DANONE : DANONE : 2012 Full-Year Results
DANONE : DANONE : 2012 Full-Year Results
------------ PRESS RELEASE ------------
2012 Full-Year Results
February 19, 2013
2012 results
Sales^[1]of over €20 billion, up +5.4%^[2]
Trading operating margin down 50 bps^[2]
Free cash-flow^[3]over €2 billion
2013 targets
A solid year of transition on the way to profitable growth in 2014
Sales^[1]growth of at least +5%^[2]
Trading operating margin down, by between -50 bps and -30 bps^[2]
Free cash-flow held steady at around €2 billion excluding exceptional
items^[3]
[1] Net sales
[2] Like for like: see pages 10-12 for details on calculation of financial
indicators not defined in IFRS
[3] See pages 10-12 for details on calculation of financial indicators not
defined in IFRS
Chairman's comments
"2012 was an important year for Danone in many respects. Important in that we
achieved some major milestones: our sales exceeded the €20 billion mark for
the first time, reflecting our ability to bring health through food to an
ever-increasing number of people. And for the first time, too, our cash-flow
topped €2 billion-double the 2008 figure. Finally, even as our Group grew
rapidly from 2008 to 2012, our CO[2] emissions held steady. Which means a 35%
reduction in the carbon intensity of our business.
Most of these achievements were due to our operations outside Europe^[1],
which now generate 60% of our total sales and reported profitable growth
averaging over 10% in 2012. We must make every effort to pursue lasting
expansion in these markets.
But 2012 also saw some of our business in Europe come under pressure from a
severe deterioration in overall consumer demand, which led to a 3% decline in
our revenues in this region^[1] and a decline of over 10% in our operating
income. Clearly this situation is not sustainable, and we will overcome it. In
December we set a €200 million target for savings and announced that we
intended to launch a plan to adapt our organization. Today we are initiating
discussions with our Works Councils over the plan's main measures, which are
designed to win back our competitive edge and achieve greater efficiency in
Europe. We will also continue to revamp the product ranges offered by our
business lines.
So 2013 will be a year of transition, with vigorous development in business in
our growth markets and a drive to strengthen operations in Europe. A year
aimed at returning our activities as a whole to strong, profitable growth by
2014."
[1] Europe excluding CIS region
Highlights
* Full-year 2012 sales of €20.9 bn, up +8.0% as reported and +5.4% like for
like^[2]
* Solid 2012 performance, with contrasts from region to region: sales down
-3% in Europe excluding the CIS; growth of over +10%^[2] in emerging
markets and North America combined
* Q4 performance in line with Q3, with sales^[1] up +7.3% as reported and
+4.9% like for like^[2]
* Trading operating margin^[3] at 14.18% full year, down -50 bps^[2] from
2011, in line with the target as revised in June 2012
* Underlying fully diluted EPS^[3]of €3.01, up +4.1% as reported and +1.1%
like for like^[2]
* Free cash-flow^[3]of €2.1 billion, exceeding target set in 2009
* Dividend of €1.45 per share, up +4.3%, will be proposed to this year's
Shareholders' Meeting
Key figures 2011 2012 Change
Sales^[1] (€ million) 19 318 20 869 +5.4%^[2]
Free cash flow^[3] (€ million) 1 874 2 088 +11.4%^[4]
Trading operating income^[3] (€ 2 843 2 958 +1.8%^[2]
million)
Trading operating margin^[3] 14.72% 14.18% -50 bps^[2]
Underlying net income^[3] (€ 1 749 1 818 +0.9%^[2]
million)
Underlying fully diluted EPS^[3] 2.89 3.01 +4.1%^[4]
(€)
[1] Net sales
[2] Like for like: see pages 10-12 for details on calculation of financial
indicators not defined in IFRS
[3] See pages 10-12 for details on calculation of financial indicators not
defined in IFRS
[4] As reported
Sales by business line and geographical area in Q4 and full-year 2012
€ millions Change Volume Change Volume
Q4 Q4 Like for growth 2011 2012 Like for growth
11 12 like[1] Like for like[1] Like for
like[1] like[1]
BY BUSINESS LINE
Fresh Dairy 2 2 11 11
Products 778 859 1.3% 0.4% 235 675 2.0% -0.2%
Waters 746 832 8.5% 7.9% 3 229 3 649 10.0% 5.9%
1
Baby Nutrition 950 105 12.1% 6.1% 3 673 4 257 11.6% 5.2%
Medical Nutrition 312 340 5.5% 7.3% 1 181 1 288 5.9% 6.8%
BY GEOGRAPHICAL
AREA
2 2 10 10
Europe 607 617 -2.3% -0.9% 809 848 -1.0% -2.2%
Asia 727 876 15.1% 11.0% 2 862 3 584 17.4% 12.0%
1 1
Rest of World 453 643 12.9% 5.5% 5 647 6 437 11.7% 4.7%
4 5 19 20
Total 786 136 4.9% 3.2% 318 869 5.4% 2.3%
[1] Like for like: see pages 10-12 for details on calculation of financial
indicators not defined in IFRS
At its meeting on February 18, the Board of Directors closed statutory and
consolidated financial statements for the 2012 fiscal year. As regards the
audit process, the statutory auditors have substantially completed their
examination of accounts as of today.
Net sales in 2012
Consolidated sales increased +8.0% as reported to total €20,869 million in
2012. Excluding the impact of changes in the basis for comparison, which
include exchange rates and scope of consolidation, sales were up +5.4%. This
organic growth reflects a +2.3% increase in sales volume and a +3.1% increase
due to the price/mix effect.
The +2.5% exchange-rate effect reflects favorable trends in currencies
including the US dollar, the Chinese yuan, sterling and the Russian ruble.
Overview of sales performance - Q4 2012
Consolidated sales increased +7.3% as reported to total €5,136 million in the
fourth quarter of 2012. Excluding the impact of changes in the basis for
comparison, which include exchange rates and scope of consolidation, sales
were up +4.9%. This organic growth reflects a +3.2% increase in sales volume
and a +1.7% increase due to the price/mix effect.
The +1.8% exchange-rate effect reflects favorable trends in currencies
including the Mexican peso, the Russian ruble, the US dollar and the Chinese
yuan.
Fresh Dairy Products
Fresh Dairy Products division sales were up +1.3% like-for-like in the fourth
quarter of 2012, reflecting a +0.4% increase in volume and a +0.9% increase in
value.
After a year of transition for North America^[1] and the CIS region, these
markets ended 2012-as planned-with their strongest growth of the year,
enabling the division to report a slight improvement from the third quarter.
In the United States, the Group benefited from new production capacity for
Greek-style yogurt that came on line in the second half of the year and raised
its market share by around 5 points, full year, in this fast-growing segment.
Danone thus strengthened its leading position in Fresh Dairy Products, where
competition has picked up.
In the CIS region, Danone-Unimilk is on track to meet its target calling for a
return to strong growth. Deployment of the unit's strategy for the year was
successful, including a focus on key brands such as Prostokvashino, Bio
Balance and Tëma, and ongoing integration of Danone-Unimilk operations through
the roll-out of common systems and gradual merger of logistics and sales force
resources.
Sales in Latin America and the Africa-Middle East region remained extremely
buoyant, with continued double-digit growth.
Conditions in Europe remained difficult with fourth-quarter trends similar to
those observed in the third quarter. In Southern Europe, the price/mix effect
was negative, reflecting investments in pricing and promotions.
^[1] North America : United States and Canada
Waters
The Waters division reported strong fourth-quarter growth, with a +8.5%
like-for-like increase driven by a +7.9% rise in sales volumes and a +0.6%
rise due to the price/mix effect.
Strong growth in emerging markets continued to drive the division's
performance. In Western Europe, sales fell back slightly due to the high basis
of comparison in Q4 2011.
This quarter the division no longer benefited from the impact of hefty price
increases introduced in emerging countries in 2011. Yet growth in value
remained positive, fueled by aquadrinks and their positive price/mix effect.
Baby Nutrition
The Baby Nutrition division continued to report robust growth in all
geographical markets, with sales up +12.1% like-for-like in the fourth quarter
of 2012. This includes a +6.1% rise in volume and +6.0% growth in value.
Key to the division's success is a very strong performance in Asia,
particularly China, where a complete revamp of the Dumex range-Danone's
flagship brand for baby nutrition in this country-has continued to pay off.
As in the past, changes in the division's product mix made a positive
contribution to performance, while the growing-up milk segment again reported
double-digit growth and weaning foods continued to decrease significantly in
Europe.
Medical Nutrition
Medical Nutrition sales increased +5.5% like-for-like in the fourth quarter of
2012, driven by volume growth of +7.3%. Slowing growth reflects deteriorating
conditions on some markets in Western Europe.
In contrast, China, Turkey and Brazil maintained their momentum, with strong
growth for key brands like Nutrison, Nutrini and Neocate.
Trading operating margin^[1]: 14.18%, down -50 bps like for like^[2] from 2011
Change
2011 2012 like for like
[1]
BY BUSINESS LINE
Fresh Dairy Products 13.13% 12.11% -101 bps
Waters 13.13% 13.23% +22 bps
Baby Nutrition 19.28% 19.51% +23 bps
Medical Nutrition 19.98% 17.95% -149 bps
BY GEOGRAPHICAL AREA
Europe 13.96% 12.17% -160 bps
Asia 20.27% 22.07% +192 bps
Rest of World 13.35% 13.17% -26 bps
Total 14.72% 14.18% -50 bps
[1] See pages 10-12 for details on calculation of financial indicators not
defined in IFRS
[2] Like for like: see pages 10-12 for details on calculation of financial
indicators not defined in IFRS
Danone's trading operating margin fell back by 50 bps like for like in 2012 to
stand at 14.18%.
Lower sales in Europe, particularly Southern Europe, cut significantly into
Group profitability. This decline could not be fully offset by higher margins
outside Europe, where investment programs were maintained as planned.
Raw material costs rose significantly, gaining over 6%, and were driven by a
particularly steep increase in certain commodities including whey, milk
proteins, sugar and fruits.
Ongoing cost-cutting measures helped generate robust productivity of €589
million, partly offsetting the rise in raw material, production and
distribution costs.
A&P outlays increased slightly in 2012, which maintained the visibility of
Group brands in the media over the year. Expenditure on digital marketing
continues to grow apace, and now represent 10% of total media investment.
Danone also continued to invest heavily in other growth drivers, beefing up
its sales forces and spending on R&D. Outlays in these areas rose by around
10%.^[1]
[1] Like for like: see pages 10-12 for details on calculation of financial
indicators not defined in IFRS
Underlying fully diluted EPS^[1] increased by +4.1%, as reported, to total
€3.01 in 2012
€ million (unless stated otherwise) 2011 2012
Trading operating income^[1] 2 843 2 958
Other operating items (114) (211)
Operating income 2 729 2 747
Cost of net debt (174) (170)
Other financial income and expense (120) (132)
Income tax (626) (712)
Net income of consolidated companies 1 809 1 733
Net income of affiliated companies 46 54
Net income 1 855 1 787
Minority interests 184 115
Attributable to the Group 1 671 1 672
of which non-current net result^[1] (78) (146)
Underlying net income^[1] 1 749 1 818
Underlying fully diluted EPS (€)^[1] 2.89 3.01
[1] See pages 10-12 for details on calculation of financial indicators not
defined in IFRS
Other operating items stood at -€211 million, due primarily to the costs
arising from the integration of Unimilk group's companies, costs related to
the disposal process of Danone Chiquita Fruits, and the impairment of other
goodwill and financial assets.
Cost of net debt eased slightly from 2011, due primarily to the positive
impact of bond debt management. This gain was partially offset by the higher
cost of borrowing in some emerging countries whose currencies rose in value in
2012.
The change in other financial income and expense results primarily from a rise
in the cost of hedging exchange rates for emerging economies.
The underlying tax rate^[1] for the full year was 27.6% in 2012, up sharply
from 2011 due to a general rise in tax pressure, and, particularly in France,
to the ceiling on deductibility of financial interest as of 2012.
The net result of affiliated companies was up due to higher profits at
minority holdings in Asia and the Africa/Middle-East region in 2012.
Minority interests declined, reflecting the impact of lower net income at
Danone Spain and the reduction in this subsidiary's minority shareholders in
the course of the year. These factors were partially offset by higher
profitability at Danone Unimilk.
Underlying net income^[1] rose +4.0% as reported to total €1,818 million, a
like-for-like^[1] increase of +0.9%. Underlying fully diluted EPS came to
€3.01, for a rise of +4.1% from the reported figure for 2011 and a +1.1%
increase like for like.
[1] See pages 10-12 for details on calculation of financial indicators not
defined in IFRS
Cash flow and debt
Free cash flow^[1] increased +11.4% to €2,088 million representing 10.0% of
sales in 2012, or €2 billion above the 2012 free cash flow target set in 2009.
At the same time, capital expenditure rose sharply, and was up +10.3% in 2012
at €976 million or 4.7% of sales.
Robust generation of free cash-flow net of dividends allowed the Group to
finance its 2012 acquisition of Wockhardt's nutrition business in India and to
buy back shares in an amount of €398 million^[2], while pursuing efforts to
hold debt ratios steady. At December 31, 2012, net financial debt^[1] stood
at €3,021 million (excluding put options in an amount of €3,721 million
granted to minority shareholders).
[1] See pages 10-12 for details on calculation of financial indicators not
defined in IFRS
[2] Excludes purchase of treasury stock to offset dilution resulting from
shares transferred to minority shareholders at Danone Spain in exchange for
their shares in this subsidiary.
Reduction of carbon footprint
Danone products depend to a large extent on natural eco-systems. It is thus in
the Group's best interest to make care for the environment an integral part of
its business activities.
Carbon footprint is a global indicator that reflects a wide range of
environmental criteria. Danone had committed to reducing its carbon
intensity^[1] by an ambitious 30% from 2008 to 2012.
In the event, the Group more than achieved this goal in 2012, cutting its
carbon intensity by -35.2%^[2] over the five-year period.
[1] Grams of CO[2] per kilogram of product sold
[2] Based on constant scope of consolidation, excluding Unimilk, and on
emissions under Danone's direct responsibility (packaging, industrial
activities, logistics and end of life)
2013 outlook
The Group assumes that trends in consumer demand will continue to show
contrasts from region to region, with overall trends negative in
Europe-assuming, however, no major political or economic upheavals-and
favorable in the rest of the world.
The Group also expects the cost of its major raw materials and packaging
materials to remain high, with moderate growth.
This being the case, the Group will continue to adapt its model in Europe,
stepping up the pace of updates to its product ranges to meet consumers'
changing needs, and at the same time adapting its structures and costs to
achieve €200 million in savings between now and the end of 2014.
In the rest of the world, it will continue to expand its product categories,
build its brands and grow its market share in a profitable and lasting way.
Through these actions, Danone plans to get back on the track to strong,
profitable organic growth as of 2014.
For 2013, which will remain a year of transition, the Group has set the
following targets:
· a like-for-like^[2] sales^[1] growth of at least +5%
· a decline in trading operating margin, by between -50 bps and -30 bps
like-for-like^[2]
· free cash-flow of around €2 billion excluding exceptional items^[2]
[1] Net sales
[2] See pages 10-12 for details on calculation of financial indicators not
defined in IFRS
Share buyback
As announced when results for the third quarter of 2012 were released, Danone
has bought back 12,959,694 of its own shares over the past four months for an
amount of €639.5 million.
Meeting on February 18, 2013, the Board of Directors voted to cancel 8.8
million treasury shares. Authorized by shareholders at the General Meeting on
April 28, 2011, this cancellation will take effect on February 21, 2013.
Following it, Danone's share capital will total €158,590,500 represented by
634,362,000 shares.
Dividend
At the Shareholders' Meeting on Thursday, April 25, 2013, Danone will ask
shareholders to approve distribution of a €1.45 dividend per share in respect
of the 2012 fiscal year, to be paid in cash. This represents a +4.3% rise from
2011. If this proposal is approved, the ex-dividend date will be Thursday, May
2, 2013 and the dividend will be payable from Tuesday, May 7, 2013.
Governance
At its meeting on February 18, 2013, Danone's Board of Directors approved
draft resolutions for the Group's April 25 Shareholders' Meeting, including
the proposal to renew the appointments of the two directors whose terms are
expiring: Mr. Franck Riboud, Chairman and Chief Executive Officer, and Mr.
Emmanuel Faber, Deputy Managing Director.
At that meeting, the Board of Directors, on the recommendation of the
Nomination and Compensation Committee, voted to appoint a Lead Independent
Director when the positions of Chairman of the Board and Chief Executive
Officer are combined. The Lead independent director, who must be chosen from
among the majority of independent directors serving on the Board, will help
strengthen Danone's corporate governance and improve the operation of its
Board.
The Board therefore voted to appoint Mr. Jean Laurent as Lead Independent
Director based on his extensive business experience as the former CEO of a
major banking group, and on his thorough knowledge of Danone and its Board,
which he has served as Chairman of the Nomination and Compensation Committee
(since 2011) and as Chairman of the Social Responsibility Committee (since
2007). In addition, the Board ensured that Mr. Jean Laurent met all the
requirements for independence necessary to serve as Lead Independent Director.
Finally, the Board reiterated its commitment, made several years ago, to
continue to improve its corporate governance by bringing before the
Shareholders' Meeting proposals on ensuring the Board's independence,
increasing the number of women directors, and increasing the expertise and
diversity of its composition. The Board renewed this commitment at its
February 18 meeting.
Change in Danone SA shareholder base in Spain
On July 26, 2012, Danone completed the purchase from two minority shareholders
of a total of 1,416,368 shares of its subsidiary Danone Spain, raising its
equity interest from 57.0% to 65.6%. Most of the remaining minority
shareholders hold put options. These options are recognized in Group financial
statements as financial debt.
As announced in the earnings release for the first half of 2012, the Group
began talks with Danone Spain minority shareholders on the terms and
conditions of these put options, especially in light of Southern Europe's
deteriorating economy and the significant impact this has on Danone Spain.
As part of this effort, since the beginning of 2013 the Group has repurchased
a total of 1,544,227 shares from several Danone Spain minority shareholders,
raising its shareholding to 75.0%. Shares were acquired in exchange for cash
payments totaling €87.4 million and for 6,715,266 shares of Danone treasury
stock. An equal number of shares will be purchased by the Group over the next
three months under its share buyback program to offset dilution resulting from
this transaction.
These transactions are accretive for Danone earnings per share as of year one,
and will have a favorable impact on the Group's net debt of €79 million.
Other minority shareholders, representing around 14% of Danone Spain's share
capital, have exercised their put options. Talks with these shareholders are
still under way.
Based on these events-the share buyback, option exercise and talks-the Group
decided to recognize a portion of the remaining put options (€1,305 million)
as short-term financial debt in its financial statements at December 31, 2012.
Put options amounting to €390 million continue to be classified as long-term
financial debt, since it is unlikely that they will be exercised within the
next 12 months.
o o O o o
Change in geographical breakdown starting in 2013
In order to adapt its reporting to the Group's evolutions, Danone will use a
new geographical breakdown to track operations starting in 2013:
2011 2012 Change
Like-for-like^[1]
Sales (€ millions)
Europe excl. CIS 8 614 8 431 -3.0%
CIS & North America^[2] 3 948 4 426 6.7%
ALMA^[3] 6 756 8 012 15.7%
Total 19 318 20 869 5.4%
Trading operating margin^[1]
Europe excl. CIS 17.37% 15.66% -190 bps
CIS & North America^[2] 9.33% 10.21% +144 bps
ALMA^[3] 14.49% 14.81% +31 bps
Total 14.72% 14.18% -50 bps
[1] Like for like: see pages 10-12 for details on calculation of financial
indicators not defined in IFRS
[2] North America: United States and Canada
[3] Asia-Pacific / Latin America / Middle East / Africa
Financial indicators not defined in IFRS
Information published by Danone uses the following financial indicators that
are not defined by IFRS:
* Like-for-like changes in net sales, trading operating income, trading
operating margin and underlying net income
* Trading operating income
* Trading operating margin
* Underlying net income
* Free cash flow
* Free cash flow excluding exceptional items
* Net financial debt
Given severe deterioration in consumer spending in Europe, Danone has set a
target for savings and adaptation of its organization to regain its
competitive edge. Starting in the first half of 2013, Danone will publish a
free cash-flow indicator excluding cash-flows related to initiatives deployed
within the framework of this plan. In 2012, free cash-flow excluding
exceptional items was equally to free cash-flow and totaled €2,088 million.
To facilitate comparison with other companies, the Group has revised its
definition of like-for-like changes, aligning itself on market practice to
measure the impact of changes in the scope of consolidation. Starting in the
first quarter of 2013, financial communications from Danone will incorporate
this new indicator (see definition below), a change that should not generate
any significant difference in Group performance indicators. Changes in
like-for-like indicators for 2011 and 2012 based on prior and new definitions
are as follows:
Change 2011 - 2012 like-for-like
Prior definition ^[1] New definition ^ [2]
Sales +5.4% +5.4%
Trading operating income +1.8% +1.9%
Trading operating margin -50 bps -50 bps
Underlying net income +0.9% +1.0%
[1] Applied through December 31, 2012
[2] Applied from the first quarter of 2013
Calculation of financial indicators not defined in IFRS and used by the Group
are calculated as follows:
Based on the prior definition, Like-for-like changes in net sales, trading
operating income, trading operating margin and net income - Group share
essentially exclude the impact of: (i) 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 the
Group for the current year), and (ii) changes in consolidation scope, with
previous-year indicators calculated on the basis of current-year scope.
Based on the new definition, Like-for-like changes in net sales, trading
operating income, trading operating margin and net income - Group share
essentially exclude the impact of: (i) 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 the
Group for the current year), and (ii) changes in consolidation scope, with
indicators related to considered fiscal year calculated on the basis of
previous-year scope.
Trading operating income is defined as the Group operating income excluding
other operating income and expense. Other operating income and expense is
defined under Recommendation 2009-R.03 of the French CNC, and comprises
significant items that, because of their exceptional nature, cannot be viewed
as inherent to current 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 litigation. Since
application of IFRS 3 (Revised), they have also included acquisition fees
related to business combinations.
Trading operating margin is defined as the trading operating income over net
sales ratio.
Underlying net income (or current net income - Group share) measures the
Group's recurring performance and excludes significant items that, because of
their exceptional nature, cannot be viewed as inherent to the Group's current
performance. Such non-current income and expense mainly include capital gains
and losses on disposals and impairments of non-fully-consolidated equity
interests and tax income, and expense related to non-current income and
expense. Non-current net income - Group share is defined as non-current income
and expense excluded from Net income - Group share.
2011 2012
Non-current Non-current
(€ millions) Underlying items Total Underlying items Total
Trading operating
income 2 843 2 843 2 958 2 958
Other operating
income (expense) (114) (114) (211) (211)
Operating income 2 843 (114) 2 729 2 958 (211) 2 747
Cost of net debt (174) (174) (170) (170)
Other financial
income (expense) (107) (13) (120) (130) (2) (132)
Income before tax 2 562 (127) 2 435 2 658 (213) 2 445
Income tax expense (661) 35 (626) (735) 23 (712)
Effective tax rate 25,8% 25,7% 27,6% 29,1%
Net income from
fully-consolidated
companies 1 901 (92) 1 809 1 923 (190) 1 733
Share of profit of
associates 46 46 59 (5) 54
Net income 1 947 (92) 1 855 1 982 (195) 1 787
* Group share 1 749 (78) 1 671 1 818 (146) 1 672
* Non-controlling
interest 198 (14) 184 164 (49) 115
Underlying fully diluted EPS is defined as the underlying net income over
diluted number of shares ratio.
2011 2012
(In euros per share
except for number of
shares) Underlying Total Underlying Total
Net income - Group share 1 749 1 671 1 818 1 672
Number of shares
· Before dilution 602 202 781 602 202 781 600 477 145 600 477 145
· After dilution 604 049 698 604 049 698 603 105 304 603 105 304
Net income - Group share,
per share
· Before dilution 2.90 2.77 3.03 2.78
· After dilution 2.89 2.77 3.01 2.77
Free cash flow represents cash flows provided or used by operating activities
less capital expenditure net of disposals and excluding acquisition costs
related to business combinations (since the application of IFRS 3 (Revised)).
(€ millions) 2011 2012
Cash flow from operating activities 2 605 2 858
Capital expenditure (885) (976)
Disposal of tangible assets 152 193
Transaction fees related to business combinations ^ [1] 2 13
Free cash-flow 1 874 2 088
[1] These expenses previously classified as investment flows impact cash-flow
from operating activities as from January 1, 2010 pursuant to Revised IFRS 3
on Business Combinations.
Free cash-flow excluding exceptional items represents free cash-flow before
cash-flows related to initiatives that may be taken by the Group to deploy the
plan to generate savings and adapt 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.
(In € millions) 2011 2012
Non-current financial debt 7 166 6 346
Current financial debt 1 865 3 176
Short term investments (1 114) (1 748)
Cash and cash equivalents (1 027) (1 269)
Derivatives - assets (257) (213)
Net debt 6 633 6 292
Liabilities related to put options granted to non-controlling
interests - Non current (3 622) (1 881)
Liabilities related to put options granted to non-controlling
interests - Current (1 390)
Financial debt excluded from net financial debt (3 622) (3 271)
Net financial debt 3 011 3 021
Our presentation to analysts and investors will be broadcast live from 9.30
a.m. (Paris time) on Tuesday, February 19, 2013. Related slides will be
available on our website (www.finance.danone.com) from 8.00 a.m. today (Paris
time).
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning
Danone. 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
Factors" section of Danone's Annual Report (available on www.danone.com )
APPENDIX - Sales by division and by region
First quarter Second Third Fourth Full-year
quarter quarter quarter 2012
€ millions 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
BY BUSINESS
LINE
Fresh Dairy 2 2 960 2 2 946 2 2 910 2 2 859 11 11
Products 851 821 785 778 235 675
Waters 718 841 949 1 014 816 746 3 229 3 649
962 832
Baby Nutrition 910 1 014 907 1 076 906 1 062 950 1 105 3 673 4 257
Medical 278 302 293 298 312 1 181 1 288
Nutrition 323 323 340
BY GEOGRAPHICAL
AREA
Europe 2 697 2 710 2 845 2 839 2 661 2 682 2 607 2 617 10 10
809 848
Asia 661 829 734 2 862 3 584
933 740 946 727 876
Rest of World 1 399 1 578 1 391 1 587 1 404 1 629 1 453 1 643 5 647 6 437
Group 4 757 5 117 4 970 5 359 4 805 5 257 4 786 5 136 19 20
318 869
First Quarter 2012 First quarter 2012 Third quarter 2012 Fourth quarter 2012 Full-year 2012
€ millions Reported Change Reported Change Reported Change Reported Change Reported Change
change Like-for-like^[1] change Like-for-like^[1] change Like-for-like^[1] change Like-for-like^[1] change Like-for-like^[1]
BY BUSINESS
LINE
Fresh Dairy 3.8% 3.8% 4.4% 2.1% 4.5% 0.7% 2.9% 1.3% 3.9% 2.0%
Products
Waters 17.1% 16.4% 6.9% 4.6% 17.8% 12.3% 11.4% 8.5% 13.0% 10.0%
Baby 11.4% 9.0% 18.6% 13.6% 17.2% 11.5% 16.4% 12.1% 15.9% 11.6%
Nutrition
Medical 8.3% 6.4% 10.3% 6.7% 8.4% 4.9% 9.2% 5.5% 9.1% 5.9%
Nutrition
BY
GEOGRAPHICAL
AREA
Europe 0.5% 0.9% -0.2% -1.0% 0.8% -1.5% 0.4% -2.3% 0.3% -1.0%
Asia 25.4% 19.4% 27.1% 17.2% 27.8% 18.3% 20.6% 15.1% 25.2% 17.4%
Rest of 12.8% 12.7% 14.1% 10.7% 16.1% 10.5% 13.1% 12.9% 14.0% 11.7%
World
Group 7.6% 6.9% 7.8% 5.0% 9.4% 5.0% 7.3% 4.9% 8.0% 5.4%
[1] Like for like: see pages 10-12 for details on calculation of financial
indicators not defined in IFRS
For more information :
Press Relations: +33 1 44 35 20 75 - Investor Relations: +33 1 44 35 20 76
DANONE : 17, boulevard Haussmann, 75009 Paris
2012 Full-Year Results
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HUG#1679058
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