Press Release – Paris, March 5, 2025 at 7:30pm CET Notification of availability of Danone’s 2024 consolidated financial statements and statutory auditors’ report Danone announces that its consolidated financial statements and the statutory auditors’ report for the fiscal year ended December 31, 2024 are publicly available and accessible online on its website, www.danone.com, section Investors / Financial and extra-financial reports. About Danone (www.danone.com) Danone is a leading global food and beverage ...

FY 2024 PRESENTATION Volume/mix Recurring operating margin Recurring EPS €3.63 13.0% €3.54 +3.0% 12.6% 12.2% €3.43 -0.8% -0.4% FY 24 FY 24 FY 24 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 Free Cash Flow ROIC 10.0% €3.0 bn 9.5% €2.6 bn 8.9% €2.1 bn in 2024 FY 22 FY 24 FY 22 FY 24 FY 23 FY 23 ATNI = Global Access To Nutrition index 3 Progressively rebalancing our growth model Antoine de Saint-Affrique Chief Executive Officer CLOSING THE FIRST 3 YEARS OF RENEW DANONE CONSISTENTLY DELIVERING ON OUR GUIDANCE LEVERAGING ...

Core Insights - The company reported strong FY 2024 results, achieving a like-for-like sales growth of +4.3% driven by a +3.0% increase in volume/mix and a +1.3% increase in price [3][6][9] - The recurring operating margin improved to 13.0%, up +39 basis points from the previous year, reflecting strong operational performance and effective reinvestment strategies [4][17] - The net income attributable to the group increased significantly by +129.4% to €2,021 million, with diluted EPS rising to €3.13, a +130.2% increase [5][18][19] Financial Performance - FY 2024 sales amounted to €27,376 million, a reported decrease of -0.9% but an increase of +4.3% on a like-for-like basis [5][9] - Recurring operating income reached €3,558 million, reflecting a +2.2% increase from FY 2023 [5][17] - Free cash flow reached a record level of €3,003 million, up +14.0% from the previous year [20] Regional Performance - North America saw a like-for-like sales growth of +7.7%, driven by strong performance in High Protein, Coffee Creations, and Waters [11] - Sales in China, North Asia & Oceania increased by +6.8% on a like-for-like basis, with strong volume/mix growth [12] - Latin America reported a +4.7% increase in like-for-like sales, supported by robust performances from key brands [13] Category Performance - The EDP category experienced a decline in reported sales, down -3.1% in Q4 2024, but showed a +4.7% increase on a like-for-like basis [10][55] - Specialized Nutrition grew by +6.1% in Q4 2024, with strong contributions from Medical Nutrition [10][12] - Waters category sales increased by +5.3% on a like-for-like basis, driven by strong brand performances [10][14] Future Outlook - The company expects like-for-like sales growth in 2025 to be between +3% and +5%, with recurring operating income anticipated to grow faster than sales [22] - A proposed dividend of €2.15 per share for FY 2024 represents a +2.4% increase compared to the previous year [21] - The company plans to initiate a share buyback program of 2.7 million shares in 2025 to offset dilution from employee shareholding plans [23]

Core Points - Danone has reached an agreement with NGOs ClientEarth, Surfrider Foundation Europe, and Zero Waste France to end legal proceedings regarding its vigilance plan on plastic [1][2] - The agreement includes a reinforced vigilance plan that details the consequences of plastic packaging use and outlines Danone's actions to reduce, reuse, recycle, and recover plastic [2] - Danone emphasizes the importance of open dialogue with NGOs to address complex challenges and encourages collective mobilization from all sectors to overcome systemic obstacles to a circular economy [3][4] Company Overview - Danone is a leading global food and beverage company focused on health-oriented categories, generating €27.6 billion in sales in 2023 and employing nearly 90,000 people [5] - The company operates in over 120 markets and has a diverse portfolio of international and local brands, including Actimel, Activia, and evian [5] - Danone aims for B CorpTM certification globally by 2025 and is included in various sustainability indexes, reflecting its commitment to social and environmental impact [5]

Company Overview - Danone's shares have decreased by almost 13% over the past five years due to rising inflation, a slowing European economy, and a challenging political environment in France [1]. Economic Context - The cumulative inflation rate in the region has reached nearly 25%, contributing to the decline in Danone's stock performance [1]. Investment Implications - The current market conditions may present potential investment opportunities for those looking to capitalize on undervalued assets, particularly in the consumer defensive sector where Danone operates [1].

Core Viewpoint - Lifeway Foods' Board of Directors rejected Danone North America's unsolicited acquisition proposal of $27.00 per share, citing that it significantly undervalues the company while expressing openness to a sale at a fair price [1][2]. Company Performance - Lifeway Foods has achieved 20 consecutive fiscal quarters of year-over-year topline growth [5]. - The company reported a total shareholder return of 788% over the past five years, outperforming high-growth food and beverage peers and the S&P 500 [5]. - Annual revenue increased from $94 million in 2019 to $160 million in 2023, marking a 71% increase and a 14% CAGR [5]. - Gross profit rose by 92% over the same five-year period, with an 18% CAGR, achieving $17 million in Operating Income and $22 million in Adjusted EBITDA in 2023 [5]. Growth Potential - Lifeway is experiencing double-digit growth, driven by consumer recognition of the gut microbiome's importance and the benefits of kefir [4]. - The company forecasts Adjusted EBITDA to grow from $22 million in 2023 to between $45 million and $50 million by 2027 [5]. - The Board believes Lifeway has reached an inflection point with strong momentum in core products and ongoing operational efficiency improvements [5]. Valuation Considerations - The Danone proposal of $27 per share implies a low EBITDA multiple of approximately 7.5x to 8.5x, not accounting for potential synergies and operational efficiencies [5].

Core Viewpoint - Danone successfully dismissed a lawsuit regarding its "carbon neutral" claim on Evian bottles, with a judge reversing a previous ruling that allowed the class action to proceed [1][2]. Group 1: Legal Proceedings - US District Judge Nelson Roman initially ruled that the term "carbon neutral" was ambiguous and that consumers might struggle to understand the labeling [2]. - After reconsideration, the judge concluded that reasonable consumers would check the back label for more information, which included a link to Evian's website explaining the carbon neutral claim [3][4]. - The judge stated that Danone's representations were technically true and that relevant disclosures were made available to consumers [5]. Group 2: Consumer Allegations - Consumers accused Danone of defrauding them by implying that Evian was environmentally friendly due to its "carbon neutral" label, while its manufacturing process still released carbon dioxide [1][5]. - The plaintiffs, who paid premium prices for Evian, equated "carbon neutral" with being environmentally friendly [5]. Group 3: Related Legal Context - This ruling followed a separate case where a Chicago federal judge dismissed a lawsuit against Danone for claiming Evian is "natural" despite containing microplastics [6]. - Danone's product portfolio includes other brands such as Dannon, Oikos, and Activia yogurt, with its headquarters located in Paris and North American operations in White Plains [6].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, focusing on medium and small-cap markets, as well as blue-chip companies and broader investment stories [2][3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3][4] Group 2 - The company utilizes technology to enhance workflows and has a team with decades of expertise [3] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [4]

Financial Data and Key Metrics Changes - Danone reported a like-for-like sales growth of 4.2% for Q3 2024, indicating broad-based growth despite a soft consumer environment [4][6] - The volume mix contribution reached 3.6%, with resilient pricing at 0.7%, marking the fifth consecutive quarter of volume mix acceleration [5][7] - Net sales for Q3 amounted to approximately €6.8 billion, reflecting a 1.2% decline on a reported basis due to currency impacts and scope effects [7][8] Business Line Data and Key Metrics Changes - EDP (Essential Dairy Products) saw a 4.1% increase in like-for-like sales, with volume mix growth accelerating to 3.8% [6] - Specialized Nutrition experienced a 5.2% increase in like-for-like sales, with volume mix growth at 4.1% [6] - Waters category reported a 3.2% increase in like-for-like sales, with volume mix up by 2.3% [7] Market Data and Key Metrics Changes - North America delivered a strong performance with like-for-like sales growth of 5.8%, driven by a 4.9% increase in volume mix [10] - The China, North Asia, and Oceania region reported an 8% increase in like-for-like sales, with volume mix contribution exceeding 10% [12] - Europe achieved a 1.4% increase in like-for-like sales, with volume mix growth at 2.4% [8] Company Strategy and Development Direction - Danone's strategy focuses on competitive and quality growth, with an emphasis on health-oriented categories [5][16] - The company aims to maintain a science-based and consumer-centric approach, investing in category leadership to drive growth [16][17] - Danone is committed to addressing consumer needs and leveraging strong brand equities to support growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in the China, North Asia, and Oceania region, citing strong performance across multiple categories [20] - In Europe, management noted that pricing would not be a major growth driver in the coming quarters, but volume dynamics are improving [22][35] - The company confirmed its guidance for 2024, expecting like-for-like sales growth between 3% and 5% and a moderate improvement in recurring operating margin [16][40] Other Important Information - The company is experiencing some inflation in material costs, particularly in milk prices, but is focused on maintaining a balance between volume, mix, and pricing [30][37] - Danone is investing in sustainability initiatives to enhance supply chain resilience and support regenerative agricultural practices [15] Q&A Session Summary Question: Sustainability of high sales growth in China, North Asia, and Oceania - Management expressed confidence in sustaining growth due to strong performance across multiple engines, including Medical Nutrition and Mizone [20] Question: European pricing dynamics and future expectations - Management acknowledged negative pricing in Europe but indicated that volume mix growth is improving, with plans to adjust pricing strategically [22][34] Question: U.S. EDP performance and outlook - Management reported strong growth in North America, particularly in coffee creamers and yogurt, with confidence in maintaining double-digit growth [28][29] Question: Guidance for the year and marketing investments - Management reiterated guidance for 2024, emphasizing the importance of investing in category leadership for sustainable growth [40] Question: Activia brand performance and gut health focus - Management confirmed that the repositioning of the Activia brand is yielding positive results, with a clear focus on gut health benefits [41]

| --- | --- | --- | |-------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 2024 SALES | | | | Juergen Esser | | | | Chief Financial Officer | | NATUR | CONTINUED STRONG MOMENTUM IN Q3 BROAD-BASED GROWTH ACROSS GEOGRAPHIES | --- | --- | --- | |------------------|-----------------------------|-------| | | | | | | NORTH AMERICA | +5.8% | | | EUROPE | +1.4% | | | CHINA, NORTH ASIA & OCEANIA | +8.0% | | +4.2% | LATIN AMERICA | +2.7% | | LFL sales ...