1. Corporate Quality General Management – May 05 1

2. 2 QUALITY MANAGEMENT SYSTEMS Consumer Safety Consumer Satisfaction Product Excellence Product Superiority Product Safety KPIs Consumer Loyalty

3. Corporate Quality General Management – May 05 3 Nutritional Charter 5 Principles Balance Diet Variety Pleasure Conviviality Information

4. Corporate Quality General Management – May 05 4 Alignment of our quality Policy / Organizations & Team Competencies with business needs Quality vision - Strategies - Objectives - Key action plans Organization -Contribution to business -Key missions & jobs Competencies / Behavior Quality To date Appraisal Business expectations Consumers’ Expectations Safe & Good quality products Reasonable price : Value for money Responsibility to the community Understand GM’s current vision of quality and expectations Enrich Quality vision with GM’s inputs Understand the current "Quality" scope Identify the existing strengths and weaknesses of organizations/managers GM Quality Staff

5. Corporate Quality General Management – May 05 5 ACTION PLAN Culture: Culture: Danone way – Quality role towards responsibility to the consumer SG / COMEX Statements Tools: Tools: Quality Charters/Mission KPIs consumer satisfaction Consumer radar Enablon Consumers contacts Call Center Modelling e-mail processing -Eptica Knowledge management DOM’s / Directives Management: Management: Quality committee in BU HR committee – Job evaluation Reward (GM WBU beverages) Proximity – management by walking around Organization: Organization: Target organization Qualification required for the job W2B organization 12 3 4

6. Corporate Quality General Management – May 05 6 Agenda 1. Quality Vision 2. Gap Analysis 3. To date status & Next Steps 1 1

7. Corporate Quality General Management – May 05 7 Quality Scope Transversally – from design & development to the final product, throughout all stages in the supply chain – from the farm gate to the point of consumption The quality team mission is to: Guarantee that the consumer’ interests are taken into account and protected Ensure that the consumers feedback are gathered and managed

8. Corporate Quality General Management – May 05 8 Quality Vision This vision is supported by key missions : Ensure that the consumer is at the centre of our attentions Guarantee that products and services through our processes (from conception to consumption) are continuously improved Contribute to the economic performance and robustness of the business Adopt and develop continuously throughout the Danone Group a positive and challenging attitude Develop best in class quality competencies Build an efficient quality organisation throughout the world Everyday and everywhere, our ambition is to provide consumers with superior and consistent quality products to continuously meet their needs and expectations

9. Corporate Quality General Management – May 05 9 Details of each key actions Ensure that the consumer is at the centre of our attentions Consumers' satisfaction is objectively defined and measured Consumers' expectations are understood and monitored to continuously improve their satisfaction regarding Danone's products and services Quality objectives are mainly driven by the consumers' needs Feedback from customers are gathered and managed

10. Corporate Quality General Management – May 05 10 Process Management QUALITY DANONE OPERATING MODELS « DOM BOOK Synthesis » Version 3.0 May 12th, 2005

11. Corporate Quality General Management – May 05 11 DANONE WAY / KEY PROCESSES DANONE OPERATION MODELS 8.8.7 - Customer & consumer feedback is systematically taken into consideration and used as a key source for product & service improvement 8.8.10 - The Quality Director coordinates a Quality committee in the CBU chaired by the GM

12. Corporate Quality General Management – May 05 12 Consumers’ satisfaction Call Center optimization and modelling to be set as good practice: Call Center optimization and modelling to be set as good practice: The objective is to obtain, in an optimized way, information allowing measuring the consumer satisfaction in order to manage continuous improvements And to initiate, according to a threshold to be determined, corrective actions. Indicator of performance for the measurement of consumer satisfaction Indicator of performance for the measurement of consumer satisfaction The objective is to deploy a KPI designed for performance improvement and dedicated to amplify weak signals. Consolidated by the Director Quality it must be used in Management committee as transverse communication tool.

13. Corporate Quality General Management – May 05 13 KPIs Consumer Satisfaction

14. Corporate Quality General Management – May 05 14 Definition and requirements of KPI KPI’s show Business Unit how to: Measure what is important to our consumers Have a common understanding of perceived quality compared with quality of competitors KPIs indicate Where to take actions in order to meet Consumer expectations – & link them to operational targets

15. Corporate Quality General Management – May 05 15 Definition & Goals of KPI’s Key performance indicators must: Be quantifiable measurements. Reflect the Key Product Attributes – KPA of a product. Key Performance Indicators help an organization to: Define, measure and guide progress towards improvement goals

16. Corporate Quality General Management – May 05 16 Conformity Feed-back Benchmarking Benchmarking Consumer Satisfaction Radar Excellence in Design Excellence in Implementation 3° 1° 2° Overall Trend

17. Corporate Quality General Management – May 05 17 Call Center Re-engineering & modeling

18. Corporate Quality General Management – May 05 18 Call Center Mission du call Center est Développer et entretenir de parfaites relations avec les consommateurs. Il est l’outil d’information sur l’entreprise, de conseil, et recueille les remarques, suggestions, réactions des consommateurs. Le centre de contacts est considéré comme un lieu de fidélisation, un service de proximité. Il se doit de répondre vite aux demandes, De créer de la valeur ajoutée pour la marque, à travers le service offert. C’est l’interface privilégiée avec le consommateur. C’est l’interface privilégiée avec le consommateur.

19. Corporate Quality General Management – May 05 19 Objectives Call Center optimization and modelling to be set as good practice: Call Center optimization and modelling to be set as good practice: The objective is to obtain, in an optimized way, information allowing measuring the consumer satisfaction in order to manage continuous improvements And to initiate, according to a threshold to be determined, corrective actions. The contact center should no longer be a cost center but a center that contributes to Danone’s business.

20. Corporate Quality General Management – May 05 20 Opportunities Model the call center process to deploy it as best practice Create a global World class CCC platform that all Danone countries could use “on demand” Cross-market sharing and transfer of best practices Economies of scale by leveraging a creative toolbox and related Danone CCC operating model – DOM Record profitable growth through increased consumer loyalty and retention

21. Corporate Quality General Management – May 05 21 CALL CENTRE OPERATIONS REENGINEERING The call centre has been reengineered, with three aims: To adapt the organisational set-up to reflect the volume and specific nature of contacts -Whilst attempting to improve levels of satisfaction And optimising costs. With the aim in mind to Continuously improve quality standards, adapting as consumers and markets evolve