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4.1 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 7. Number of employees, personnel costs and employee benefits

DANONE

REGISTRATION DOCUMENT 2015

105

Note 6.5. Notification by the Spanish National Commission for Markets and Competition

The main stakeholders in the fresh dairy products sector in Spain,

includingDanone, have been fined by the SpanishNational Commission

for Markets and Competition (CNMC) for having shared information

with competitors on prices and on business strategy. Danone is

assembling the necessary documentation to lodge an appeal.

A provision has been recognized in respect of the full amount of

the fine (€23 million) and the corresponding expense has been

recognized in Other operating income (expense) in the consolidated

financial statements for the year ended December 31, 2015. No

amount was paid in 2015.

NOTE 7. NUMBER OF EMPLOYEES, PERSONNEL COSTS AND EMPLOYEE BENEFITS

Note 7.1. Number of employees at fully consolidated companies

As of December 31

2014

2015

Total number of employees

99,927

99,781

By geographical area

France

9%

9%

Rest of Europe

28%

28%

China

10%

10%

Rest of Asia-Pacific

18%

18%

North and South America

27%

27%

Africa and Middle East

9%

9%

Total

100%

100%

By Division

Fresh Dairy Products

42%

40%

Waters

38%

39%

Early Life Nutrition

12%

14%

Medical Nutrition

7%

6%

Corporate functions

1%

2%

Total

100%

100%

Note 7.2. Personnel costs of fully consolidated companies

Year ended December 31

(in € millions)

2014

2015

Salaries and social security charges

(a)

(2,971)

(3,385)

Retirement obligations – defined benefit plans

(b)

(26)

(34)

Expenses relating to Group performance shares and stock-op-

tions

(19)

(21)

(a) Salaries after social security charges. Also comprises the contributions in respect of defined contribution retirement plans.

(b) Service cost.