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Social, societal and environmental responsibility

5.2 Information concerning Danone's social, societal and environmental performance in compliance with the Grenelle II law

DANONE

REGISTRATION DOCUMENT 2015

175

By age

As of December 31, 2015, more than 88% of Danone employees (Social Indicators Scope, see

Methodology Note

) were under age 50.

Year ended December 31

Workforce percentage

(a)

2015

< 20 years old

0.5%

from 20 to 29 years old

24.0%

from 30 to 39 years old

39.6%

from 40 to 49 years old

24.2%

from 50 to 59 years old

10.5%

> 60 years old

1.2%

Total

100.0%

(a) Social Indicators Scope (see

Methodology note

).

By geographical area

As of December 31, 2015, less than 20% of all employees in Western Europe, North America and Africa and the Middle East were under

age 30, while employees under age 30 in the other geographical areas accounted for 26% to 29% of the workforce.

Year ended December 31

2015

Workforce percentage

(a)

Less than 30 years old From 30 to 49 years old

50 years and older

Africa and Middle East

18%

70%

13%

Asia-Pacific

28%

67%

5%

Eastern Europe

26%

61%

14%

Western Europe

16%

57%

26%

Latin America

29%

65%

6%

North America

15%

59%

26%

(a) Social Indicators Scope (see

Methodology Note

).

New hires and dismissals

In a tense international economic environment, Danone must adjust

as necessary to changes in the market, projects and competition

and adapt its organization in order to return to sustainable growth

and ensure its long-term viability. An ongoing social dialogue re-

garding the impacts of these adjustments on employment is part of

an employee support system designed to minimize these impacts.

Alternative solutions to layoffs are routinely sought, such as changing

the organizations and related activities, discontinuing the use of

temporary workers, re-insourcing activities and providing training

or leave periods. When layoffs become inevitable, a significant

employee support system is set up to minimize the consequences

for individuals. The continued employment of workers following

the sale of several sites has therefore been made possible by the

guarantees implemented by Danone.

In 2015, there were 7,010 dismissals compared to 8,773 in 2014 (Social

Indicators Scope, see

Methodology Note

) along with 13,662 new hires.

Compensation and promotion

Compensation

Danone fosters competitive and equitable compensation based on

its own system of evaluating and classifying jobs to support human

resources development worldwide and create an individualized

compensation management approach that takes into account the

local requirements and situations of the various subsidiaries.

This policy is updated annually within each subsidiary based on

market studies by country of external compensation levels and

on decision-making tools and processes that guarantee equitable

compensation. Median salaries by classification level and wage

increase rules are defined relative to local jobmarket conditions and

subsidiaries' needs, and based on the ability of Danone's subsidiaries

to generate growth and profits, as well as employment performance.

Moreover, the compensation policy is based on an overall com-

pensation approach related to economic, social and managerial

performance goals (see section 6.3

Compensation and benefits of

corporate officers and governance bodies

).