Danone // 2020 Universal Registration Document

DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 124 4.2 Financial statements of Danone SA, the parent company Note 5. Other operating expense NOTE 5. OTHER OPERATING EXPENSE Other operating expense comprised mainly fees paid to external service providers and charges for rent and services provided and totaled €544 million in 2020 (€515 million in 2019). NOTE 6. NET FINANCIAL INCOME (EXPENSE) Net financial income totaled €2,022 million in 2020 (€565 million in 2019). Income from equity interests Income from equity interests consisted of dividends received from the Company’s equity interests. In 2020, these dividends totaled €2,070 million (€346 million in 2019), mostly from its subsidiaries in the Specialized Nutrition business and the sale of its residual indirect interest in Yakult. Interest on loans and receivables and similar income In 2020, interest on loans and receivables and similar income comprised: (i) interest received on loans and receivables granted to certain direct or indirect subsidiaries for €142 million (mainly in the United States), (ii) interest received from cross-currency swaps for €34 million, and (iii) interest on interest rate swaps for €29 million. Interest on borrowings and similar expense As of December 31 (in € millions) 2019 2020 Bonds (a) 280 251 Current account with Danone Finance International (a) 13 10 Short-term borrowings from indirect subsidiaries (a) – – Commercial paper (a) (6) (6) Total 287 255 (a) Interest paid and accrued in respect of the year. Other financial income (expense) As regards Other financial income (expense), the Company generated net income of €3 million (compared with net income of €272 million in 2019, due mainly to the transfer of the assets and liabilities of Danone Baby and Medical Holding). NOTE 7. NET NON-RECURRING INCOME (EXPENSE) In 2020, Danone generated a Net non-recurring expense of €34 million, which consisted mainly of restructuring expenses. In 2019, Danone generated a Net non-recurring expense of €10 million, which consisted mainly of allocations to and reversals of provisions and restructuring expenses.