Danone // 2020 Universal Registration Document

4 123 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 4.2 Financial statements of Danone SA, the parent company Note 2. Highlights of the year Retirement commitments Supplementary retirement commitments and lump sum retirement payments borne by the Company are presented within Off-balance sheet commitments. NOTE 2. HIGHLIGHTS OF THE YEAR Danone received dividends totaling €2.1 billion, mostly from its subsidiaries in the Specialized Nutrition business and the sale of its residual indirect interest in Yakult. Impacts of Covid-19 Management has assessed the impacts of Covid-19 on the basis of reasonably available information and conditions at the end of the financial period presented and considering assumptions, estimates, or appraisals, the main ones of which concern the measurement of equity interests and financial assets as described below. In light of the uncertainty as to the magnitude and duration of the effects of Covid-19, Danone has exercised particular vigilance in determining these assumptions. The Company has therefore calculated the recoverable amounts of its equity interests and financial assets, which are measured based on discounted cash flows, by projecting in its business plans the full effects on its various businesses of the Covid-19 health crisis over its entire duration so as to reflect the uncertainty as to the magnitude and duration of the crisis. These measurements have not indicated any impairment. With regard to liquidity risk, Danone launched two €800 million bond issues in the first half of 2020 and held as of December 31, 2020 a portfolio of more than €3 billion of available committed credit facilities. In addition, as a reminder, Danone is not subject to any financial covenant. NOTE 3. OPERATING INCOME Sales comprise mainly the billing of direct and indirect subsidiaries for services rendered by the Company to those subsidiaries. They totaled €622 million in 2020 (€593 million in 2019). Other income totaled €52 million in 2020 (€54 million in 2019) and comprised mainly reversals of provisions for risks and charges relating to hedging of the Group performance share plans granted by the Company. NOTE 4. PERSONNEL COSTS AND COMPENSATION OF THE MEMBERS OF THE MANAGEMENT BODIES AND THE BOARD OF DIRECTORS Personnel costs Personnel costs comprise the gross compensation of the Company’s employees and senior executives and the related social charges as well as the charges relating to the Group performance share plans under which shares are allocated to certain Danone employees and corporate officers subject to performance conditions. Company’s share of the compensation paid to the members of the Board of Directors and the Executive Committee Year ended December 31 (in € millions) 2019 2020 Compensation paid to corporate officers and members of the Executive Committee (a) 11 11 Attendance fees paid to non-executive members of the Board of Directors (b) 1 1 Total 12 12 (a) Recognized in Personnel costs. (b) Recognized in Other operating expense. See also Note 17 of the Notes to the financial statements of the parent company Danone.