Protein Program. Susanne LUICK-NIJBOER. Gustavo VALLE. Evian Investor Seminar. Vice President PROTEIN

Transcription

1 Protein Program Gustavo VALLE Executive VP Dairy and Resources Efficiency Susanne LUICK-NIJBOER Vice President PROTEIN

2 Introduction to Program Protein Gustavo VALLE Executive VP Dairy and Resources Efficiency

3 Step up our ability to seize consumer opportunities EVP Growth & Innovation EVP Resources Efficiency Work more efficiently I 3 I

4 Launching a comprehensive, company-wide program Disciplined Choices Invest for Impact Maximize Efficiency Sustainably BUY BETTER SPEND BETTER WORK BETTER To build muscle Reinvest in growth projects PROGRAM PROTEIN SCOPE professional services sales & marketing spendings operations spendings 1 bn SAVINGS Fuel for growth Margin I 4 I

5 Protein: the right program at the right time Right maturity and discipline Clear mandate to deliver results Proven methodology Right team: 100% dedicated I 5 I

6 Program Protein Susanne LUICK-NIJBOER Vice President PROTEIN

7 How we do Program PROTEIN o Efficiency focused o Business led o Maximizing synergies o Enforced processes & policies o Sustainable o Driving simplicity I 7 I

8 What success looks like for Program PROTEIN 1 bn Sustainable savings by 2020 Smart spending choices I 8 I

9 Program PROTEIN activation Learning Phase Pilots Design Global Roll Out Smart Category Engine I 9 I

10 Program PROTEIN organization Cockpit Smart Category Engines ZBB in Clusters I 10 I

11 Program PROTEIN Sustainably unlocking all levers across categories Buy better Use scale across categories & geographies Negotiate Spend better Specify better quantity & specifications Buy less & Cheaper Process better Culture & Mindset Ensure compliance & sustainability Policies Processes Systems I 11 I

12 Program PROTEIN scope ~ 7.5bn Professional Services Logistics Sales and Marketing Manufacturing 3 rd Party Mf. 15%* 25%* 30%* 20%* 10%* 1 bn *% of total indirect cost base ( 7.5bn ) I 12 I

13 Warehousing in Europe 110 Warehouses across our categories >15 % savings potential Use of new technology Drive consolidation of warehousing and logistics I 13 I

14 IS-IT - Global datacenter strategy 100% of Danone datacenters are located on premise 25% 25% savings potential 100% 75% Introduction of hybrid, partly cloud-based model On premise architecture Savings Hybrid architecture I 14 I

15 Professional Services > 1,000 professional services partners covering less than 30% of the spend 30% savings potential 100% Spending 70% Overview of professional services spend Systematic review of requirements Increase value from our partners Reducing needs Consolidating spend 1 10 Suppliers > 1000 I 15 I

16 Travel > 100 million miles travelled by Danone employees globally in % savings potential 68% 25% Use of Video Conference technology for multiparty meeting Eliminate within day travels Additional benefits on carbon footprint reduction 7% >3 days of travel 1-3 days travel Within Day travel I 16 I

17 Market & Consumer data >200K questionnaires of external data sourced for marketing & consumer insights 30% savings potential Buy data once Global data warehouse Use data cross-danone One source of truth Market data Data sources different frequencies duplicated information Insights Limited usage reports not providing sufficient insights vs. cost I 17 I

18 Program PROTEIN activation Learning Phase Pilot Mexico ZBB Activation in 30 Clusters 18 Smart Category Engine Pilot French HQ Pilot DACH I 18 I

19 1bn in S&G for strong, profitable and sustainable growth PROTEIN Eliminate FAT to build MUSCLE Reduce non-value added cost for DANONE s Mission and consumers Reinvest in growth & profit to fuel DANONE s Strategy & Mission We invest ~ 7.5bn in Services & Goods which are not all visible or valued by our consumer. Create visibility on what we spend and remove costs that are not adding value Company-wide and cross-regional program Zero Based Budgeting To find sustainable value creation in a transformation led by the business Systems, processes and policies for sustainability ZBB-mindset embedded in our culture I 19 I

20 Program PROTEIN is happening! 1bn 0 Today I 20 I

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