1. Proximity Communication Kit First issue 2009

2. New Danone is the strategy for the years to come. New Danone is not a new project on top, but an initiative that is at the heart of everything we do anyway. New Danone means a transfor- mation of what we are, and 6 working streams have been identified as increased points of attention for our business: This proximity communication kit provides a monthly source of information on keytopics of interest for our employees in the Baby Nutrition Division. This kit will facilitate your regular proximity events (i. e. face2face meetings) with your employees. The informa- tion in this toolkit is a high-level update from the various areas of business such as Blue Ocean: Sometimes also called ‘Innovation’ this stream describes Danone’s ambition to be perceived as the most innovative company worldwide in health through food. Blockbusters: This stream is about boosting our international brands Health: Sometimes also called ‘Health Credibility’ this stream shows that Danone’s concern - internally and externally - is about bringing health to people Nature: Showing Danone’s efforts to treat our planet and its resources in a sensible and sustainable way People: Our employees are the backbone of our company, and Danone wants to be the ‘Best Place To Grow’ Danone 4 All: Sometimes also called ‘Growth for all’ or ‘4 Billion’ this stream is about providing all people with our products - everywhere and affordable Finance Marketing Sales Medical R & D Operations HR Communications & Other Activities About the Proximity Communication Kit

3. François Caquelin (francois.caquelin@danone.com) Finance Cann evolution 2007 – 2008 (incl. Blédina) 3,000 2,800 2,600 2,400 2,200 2,434 2,850.712.4 184.9 62.9 77.5 33.2 15.1 55.3 Cann 2008: + 17% RoS 2008: 18,7%, + 157 bp Actual 2007 Northern Europe Middle Europe Eastern Europe (incl. Istra) ROWAsiaOthersActual 2008Southern Europe 3,3%30,6% 19,0% 25,9% 4,9% 12,3% 14,3% +416.5M 17,1%

4. Alejandro Pinillos (alejandro.pinillos@danone.com) Marketing TV Advertising “Laughter copy”: after few months on air, superior nutrition market share improvment in the UK, Poland and Germany. Great test results in France where the copy will be on air soon. Currently on air in the UK, Ireland, Poland, Austria, Germany, Czech Republic, Romania and Slovakia. China and Argentina adapted the copy. “Equivalence copy”: Great test results in the UK. Roll-out planned for 2009 in 4 European countries CRM Successful kick-off meeting CRM-community in Istanbul 28 – 29 th Jan with the following objectives achieved a) Create a CRM communiy across CBUs b) Identify best practices c) Share global CRM strategy and jointly agree on it GUM Immunity New guidelines on GUM due to EFSA regulations (see also R & D page in this Proximity Coms Kit). Formation of an E-GAT (European GUM Acceleration Team) in order to identify and tackle best way forward. Equivalence copy - UKLaughter copy - China

5. James Mayer (james.mayer@danone.com) Sales Customer Engagement Through Thought Leadership and Acceleration of Best Practices to deliver POP control People Category Customer Investment Availability Tie up all Key Account 2009 agreements with strong Counterparts. Ensure your Std Terms & Conditions specify payment days and customers stick to them. Shopper Lab training has already run successfully in WE & continues in EE in Feb & Asia in March. Get prepared! Focus on building clear and stretching PDR’s for all Sales in 2009. Focus on building distribution in New Channels as well as existing Baby Nutrition Sales Diamond

6. Pauline Lee (pauline.lee@danone.com) Medical To help markets drive excellent execution there are 2 ways to get help: Toolkits produced by Global and Power Teams ( available on the Medical Intranet) Marketing Toolkits Immunity (IF) SN (IF), HA, Allergy Treatment, Preterm, Comfort Sales toolkits AFB Coaching and Management Tool kit Available March A guide to ‘Medical Sales Force Resourcing’ + A guide to ‘Medical Sales Force Capability’ Medical Affairs - KOL Toolbox iLearn (e learning tool) AFB sales approach Knowledge building- immunity, pre-term nutrition, Allergy (March) Range of successful market initiatives on the Medical Intranet. Some examples from the markets (*watch in ‘slide show’-mode to activate the links); Driving the Weaning & Toddler Category - UK Link ; Italy LINKUK LinkItaly LINK Differentiating ourselves from the Competitors - Turkey LINK ; Russia LinkTurkey LINK Russia Link Tackling the Competition - Asia Link; HA LinkAsia LinkHA Link (Relaunch in March on Baby Assets Site - more user friendly for uploading & searching for examples)

7. Florence Jeantet (florence.jeantet@danone.com) R & D Regulatory Europe update 2008 has recorded the highest number of granted EU patents ever for Baby Nutrition However, the latest changes in the European claims regulatory environment will change our future on communication and it starts now … The EFSSA “dossier” for approval on the claim “with Immunofortis to naturally strengthen your baby’s immune system” on our IFFO products has been submitted last week. Approval ( or not …) in around 6 months. We are proud of our dossier but - without approval - we will have officially 6 months to comply = withdraw the claims on the pack and all communication. Back up plans in preparation by central teams (incl. Communication with Groupe Danone support). Update to follow in one of the upcoming Proximity Communication Kits. For any new claim, a new dossier will have to be submitted. “Nutripack” goes around the globe A 360 concept, implemented by Dairy Brazil, to provide tailor-made products, targeted to population and based on real nutritional status. More info through your respective R&D contact. Has proven to be a successful way to also build scientific communication and dialog with KOLs, and get support from the authorities. Will be rolled out as a pilot in Indonesia in DBN.

8. Vincent Maurice (vincent.maurice@danone.com) Operations Actuals Excellent cash delivery thanks to more profit generated, better working capital and less capex spends. Key take-aways The overall economic crisis is an opportunity to re-design our current ways of working / organisations to be better, leaner, faster, cheaper. Review your capex plan and re-prioritise to reduce DBN spend by 30ME in 2009 : - Protect C1 and C2 - Reduce C3 and C4 - Challenge cost of engineering - Less projects, cheaper projects, more strategic projects - Better balance between quarters - Planning accuracy Focus on transversal initiatives : - CUTE – BaMaWay - BOOSTER - WISE - ENERGY REDUCTION – CO2 REDUCTION - AGILITY

9. Franck Aimé (franck.aime@danone.com) HR Danone People Survey 2009 – Key Facts: Regularity: Every 2 years, Danone measures the level of Employee Engagement and identifies its specific key drivers. Date: 16 – 27 March 2009, affecting all 75.000 Danoners! Business impact: Engaged employees achieve better business results (research-proven) Concrete action plans: Implemented after communication of the results in May / June 2009 All Danoners: a) Integration of Baby / Medical Nutrition and b) incl. all Managers and Non-Managers (75.000 vs. 33.000 in 2007) Proximity: Vital tool for employees to tell Management what they think. The results help to better manage and facilitate dialogue with all employees Identifies best practices across Groupe Danone: Promoting sharing and networking Alignment with New Danone: People / Nature / Health

10. Dani Meyer (dani.meyer@danone.com) Communications & Other Activities New Way of Working NWoW is a multifunctional approach to the WoW. The following subjects have been agreed to get increased management attention: Innovation / Renovation Advertising development Packaging development People development Following a working session of the Baby Executive Team in January, much progress has been made: Improved system for Innovation / Renovation will be launched soon (more info in one of the upcoming Proximity Coms Kits). The remaining 3 subjects will be addressed in more detail mid February. New Danone roll-out CBUs (via HRDs) report about fruitful roll-out meetings with their respective CODIs to implement New Danone (in progress). A dedicated ‘New Danone – Make it Yours!’ video has been launched and supports the New Danone workshops and employee sessions. All presentations and other communication material on New Danone can now easily be retrieved from the Danone Baby / Medical Nutrition homepage Danone People Survey 2009 A communication plan has recently been cascaded via HRDs, specifying tools available in order to achieve a high participation rate for Baby/ Medical Nutrition (see also HR page in this Proximity Coms Kit).

11. Please share your proximity event feedback with us (dani.meyer@danone.com) DBN ASPAC Excellent results in 2008 A very good start of 2009

12. Total 2008 CANN, ASPAC is 29% of Global DBN Business, China and Indonesia represent 66% of Asia 12 France & AMOT Blédina using E2 08 due to Actual 08 data not available in the system yet ACTUAL 2008 CANN € 830.3 Mn ASPAC

13. ASPAC MILKS 2008 CANN, strong growth across markets 13 ACTUAL 2008 129.4k Tons VOLUM E ACTUAL 2008 CANN € 820.5 Mn VALUE % Growth +64.1 +23.0 +33.1 +24.2 +6.3 +19.5 +74.3 Growth Percentage using NSV for like-for-like comparison +18.7 +15.4 +33.7 +42.1 +2.6 +16.5 +13.8 +15.1 +58.3 0.0 NA +15.8 % Growth NA

14. ASIA MILKS 2008 NSV: Immunity fastest growing footprint Superior Nutrition € 452.7 m + 24.7% vLYImmunity € 337.8 m + 54.0% vLY IFFO € 184.8 Mn + 58.2% vLY GUM € 153.0 Mn + 49.1% vLY IFFO € 224.0 Mn + 21.1% vLY GUM € 228.7 Mn + 28.4% vLY IMMUNIT Y SUPERIOR NUTRITION Exclude ANZ due to OLS data not split by Footprint Exclude Pregnant & Lactating Growth using NSV for like-for-like comparison ACTUAL NSV 2008 € 790.5 Mn, + 35.7 vLY

15. ASIA MILKS 2008 VOLUME split by footprint by category Superior Nutrition 94.8 k tons + 7.4% vLYImmunity 31.4 k tons + 31.4% vLY IFFO 14.9 k tons + 34.2% vLYGUM 16.6 k tons + 29.7% vLY IFFO 45.9 k tons + 1.1% vLYGUM 48.9 k tons + 14.0% vLY IMMUNIT Y SUPERIOR NUTRITION ACTUAL VOLUME 2008 126.2 Tons, + 12.5 vLY Exclude ANZ due to OLS data not split by Footprint Exclude Pregnant & Lactating Growth using NSV for like-for-like comparison

16. No. 1 in IMF at 18.5% (+7.4 share gap vs #2 MJ) #1 in S. Premium at 23.2%, #1 in Standard at 26.3% No. 1 in IMF at 18.5% (+7.4 share gap vs #2 MJ) #1 in S. Premium at 23.2%, #1 in Standard at 26.3% No. 1 in IMF at 33.0% (+7.1 share gap vs #2 Nestle) # 2 in S. Premium at 7.3%, #2 in Standard at 25.7% No. 1 in IMF at 33.0% (+7.1 share gap vs #2 Nestle) # 2 in S. Premium at 7.3%, #2 in Standard at 25.7% 16  Vietnam  Malaysia  China Thailand   Indonesia 1 1 1 1 2 1 No. 1 in IMF at 32.0% (+3.5 share gap vs #2 MJ) #2 in S. Premium at 25.3%, #2 in Standard at 36.3% No. 1 in IMF at 32.0% (+3.5 share gap vs #2 MJ) #2 in S. Premium at 25.3%, #2 in Standard at 36.3% No. 1 in IMF at 26.9% (+5.6 gap vs #2 Dutchlady) #2 in S. Premium at 27.1%, #2 in Standard at 27.6% No. 1 in IMF at 26.9% (+5.6 gap vs #2 Dutchlady) #2 in S. Premium at 27.1%, #2 in Standard at 27.6% No. 2 in IMF at 20.0% (-20 gap vs #2 Abbott) #3 in S.Premium at 10.7%, #1 in Standard at 72.6% No. 2 in IMF at 20.0% (-20 gap vs #2 Abbott) #3 in S.Premium at 10.7%, #1 in Standard at 72.6% No. 7 in IMF at 6.5% (-3.2% gap vs #6 Vinamilk) #4 in S. Premium & Prem at 9.5 %, not playing in Std No. 7 in IMF at 6.5% (-3.2% gap vs #6 Vinamilk) #4 in S. Premium & Prem at 9.5 %, not playing in Std No. 2 in IMF at 26.1% (-22.7 gap vs #1 Wyeth) No. 1 in IMF at 55.7% (+34.2 gap vs #2 Wyeth) S. Premium = Immunity / Std = Superior Nutrition Source : All countries Dec 08 val share, except CH & SG Nov 08 # 1 Market Share position in five markets, however, no strong domination by segment

17. ASPAC 2009 CANN, strong growth in China and Malaysia 17 ACTUAL 2009 CANN € 78.6 Mn VALUE % Growth +38.4 -1.7 +3.4 +63.5 +9.0 -1.2 -70.1 Growth Percentage using NSV for like-for-like comparison -4.4 +7.6 +17.5 +17.4%