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FULL YEAR RESULTS 2017

Emmanuel Faber, Chairman and CEO Cécile Cabanis, CFO

February 16, 2018

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• This press release contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “objective” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue,” “convinced,” and “confident,” the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, statements regarding Danone’s operation of its business, and the future operation, direction and success of Danone’s business.

• Although Danone believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, please refer to the “Risk Factor” section of Danone’s Registration Document (the current version of which is available on www.danone.com).

• Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy Danone securities.

• All references in this presentation to like-for-like changes, “like-for-like New Danone” changes, recurring operating income,

recurring operating margin, recurring net income, recurring income tax rate, recurring EPS, Yakult Transaction Impact, free cash flow and net financial debt correspond to financial indicators not defined in IFRS used by Danone and are defined at the end of this presentation.

• Due to rounding, the sum of values presented in this document may differ from totals as reported. Such differences are not material.

Disclaimer

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Emmanuel Faber Chairman and CEO

2017 Highlights

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Our ambition Leading the way to create and share sustainable value

Healthier eating and drinking

Responsible business stewardship

Sustainable value

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We delivered very strong recurring EPS growth In line with guidance

Recurring EPS at constant FX

> 12%

Recurring EPS

at constant FX

+14.2%

2017 OBJECTIVE

2017 RESULTS

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A solid execution… 2017: another year of progress

(1) Like-for-like New Danone (2) On a reported basis

+2.5%(1)

€ 24.7 bn

+70bps(1)

14.36%

+18.4%(2)

€ 2.1 bn

NET SALES RECURRING

OPERATING MARGIN FREE CASH FLOW

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… in a responsible way Creating sustainable value for all stakeholders

+14.2% 88% -10.5% 5 2017 RECURRING EPS (1)

OF VOLUME SOLD ARE SUITABLE FOR DAILY CONSUMPTION (2)

REDUCTION OF CARBON INTENSITY FULL SCOPE (3) B CORP ENTITIES

(1) At constant exchange rate (2) This percentage refers to water, yogurt and other daily dairy products, baby milks & foods, milks and milk powders, beverages with 0% sugar and medical nutrition. Based on official public health Recommendation, these categories are generally suitable for daily consumption. (3) Compared to 2015 baseline, based on constant scope of consolidation and constant methodology; In line with our commitment of reduction of 50% in carbon intensity full scope (scopes 1, 2 and 3) by 2030, which is validated by the Science Based Targets Initiative Notes (2) and (3) do not take into account WhiteWave

20% of LTI as of 2018 A- Climate change

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Paving the way to societal accountability as a Food Revolution leader Significant progress on B-Corp roadmap

Aguas Argentina

5 entities certified to date DanoneWave on track to get certified in 2018 €2bn syndicated credit loan with now environmental and social criteria impacting payable margin

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STREAMLINED ORGANIZATION

Execution against strategic priorities Solid progress towards 2020

ACCELERATE GROWTH 1 Acceleration of innovation pipeline Strong activations of our brands Strategic digital partnerships

MAXIMIZE EFFICIENCIES 2 1st year delivery of synergies ahead of plan Preparation of Protein program

ALLOCATE CAPITAL WITH DISCIPLINE 3 Active portfolio management

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ACCELERATE GROWTH

MAXIMIZE EFFICIENCIES

ALLOCATE CAPITAL WITH DISCIPLINE

1

2

3

Acceleration of innovation pipeline Strong activations of our brands Strategic digital partnerships

1st year delivery of synergies ahead of plan Preparation of Protein program

Active portfolio management

STREAMLINED ORGANIZATION

Execution against strategic priorities Solid progress towards 2020

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Reinvent smart calories 100%

Non-GMO Launched in 5 months

Cross fertil ization with WhiteWave

Adjacent categories through new brands

Ultra-Premium Infant Milk

Plant-based premiumization

Activia Cereals range

Relaunch of flagship Danone brand Young

and local brands

Neocate Syneo Prebiotics + Probiotics

Soft Functional Infusions

Aquadrinks Premium Subplatforms

Actimel trendy flavours

Mizone Pro

Accelerated launch of innovations Focus on differentiation, setting the stage for the future

Lemonades

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+9%

Strong brand activation to engage with consumers in a new way Danimals: US Non-GMO Pledge

Source: IRI Mulo

2017 Sales growth

> 90% of products already Non-GMO Project Verified end of 2017, ahead of plan

2014 2015 2016

41%

2017

33%

www.dannonpledge.com

Danimal’s value market shares (Kids segment)

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Strong brand activation to engage with consumers in a new way Executing our 2 brands in China with a differentiated purpose

Become the #1 socially responsible parenting brand

Full of Nature Strength

Become the #1 culturally resonant parenting brand

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Strong brand activation to engage with consumers in a new way One Planet. One Health.

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Accelerated shift towards digital Strategic partnerships and investments in e-commerce

Superior Growing

Optimized Efficient

online shopping e-commerce presence

supply chain precision marketing

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July March Sept Nov Dec

Disrupt innovation through investments in new models 7 Danone Manifesto Ventures investments to date

2016 2017

Leading French F&B revolution with unconventional premium indulgence

(Paris)

Increasing fresh food accessibility via vending / connected fridge

innovation (Chicago)

Access tech / digital expertise and identify next gen partners

for F&B brands (Atlanta)

Redefining model for healthy, organic frozen baby food

prep in France (Bordeaux)

Partner to expand network and expertise in early stage,

US packaged F&B ecosystem (New-York)

Drive growth and pioneer sustainability in new deep ocean water category

(Los Angeles/Hawaii)

Leading ‘Harmless’, Fair for Life business model development offering premium plant-based

beverages (San Francisco/Thailand)

2018

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ACCELERATE GROWTH

MAXIMIZE EFFICIENCIES

1

2

Acceleration of innovation pipeline Strong activations of our brands Strategic digital partnerships

1st year delivery of synergies ahead of plan Preparation of Protein program

STREAMLINED ORGANIZATION

Execution against strategic priorities Solid progress towards 2020

ALLOCATE CAPITAL WITH DISCIPLINE 3 Active portfolio management

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> 10% of run-rate synergies

> $50m above objective

> 60% of run-rate synergies

WhiteWave synergies, chapter one Delivery on track, ahead of plan

2017 Onboarding phase

2018 Second wave

HQ consolidation

Sales force merge

G&A / Shared back-office

Procurement

Major part in cost synergies Procurement Sales Force consolidation G&A / shared back office Topline synergies Distribution expansion Commercial scale effect

2017 OBJECTIVE 2017 DELIVERY 2018 OBJECTIVE

2020 Full run-rate

$300m

2020 OBJECTIVE

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Preparing for Protein delivery €1bn sustainable savings through efficiencies

2017 Foundations in place

2018 1st year of delivery

2020 Full delivery

€300m in margin

From €1bn gross savings

10 clusters activated out of 30 clusters

Process in place: 15 playbooks created

Onboarding preparation of the next 20 clusters

Incentives in place for successful delivery

Top-20 cross-program identified (marketing, logistics…)

€100m in margin

Priority to efficiency in 2018

Mostly from travel costs, consultancy, IT/IS, real estate and marketing efficiency

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ALLOCATE CAPITAL WITH DISCIPLINE 3 Active portfolio management

STREAMLINED ORGANIZATION

Execution against strategic priorities Solid progress towards 2020

ACCELERATE GROWTH 1 Acceleration of innovation pipeline Strong activations of our brands Strategic digital partnerships

MAXIMIZE EFFICIENCIES 2 1st year delivery of synergies ahead of plan Preparation of Protein program

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Active portfolio management Continued discipline in capital allocation

Enhanced —

strategic collaboration to promote probiotics

Optimized —

stake in line with capital allocation discipline

Strategic partnership Financial discipline

Starting a new partnership phase with Yakult in probiotics

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STREAMLINED ORGANIZATION

Execution against strategic priorities Solid progress towards 2020

ACCELERATE GROWTH 1 Acceleration of innovation pipeline Strong activations of our brands Strategic digital partnerships

MAXIMIZE EFFICIENCIES 2 1st year delivery of synergies ahead of plan Preparation of Protein program

ALLOCATE CAPITAL WITH DISCIPLINE 3 Active portfolio management

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16 members

64% independent(1)

43% women

36% non-French

Increased focus on Consumer expertise

Reinforcing governance, ongoing Board refreshment Towards balance, efficiency, diversity and expertise

i

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Frédéric BOUTTEBA Clara GAYMARD

Gaëlle OLIVIER

Gregg ENGLES

Benoît POTIER Isabelle SELLIER Jean-Michel SEVERINO

Franck RIBOUD Honorary Chairman

Virginia STALLINGS Bettina THEISSIG Serpil TIMURAY Lionel ZINSOU i Independent Director (1) Directors representing employees are not taken into account in the determination of above percentages

Changes submitted for vote at next AGM on April, 26th 2018

i Guido BARILLA Cécile CABANIS i Emmanuel FABER Chairman & CEO

Michel LANDEL Lead independent director

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Strengthened management model

Focus

Diversity

Speed

Closer to market

Cross-regional collaboration 15 regional leaders empowered on global decisions

30 LOCAL CLUSTERS

STREAMLINED EXCOM: 7 MEMBERS

REINFORCED REGIONAL LEADERSHIP

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86% of employees engagement (1)

+ 4pts vs. 2015

+ 8pts vs. FMCG norm. (2)

+ 1pt vs. High Perf. norm. (2)

100,000 engaged Danoners 2017 Danone People Survey

(1)% of people saying : « I will work beyond what is required in my job to help Danone to succeed » (2) Source: Towers Watson

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Healthier eating and drinking

Responsible business stewardship

Sustainable value

Starting 2018 with strong foundations… Leading the way to create and share sustainable value

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… reinforcing our confidence for 2020

LFL sales growth

4 to 5%

Recurring operating margin

>16%

Net debt / EBITDA(1)

< 3.0x

ROIC(1)

~12%

Consistent EPS

Growth

(1) See definition in 2017 Interim Financial report

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Cécile Cabanis CFO

Financial review

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We delivered very strong recurring EPS growth

In line with guidance

Recurring EPS at constant FX

> 12%

Recurring EPS at constant FX

+14.2%

2017 OBJECTIVE

2017 RESULTS

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(1) Like-for-like New Danone (2) On a reported basis

+2.5%(1)

€ 24.7 bn

+70bps(1)

14.36%

+18.4%(2)

€ 2.1 bn

NET SALES RECURRING

OPERATING MARGIN FREE CASH FLOW

A solid execution… 2017: another year of progress

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Navigating a volatile environment in 2017 Volatility management embedded in our growth model

EMERGING COUNTRIES VOLATILITY

2016 2017

0.73£

EUR / GBP

BREXIT GBP DEVALUATION

0.89£ UE Milk price US Milk Price

2016 2017

MILK PRICE INFLATION

Milk*: ~ +10% in 2017

37$

67$

2016 2017

US CRUDE OIL INCREASE

PET: > 10% in H2 2017

(*)Worldwide

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+2.5%(1) +70bps(1) +14.2%(2)

+18.4%(3)

(1) Like-for-like New Danone (2) At constant exchange rates (3) on a reported basis

€ 24.7 bn 14.36% € 3.49 € 2.1 bn

NET SALES RECURRING

OPERATING MARGIN RECURRING EPS FREE CASH FLOW

We delivered strong results 2017: another year of progress

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Q4 2016 Reported White Wave baseeffect

Scope Currency Volume Value Q4 2017 Reported

€5,355 m

€6,095 m

+17.7%

LFL New Danone(1): +3.7% -1.9%

-5.7% +5.4%

-1.7%

(2)

(1) Like-for-like New Danone (2) Corresponds to the contribution of WhiteWave over the period from October 1 to December 31, 2016

Q4 2017 sales bridge +3.7% like-for-like(1) growth, confirming acceleration

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Q4 and FY 2017 by reporting entity (1)

Specialized Nutrition Waters

SALES Q4 2017

RECURRING OPERATING

MARGIN FY 2017

€1.8 bn +8.4%

EDP International

(1) Like-for-Like New Danone

EDP Noram

Volume / Value

€1.3 bn -0.4% €2.1 bn -0.3% €1.0 bn +10.3%

+1.2% / +7.2% -2.6% / +2.2% -6.4% / +6.1% +4.7% / +5.6%

23.73% +197 bps 12.28% +2 bps 9.02% -29 bps 11.70% +12 bps

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Specialized Nutrition

FY 17 Sales growth: +9.3%

FY 17 margin(1): +197 bps

Strong profitable growth, relying on a unique portfolio

and perfect execution

All data in like-for-like New Danone (1) Recurring Operating Margin improvement

SALES GROWTH

+9.5% +8.4% 9M 2017

Q4 2017 9M 2017

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~25%

~75%

Advanced MedicalNutrition(AMN)

Early Life Nutrition(ELN)

Strong profitable growth, relying on unique portfolio and perfect execution Strong sales growth in Q4 for both ELN and AMN

Early Life Nutrition: high single-digit growth in Q4(1)

China > 30% growth in Q4(1)

Peak in number of births in H2 2016: accelerated market demand

Continued market share gains in all channels

Other markets

Strong momentum in Latin America

Stable trend in Europe

Tailored Nutrition: strong growth across all regions

Advanced Medical Nutrition: mid-to-high single-digit growth in Q4(1)

All categories and regions contribute to growth

Continued strong performance of Neocate, Nutrison and Nutrini

Q4 2017

(1) Like-for-like Now Danone sales growth

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EDP Noram

Credit photo: Revolution Digital

Year of onboarding Sequential improvement in growth

Strong synergies delivery

FY 17 Sales growth: -2.0%

FY 17 margin(1): +2 bps

SALES GROWTH

9M 2017 Q4 2017

-2,6%

-0,4%

All data in like-for-like New Danone (1) Recurring Operating Margin improvement

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US Yogurt: continued value market share gains in Q4 Continued roll-out of non-GMO yogurts across brands Double digit growth of emerging yogurts (Plant-based)

Coffee creamers: continued solid growth Solid market fundamentals Growth across portfolio driven by PB creamers and seasonal flavored

Plant-based (food, beverages & nutrition): growth acceleration Reacceleration of plant-Based beverage, posting solid growth Continued focus on expanding recent innovations Very strong momentum for Vega

Premium Dairy: continued pressure Challenging industry organic milk dynamics Innovations in emerging growth areas to spur demand

~40%

~20%

~20%

~10%

~10% Yogurt

Plant-based

Coffee Creamers

Premium Dairy

Fresh Foods

Sequential improvement in growth; strong synergies delivery Q4 sales growth positive excluding Fresh Foods

Q4 2017

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EDP International

Continued progress

FY 17 Sales growth: -1.3%

FY 17 margin(1): -29 bps

SALES GROWTH

9M 2017 Q4 2017

-1,6%

-0,3%

All data in like-for-like New Danone (1) Recurring Operating Margin improvement

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Europe: progress on turnaround

Progress in Activia

Positive signs from Danone relaunch

Continued momentum from young and local brands

Alpro: sustained strong growth

Latam: strong fundamentals outside Brazil

Mexico: strong growth

Brazil: double digit negative; transformation plan in progress

CIS: solid momentum supported by a winning strategy

(1) Like-for-like New Danone sales growth

~40%

~20%

~20%

~20% Europe

Latam

CIS

Aspame

Continued progress Q4 sales growth positive excluding Brazil

Q4 2017

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Waters

FY 17 Sales growth: +4.7%

FY 17 margin(1) : +12 bps

Solid profitable growth End of transition in China

SALES GROWTH

+3.2%

+10.3%

9M 2017 Q4 2017

All data in like-for-like New Danone (1) Recurring Operating Margin improvement

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~2/3 ~1/3 Plain Waters

Aquadrinks

~40%

~35%

~25% Europe + Noram

Aspame(2)

Latam

Plain water: double-digit growth(1)

Positive trends across regions

Strong growth in Europe driven by MS gains and a dynamic innovation

pipeline(Germany, Spain and UK)

Aquadrinks: high-single digit growth(1)

Mainly driven by Turkey, Argentina and China

End of transition in China

Strong sales growth in a growing category ; market share stable at 5%

Positive results from recent innovation Mizone Pro

(1)Like-for-like New Danone sales growth (2) Aspame: Asia, Pacific, Africa, Middle-East

Solid profitable growth ; end of transition in China Double digit sales growth in Q4

Q4 2017

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+2.5%(1) +70bps(1) +14.2%(2)

+18.4%(3)

€ 24.7 bn 14.36% € 3.49 € 2.1 bn

NET SALES RECURRING

OPERATING MARGIN RECURRING EPS FREE CASH FLOW

(1) Like-for-like New Danone (2) At constant exchange rates (3) on a reported basis

We delivered strong results 2017: another year of progress

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(1) Like-for-like New Danone (2) Corresponds to the contribution of WhiteWave over the period from April 1 to December 31, 2016

Very strong improvement in recurring operating margin Above €600m of productivity gains

FY 2017 Reported

Currency Scope (excl. WhiteWave)

WhiteWave base effect (2)

FY 2016 Reported

Overheads & Others

Sales & Marketing

Margin from operations

Reported: +58 bps

LFL New Danone(1): +70 bps

+21 bps

+1 bp

14.36%

13.77%

-33 bps

-11 bps

+57 bps

+23 bps

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+2.5%(1) +70bps(1) +14.2%(2)

+18.4%(3)

€ 24.7 bn 14.36% € 3.49 € 2.1 bn

NET SALES RECURRING

OPERATING MARGIN RECURRING EPS FREE CASH FLOW

(1) Like-for-like New Danone (2) At constant exchange rates (3) on a reported basis

We delivered strong results 2017: another year of progress

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xxx xxx xxx xxx xxx xxx xxx xxx xxx

Very strong recurring EPS growth +14.2% at constant FX; Fully in line with 2017 guidance

FY 2016 Reported

Recurring EPS

Financing (Incl. Hybrid)

Margin Tax & others Scope (excl. WhiteWave)

FY 2017 Reported

Recurring EPS

WhiteWave base effect(1)

Net Sales Currency

€3.10

+5.3%

€3.49

-2.0%

+9.1%

+2.5%

+1.1% -1.7% -1.6%

+14.2% At constant FX

+12.6% Reported

(1) Corresponds to the contribution of WhiteWave over the period from April 1 to December 31, 2016

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From Recurring operating income to Net income

€ million 2016 recurring 2017 recurring 2017 Non-recurring items Total FY 2017

Recurring operating income 3,022 3,543 - 3,543

Other operating income and expenses - - 192 192

Operating income 3,022 3,543 192 3,734

Total Financial expenses (280) (400) (38) (438)

Income tax (852) (953) 111 (842)

Net income from associates 129 111 (2) 109

Net income 2,019 2,301 262 2,563

Non-controlling interests 108 111 (1) 110

Net income – Group share 1,911 2,190 263 2,453

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+2.5%(1) +70bps(1) +14.2%(2)

+18.4%(3)

€ 24.7 bn 14.36% € 3.49 € 2.1 bn

NET SALES RECURRING

OPERATING MARGIN RECURRING EPS FREE CASH FLOW

(1) Like-for-like New Danone (2) At constant exchange rates (3) on a reported basis

We delivered strong results 2017: another year of progress

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1,760 2,083

FY 2016 FY 2017

Free Cash Flow (€m)

Very strong cash delivery: +18.4% Solid cash conversion

-7.1% -4.5%

FY 2016 FY 2017

Working Capital / Net Sales (%)

4.2% 3.9%

FY 2016 FY 2017

Capex / Net Sales (%)

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(2,1)

Net debt 31/12/2016 Dividends M&A Puts Refinancing & others FCF Net debt 31/12/2017

(1) including 10.9bn€ of net cash outflow on WhiteWave purchase

7.5

11.1

15.4

+€7.9bn

0.4

in € billion

Change in net debt

(1.4)

(1)

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Balance sheet Assets (1)

30,139 40,132 30,139 40,132

Liabilities

Dec. 2017 Dec. 2016 Dec. 2017 Dec. 2016

Other assets

Working capital

Intangible assets

Net debt(2)

Working capital

Shareholders’ equity

Other liabilities

(1) Excluding assets included in net debt (2) Net of cash, cash equivalents, marketable securities, other short-term investments and financial instrument assets

€ million

4,964

9,372

15,803

5,508

9,679

24,945

6,513

2,960

13,194

7,472

6,620

3,566

14,574

15,372

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2017 Dividend: + 11.8% increase A firm commitment to shareholders

Dividend proposed at the next AGM on April 26, 2018 €1.90 per share (+11.8% ; +20 cts vs. 2016)

Payment in either cash or shares at shareholder option

1.10€ 1.20€ 1.20€

1.30€ 1.39€ 1.45€ 1.45€ 1.50€

1.60€ 1.70€

1.90€

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Small and local brands

2018 outlook: Volatility to continue… Ensure a consistent recurring EPS growth

Continued volatility in emerging markets

Persistent strong input cost inflation (Milk, PET…)

Ongoing impact from GBP (Brexit)

Accelerated industry transformation Brexit

Raw materials

Channel shifts

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2017

+2.5%

14.4%

Sales Growth(1)

Recurring op. margin

Acceleration towards 2020

€2.1bn FCF

4-5%

>16%

<3x Net debt/Ebitda(3)

Acceleration towards 2020

Sustained margin improvement(1)

Consistent pace of deleverage

2020

+14.2% Recurring EPS growth(2) EPS Consistent recurring

EPS growth Consistent recurring EPS growth

(1) Like-for-like New Danone sales growth – (2) At constant exchange rate – (3) See definition in 2017 Interim Financial report

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2020 2017 2018

2018: a year of execution and delivery

2018 objective

DOUBLE-DIGIT RECURRING EPS GROWTH

at constant exchange rate excluding Yakult transaction impact(1)

(1) See definition on page 13 of 2017 Full Year Results Press release

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APPENDIX

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Q4 & FY 2016 impact of currencies & scope

Q4 2017 EDP International EDP Noram Specialized Nutrition

Waters Total

Reported sales growth +0.4% +107.4% +3.7% +2.2% +13.8% Currency -4.4% -8.4% -4.5% -7.2% -5.7% Scope of consolidation -1.0% -13.2% +0.0% -0.3% -1.9% WhiteWave base effect +6.1% +129.4% -0.2% -0.6% +17.7% Like-for-like New Danone sales growth -0.3% -0.4% +8.4% +10.3% +3.7%

FY 2017 EDP International EDP Noram Specialized Nutrition Waters Total

Reported sales growth +2.4% +80.8% +7.1% +1.0% +12.5% Currency -0.1% -2.4% -1.8% -3.4% -1.6% Scope of consolidation -1.0% -5.4% -0.2% -0.1% -1.1% WhiteWave base effect +4.8% +90.6% -0.2% -0.2% +12.7% Like-for-like sales New Danone growth -1.3% -2.0% +9.3% +4.7% +2.5%

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Changes in exchange rates

% total FY 17 sales FY 17 vs FY 16 (avg) Q4 17 vs Q4 16 (avg)

United States Dollar 19.0% -2.0% -8.4%

Russian Ruble 6.8% 12.1% -1.3%

Chinese Renminbi 6.3% -3.7% -5.4%

Indonesian Rupiah 5.5% -2.7% -10.3%

British Pound 5.1% -6.5% -2.1%

Argentine Peso 4.4% -12.9% -19.2%

Mexican Pesos 4.3% -3.1% -4.2%

Brazilian Real 3.3% 6.9% -7.0%

Turkish Lira 1.8% -18.9% -20.8%

Egyptian Pound 0.3% -45.0% -25.9%

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Recurring operating margin by Reporting entity and geographical area

€ min FY 2016 FY 2017 Like-for-like New Danone change

EDP International 8.88% 9.02% -29 bps EDP Noram 14.02% 12.28% +2 bps Specialized Nutrition 21.39% 23.73% +197 bps Waters 11.40% 11.70% +12 bps

Europe & Noram 16.84% 15.52% -14 bps Rest of the World 10.72% 13.02% +183 bps

Total 13.77% 14.36% +70 bps

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Cash bridge

3,543

974 953

400

79

3,085

127 969

95

2,083

2

2,085

Recurring Operating

income

Depreciation Taxes Financial

results Others

Cash from operating activities

W cap var

Capex Sales of

assets and Transaction

Fees

FCF excl. European

plan

Plan for savings and adaptation in Europe

FCF reported

€ million

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Tax rate development

(1) Tax related to non-current items

€ mln 2016 2017

Total income tax (reported) (804) (842)

Reported tax rate 30.6% 25.5%

Non-current income tax(1) 48 111

Current income tax (852) (953)

Underlying tax rate 31.1% 30.3%

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Cash-flow statement

2016 2017 Operating income 3,022 3,543 Financial income (280) (400) Income tax (852) (953) Non-current income (64) 264

Depreciation and amortization 786 974 Net change in provisions / Deferred taxes (15) (200) Dividend received from equity accounted affiliates 53 55 Net change in interest income (expense) 0 80 Expense related to stock options and GPS 24 22 Other items (60) (299) Cash flow provided by operating activities, excluding changes in net working capital 2,615 3,085

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Cash-flow statement

2016 2017 Cash flow provided by operating activities, excluding changes in net working capital 2,615 3,085

Change in working capital 37 (127) Cash flow from operations 2,652 2,958 Capital expenditure (925) (969) Proceeds from the sale of industrial assets 27 45 Business acquisitions and other investments, net of cash and cash equivalent acquired

(66) (10,949)

Proceeds from the sale of business 110 441 Change in long-term loans and other long-term assets 6 (4) Cash flow used in investing activities and disposals (848) (11,437)

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Cash-flow statement

* Including dividends and capital increase

2016 2017 Cash flow used in investing activities and disposals (848) (11,437) Increase in capital and additional paid-in capital 46 47 Purchases of treasury stock (net of disposal) 32 13 Perpetual subordinated notes issued during the period 1,245 Dividends paid to Danone shareholders (985) (279) Transactions with non controlling interests* (383) (193) Settlement of debt hedge financial instruments 50 (52) Bonds issued or raised during the period 11,237 0 Bonds repaid during the period (638) (1,487) Increase (decrease) in other current and non-current financial debt (442) (564) Increase (decrease) in other short-term investments (10,531) 9,559 Cash flow used in financing activities (1,616) 8,289 Exchange rate differances and others (151) 272 Increase (decrease) in cash 38 81

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Stock price & shareholding

Danone 2017 stock price evolution(1) Danone 2017 stock performance(1)

> Absolute +16.2%

> Relative vs. CAC 40 +6.9%

> Relative vs. Eurostoxx 50 -9.1%

Total shareholder composition(2) Institutional shareholders by geography(2)

6% 78%

5%

(2) Source: NASDAQ Advisory Services; Danone Shareholder Analysis dated January 2018 based on available information as of end November 2017

(1) At 31/12/2017

47%

18%

11%

8%

9%

1% 6%

77%

9%

7% 6%

1% Institutional

Retail

Company related

Trading &MiscellaneousUnidentified

46%

20%

6%

6% 4%

12% 6%

United States

France

United Kingdom

Switzerland

Belgium

Rest of Europe

Rest of the world

95

100

105

110

115

120

Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

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2017 ADR program

DRs Outstanding as a % of Total Shares Outstanding Data as of December 31, 2017

> Ticker: DANOY > CUSIP Number: 23636T100 > Exchange: OTC QX (www.otcqx.com/qx/market/quote?symbol=DANOY) > Ratio (ADR: ord): 5:1 > Depositary Bank: J.P. Morgan > ADR Depositary Bank contact: Dale McComb +1 212 552 8944/DRX_depo@jpmorgan.com

3,2%

3,3%

3,4%

3,5%

3,6%

3,7%

3,8%

3,9%

4,0%

4,1%

4,2%

4,3%

0

20 000 000

40 000 000

60 000 000

80 000 000

100 000 000

120 000 000

140 000 000

160 000 000

DRs Outstanding Pct of Shares in ADR Form

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Financial indicators not defined in IFRS Additional indicator of like-for-like changes: “like-for-like New Danone” changes

Since completion of WhiteWave acquisition, WhiteWave and Danone’s activities have been combined and are generating synergies. Separate reporting of WhiteWave and Danone in their pre-acquisition forms thus no longer reflects their real performance. This being the case, Danone has decided to monitor and then report its performance by integrating the contribution of WhiteWave as a whole to its organic growth from the time of the acquisition by using an additional indicator - “like-for-like New Danone” changes.

This indicator is a variation on the ”like-for-like” changes indicator used by Danone which integrates WhiteWave’s performance starting at the date of acquisition:

• for periods in previous years compared, and

• based on WhiteWave reported data after restatement to allow comparison with Danone data.

This indicator is used starting with the second quarter of 2017 and running through the end of 2018.

Danone does not publish like-for-like New Danone changes for prior periods given the way they are computed. Finally, Danone does not monitor internally nor publish like-for-like changes and will not do so until year-end 2018. Indeed like-for-like changes would not reflect accurately the Company’s real performance, which is reflected in like-for-like New Danone changes and, by extension, the difference between like-for-like changes and like-for-like New Danone changes would not accurately reflect the contribution to this real performance of WhiteWave and its companies.

These indicators are calculated as follows:

Like-for-like changes in sales and recurring operating margin reflect Danone's organic performance and essentially exclude the impact of: • changes in consolidation scope, with indicators related to a given fiscal year calculated on the basis of previous-year scope; • changes in applicable accounting principles; • changes in exchange rates with both previous-year and current-year indicators calculated using the same exchange rates (the exchange rate

used is a projected annual rate determined by Danone for the current year and applied to both previous and current year).

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Financial indicators not defined in IFRS “Like-for-like New Danone” changes (or “Like-for-like including WhiteWave starting in April 2017” changes) in sales and recurring operating margin reflect the organic performance of Danone and WhiteWave combined. This indicator corresponds to like-for-like changes for Danone and WhiteWave combined, considering the activity of WhiteWave as a whole by integrating its companies during the fiscal years prior to and following their acquisition in April 2017:

• from April 1 to December 31 for periods compared until 2017 included; • from January 1 to December 31 for periods compared in 2018.

WhiteWave base effect corresponds primarily to the contribution of WhiteWave over the period from April 1 to December 31, 2016 and to adjustments for the impact of using different reference periods for FY 2017 reported data and for FY 2017 like-for-like New Danone data. The contribution of WhiteWave and its companies for the period from April 1-12, 2017 must be deducted as it is effectively included in the like-for-like New Danone changes and excluded from reported data.

Recurring operating income is defined as Danone’s operating income excluding Other operating income and expenses. Other operating income and expenses is defined under Recommendation 2013-03 of the French CNC (format of consolidated financial statements for companies reporting under international reporting standards), and comprises significant items that, because of their exceptional nature, cannot be viewed as inherent to its recurring activities. These mainly include capital gains and losses on disposals of fully consolidated companies, impairment charges on goodwill, significant costs related to strategic restructuring and major external growth transactions, and costs related to major crisis and major litigations. Furthermore, in connection with of IFRS 3 (Revised) and IAS 27 (Revised) relating to business combinations, the Company also classifies in Other operating income and expenses (i) acquisition costs related to business combinations, (ii) revaluation profit or loss accounted for following a loss of control, (iii) changes in earn-outs relating to business combinations and subsequent to acquisition date.

Recurring operating margin is defined as Recurring operating income over Sales ratio.

Other non-recurring financial income and expense corresponds to capital gains or losses on disposal and impairment of non-consolidated interests as well as significant financial income and expense items that, in view of their exceptional nature, cannot be considered as inherent to Danone’s recurring financial management.

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Financial indicators not defined in IFRS Recurring operating income is defined as Danone’s operating income excluding Other operating income and expenses. Other operating income and expenses is defined under Recommendation 2013-03 of the French ANC (format of consolidated financial statements for companies reporting under international reporting standards), and comprises significant items that, because of their exceptional nature, cannot be viewed as inherent to its recurring activities. These mainly include capital gains and losses on disposals of fully consolidated companies, impairment charges on goodwill, significant costs related to strategic restructuring and major external growth transactions, and costs related to major crisis and major litigations. Furthermore, in connection with IFRS 3 (Revised) and IAS 27 (Revised) relating to business combinations, the Company also classifies in Other operating income and expenses (i) acquisition costs related to business combinations, (ii) revaluation profit or loss accounted for following a loss of control, (iii) changes in earn-outs relating to business combinations and subsequent to acquisition date.

Recurring operating margin is defined as Recurring operating income over Sales ratio.

Non-recurring results from associates include significant items that, because of their exceptional nature, cannot be viewed as inherent to the recurring activity of those companies and distort the reading of their performance. They include primarily (i) capital gains and losses on disposal and impairment of Investments in associates, and (ii) when material, non-recurring items as defined by Danone included in the net income from associates.

Recurring net income (or Recurring net income – Group Share) corresponds to the Group share in the consolidated recurring net income. The recurring net income measures Danone’s recurring performance and excludes significant items that, because of their exceptional nature, cannot be viewed as inherent to its recurring performance. Such non-recurring income and expenses mainly include other income and expenses, non-recurring results from associates, capital gains and losses on disposals and impairments of Other non-fully-consolidated entities and tax income and expenses related to non-recurring income and expenses. Such income and expenses excluded from Net income are defined as Non-recurring net income and expenses.

Recurring income tax rate measures the income tax rate related to Danone’s recurring performance and corresponds to the ratio Tax income and expenses related to recurring income and expenses over Total Recurring net income.

Recurring EPS (or Recurring net income – Group Share, per share after dilution) is defined as Recurring net income over Diluted number of shares ratio.

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Financial indicators not defined in IFRS Yakult Transaction Impact corresponds to the amount to deduct from Danone’s 2017 recurring net income to reflect an interest in Yakult in 2017 identical to the interest prevailing in 2018 following the completion of the intended partial disposal. It is computed as the difference between Danone’s interest in Yakult after the transaction and 21.29% applied, prorata temporis, to 2017 profit from Yakult as estimated by Danone for its 2017 consolidated financial statements.

Free cash-flow represents cash-flows provided or used by operating activities less capital expenditure net of disposals and, in connection with IFRS 3 (Revised), relating to business combinations, excluding (i) acquisition costs related to business combinations, and (ii) earn-outs related to business combinations and paid subsequently to acquisition date.

Free cash-flow excluding exceptional items represents free cash-flow before cash-flows related to initiatives deployed within the framework of the plan to generate savings and adapt Danone’s organization in Europe.

Net financial debt represents the net debt portion bearing interest. It corresponds to current and non-current financial debt (i) excluding Liabilities related to put options granted to non-controlling interests and (ii) net of Cash and cash equivalents, Short term investments and Derivatives – assets managing net debt.