Danone // 2020 Universal Registration Document

3 Business highlights in 2020 and outlook for 2021 3.4 Balance sheet and financial security review 53 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 LIABILITIES RELATED TO PUT OPTIONS GRANTED TO NON-CONTROLLING INTERESTS General principles Danone granted put options to third parties with non-controlling interests in certain consolidated subsidiaries, these options give the holders the right to sell part or all of their investment in these subsidiaries. These financial liabilities do not bear interest. Changes during the period (in € millions) 2019 2020 As of January 1 508 482 New options and options recognized previously in accordance with IFRS 9 19 7 Options exercised (a) (125) (90) Changes in the present value of outstanding options 79 (37) As of December 31 (b) 482 363 (a) Carrying amount at the closing date of the previous period for options exercised and for which payment has been made. (b) In most cases, the strike price is an earnings multiple. NET DEBT AND NET FINANCIAL DEBT Net debt As of December 31 (in € millions) 2019 2020 Non-current financial debt (a) 12,906 12,343 Current financial debt (a) 4,474 4,157 Short-term investments (3,631) (3,680) Cash and cash equivalents (644) (593) Derivatives – assets – Non-current (b) (271) (259) Derivatives – assets – Current (b) (16) (27) Net debt 12,819 11,941 (a) Consists of €966 million of lease debt following the application of IFRS16 Leases . (b) Used solely to manage net debt. Bridge from net debt to net financial debt Year ended December 31 (in € millions) 2019 2020 Net debt 12,819 11,941 Liabilities related to put options granted to non-controlling interests — Non-current (13) (7) Liabilities related to put options granted to non-controlling interests — Current (469) (355) Financial debt excluded from net debt (482) (362) Net financial debt 12,337 11,579