@ BARCLAYS quly Reseach Danone Fighting too many fires are! romano wey ter NEUTRAL oa ay lp pe have ated relents oan oh, ile Dane's ere fiting pores ates ene aia ce spare sieht gta aes Inpac Inremenal pressure fom Inpt costs wil contin to ckive consensus armings downprafes. This decrees Danone’ lve eariogs suey, whch f= Sirendy poo, panty around a recovery tn Chinese lft formula. Wi ommtainenineaenn cin baerioseterae | seme mau] [sineaptascnate pon We dowopetsDeontctncevepteas ee newb acetate ome am a pce headin ng. oting cud snd ales septs Onegin, am Soysruntrporseeiminsssteiber stores crameseyn ane os Soleoy ote ttn Deortee ngverscayrrenn asin Stina ming SSistmicrstaps nepniecont Otay oayssages Owens Sneale H Sincintargragioecceauintes ouvepeccasucgesgelt transys) 308 ‘ise nog seed We mote cay ge swe Sips Wess anew) wo ‘believe Danone’s pricing power isn’t what # used to be. Price premusms are already too. eee yrange cryctirnnelS stunts Deockcrenpatcteche —— paepgae x pergnhaaa nin annaPtnrantpotha comer ai es Hypeifaon accounting rik could hurt sentiment We sae 2 rk of Daron adept hypernicton accourtng Argenta, 9 cumulative wat the county si 1 ove >100%on Barclay orcs ven exons to te repo, estate ” Danone could reduce ean set gronh by -1Sbpx, Atos EPS wuld ly c tei booty unchanged, vn organ ne Grom ey re fr etre | Suspects account change coud adore mp compress. (aa We at-7% below Reters consensus, Q Bkly agave clash Wan mute “nh int r y rargin heads bung, we sce sian dower to exnegs estimates. “hs coved wth ower lane earings sey shoud igh o Danan ahaon 1014 coud sce agar Sls growth ps lw as +198 with volares negate aaa terry We dowrgade 291495 by ahr eopaatig me besh mage Seen ‘Sree ai eed ‘entero DANO. ian and Valen Mics FSEUR os 302A SSE SIE aE ‘Srunnaesabascom Sec tone se n03553598 SasinpsonBbccon ‘Sucre tondon Sarees utsemesen atatonees ttcowaec ecient tOSNee Seesecicureneeherseeainermeretcen Sipcoeeeegeemte ser epee Rue esa Ninian ces nouns eeearcs Daan Investment case in 6 key charts ‘Banone faces an upil bate agit inputs BRERA ee oan hd ltl Day Ctinisten Seeded tonrn {ler Amy ofr mtg pcg poet in of dos we i a "PEPPPESOES ean cures Prater nee carings momenta. mereto come! rreure2 ng cou send Day volumes into negate erry fen . at ree wai som [ay ie einen eran sv yaar EBIT margins may continue to struggle se rcety ra Marga psn frcuRE6 Sela 13 chence we settle room or atng upside Siowcantdovmerades. bi node ate = ‘Ow gee anae |Donne revaen20 ‘Unhelpful dairy input cost headwinds While the msoty of rames i ur Staples coverage ues ae lly 10 Se lately Seni infin in 2014 ser seep years Danone roy wa ace seth up Sle Cota diry pcs have connor espera profit sipped by sang engang deran om Asa, partculr Crna We estate Danone coud face Ices ile a day oss hs yea. On er umber tt equate a9 €-27Cbpe margin heard roa Svs wl ot be encuph i fet hs, Bence Oarone ‘must pct otc prof. nove. Howeves webelee he peng erwonment reas tc. Nt nly sano ably top med by macro and compete SS. ‘it ao there eal eof von Ring nga, whch damaging fr te ng te hea ofthe ctegany In oa, we elev Danone wl egg To see margh ‘arson n 2014. Spicy we ae row frecaing 220s alin gu ET mags ‘compestors are highightng the problem ‘Seer of Danan’ competitors have recent highligh dy ston and he chalnges. ings recent wees, the tne of manager omens gh th ery of he eure? ers ar cats on day cont Cara! “Day ssh ben scan Nae ton. ta ere tr ata ‘ite Saale me “ea dlr rer yr a a we ‘eo ons ee row prea yom cowed aes a capers gh 207 ‘Serco noe iat" “yok doy conmedy pees hove nasa pennant Cour andioonce babar Wal coke abner bere pa ‘ig ncn le kwon Stotcls “Duly oi thn coe pce ‘AliDanone’skey egions have seen severe mi inflation felon we chan the sh ik price each of Danone’ key regions forts Daly buses. We use New Zan 6 pry forthe est fe werd gen ts iparance to the word matt tis wrth rotng that Danone canot heige sesh ik exposure ana ene ses ‘moe rer pa pes ow trough the PE. Onthe ord ik pom iad eo {-mont bss heros te severe spe ing of 201 al pt maa ate 42012 2014 ~ unorurte for anne the andr wth 3 ayn sh