Health starts with water. Thomas Kunz

Transcription

1 Health starts with water Thomas Kunz

2 Danone Waters: 23 countries; 19 bn Liters; 2.6 bn Germany N 1 Belgium N 2 Switzerland N 2 France N 2 UK N 1 Ireland N 1 Poland N 1 Spain N 1 Turkey N 2 Iran N 1 DAMAVAND Japan N 1 Mexico N 1 Algeria China Indonesia N 1 Brazil Uruguay N 1 Argentina N 1

3 Summary Improving business trends, with developing countries representing 50% of sales Clear strategy focused on Category growth Priorities: Category relevance, brand presence & costs

4 Volume growth is accelerating in % 7% Quarterly volume growth vs YA 9.8% 6% 5.8% 5% 4% 3% 4.0% 3.0% 4.4% 2% 1% 0% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09

5 ...and sales value is returning to growth 6% 5% 4% 4.1% Organic sales growth vs YA) 4.6% 3% 2% 1% 0.2% 0% -1% -2% -3% -1.7% -4% -5% -3.9% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09

6 This covers two realities... 20% 15% 10% 5% 14.4% 17.1% 11.8% 10.1% 16.4% Developing Countries 0% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09-5% -3.4% Mature Countries -10% -7.4% -6.8% -15% -20% -14.6% -17.1%

7 Developing Countries: 50% of sales, 60% of profit Sales EBIT % 59% 2005 Mature Countries Developing Countries E % 51% E % 40%

8 Our objectives: Return Mature Countries to growth Accelerate in Developing Countries

9 Three priorities across all geographies Per Capita Consumption 1. Category growth 2. Presence 3. Cost

10 1. Category growth: Driven by Health Credibility & Sustainability Health Credibility battles Sustainability is at the heart of our model Brands our sources the original purity of our water Natural Water water resources communities the environment Water

11 The 3 Credibility Battles The battle for our brands Build relevance & visibility of our brand benefits The battle for natural waters Differentiate natural waters vs tap & purified waters The battle for water Grow water category in the beverage market

12 The main Battle is at the Base 1. Water is the healthiest beverage to hydrate March 09 The battle for Our brands The battle for Natural waters 2. We don t drink enough water March 09 The battle for water

13 The Battle For Water is our main battle More water = less calories = better hydration Daily liquid consumption analysis, France Heavy water drinkers drink less sugary beverages Consumption shifting analysis, UK Where did volume losses go to? Consumption profile according to Plain water SS L/da 3,00 y 2,50 2,00 1,50 1,00 0,46 0,35 0,45 0,30 0,51 0,43 0,27 0,47 0,32 0,35 0,26 0,37 0,25 0,21 0,27 0,12 0,14 0,12 0,20 1,78 All other beverages Alcoholic drinks Milk beverages Hot beverages Fruit juice CSD Aquadrinks Sparkling water Tap water Plain water Tap & hot beverages 26% Soft drinks 74% 0,50 0,61 0,39 0,08 1,12 0,33 0,09 0,60 0,00 0,24 0,05 <10% <20% <40% <60% % SS of Plain water Subject number UK Bottled Water 2008 switching analysis (source: Nielsen consumer panel)

14 In France / UK, full category defence plans...

15 ...are contributing to the re-start of the category UK cat. volume growth +11.6% +10.2% France cat. Volume growth +2.8% +4.6% -7.0% -3.6% -3.8% -9.0% -9.9% -7.9% -9.4% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 (Source: Nielsen Total Bottled Waters volume Great Britain) (Source: IRI Total Bottled Waters volume)

16 In developing countries: Building the category with health authorities Drinking water: one of the Mexican Ministry of Health s 5 STEPS towards a healthier nation (5 PASOS) program Mexico: Plain Still Water Volume growth in % (Bottles <10L - Source: Nielsen) ,1 1. Move yourself 2.Drink water 3. Eat vegetables & fruits 4. Measure 5. Share with family & friends % 35% -1,1 2,9 5,0 Q4 08 Q1 09 Q2 09 Q3 09 Bonafont Volume share (Plain Still Water - Bottles <10L - Source Nielsen ) 35.6% 32% 32.4% 34.1% Promote the healthy life style, make people self- conscious 29% 26% YTD Sep09

17 Developing countries: Building the category with Health authorities In Poland we started a campaign targeted at children «Mum, Dad, I prefer water!» under the sponsorship of the Polish ministry of Health In schools In stores Category growth is accelerating Zywiec is gaining share Plain Still market volume growth (Source: Nielsen) YTD Sep09 23% 22% 21% 20% 19% 18% 17% 16% 15% Zywiec volume share (Source: Nielsen) 20.1 % 21.8 % 22.5 % YTD Sep09

18 Sustainability is at the heart of our model our sources the original purity of our water water resources communities the environment

19 Sustainability achievements % CO2 reduction achieved in % water usage reduction in 2009 On track for 50% rpet content by mln mangroves planted in 2009 (Danone Ramsar wetlands protection initiative)

20 2. Presence: Availability and visibility to consumers On-the-go Store coverage Jugs In homes

21 Proximity stores: A major growth driver Controlled Proximity Outlets (Index 100 in 2006) Nb stores covered 186 Split by channel Proxi 45% Other 55% % Growth E 2009

22 Availability & visibility in homes: HOD is a brand-building business model A branded, affordable proposition for daily home consumption A packaging size that we market actively An offer that strongly enhances brand visibility A unique way to come closer to consumers

23 HOD is growing and profitable Sales YTD oct09 EBIT YTD oct09 PET 88% HOD 12% PET 87.6% HOD 12.4%

24 HOD insights from Developing Countries translated to Mature Countries More proximity, more affordability Practical 3L size positioned for fridges Convenient, easy storage Designed for fridge door More volume with less plastic per liter Bigger 5L / 8L formats, for an optimized CO2 footprint

25 3. Cost

26 Productivity efforts stepped up in COGS Productivity (in mln and as a % of COGS) Transparent value chains Packaging lightweighting 4.4% 5.3% Supply chain re-engineering 3.1% 3.3% 3.4% DaMaWay performance gains E Strong benchmarking culture

27 ...allowing to decrease our COGS weight 6.0 Net price -2.5 Reeng -3.0 Net price -3.5 Reeng E2009 Index 100 in 2007, excl. mix & forex effects

28 As a conclusion... Drinking 2L of water a day is a simple, but a decisive attitude step towards a healthy lifestyle