Danone // 2020 Universal Registration Document

Overview of activities, risk factors 2.3 Description and strategy of the Reporting Entities DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 16 The EDP Reporting Entity’s core strategy is to encourage consumers of all ages to choose naturally healthier food products over the long term that allow them to positively impact their health and immune systems. This strategy leverages EDP’s local anchoring, extensive portfolio of unique multi-local and local brands and it executed through six growth levers: • leverage use of probiotics and new ingredients that have widely known benefits and are increasingly popular with health-conscious consumers; • accelerate plant-based sales by expanding core brands while exploring new ingredients, categories and geographies; • develop indulgence products , including healthier offers, and with new convenient formats; • innovate with impact , leveraging Danone’s unique expertise, brands and route to market capabilities; • ensure product availability in every relevant channel and moment of consumption to optimally address consumers’ needs with the best products and formats; • win over the millennial generation by rejuvenating and launching brands that resonate with them. SPECIALIZED NUTRITION The Specialized Nutrition Reporting Entity develops and sells pro- ducts for individuals with specific nutritional needs across the full life span – frompretermbirth until old age. The strength of its model lies in its extensive scientific and research expertise, a collaborative approach to innovation, and an in-depth understanding of specific nutritional needs, which enable the development of products and services that have a positive impact on people’s health. It offers a product portfolio that supports consumers’ health across their life span: • the first 1,000 days of a baby’s life – from the start of pregnancy to two years of age – are crucial for the development of their health. As breast milk is best suited to a baby’s specific needs, Danone encourages breastfeeding and offers products, services and information and educational programs to women who are pregnant or breastfeeding. For mothers who are unable or unwilling to breastfeed, Danone’s infant milk formulas offer a healthy alternative built on 40 years of scientific research on the properties of breast milk. Infant formulas, which represent the bulk of the Specialized Nutrition Reporting Entity’s portfolio, are sold under international brands (such as Aptamil and Nutrilon ) and local brands (such as Gallia in France, Cow&Gate in the United Kingdom and Bebelac in Indonesia); • complementary food for babies includes strong local brands such as Blédina and Olvarit in Europe and Happy Family Organics in North America; • the pediatric specialties portfolio includes nutrition products that are specially designed to meet the specific needs of child- ren diagnosed with certain medical conditions. The Specialized Nutrition Reporting Entity offers a wide range of products that prevent and manage allergies such as hypoallergenic products for children at risk of allergies ( Aptamil ProSyneo ) and products for children who are moderately to severely allergic to cow’s milk ( Aptamil Pepti Syneo , Neocate Syneo ); • the adult nutrition portfolio includes products such as Fortimel and NutriDrink , oral nutritional supplements for patients suffe- ring from malnutrition caused by illnesses such as cancer or CVA, as well as tube feeding ( Nutrison ) for patients who can no longer feed themselves normally. Medical nutrition allows better clinical results and is available in formats tailored to the specific nutritional needs of patients. Medical nutrition products – most of which are reimbursed by healthcare systems – are recommended or prescribed by healthcare professionals (doctors, medical personnel in hospitals, nursing homes and pharmacies). The Specialized Nutrition Reporting Entity’s strategy is based on the following principles: • build on an in-depth understanding of nutritional trends and scientific research: meet consumers’ growing demand for more natural, plant-based and organic products while incorporating the latest scientific research and innovations in the field of specialized nutrition; • respond to evolving healthcare needs as a result of demogra- phic trends, prevalence of chronic disease and the Covid-19 pandemic: the growth potential of the adult nutrition market is significant and is driven by strong structural trends such as the general aging of the population and the development of chronic diseases that require both prevention and treatment solutions, as well as by an increased demand for immunity boosting and personalized nutrition solutions tomaintain overall better health; • develop research partnerships to tackle health issues at the local level: understanding local eating habits is crucial to ena- bling Danone to best meet the nutritional needs of the various markets and respond to new health-related developments, such as the increased prevalence of food allergies and stunted growth among children. The Specialized Nutrition Reporting Entity introduces innovations in themarket by working withmany scientists, healthcare professionals, patient associations and consumer groups to develop products and services that have a positive impact on people’s health; • channel innovation according to shifting consumer attitudes : for example, with an acceleration of e-commerce as a result of the Covid-19 pandemic, the Specialized Nutrition Reporting Entity is optimizing its distribution strategy by strengthening its digital expertise and forming close partnerships to further develop its e-commerce presence and delivery of home care services; • address consumer health throughout life: the Specialized Nutrition Reporting Entity also continues to expand into areas adjacent to its core business areas, leveraging its capabilities to support health across the consumer’s lifespan with science- based nutritional solutions.