Danone // 2020 Universal Registration Document

Business highlights in 2020 and outlook for 2021 3.2 Consolidated net income review DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 48 ADDITIONAL INFORMATION ON CONSOLIDATED INCOME STATEMENT Bridge from reported to like-for-like figures (in € millions except percentage) 2019 Impact of changes in scope of consolidation Impact of changes in exchange rates and others, including IAS 29 Argentina organic contribution Like-for-like growth 2020 Sales 25,287 (0.4)% (5.0)% +0.3% (1.5)% 23,620 Recurring operating margin 15.2% +7bps +38bps (11)bps (150)bps 14.0% IAS 29 applied to Argentina: impact on reported data Danone has been applying IAS 29 in Argentina from July 1 st , 2018. Adoption of IAS 29 in this hyperinflationary country requires its non-monetary assets and liabilities and its income statement to be restated to reflect the changes in the general pricing power of its functional currency, leading to a gain or loss on the net monetary position included in the net income. Moreover, its financial state- ments are converted into euro using the closing exchange rate of the relevant period. (in € millions except percentage) 2020 Sales (36) Sales growth (0.2)% Recurring Operating Income (23) Recurring Net Income – Group share (27) Breakdown by quarter of full-year 2020 sales after application of IAS 29 Full-year 2020 sales correspond to the addition of: • Q4 2020 reported sales; • Q1, Q2 and Q3 2020 sales resulting from the application of IAS 29 until December 31 to sales of Argentinian entities (application of the inflation rate until December 31, 2019 and translation into euros using December 31, 2020 closing rate) and provided in the table below for information (unaudited data). (in € millions) Q1 2020 (a) Q2 2020 (b) Q3 2020 (c) Q4 2020 2020 EDP 3,354 3,232 3,106 3,131 12,823 Specialized Nutrition 1,946 1,789 1,703 1,753 7,192 Waters 924 924 1,014 743 3,605 Total 6,223 5,946 5,823 5,628 23,620 (a) Results from the application of IAS 29 until December 31, 2020 to Q1 sales of Argentinian entities. (b) Results from the application of IAS 29 until December 31, 2020 to Q2 sales of Argentinian entities. (c) Results from the application of IAS 29 until December 31, 2020 to Q3 sales of Argentinian entities. DIVIDEND PAID IN RESPECT OF 2020 FISCAL YEAR At the Annual General Meeting on April 29, 2021, Danone’s Board of Directors will propose a dividend of €1.94 per share, in cash, in respect of the 2020 fiscal year. In line with the Company’s conti- nued measured and balanced dividend policy, the dividend is down 8% from last year. This reflects on the one hand the impact of the deteriorated environment on 2020 results and demonstrates on the other Danone’s confidence in rapidly reconnecting with profitable growth, as reflected by the increased pay-out ratio to 58%. Assuming this proposal is approved, the ex-dividend date will be on May 10, 2021 and the dividends will be payable on May 12, 2021.