268 / 364
DANONE
REGISTRATION DOCUMENT 2015
Corporate Governance
6.3 Compensation and benefits of corporate officers and governance bodies
268
(b) The average growth in the trading operating margin over a three-year period, i.e. for fiscal years 2014, 2015 and 2016:
•
if the average growth in the Trading operating margin calculated over the three fiscal years (2014, 2015 and 2016) is positive (i.e. greater
than or equal to +1 basis point), the definitive grant will be 100%;
•
if the average growth in the Trading operating margin calculated over the three fiscal years (2014, 2015 and 2016) is equal to zero or
negative, the definitive grant will be 0%.
Definitions
Average growth in Trading operating margin
Average growth in Trading operating margin on a like-for-like basis
• in 2014 compared to 2013;
• in 2015 compared to 2014; and
• in 2016 compared to 2015.
Trading operating margin
Ratio of trading operating income to net sales.
Net sales
Danone's consolidated net sales, as defined by IFRS.
Trading operating income
Danone's operating income excluding “Other operating income (expense)”. “Other
operating income (expense)”, in accordance with Recommendation 2009-R.03 of the
CNC “on the format of financial statements of entities applying international account-
ing standards”, comprises significant items that, because of their exceptional nature,
cannot be viewed as inherent to the Group's current activities. These mainly include
capital gains and losses on disposals of fully consolidated companies, impairment
charges on goodwill, significant costs related to strategic restructuring and major
external growth transactions, and costs related to major crisis and major litigations.
Moreover, under revised IFRS 3, Business Combinations, in the “Other operating
income (expense)” item the Group also presents (i) costs to acquire companies in
which the Group acquires a controlling interest, (ii) revaluation variances recorded
following a loss of control, and (iii) changes in additional purchase prices subsequent
to the acquisition of a controlling interest.
Change in Trading operating margin on
a like-for-like basis
Increase or decrease, mainly after exclusion of the impact of: (i) changes in exchange
rates, with both previous year and current year indicators calculated based on the
same exchange rates (the exchange rate used is a projected annual rate determined by
the Group for the current year and applied to both years), (ii) changes in consolidation
scope, with indicators related to the current year calculated on the basis of the scope of
consolidation of the previous year, and (iii) changes in applicable accounting principles.