Danone // 2020 Universal Registration Document

Business highlights in 2020 and outlook for 2021 3.1 Business highlights in 2020 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 42 Research and Innovation Essential Dairy and Plant-Based Products The Essential Dairy & Plant-Based Reporting Entity’s Research and Innovation teams continued to innovate in 2020 by enhancing and expanding the product ranges: • products suited to at-home consumption patterns, for example with the launch of the Danone à Partager range in France; • plant-based products, for example by developing hazelnut and coconut milk-based products under the Danette brand and alternative coffee creamers, ice creams and yogurts under the So Delicious and Silk brands; • products without sweeteners or with little or no added sugar under the Activia and Actimel brands in Europe and Russia, and with the launch of the Light & Free brand in Canada; • products containing locally sourced fruit, particularly for the Danone range in France, Mexico and Spain; • products for children, for example with the development of al- ternative non-dairy beverages and yogurts under the Silk brand and the launch of a probiotic range under the Danimals brand in the United States; • products with health benefits, for example with the launch of a new collagen and antioxidant range under the Light & Fit brand in the United States; • formats tailored to new consumption patterns with the launch of large containers in the United States. Danone also continued to conduct research on fermented products and health. In particular, the Research and Innovation teams carried out a meta-analysis that was recently published and showed that eating two portions of a dairy product containing specific Danone strains ( L. casei ) and ferments of yogurt could reduce the risk of common infectious diseases (such as respiratory or gastrointestinal infections) in the general population. Waters In 2020, the Waters Reporting Entity’s Research and Innovation team focused their efforts on: • studying the impacts of the Covid-19 pandemic on consumers’ expectations and how to translate theminto the product experience; • overhauling the beverage ranges with more than 70 reworked formulas under the Mizone , Badoit , Volvic and Bonafont brands to offer less sugary, more natural versions, which resulted in particular in the launch of sparkling beverages with little or no sugar in Poland, Germany and Denmark and expansion of the organic ranges in France, Germany and Switzerland; • highlighting the specific characteristics of natural mineral wa- ters through a promotional campaign in France and Indonesia to demonstrate the link between the origin, composition and taste of water; • further reinventing packaging to expand the use of large formats, 100% recycled PET bottles and/or plastic alternatives (new aluminum cans in Mexico, France and Denmark). For instance, Danone redesigned 44 bottles to reduce the amount of plastic used by 4,500 tons and continued to develop label-free bottles, particularly under the evian brand. Danone also launched its first reusable bottle in Indonesia. In addition, Danone is continuing its scientific research on hydration and the benefits of water consumption on health. Specialized Nutrition In 2020, the Specialized Nutrition Reporting Entity’s Research and Innovation teams continued to develop products, science and services for infants, children and their parents and for people of all ages who have been diagnosed with variousmedical conditions. They launched new solutions in the (i) Aptamil Essensis range containing organic A2 beta caseins and oligosaccharides, and achieving a closer composition to breast milk, (ii) the first nutritional product under the Happy Family brand for teething in children, (iii) specialized pediatric nutrition with the Milnutri Picky Eater brand for fussy eaters, and (iv) the Peptisorb HEHP brand (enteral nutrition) for adult patients along with the local Karicare Organic brands in Australia and New Zealand. They also adapted to changing needs and dealt with unexpected situations caused by the Covid-19 pandemic with agility, all while implementing the “One Planet, One Health” frame of action. They developed guidance on the best way to feed Covid-19 patients on ventilators and held webinars on nutrition and immunity, particu- larly for those in intensive care and discharged from the hospital. More generally, the teams participated in the Meta-Covid project, led by the Leiden University (Netherlands), the aim of which was to define personalized treatments to control the severity of symp- toms in Covid-19 patients. In addition, to handle situations where hospitals were no longer accessible to participants in clinical trials, the teams designed a completely virtual study. Lastly, the teams called on technology experts to adapt the organization so that the supply points could contend with changes in demand, and therefore in the supply of the necessary ingredients and staff at the produc- tion sites. They also made key advances in the area of plant-based nutrition, post-biotics, packaging, sustainable development and spraying techniques. Major contracts Over the last two fiscal years, Danone has not entered into any major contracts entailing a significant obligation or commitment for the Company and its subsidiaries, other than those entered into in the normal course of business.