets where the Company is absent or under-scaled. The Company’s results depend, to some extent, on its ability to successfully integrate such business acquired or partnerships. As a reference, goodwill represents around 40% of Danone’s total assets as of December 31, 2020. Acquisitions may have an adverse effect on Danone’s activities, asset values (notably goodwill) and results if the Company does not succeed in rapidly and efficiently integrating the acquired companies and achieving the expected benefits of the acquisitions, in particular if the Company does not succeed in: • identifying the specific associated risks during each acquisition; • delivering the acquisition business case, i.e. developing the business and achieving the synergies expected from the acqui- sition. For each acquisition, Danone’s dedicated teams prepare an integration programand provide the resources necessary for its implementation. For example, the 2017 acquisition of theWhiteWave group’s companies has been the subject of an integration plan, and their assets have been integrated in Danone’s internal control system.