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Overview of activities, risk factors

2.2 Presentation of Danone

DANONE

REGISTRATION DOCUMENT 2015

13

2.2 PRESENTATION OF DANONE

Activities

Danone's strategy is in line with its mission of “bringing health

through food to as many people as possible”. Since 2007 and the

acquisition of Numico, this mission has been implemented through

four Divisions:

•

the Fresh Dairy Products Division (production and distribution of

yogurts, fermented dairy products and other specialties of fresh

dairy products) accounted for 50% of Company sales in 2015;

•

the Waters Division (production and distribution of packaged

natural, flavored and vitamin-enriched water) represented 21%

of Company sales in 2015;

•

the Early Life Nutrition Division (production and distribution of

specialized food for babies and young children to complement

breast-feeding) accounted for 22% of Company sales in 2015;

•

the Medical Nutrition Division (production and distribution of

specialized food for people afflicted with certain illnesses or frail

elderly people) made up 7% of Company sales in 2015.

Consolidated sales by Division

(in € millions)

Each Division has a global management unit, to which the dedicated

local entities report.

Danone enjoys, in value, the following leadership positions: No. 1

worldwide for fresh dairy products, No. 3 worldwide for packaged

waters, No. 2 worldwide for early life nutrition and No. 1 in Europe

for medical nutrition.

Principal markets

The Company is present in all of the regions of the world:

•

Europe, accounted for 40% of the Company sales in 2015, with

contributions from all four Divisions. The leading countries in

this region include France, the United Kingdom and Spain;

•

the CIS & North America zone represented 20% of the Company

sales in 2015 thanks to the strong performance of the Fresh Dairy

Products Division in these markets;

•

the ALMA zone – which combines the activities in the Asia/Pacific

region, Latin America, Africa and the Middle East – represented

40% of the Company sales in 2015:

• in the Asia/Pacific region, China and Indonesia lead the way

thanks to robust sales in the Waters and Early Life Nutrition

Divisions;

• in Latin America, Argentina, Mexico and Brazil are the main

contributors for the Company's four Divisions;

• in the Africa and Middle East regions, Morocco and South

Africa are the largest markets, focused mainly on fresh dairy

products. The Early Life Nutrition Division is also growing

rapidly in this zone through an export model.

Consolidated sales by geographical area

(in € millions)

Fresh Dairy Products

Waters

Early Life Nutrition

Medical Nutrition

11,057

1,593

4,768

4,994

8,900

4,471

9,041

Europe

CIS & North America

ALMA