Danone // 2020 Universal Registration Document

3 Business highlights in 2020 and outlook for 2021 3.2 Consolidated net income review 47 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 Bridge from Net income – Group share to Recurring net income – Group share Year ended December 31 (in € millions except if stated otherwise) 2019 2020 Recurring Non-recurring Total Recurring Non-recurring Total Recurring operating income 3,846 3,846 3,317 3,317 Other operating income and expense (609) (609) (519) (519) Operating income 3,846 (609) 3,237 3,317 (519) 2,798 Cost of net debt (220) (220) (207) (207) Other financial income and expense (150) (151) (103) (103) Income before taxes 3,477 (609) 2,867 3,007 (519) 2,488 Income tax (956) 163 (793) (828) 66 (762) Effective tax rate 27.5% 27.7% 27.5% 30.6% Net income from fully consolidated companies 2,521 (446) 2,075 2,179 (453) 1,726 Net income from associates 98 (144) (46) 85 219 304 Net income 2,618 (590) 2,028 2,264 (234) 2,030 • Group share 2,516 (586) 1,929 2,189 (233) 1,956 • Non-controlling interests 103 (4) 99 75 (1) 74 EPS (in €) 3.85 2.95 3.34 2.99 Bridge from EPS to Recurring EPS Year ended December 31 2019 2020 Recurring Total Recurring Total Net income – Group share (in € millions) 2,516 1,929 2,189 1,956 Coupon relating to hybrid financing net of tax (in € millions) (14) (14) (15) (15) Number of shares • Before dilution 648,250,543 648,250,543 649,331,592 649,331,592 • After dilution 649,106,039 649,106,039 649,968,844 649,968,844 EPS (in €) • Before dilution 3.86 2.95 3.35 2.99 • After dilution 3.85 2.95 3.34 2.99