Danone // 2020 Universal Registration Document

Business highlights in 2020 and outlook for 2021 3.3 Free cash flow DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 50 CONSOLIDATED STATEMENT OF CASH FLOWS Year ended December 31 (in € millions) 2019 2020 Net income 2,028 2,030 Share of profit of associates net of dividends received 99 (272) Depreciation, amortization and impairment of tangible and intangible assets 1,386 1,452 Net change in provisions and non-current liabilities 111 32 Change in deferred taxes 40 (37) (Gains) losses on disposal of property, plant and equipment and financial investments 14 (54) Expense related to Group performance shares 30 16 Cost of net financial debt 220 209 Net interest paid (212) (197) Net change in interest income (expense) 8 12 Other components with no cash impact 39 20 Cash flows provided by operating activities, before changes in net working capital 3,755 3,199 (Increase) decrease in inventories (178) (86) (Increase) decrease in trade receivables (268) 59 Increase (decrease) in trade payables 266 (204) Change in other receivables and payables (131) − Change in working capital requirements (311) (232) Cash flows provided by (used in) operating activities 3,444 2,967 Capital expenditure (a) (951) (962) Proceeds from the disposal of property, plant and equipment (a) 16 43 Net cash outflows on purchases of subsidiaries and financial investments (b) (112) (183) Net cash inflows on disposal of subsidiaries and financial investments (b) 58 547 (Increase) decrease in long-term loans and other long-term financial assets (19) (54) Cash flows provided by (used in) investment activities (1,008) (610) Increase in share capital and additional paid-in capital 55 30 Purchase of treasury shares (net of disposals) − − Interest on undated subordinated notes (22) (22) Dividends paid to Danone shareholders (c) (1,256) (1,363) Buyout of non-controlling interests (153) (99) Dividends paid to non-controlling interests (60) (55) Contribution from non-controlling interests to capital increases 4 6 Transactions with non-controlling interests (209) (147) Net cash flows on hedging derivatives (d) (7) (1) Bonds issued during the period − 1,600 Bonds repaid during the period (1,899) (2,050) Net cash flows from other current and non-current financial debt 354 (306) Net cash flows from short-term investments 584 (102) Cash flows provided by (used in) financing activities (2,400) (2,360) Effect of exchange rate and other changes (e) (231) (48) Increase (decrease) in cash and cash equivalents (195) (51) Cash and cash equivalents as of January 1 839 644 Cash and cash equivalents as of December 31 644 593 Additional information Income tax payments during the year (774) (753) (a) Relates to property, plant and equipment and intangible assets used in operating activities. (b) Acquisition/disposal of companies’ shares. In the case of fully consolidated companies, this comprises cash and cash equivalents as of the acquisition/ disposal date. (c) Portion paid in cash. (d) Derivative instruments used to manage net debt. (e) Effect of reclassification with no impact on net debt.