Danone // 2020 Universal Registration Document

3 Business highlights in 2020 and outlook for 2021 3.2 Consolidated net income review 43 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 3.2 CONSOLIDATED NET INCOME REVIEW KEY FIGURES Year ended December 31 (in € millions except if stated otherwise) 2019 2020 Reported changes Like-for-like changes (a) Sales 25,287 23,620 (6.6)% (1.5)% Recurring operating income (a) 3,846 3,317 (13.8)% (10.9)% Recurring operating margin (a) 15.2% 14.0% -117 bps -150 bps Non-recurring operating income and expenses (609) (519) 89 Operating income 3,237 2,798 (13.6)% Operating margin 12.8% 11.8% -96 bps Recurring net income – Group share (a) 2,516 2,189 (13.0)% Non-recurring net income – Group share (586) (233) 353 Net income – Group share 1,929 1,956 1.4% Recurring EPS (in €) (a) 3.85 3.34 (13.2)% EPS (in €) 2.95 2.99 1.2% Free cash flow (a) 2,510 2,052 (18.3)% Cash flow from operating activities 3,444 2,967 (13.9)% (a) See definition in section 3.6 Financial indicators not defined in IFRS . SALES Consolidated sales In 2020, consolidated sales stood at €23.6 billion, down -1.5% on a like-for-like basis, with stable volumes compared to last year (-0.1%) and a -1.5% decrease in value reflecting negative category and country mix, especially in Waters and Specialized Nutrition. On a reported basis, sales were down -6.6%, mainly driven by the negative impact of exchange rates (-5.0%) that resulted from currencies devaluation against the Euro in the United States, Latin America, Indonesia and Russia. Reported sales were also impacted by a negative scope effect (-0.4%), resulting from the deconsolidation from April 1 st , 2019 of Earthbound Farm, and by a +0.3% organic contribution of Argentina to growth. Sales by Reporting Entity Year ended December 31 (in € millions except percentage) 2019 2020 Sales growth (a) Volume growth (a) EDP 13,163 12,823 +3.4% +3.0% Specialized Nutrition 7,556 7,192 -0.9% -0.8% Waters 4,568 3,605 -16.8% -7.7% Total 25,287 23,620 -1.5% -0.1% (a) Like-for-like.