Danone // 2020 Universal Registration Document

4 101 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 4.1 Consolidated financial statements and notes to the consolidated financial statements Note 11. Financing and financial security, net debt and cost of net debt Company rating As of December 31 2019 2020 Moody’s Standard and Poor’s Moody’s Standard and Poor’s Short-term rating (a) Rating – A-2 – A-2 Long-term rating (b) Rating Baa1 BBB+ Baa1 BBB+ Outlook Stable Stable Stable Stable (a) Rating given to the Company’s commercial paper program. (b) Rating given to the Company’s debt issues with a maturity of more than one year. Note 11.5. Short-term investments Carrying amount As of December 31 (in € millions) 2019 2020 Money market funds 2,749 2,739 Bank deposits, negotiable debt instruments and other short-term investments 882 942 Total 3,631 3,680 Counterparty risk in respect of short-term investments The Group invests primarily in money market funds (French OPC monétaires ) or short-termmoney market funds (French OPC moné- taires court terme ), which are highly liquid, diversified and not rated. Bank deposits, negotiable debt instruments and other short-term instruments are subscribed from first-tier financial institutions. Note 11.6. Net debt As of December 31 (in € millions) 2019 2020 Non-current financial debt (a) 12,906 12,343 Current financial debt (a) 4,474 4,157 Short-term investments (3,631) (3,680) Cash and cash equivalents (644) (593) Derivatives – assets – Non-current (b) (271) (259) Derivatives – assets – Current (b) (16) (27) Net debt 12,819 11,941 (a) Consists of €966 million of lease debt following the application of IFRS16 Leases . (b) Used solely to manage net debt. Changes in net debt in 2020 Danone’s net debt totaled €11,941 million as of December 31, 2020, €878 million lower than as of December 31, 2019. It included €363 million of put options granted to non-controlling interests, €119 million lower than as of December 31, 2019. Changes in net debt in 2019 Danone’s net debt totaled €12,819 million as of December 31, 2019, €595 million lower than as of January 1, 2019. It included €482 million of put options granted to non-controlling interests, €26 million lower than as of December 31, 2018.