2020 FY landing in line with reinstated guidance
? 14% recurring operating margin and €2.1bn free cash flow; net debt/EBITDA ratio maintained at 2.8x
? Contrasted top line performance leading to 2020 net sales of €23,620m, down -1.5% like-for-like (LFL) and -6.6%
on a reported basis
? EDP back to solid growth, up +3.4% LFL, highest rate since 2012
? Specialized Nutrition and Waters impacted by COVID-related channel disruptions, Specialized Nutrition
sequentially improvingin all geographiesin the fourth quarter
? Reported EPS up +1% at €2.99, recurring EPS down -13%at €3.34
? Carbon emissionsdown 1m tonsof CO2 eq. vs 2019 on a like-for-like basis, of which 50% thanks to regenerative
agriculture initiatives ; cost of carbon per share decreasingby -4.1%
2021 outlook
? Tough Q1 driven by base of comparison and continued channel-related headwinds
? Back to growth as of Q2, return to profitable growth in H2
? FY recurring operating margin expected to be broadly in line with 2020
Leading a bold reinvention to reconnect with mid-term profitable growth ambition
? Investing in portfolio superiority and differentiation, optimizing execution, reshaping the organization and
reviewing the portfolio
? €1bn savings plan fueling reinvestments in innovation and brand support
? Strengtheninggovernance to reinforce oversight of Management’s delivery of the plan

2020 Key Figures
in millions of euros except if stated otherwise 2019 2020 Reported
Change Like-for-like (LFL)
Sales 25,287 23,620 -6.6% -1.5%
Recurring operating income 3,846 3,317 -13.8% -10.9%
Recurring operating margin 15.2% 14.0% -117 bps -150 bps
Non-recurring operating income and expenses (609) (519) +89
Operating income 3,237 2,798 -13.6%
Operating margin 12.8% 11.8% -96 bps
Recurring net income – Group share 2,516 2,189 -13.0%
Non-recurring net income – Group share (586) (233) +353
Net income – Group share 1,929 1,956 +1.4%
Recurring EPS (€) 3.85 3.34 -13.2%
EPS (€) 2.95 2.99 +1.2%
Free cash flow 2,510 2,052 -18.3%
Cash flow from operating activities 3,444 2,967 -13.9%

All references in this document to Like-for-like (LFL) changes, Recurring operating income and margin, Recurring net income, Recurring income tax rate, Recurring EPS, Free cash-flow, net financial debt,
correspond to financial indicators not defined in IFRS. Their definitions, as well as their reconciliation with financial statements, are listed on pages 8 to 10. The calculation of Net Debt/EBITDA is detailed in the half-year interim financial report and the universal registration document.

Emmanuel Faber: Chairman and Chief Executive Officer statement
“I can’t start this comment on our FY 2020 results without paying a tribute to our 100,000 colleagues at Danone who made it possible for our brands to continue to serve our customers consumers patients, around the world. On behalf of our board of directors, I want to express my gratitude to them for their commitment, want to recognize the challenges they faced, including in their personal life, to adapt to this situation. Beyond the brighter, more efficient
and empowering organizational model of Local First, I want to also acknowledge the additional uncertainty created for those whose role might be affected by the transformation. We are committed to as quickly as possible clarify the future for everyone.
On the business front, as COVID became a pandemic throughout 2020, we faced material specific short-term challenges in a number of our key categories and geographies but also clearly uncovered significant long-term opportunities, whose existence directly lies in the strategic framework and choice of category portfolio that we
made over the last several years. our one planet one health framework of action has never been as relevant as today for the future, and we continue to be ahead of competition in implementing this vision.
Building on the highly successful integration of whitewave which sales grew 11% (like for like) last year, contributing
to 160 bps to our growth, I am thrilled to announce the acquisition of follow your heart, a California based pioneer company, leading the cheese and mayonnaise plant based alternatives, opening for Danone a strong foothold into the promising flexitarian trend in the US cheese market, in both retail and foodservice.
This is building further on our global leadership on plant-based, now representing 10% of our sales.
After making 2020 a year of both delivery and progress under serious challenging conditions, we know Q1 2021 is
going to be heading tough comparables in particular in our SN Chinese operations and that governmental health strategies around the world will continue to create uncertainties on the speed of recovery of mobility in indexes that will weigh a bit longer on our water business performance.
2021 is therefore going to be a year of recovery. we are focused on preparing our return to sales growth as soon as Q2, and are fully confident that we are building the right conditions and momentum to reconnect with our profitable growth agenda as soon as H2.
In this context, we fully recognize that our share price is not where we would like it to be and we are pleased that this FY announcement resumes our ability to dialogue openly with our shareholders, in preparation of our important
CME On March 25, when we will share more on the growth platforms underlying our categories and countries, as well as our progress on our transformation plans, which will provide the necessary support to our full ability to unlock
our short and mid term profitable growth opportunities.”

I. FOURTH QUARTER AND FULL-YEAR RESULTS
Fourth quarter and full-year sales
In 2020, consolidated sales stood at €23.6 bn, down -1.5% on a like-for-like basis, with stable volumes (-0.1%) and a -1.5% decrease in value reflecting negative category and country mix, especially in Waters and Specialized Nutrition. On a reported basis, sales were down -6.6%, mainly driven by the negative impact of exchange rates (- 5.0%) that resulted from currencies devaluation against the Euro in the United States, Latin America, Indonesia and Russia. Reported sales were also impacted by a negative scope effect (-0.4%), resulting from the deconsolidation from April 1st, 2019 of Earthbound Farm, and by a +0.3% organic contribution of Argentina to growth.
In the fourth quarter, sales declined -1.4% on a like-for-like basis, showing a sequential improvement from the two previous quarters, with flat volumes. Reported sales were down -9.8%, mainly driven by a continued strong negative effect of -8.8% from exchange rates.

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