Danone: a living organization. Emmanuel FABER Co-COO

Transcription

1 Danone: a living organization Emmanuel FABER Co-COO

2 Since 2008, we have transformed the company in many dimensions People 50,000 persons trained to leadership Access to health insurance to 24,000 persons 51,000 jobs created or consolidated through Ecosystem Fund

3 Since 2008, we have transformed the company in many dimensions For all From 600 to approx. 900mln Danone consumers danone.communities grown to 10 projects

4 Since 2008, we have transformed the company in many dimensions Nature -30% CO 2 reduction SAP measuring process Creation of Livelihood Fund

5 Since 2008, we have transformed the company in many dimensions Health Leveraging local context: Nutriplanet in 38 countries Demonstrating our products nutritional superiority: Nutriprogress in 55 BUs

6 For next 3 years, 3 key pillars to the Danone mission Mission Bringing HEALTH through food to as many people as possible

7 Working along the whole foodchain to build an EDGE Securing access to resources at manageable price Better use resources and reduce costs Increase brand equity

8 Scarce resource, increasingly volatile costs GSCI Index

9 At the heart of our business: Developing & securing quality milk supply Egypt: Dan Farm Community Dairy farm 100% controlled by Danone to secure both volumes and quality

10 At the heart of our business: Developing & securing quality milk supply Russia: Milk Business Academy. Education program for Russian dairy farmers Objective: ensure high quality and longterm supply of milk to Danone-Unimilk; increase productivity Purpose: a teaching farm to provide practical trainings and agricultural education

11 At the heart of our business: Protecting natural water resources Evian s impluvium protection Klaten Develop sustainable agriculture practices (and agroforestry to protect water resources on long term, empower farmers families in Pusur water shed in 4 years: > 15 years of filtration APIEME Classified Ramsar zone CIRAD project to improve irrigated agriculture & empower farmers Agro forestry projects in up stream area ( trees planted) Organic rice model close to AQUA village (already 20 Ha converted)

12 At the heart of our business: Developing the recycling chain Context Recycled PET is 60 /t (5%) cheaper than virgin PET outside France Action Create a safe, economical and socially focused recycling model in Mexico Lack of offer & Rpet war in Mexico: Only 20% of PET is recovered 70% goes to China Collection & sorting performed by wastepickers: the pepenadores : Very low efficiency due to very hard conditions Social exploitation & poor life conditions (220USD / month average)

13 100 mln Ecosystem Fund: 41 active projects in cooperation with NGOs 41 active projects Consolidation/creation of jobs Medical (4) Baby (7) Waters (7) Dairy (23) SOURCING (18) DISTRIBUTION (7) CARING SERVICES (7) RECYCLING (4) TERRITORY (5)

14 Beyond access: Making the most of our resources Platinum roll out And much more potential Greek yoghurt Lactose Whey to sell (low protein) Cheese products 7 Million Tonnes Milk K Tons Dairy Component powders Yoghurts Drinks Desserts Excess Milk To sell Milk cracking Excess Cream To sell

15 Beyond access: Making the most of our resources Improved feeding increase milk nutritional density while reducing methan emission 600 Methane (g/d) Y=-8.72x R² = Lait C18 (%) 70

16 Correlating CO 2 reduction and cost savings CO 2 /kg group reduction 2012 Objective -4.3% -10.5% -22% -27,5% -30% (1) Base scope all but agriculture, cumulated CO2 intensity reduction

17 Efficient & innovative foodchain management a key contributor to productivity Danone Productivity ( mln) >

18 and a key contributor to brand equity Danone ranks 9 out of 50 global brands

19 Increase share of mind of our categories Competitors KOLs Regulators Consumers are confused Journalists & bloggers Health organizations NGOs & activists

20 in a world of increased access to exponential amount of information

21 This revolution calls for significant changes in the way we interact with our environment $ Investment Weight of digital: Danone media investment Average media consumption 40% Technology Mindset 3% % 2011

22 This revolution calls for significant changes in the way we interact with our environment $ Investment Adapt to mobile, to ecommerce, listening tools, owning the data Eg China e-tailing Technology Mindset

23 This revolution calls for significant changes in the way we interact with our environment $ Investment Technology 360 vision of our business from outside: nature, health, employment, affordability, etc Mindset Engaging all stakeholders by involving them in decision making and innovation process

24 New ways of working CO-designed with Barcelona Design Students Crowdsourced among a select group of top talent in collaboration with Poptent

25 New ways of working: Co-creation Turkey: Educating on the need for milk intake after 6 months (Breast milk completed by Follow on Formulae if necessary) 6-12 months actual milk intake 290 ml WHO Babies need 500ml milk after 6 months Min 500 ml 2010 Raise awareness 2011 Partnership 2012 Education Milk Centric Diet Breast Milk (+FOF) Milk Amount Checker Facebook Pediatric Association HCP Meetings With Ministry of Health TV Series Connect to Bloggers Social Responsability Project HCP E- Meetings - 25% cvg. (1) * Observational Study performed by pediatritions with 577 mothers of babies > 6 mth

26 More than 1 bn Danone consumers in the world

27 15 years of pushing back the frontiers Sales breakdown in % Emerging markets 6% North America Sales breakdown in % Western Europe 51% Emerging markets 77% Western Europe 2% Japan + ANZ 9% North America 17% Emerging markets 51%

28 MICRUBs: 6 major countries as our flagships H weight on Sales 40% ROP 43% Sales growth 66%

29 Increased capabilities to adapt for local relevance Brazil: driving growth in Medical Nutrition Medical Credibility +2pt MS in 2 years

30 Increased capabilities to adapt for local relevance Mizone China: unique sensory signature, unique positioning CAGR 35%

31 Increased capabilities to adapt for local relevance US: playing the right segments & channels

32 Increased capabilities to adapt for local relevance Indonesia: Successful business model focused on Indonesian kids needs Superior taste Low cost recipe Vegetables protein Target deficiency Iron & zinc focus Sales x2.5 in 2 years e

33 2012: new step in 2 key regions India: Acquisition of Wockhardt Number 2 player National sales coverage More that 30,000 HCPs /doctors coverage +22% sales growth H1 2012

34 2012: new step in 2 key regions Morocco: Majority stake in CLM Dairy Value Market shares

35 Planting the seeds in Africa Nutriplanet in 9 countries Expanding Baby Nutrition reach Phased entry (from export tu full operating business) Developing adapted portfolio Adapting Route To Market

36 Planting the seeds in Africa: Example of Senegal Senegal Laiterie du berger: mini-factory nomadic peul cattle risers Moss Tekki: co-creation Livelihood Fund: 100 mln mangrove trees

37 Building on long term partnerships

38 Danone model for 15 years Growth Superior Profitable Sustainable

39 Increasingly contrasted equations 2012 % Group Sales 9M12 LFL Growth H112 LFL Margin change GROWTH MARKETS 37% + 16% + [50-100] NORAM & CIS 21% + 5% + [ ] EUROPE (ex CIS) 42% - 2% - [ ] TOTAL 100% + 5.6% - 60 bps

40 A geographical transformation 2008 H Growth markets 29% Growth markets 37% Sales NORAM CIS 14% Europe 57% NORAM & CIS 21% Europe 42% EBIT Growth markets 25% Europe; 64% Growth markets 41% Europe 46% NORAM & CIS 11% NORAM & CIS 13%

41 Living ferment of this transformation Our culture UNIQUE Entrepreneurial and agile Free-thinking and pragmatic Co-creation and sharing