Danone // 2020 Universal Registration Document

3.1 BUSINESS HIGHLIGHTS IN 2020 40 Highlights of 2020 (Highlights were detailed in the main press releases issued by Danone during 2020) 40 Other activities in 2020 41 3.2 CONSOLIDATED NET INCOME REVIEW 43 Key figures 43 Sales 43 Recurring operating income and recurring operating margin 45 Net financial income (expense) 46 Effective tax rate 46 Recurring net income – Group share and Recurring EPS 46 Additional information on consolidated income statement 48 Dividend paid in respect of 2020 fiscal year 48 3.3 FREE CASH FLOW 49 Free cash flow 49 Consolidated statement of cash flows 50 3.4 BALANCE SHEET AND FINANCIAL SECURITY REVIEW 51 Condensed consolidated balance sheet 51 Financing structure and financial security 51 Liabilities related to put options granted to non-controlling interests 53 Net debt and net financial debt 53 Shareholder’s equity 55 Off-balance sheet commitments 55 3.5 OUTLOOK 2021 55 Material change in financial or trading position 55 Outlook for 2021 55 New governance at Danon e 55 3.6 FINANCIAL INDICATORS NOT DEFINED IN IFRS 56 3.7 DOCUMENTS AVAILABLE TO THE PUBLIC 56