Danone // 2020 Universal Registration Document

3 Business highlights in 2020 and outlook for 2021 3.5 Outlook 2021 55 DANONE UNIVERSAL REGISTRATION DOCUMENT 2020 SHAREHOLDER’ S EQUITY Change in shareholder’s equity – Group share Year ended December 31 (in € millions) 2019 2020 As of January 1 16,251 17,241 Net income 1,929 1,956 Other comprehensive income (165) (39) Dividends paid (a) (1,256) (1,363) Translation adjustments 391 (1,925) Other 91 334 As of December 31 17,241 16,205 (a) Impact on the Group share of equity, impact of the dividends paid on the consolidated equity amounting to €(1,417) million in 2020 (€(1,315) million in 2019). OFF-BALANCE SHEET COMMITMENTS Commitments given as of December 31, 2020 relating to operating activities Amount of financial flows for the period (in € millions) Total 2021 2022 2023 2024 2025 and after Commitments to purchase goods and services (a) (3,690) (2,410) (764) (279) (89) (150) Capital expenditure commitments (336) (316) (20) − − − Guarantees and pledges given (21) (21) − − − − Other (75) (39) (17) (10) (4) (5) Total (4,122) (2,786) (801) (288) (93) (154) (a) Commitments relating mainly to purchases of milk, dairy ingredients and other food raw materials. 3.5 OUTLOOK 2021 MATERIAL CHANGE IN FINANCIAL OR TRADING POSITION There has been no significant change in the financial or trading position of the Company and its subsidiaries as a whole since December 31, 2020. OUTLOOK FOR 2021 Danone expects a tough Q1 driven by the tough base of compari- son of Q1 last year and continued channel-related headwinds. The Company anticipates to be back to growth in Q2, and to return to profitable growth in H2. Full-year recurring operating margin is expected to be broadly in line with 2020. NEW GOVERNANCE AT DANONE See section 6 Corporate governance.