THE DANNON COMPANYSustainable Development Overview • 2015 Strategic Initiatives

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“In 2015, Dannon remained committed to bringing health to the greatest number of people through our great-tasting yogurt and other dairy products. The mission comes to life more than ever before in our ambition to have Americans eat one yogurt every day, while also integrating social and economic objectives in daily activities.” – Mariano Lozano, President and CEO, The Dannon Company

“Bringing health through food to as many people as possible.”

®

Dannon is a company of passionate people, energized by our mission that brings value to our work every day. In every aspect of the business, it’s easy to feel good about what you do at Dannon when you know the end product is providing a health benefit to our consumers. Dannon shares this mission with our parent company, Danone.

Our Danone family of companies is involved in innovative projects in North America and around the world that fulfill our dual focus on economic and social progress.

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ABOUT DANNON

Since the first day we began making yogurt in 1942, we have been constantly striving to perfect our craft to bring you the best yogurt that tastes great and enriches your well-being. Dannon makes a diverse and comprehensive range of over 200 types, styles and flavors of fresh & frozen dairy products to satisfy the evolving needs and desires of our consumers. The tremendous variety of cultured dairy products Dannon makes supports our ambition to bring health through food to as many people as possible. Headquartered in White Plains, NY, Dannon makes yogurt at plants in Minster, OH, Fort Worth, TX, West Jordan, UT and Portland, OR.

Dannon is a subsidiary of Danone, the leading global food and beverage company focused exclusively on better-for-you foods. Danone has taken strategic steps to achieve a global presence and to focus on four areas of business with high potential built on health and vitality: dairy products, bottled water, early life nutrition & medical nutrition.

For almost 75 years, Dannon has been exceeding consumer expectations through our commitment to delivering high-quality, wholesome, nutritious and innovative products in the dairy category. Dannon’s mission inspires our company to integrate both economic & social goals into what it does each and every day.

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www.dannon.com I www.danone.com

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CONTRIBUTE TO A HEALTHIER WORLD

DAIRY

MEDICAL NUTRITION EARLY LIFE NUTRITION W

AT

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Together, as the Danone family of brands, our four business areas each bring

a unique passion to the business and its products while always firmly rooted

in our foundation to bring health to the greatest number of people

through our health-focused portfolio.

OUR ROOTS

2 Our Mission3 About Us 5-6 Our Manifesto7 Timeline

OUR BASE

9 Values & Leadership Models10 WISE - Health & Safety11 Diversity & Inclusion12 Vision & Objectives

OUR BRANCHES

14-18 Health and Nutrition19-24 Nature25-27 For All29-33 Our People

OUR FRUIT

34-35 Looking Forward

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IN JULY 2015, DANONE LAUNCHED A NEW “MANIFESTO” TO UNDERPIN THE WAY THE COMPANY INTENDS TO DELIVER ITS MISSION. THE MANIFESTO SERVES AS A CORE PART OF DANONE’S ROADMAP TO STRENGTHENING THE ECONOMIC AND SOCIAL IMPACT OF ITS GROWTH WHILE ENGAGING DANONE’S 100,000 EMPLOYEES IN ITS MISSION.

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• GOOD HEALTH IS EVERYTHING TO ALL OF US Good health is a state of general well-being. It involves the mind as well as the body, and emotion as well as sensation.

• FOOD IS HEALTH’S MOST SIGNIFICANT PARTNER Healthy eating is an essential part of life, to build and to maintain our well-being. From the earliest times, all over the world, people have always understood this.

• HEALTH CANNOT LIVE LONG WITHOUT PLEASURE Without appetite and delight, no-one would eat or keep eating well. Pleasure in food is a precondition of every healthy lifestyle.

• FOOD IS THE WARMTH BEHIND EVERY CULTURE Healthy eating is an idea that goes beyond nutritional needs and appetites. Its richness is a part of every culture—always different and always special– and worth taking the time to understand.

• THE WEALTH OF NATIONS GROWS FROM A HEALTHY PLANET Everything we eat depends on the earth that it grows in or feeds on. As gardeners of this planet, we have a duty of care to manage its resources responsibly and sustainability.

• RESEARCH IS OUR BEST ALLY Food is more than nature. It is the outcome of human endeavour, combining technological progress with a deeper understanding of its value and its potential.

• PREPARING FOR TOMORROW IS THE BUSINESS OF TODAY New ways can and will be found, to better serve this generation and the next, and to bring healthy, affordable food and safe water to the greatest number of people, across the world.

We believe that...

“With our Manifesto, we are deepening and enriching what our mission means to bring it to the next level of impact.”

Emmanuel FaberChief Executive Officer - Danone

• HEALTH AND WELL BEING We will stand next to our employees and our consumers in their quest for good health, by encouraging diets and lifestyles that will bring the most benefit to people’s lives.

• DOING OUR BEST Priding ourselves with all our products and services as a guarantee of their quality and integrity—whatever a consumer may choose, and wherever they may choose it.

• EVERY INDIVIDUAL, AT EVERY AGE WITH PLEASURE We will stand for the widest range of products and services to feed the needs and wishes of every person at every key stage of life, encouraging balanced nutritional habits or delivering specific health benefits.

• YOUR HOME, NOT SOMEONE ELSE’S We will stand up for the principle that every culture has the right to preserve its own way of eating and livingwell, by offering products inspired and developed out of local needs and ideas.

• OUR PLANET AND ITS LIVING HERITAGE We will stand together for a healthy planet and devote all our energies to protect and preserve the abundance of life and the variety of nature, in all its forms and ecosystems.

• WHAT IS INVENTED AND WHAT STILL NEEDS TO BE INVENTED We will always respect our obligation to prepare the future through new, sustainable ways to provide healthy food and access to safe water for all, by bonding with communities and stakeholders. We will keep our place at the forefront of these efforts.

• NOT ALONE, BUT WITH PARTNERS AND FRIENDS We will stand firmly by our belief that it is better to walk together than apart, by engaging always with more consumers and more communities, in our common quest to find better health through better food, for the greatest number of people.

We stand for...

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Learn more about how we are living our Manifesto in action at manifestovoice.com

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e_7OUR HISTORY AT DANNON…

Sustainable development initiatives FIrmly rooTED IN OUR HISTORY …

1972DOUBLE PROJECT/

DUAL COMMITMENT

1996CHARTER FOR

ENVIRONMENT

2008EPA SMARTWAYPARTNERSHIP

FORMED

1997DANNON INSTITUTE

FOUNDED PROTECTION OF

WETLANDS

2004GROUNDWATER

RESOURCESPROTECTION POLICY

200010 YEAR NATURE PLAN

ANNOUNCED

2003

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FEEDING AMERICAPARTNERSHIP

BEGINS

2011GRAHAM PARTNERSHIP

& MCCARTY FAMILY FARMS PARTNERSHIP

FORMED

2006-12DANNON COMMUNITY

NUTRITION GRANTSPROVIDED TO LOCAL

COMMUNITIES

2012DANNON

ACHIEVES GOAL:30% CO2/KG

BETWEEN 2008-12

1 YOGURT EVERYDAYAMBASSADOR

PROGRAM BEGINS,DANIMALS

REFORMULATION

DANONE ANNOUNCES

ITS 2020 INITIATIVEWITH 3 PRIORITIES

2013 2014

To learn more about key initiatives in sustainable development along the Dannon and Danone’s timeline visit us at www.dannon.com and www.danone.com

“We must consider global food issues such as malnutrition, undernutrition, access to water and resource management. Danone has an important role to play in the solutions the world needs.”

- Emmanuel FaberChief Executive Officer - Danone

our

base

Our deep history is firmly rooted in our desire to achieve our mission. It is where we come from, it is what guides us as we grow. Our base - our values, beliefs and focus areas in health - is the basis for how to carry out our mission every day.

Understands Self & Strives for

Development

Dares to Challengeand Drives

Transformation

MaintainsSelf-Balance

Assesses Fairly,Cares and

Develops People

Fosters Collective Impact through

Teamwork & Diversity

Connects andBuilds Authentic

Relationships

Influences and Mobilizes

Stakeholders through

Own Convictions

Takes Accountability

and Makes Decisions

Delivers Value forDanone, Customersand Communities

with High Standards

Co-Builds aCompelling

Vision

VALUES & LEADERSHIP MODELS

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HOPE – OUR 4 CORE VALUESAll over the world – whether in retail outlets, on production lines or with suppliers – our employees demonstrate the same openness, the same desire to share, and the same unwavering passion.

HUMANISMSharing

ResponsibilityRespect for Others

ENTHUSIASMBoldnessPassion

Appetite

OPENNESSCuriousity

AgilityDialogue

PROXIMITYAccessibilityAuthenticity

Empathy

CODES – OUR LEADERSHIP MODELA distinctive way for each Danoner to develop, act together and realize “Our Mission.”

Dares to challenge and

Drives Transformation CO-BUILDS A COMPELLING VISIONCConnects and BUILDS AUTHENTIC RELATIONSHIPS INFLUENCES & MOBILIZES Stakeholders through own convictions OTakes Ownership & Makes Decisions, DELIVERS VALUEfor Danone, Customers & Communities with high standards. DAssesses Fairly CARES & DEVELOPS People

FOSTERS COLLECTIVE IMPACT through Teamwork and DiversityEUnderstands SELF & Strives for DevelopmentMaintains SELF–BALANCES

WISE STANDS FOR...…

The guarantee of the health and well-being of employees at work and limiting the numberand gravity of accidents represent a continuous commitment for Danone.

With the economic and social context being in constant evolution, adapting to health and safety challenges is a priority for Danone.

HEALTH & SAFETY

In 2014, Danone developed a worldwide program called WISE to promote a safety culture on all of its sites and significantly reduce the number and gravity of workplace accidents.

This program is deployed worldwide in each division, plant, warehouse and in the distribution circuits. Danone is committed not only to the health and safety of its employees, but also to that of its subcontractors, because the WISE program applies to them as long as they work in Danone’s sites.

Beyond being an industrial business with 150 plants, more than 50,000 plant workers andover 30,000 salespeople and drivers on the road, many challenges have led Danone to recently update its health and safety committments.

Danone has committed to progressively upgrade its WISE program in two directions in order to support Danone’s vision:

THE EXTENSION OF THE WISE PROGRAM

1 THE STRENGTHENING OF DANONE’S COMPLIANCE TO ITS HEALTH & SAFETY STANDARDS

2 THE EXTENSION OF THE WISE PROGRAM, ACTIVITIES AND TOOLS TO INTEGRATE SAFETY & HEALTH IN A CONSISTENT APPROACH Danone will continue its existing WISE program while progressively enriching it with a set of activities, processes, tools and resources to move in the two directions above in the years to come.

96%BEHAVIORS

Unsafe Acts

4%CONDITIONSUnsafe Environment

CAUSES OF

INJURY

WORKING IN A SAFE ENVIRONMENT WHY I’M SAFE EVERYDAY

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ethnicity gender

agenational

origin

sexualorientation

personalspace

mentalphysicalability

religion

education

thinkingstyle

maritaldependant

status

workingstyle

geographiclocation

values

class

appearance

militarystatus

role incompany

workexperience

location

tenure

credentials

function

previousjob

level

businessunit

lifestyle

workethic

ofhumor

useflexibleor

structured

conflict

problemsolving

communicationstyle

language

DIVERSITY & INCLUSION

Diversity is a source of innovation and strengthFollowing on from the open-mindedness and culture of difference which Danone wishes to preserve, diversity must manifest itself in balance, representativeness, respect and even confrontation... We must be able to evaluate it, measure it, and nurtue it. We must promote diversity as an opportunity everywhere; a source of performance and team agility rather than a regulatory requirement. Danone has set itself priorities: to promote equality between women and men, to encourage the mixing of generations, to support the representation of cultures and nationalities, to improve variety in career paths and qualifications.

“Diversity itself is about the mix of people you have, and creating an inclusive culture is about making that mix work.”– Harvard Business Review

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OUR PRODUCT RANGE: HEALTH DRIVEN

A SUSTAINABLE FOOD CHAIN

PRODUCTS AVAILABLE FOR EVERYONE,EVERYWHERE

More than ever before, nutrition will be an essential tool for improving our health.

Today, environmental issues remain at the heart of Danone’s mission, because there can be no healthy food if nature itself is not in perfect health.

We believe that yogurt, as anutrient rich food, is always a good value. Dannon is com-mitted to creating affordable, delicious and better-for-you products for our consumers.

VISION & OBJECTIVES - SUSTAINABLE DEVELOPMENT

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COMMITMENT TOOUR PEOPLEWe are committed to help allemployees have opportunities to grow professionally and find meaning in their work while also supporting our Danoners’ efforts to help others to achieve a better life.

Dannon’s mission and operations are rooted in four Sustainable Development areas as we lead with our hearts as well as our heads

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As we articulate our mission and our values, we develop concrete focus areas and programs aimed at achieving short-term and long-term goals in sustainable development to help positively influence our communities and our business.

Dannon believes that food and nutrition are essential to building and sustaining health and well-being. This is the vision on which our company has built its history. Dannon’s 2016 Goal:

In 2014, Dannon announced a landmark commitment to the Partnership for a Healthier America (PHA) to further improve the nutrition profile of our yogurt products by 2016. Dannon’s pledge is to help make a real difference in how Americans eat. As part of its commitment, Dannon will improve nutrient density, reduce the amount of sugar and fat in our products and invest in nutrition education and research focused on healthy eating habits.

This past year, Dannon announced significant progress in three of the four goals of our commitment with PHA – including improvements in the nutrient profile of its products as well as more than $1 million invested in nutrition research and education during the first year (July 2013 - June 2014) of our three-year commitment.

Visit www.dannon.com for updates on our progress toward achieving our ambitious goals in partnership with PHA.

“Dannon has made a significant commitment to making healthier food choices easier for millions of busy parents and families. Dannon’s dedication to this effort is a testament to its leadership in our important work to address the childhood obesity crisis.” - Lawrence A. Soler, PHA CEO

REDUCE FAT

GOAL:

PROGRESS:

GOAL:

PROGRESS:

By mid 2016 reduce the amount of fatin Dannon products, and offer mostlylow fat or nonfat options

low fat andnonfat products

$3M

low fat andnonfat products

worth of investment in nutritioneducation and research focusedon healthy eating habits

$1M to date through communication,partnerships and research grants

NUTRIENTDENSITY

REDUCE SUGAR RESEARCHEDUCATION

PROGRESS:

By mid 2016 make the overall Dannon product portfolio even more nutrient dense

nutrient density increase nutrientsVITAMIN DCALCIUMPOTASSIUM

SUGARFAT

decrease total

GOAL:

PROGRESS:

GOAL:

PROGRESS:

≤23g 70%

+75%+10%

+69%

100%

100%of products overallof products for children76%

of total sugarper 8oz. serving

By mid 2016

We have not advanced on the total nutrient density score due to chsnges in the mix of products we sell.

Dannon’s ProgressJuly 2013 – June 2014 Fo

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HEALTH: FOOD & NUTRITION

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HEALTH: INNOVATION At Dannon, Health and Nutrition are at the heart of our business.We focus not only on producing nutritious, great-tasting foods, but also on helping to address larger health concerns through our products. Dannon Research plays a central role in implementing this strategy, with the conviction that diet and an understanding of its impacts will be key to addressing health issues in the future.

2O15 Innovation Proof Point: Triple Zero True to our mission to bring health through food to as many people as possible, in 2015, Dannon launched a new product: Dannon® Oikos® Triple Zero Greek nonfat yogurt

This innovative, on-the-go option demonstrates our commitment to help consumers find more convenient ways to make smart and tasty snack choices. Additionally, by introducing a product that appeals equally to both men and women – Dannon is changing the current market where yogurt is disproportionately consumed by women as compared to men and introducing new consumers to a snack with a strong nutritional profile.

• Highest protein content across brand• An excellent source of protein and fiber• Unlike some other protein snacks, it has 0 fat, 0 added sugar* and 0 artificial sweeteners – plus 22g of protein per 8 oz. *Not a low calorie food

For more information visit www.oikosyogurt.com

DIALOGUE WITH STAKEHOLDERS Listening to stakeholders and interacting with key opinion leaders is a key component of Dannon’s sustainable development strategy in order to understand the expectations of our customers, consumers, employ-ees, suppliers, scientists, the populations living near our sites, repre-sentatives of public authorities and non-governmental organizations. Taking into account stakeholders’ expectations is a foundation firmly anchored in our culture and social policy approach.

Our goal is not only to develop active listening with regard to the chang-ing situations and expectations of various stakeholders, but also to commit our company to partnership or co-development processes with these players, as illustrated by numerous initiatives and projects developed in partnership with key stakeholders:

Health Care Professional Outreach Dannon partners with several associations and organizations to provide extensive outreach and education to the nutrition and medical commu-nity on the benefits of yogurt and probiotics. We also sponsor a number of associations, through conferences and other opportunities, including the American Gastroenterological Association (AGA), American Society of Nutrition (ASN), American Diabetes Association (ADA)

Probiotics & Yogurt Advisory Boards Our teams also collaborate with two Dannon advisory boards with several Key Opinion Leaders from recognized institutions in the United States, with specialties related to probiotics, yogurt, nutrition, gastroenterology, immunology, the microbiome, as well as additional specialties.

4th Annual Probiotics Fellowship Grant Now in its fourth year, the Dannon Yogurt & Probiotics pro-gram offers a unique educational opportunity for one incoming or current graduate student who shows a strong interest in research of the nutritional value and importance of yogurt and probiotics. Each year, the winning applicant receives a $25,000 scholarship, payable to the selected winner’s educational insti-tution either for tuition, research related projects or as otherwise allocated at The Dannon Company’s discretion—to enhance his or her academic path in this field during the academic year. The winning applicant is determined by a panel of judges (listed below) including Dannon executives and industry experts.

The 2015 judges were:

• Dr. Mary Ellen Sanders, Dairy and Food Culture Technologies Consultant, and Executive Director of the International Scien-tific Association of Probiotics and Prebiotics (ISAPP)

• Daniel Merenstein, MD, Associate Professor and Director of Research Programs at the Departments of Family Medicine at the Georgetown University Medical Center

• Muriel Derrien, Senior Scientist – Gut Microbiota, Danone Nutricia Research

• Dr. Miguel Freitas, VP of Health Affairs, The Dannon Company

2015-2016 Probiotics Fellowship Winner: Micah Eimerbrink, a Texas Christian University doctoral candidate, was awarded the 2015-2016 Dannon Yogurt and Probiotics Fellowship. Chosen from an impressive pool of applicants, Eimerbrink is focusing on the impact of probiotics and the gut microbiota on the brain and psychological function.

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HEALTH: NUTRITION STAKEHOLDERs

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THE DANNON INSTITUTE The Dannon Institute is a non-profit foundation dedicated to promoting excellence and developing leadership in the field of nutrition, while supporting various initiatives aiming at promoting wholesome food categories as daily sources of health and well-being for all.

SUPPORTING NUTRITION LEADERSHIP In 2015, The Dannon Institute continued its support of several awards sponsored by the American Society for Nutrition, including:

Roland L. Weinsier Award for Excellence in Medical/Dental Nutrition Education

– Recognition of an outstanding career in medical and/or dental nutrition education.

Awarded to Nancy F. Krebs, MD, MS - University of Colorado Denver

ASN/Dannon Institute Mentorship Award

– Recognition of a nutrition educator who has demonstrated outstanding mentoring qualities by developing successful investigators of nutritional sciences.

Awarded to Barbara A. Gower, PHD - University of Alabama at Birmingham

2O15 AWARDSAMERICAN SOCIETYFOR NUTRITION

Dr. Cheryl Achterberg& Dr. Nancy Krebs

Dr. Cheryl Achterberg& Dr. Barbara Gower

HEALTH: INVESTING IN NUTRITION LEADERS

For more information on The Dannon Institute, visit www.dannon-institute.org

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INSTITUTEN U T R I T I O N

LeadershipI N S T I T U T E

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dannon institute leadership programsIn 2015, the Dannon Institute hosted the Early-Career Nutrition Leadership Institute in Queenstown, Maryland, where 20 early-career nutrition and medical professionals attended an intensive 5-day training program designed to equip outstanding early-career nutritional scientists with the leadership skills and broad perspective necessary to achieve their professional potential and lead others in both their place of employ-ment and in the field of nutrition.

Since 1998, the Dannon Institute Nutrition Leadership programs have provided nearly 300 of the country’s most talented nutrition doctoral graduates and medical doctors with the global perspectives and skills essential to help them become more effective leaders in academia, government and industry. The training is designed to provide participants with strategies for improving their ability to lead as well as unique networking and mentoring opportunities.

FURTHERING HEALTHY CONVERSATIONS Along with partners like Abbott Nutrition Health Institute and National Geographic, the Dannon Institute helped bring to life the 2015 Dietary Guidelines for Americans Summit hosted by the Ohio State University Food Innovation Center. Nationally recognized experts in the fields of nutrition, health and public policy convened to elevate the importance of implementing Dietary Guidelines that feature relevant, practical and actionable nutrition guidance for diverse consumers across the nation and amplify the need for relevant dietary guidelines that work for diverse consumers across the country. Panels discussed research needs, policy interventions and strategic public-private partnerships that support a healthier America.

Early-Career NLI Graduates, 2015

Ohio State University Food Innovation Center Summit, May 2015 Pictured: Dannon Institute Board Member Leslie A. Lytle, PhD, UNC Chapel Hill

HEALTH: DEVELOPING FUTURENUTRITION LEADERS

NATURE AT THE HEART OF THE FOOD CHAIN

For Danone and its subsidiaries, healthy eating starts with healthy nature. Danone’s strategy has the nutrition chain at its heart. This extends from the production of raw materials from agriculture and use of water, to end of life products, passing through their industrial transformation, their packag-ing, their transportation and their distribution.

In 2000, Danone set objectives as well as a market plan for 10 years. In 2008, the company stepped up the pace by setting an objective to reduce the intensity of greenhouse gas emissions by 30% over five years within its direct scope of responsibility, an objective it exceeded at the end of 2012.

Since then, Danone has identified four essential domains around which it built a plan for 2020: climate, water, packaging, and agriculture. Each of these domains brings together objectives, targets, and ambitious initiatives.

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NATURE: NATURE 2o2o

NATURE 2O2O - STRENGTHING THE LONG TERM BUSINESS SUCCESS

AGRICULTURE Promote agriculture that produces healthy food, is competitive, creates economic and social value, respects natural ecosystems and generates better nutritional balance.

WATER Protect water resources, particularly when scarce, and use them in harmony with local ecosystems and communities.

PACKAGING Turn waste into a resource and use packaging materials from sustainable resources.

CARBON Fight climate change by reducing footprint and helping nature sequester more carbon.

CO-BUILDING COLLABORATIVE

ALLIANCES

OPEN GOVERNANCE

SUSTAINABLE INSIDE

CROSS-FUNCTIONALWHERE IT MATTERS

UPSTREAM INNOVATION& TECHNOLOGY

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NATURE: Carbon footprint analysis

life cycle of yogurt

Carbon footprint of a cup of yogurt1

1% End of life 7% Retail & Home12% Logistics/Transportation6% Manufacturing9% Packaging65% Raw Ingredients (including milk)

1. Analysis is a full scope carbon footprint analysis (including all stages of life cycle). Data is based on the Danone SAP carbon footprinting tool’s 2015 results.

Each year since 2008, Dannon has conducted a Carbon Footprint Analysis to further understand the CO2 breakdown of carbon generated during the life cycle of our fresh dairy products. In 2014 Dannon began reporting its carbon footprint through its new SAP carbon footprint software – enabling our company to analyze greenhouse gas emissions of our products from cow to cup in real time.

2015 results, using our Danone SAP carbon footprint software, indicated the following:

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NATURE: SOURCING

Direct Supply of Milk

PartnershipSustainable

Traceability High Quality

“Consumer brands are a key vehicle for both educating people about sustainability and creating more robust value chains. The millennial generation, especially, has high expectations for the environmental and social bona fides of the brands they buy.” – Forbes Magazine

NATURE: SOURCING

A new milk sourcing model responding toour sustainability journey and consumer interests

In 2015, Dannon made a significant shift to our sourcing strategy from a single milk cooperative model to direct farming relationships. The catalyst for the transition was the recognition that the landscape for farming in the United States is rapidly shifting as more consumers request information about the agricultural practices employed by dairy farmers to ensure a high quality and sustainable milk is being used. By transitioning to a direct farming model, the Dannon milk team is able to leverage new relationships to guarantee high quality standards and align suppliers with the Danone 2020 Milk Sustainability journey.

The relationship developed over the last 4 years with McCarty Family Farms shows us the many opportunities that can be created in a direct sourcing model. Since the beginning of the partnership, the McCarty dairy operation has increased by 25% to 8,500 milking cows. Dannon and McCarty Family Farms have also piloted programs to increase production efficiency, to reduce water consumption and carbon production, and positively impact the surrounding community through yogurt donations to schools and other local organizations.

Dannon’s commitment to reducing its impact on the environment and providing access of nutrient-dense products for all extends beyond factory walls to ourpartners on the farm and their communities.

In 2011, Dannon established a unique partnership with McCarty Family Farms, KS. As partners, McCarty Family Farms provides 100% of the milk used by Dannon’s Fort Worth, TX plant while also enabling Dannon to build a direct relationship with dairy farms and partner on upstream environmental sustainability and community strategic initiatives.

McCarty Family Farms created an opportunity for a better way to do business in its communities and environment, developing the “Yogurt for Youth” program. By building on the foundation of Dannon’s mission and communities ties, McCarty Family Farms took the initiative to assist the local Kansas educational systems in providing nutritious, delicious, and low cost dairy products to future dairy consumers.

Utilizing the relationship with Dannon yogurt, the Southwest Dairy Museum and the local school systems, McCarty Family Farms is now able to provide over 5,000 individual servings of yogurt at a lower cost for the local schools that may not have been able to afford nutrient-dense products for their students. By leveraging excess product that did not make it to the hands of other consumers in stores, the Yogurt for Youth program is able to reduce the waste of product not sold while simultaneously benefitting children in the community where McCarty Family Farms operates.

• 10 local schools impacted and growing

• 5,000 individuals servings per week

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NATURE: YOGURT FOR YOUTH PROGRAM

Ken McCarty, McCarty Family Farms, Rexford, KS

NATURE: SHIPPING & DISTRIBUTION

SMARTWAY PARTNERSHIPMore than 95% of our products are carried by trucking companies participating in the United States Environmental Protection Agency’s Smartway Transportation partnership:

Smartway program is aimed at improving mileage for trucks and reducing carbon dioxide emissions through improvements in truck design.

PRODUCT SOURCINGDannon’s multi-sourced production allows for products to ship shorter distances to customers, and yield a reduced environmental impact when compared to producing from a single location for US distribution.

TRANSPORTING OUR PRODUCTSIn 2015, Dannon shipped 100+ loads via intermodal (train) cross country, more than twice the number of intermodal loads in 2014. Train transport represents fewer vehicles on US Highways. Trains emits six times less CO2 than regular trucks.

In 2015, a new larger distribution facility opened in Salt Lake City, UT allowing Dannon to better source customers and reduce miles traveled.

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NATURE: MANUFACTURING - REDUCE & REUSE

MANUFACTURING & PRODUCTION INITIATIVESEach Dannon plant has detailed action plans, Key Performance Indicators (KPIs) and goals to reduce energy and water usage. In the last two years, each Dannon plant team created an energy and utili-ty team to drive improvements in environmental initiatives, including KPIs for individual team members that contribute to overall goals.

In 2015 specific manufacturing projects to reduce our impact on the environment included:

• Installed a system to increase the efficiency of refrigeration systems in 4 plants by an average of 25% (2,700 tons of CO2 per year reduction).

• Installed heat recovery in Fort Worth to produce hot water for processing from waste heat (700 tons CO2 per year reduction).

• Major improvements to waste water treatment plant in West Jordan to reduce odor emissions to the surrounding neighbors.

• Portland plant managed to shut down its utilities during the weekend to reduce CO2 footprint (377 tons of CO2 per year reduction).

• Improvement in industrial KPIs related to energy consumption yielded 2,700 tons of CO2 per year reduction.

1. Analysis is a full scope carbon footprint analysis (including all stages of life cycle). Data is based on the Danone SAP carbon footprinting tool’s 2015 results.

REDUCING PACKAGING AT THE SOURCEDannon must optimize the weight of packaging across the board, while maintaining product quality and service to consumers. Several technical innovations have been introduced with this in mind, such as removing the cardboard from yogurts sold in multi-packs.

Dannon’s packaging represents 30% of Dannon’s total carbon foot-print from cow to cup.

In 2015, innovations in packaging contributed 2.3% toward Dannon’s overall ~7.1% CO2 reduction1. This contribution is based on the opti-mization of the production process and material used to manufacture toppers for our Crunch portfolio of yogurts.

Between now and 2020, Dannon continues to focus on innovative and inclusive initiatives for transforming waste into resources such as experimenting with plastics produced from biomass (sugar cane, sugar cane waste and corn) as we continue on our journey to reduce our CO2 footprint across all aspects of our business.

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CO2

CO2 Reduction

Waste TreatmentClean Water/

Improved Carbon FootprintHeat Recovery

CO2

CO2 Footprint

Transforming Waste Recycling/ReusePackaging Innovation

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FOR ALL: ONE YOGURT EVERY DAY Dannon is committed to helping people make informed food choices to improve their nutrition and health. As part of this commitment, Dannon supports nutrition education for children in our communities.

Dannon’s support of access to nutrient-dense foods takes many forms, including monetary and product donations to hundreds of community partners that are impacting eating habits and diets in America.

These include local schools and non-profit organizations with nutrition eduation and wellness programs that focus on increased consumption of lowfat yogurt as part of a healthy lifestyle for children in our communities and across the USA.

In 2015, over 90% of Danoners, engaged community activities include the One Yogurt Every Day (OYED) Employee Ambassador Program, mobilizing our Danoners in our commitment to help Americans make better food choices.OYED Ambassadors hit the streets of our hometowns to encourage people of all ages to eat a balanced diet and live a healthy lifestyle and teach our communities that eating yogurt every day is one simple way to help meet the USDA’s Dietary Guidelines’ recommended 3 servings of low fat or non fat dairy products daily.

“I want to thank you for Dannon’s generous participation in our first ever health fair for sixth grade students at West Rocks Middle School. The purpose of the health fair was to shed light on the importance of fitness and nutrition. Many of the students we serve at West Rocks, regardless of their economic background, are unaware of the value of exercise and healthy eating. We firmly believe that good nutrition and sound physical condi-tioning are integral components to improved performance in school and in life. By holding this health fair, we sought to expose our students to ideas about food and exercise that they might not otherwise consider.

You helped make this effort much more effective than it would have been without your contribution, support andeducation – it was such a wonderful thing for the students to experience. The students have said as much themselves. Exposing them to healthy alternatives was the key and you helped make it happen.

Thank you so very much.

– Louis Weinberg, Sixth Grade Science Teacher, West Rocks Middle School, Norwalk CT

TOGETHER, AS PARTNERS, WE CAN MAKE A CHANGE.For All means being accessible to as many people as possible. To achieve this ambition, we recognize that the solution will come from multiple actors. We choose to align with relevant stakeholders and to make a responsible use of our capacity of connecting to the consumer.

In 2015, Dannon built on our commitment to bring health through delicious food to as many people as possible through many key partnerships including the GENYOUth Foundation and Feeding America:

Dannon Danimals, the leading yogurt brand for kids, and Fuel Up to Play 60, the nation’s largest in-school wellness program, announced a first-ever collaboration between the two National Football League sponsors aimed at inspiring kids to fuel up with nutritious choices and get active for at least 60 minutes a day. An exciting collaboration on a quest to build a healthy, high-achieving generation of youth.

Focused around a national retail promotion, parents and kids across the country were encouraged to go on an adventure in search of one of six “golden” Danimals Bongo bottles and/or Danimals Squeezable lowfat yogurts for a chance to win a field day for their school with NFL Players. As part of its mission to bring health through nourishing foods to as many people as possible, Dannon awarded a total of $30,000 to the winning schools ($5,000 each) to implement the Fuel Up to Play 60 program to help make their schools & communities healthier environments.

Helping to provide nutritious snacks to those who otherwise would not have had access.

In 2015, Dannon product donations to partner organizations like the Feeding America network of food banks and local community organizations totaled an estimated 3.8 million pounds, providing the equivalent of nearly 2.5 million healthy meals for people at risk of hunger. Since our partnership with Feeding America began in 2001, Dannon has donated over 56 million pounds of our nutrient dense foods that are in high demands at food banks.

For more information on Dannon’s key partnerships like the American Diabetes Association, Alliance for Healthier Generation and Children Food and Beverages Advertising Initiative, visit www.dannon.com.

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FOR ALL: WITH KEY PARTNERS

Bringing together these powerful brands to educate and empower the public and our own Danoners to help those struggling with food insecurity in the U.S.During the fall of 2015, foodservice operators, consumers and Dannon rallied around the company’s SACK HUNGER campaign to support the fight to end hunger in the U.S. and raised over 1.6 million meals1 in three action packed months. Together, consumers helped raise the awareness of food insecurity in the U.S. and nourish communities across the country through Feeding America and its nationwide network of food banks.

Through a combination of mobile and online giving, hands-on volunteer activities and hunger awareness activation in-store and online, Dannon and its partners put over 1.6 million more meals on the plates of our neighbors this holiday season, surpassing its original goal of 750,000 meals by 113%. Through eye catching merchandising materials and an innovative text-to-feed sweepstakes, consumers were empowered to join the fight to end hunger in the US where one in seven people struggle with hunger – including 15 million children. 2

During the SACK HUNGER text-to-feed sweepstakes, Dannon donated the value of 500,000 meals to Feeding America, the nation’s largest domestic hunger relief organization -with consumers generously also donating almost 8,000 meals during the sweepstake period. By participating, consumers were entered into a sweepstakes for a chance to win NFL related prizes, including one Grand Prize of a trip to Super Bowl 50 courtesy of Dannon, and at the same time triggering a donation from Dannon to Feeding America.

In addition to the mobile and online consumer program in U.S. foodservice locations, Dannon unleashed the power of our 1,500 Danoners to help Sack Hunger through hands-on volunteer events and an employee & company donation campaign, adding over 550,000 meals to the donation tally. Danoners across the country packed over 600,000 nutritious meals by hand for their local Feeding America network food banks. dense foods that are in high demands at food banks.

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FOR ALL: SACK HUNGER CAMPAIGN

Dannon leadership team members rallied our Danoners around our goal to raise 1 million meals for Feeding Amer-ica through the 2015 Sack Hunger campaign

For more information on SACK HUNGER program, sweepstakes and how you can help fight hunger in your community, visit www.helpsackhunger.com

1. Based on Feeding America’s FY15 meal claim, $1.00 helps provide 10 meals secured by Feeding America® on behalf of local member food banks.2. USDA

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The legacy we build through our strong foundation lives on through the passionate Danoners who make our mission possible.

“We’re thrilled to have community partners like the Dannon Company in the City of Fort Worth. They continually demonstrate their commitment to encourage healthier eating habits and lifestyles in our vibrant and growing community. I am proud to join Dannon as they give back to our community and rally together to help fight hunger right here in Tarrant County.” - Betsy Price, Mayor, City of Fort Worth, TX

COMMUNITY ENGAGEMENT“TO WIN IN A MARKETPLACE, WE MUST FIRST WIN IN OUR

WORKPLACE AND IN OUR COMMUNITIES.”

In 2015, our Danoners worked as one, CREATING A COLLECTIVE IMPACT IN THE COMMUNITIES WHERE WE LIVE, WORK AND SERVE.

As volunteers and ambassadors, Danoners put our mission to bring health through food to as many people as possible, into action, positively impacting hundreds of thousands of lives last year.

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A NEW WORLD OF LeARNING

OUR PEOPLE ARE THE KEY TO OUR SUCCESS Developing strong leadersThrough the Individual Development Plan (IDP), Danoners planned out their personal learning roadmaps to help excel in their positions. With the Campus 2.0 tool, learning resources became available “on-the-go” with access to social networks, videos and mobile training tools.

In 2015, Dannon continued with an innovative development program to enable life-long learning in our Danoners. The IDP program introduced a new Learning Model of 60/20/10/10.

Dannon depends on the professional and personal develop-ment of our employees in all areas. Employees are encouraged to develop their skills and knowledge through formal training or self-initiated study.

In 2015, Dannon launched The Manager Acceleration Program (MAP) for new people leaders to enable managerial skill develop-ment and improve team dynamics. The ongoing program enrolls newly promoted or experienced Managers monthly and encom-passes a blended learning approach (digital, social, classroom and on the job learning)

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NETWORKING DIGITAL

We are a company made up of individuals with an entrepreneurial spirit. Dannon’s employees are thought leaders, commited to an ambitious future, open to learning and sharing with

others and doers who deliver fast results by empowering and developing people.

MAP Program INcludes:• eLearning

• Leadership Classroom Training

• Business Simulation Accelerator Training

• Coaching Sessions

• 360 Feedback

• Massive Open Online Courses (MOOCs)

• Networking

• On the Job aids

FOSTERING DIVERSITY

That’s why in 2015 the companies of Danone North America (DNA), including the Dannon Company, launched the Network For Women’s Leadership to engage our current and future female leaders in supporting each other on their leadership journey.

The Network for Women’s Leadership is a catalyst for our women developing their own development plan. Developing women’s leadership is not just about attending networking events. It’s about reaching out to others, seeking a mentor, attending external conferences or networking events, reading the latest articles and initiating your own growth plan.

As Doers at Danone, we are each responsible for our own career growth. With the Network for Women’s Leadership, Danoners are empowered and engaged to seek and take advantage of opportunities and connections to make those careers a reality.

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In today’s market, where diverse backgrounds, skills and experience are critical for strategic and operational decisions, having more women engaged in leadership can only positively influence a business and its culture.

MISSION: The DNA Network for Women’s Leadership exists to foster diversity creating an environment where women are empowered, valued and motivated

VISION: Be a great place to grow for all Women

At the 11th Annual Clinton Global Initiative (CGI) Annual Meeting in September 2015, leading and progressive businesses in the USA announced their commitments to improve workplace wellness for new parents and their children, including our own company.

The Working Parent Support Coalition was conceived of by leaders at Danone’s US-based companies in consultation withCGI, and the founding members are US-based divisions and subsidiaries of Barclays, Danone, Ernst & Young, KKR and Nestlé. Leaders from each company joined together during the CGI Annual Meeting’s closing plenary to announce the Coalition, which is the first of its kind. Coalition members committed to implement a range of parental workplace support practices that ultimately improve health, development, and economic outcomes for both families and companies. These practices around parental work-place support range from transformative strategies, such as longer paid parental leave, to more modest yet highly meaningful ones, such as providing transition support training.

Despite efforts made in the last decades to lower the barriers for parents, and especially women, to balance work and parenthood, the reality is that parental leave practices in the U.S. are still well below global standards. This may have a negative impact on health, the economy and women’s advancement in the workplace.

At the heart of the issue are the conditions around parental leave, back-to-work strategies, leadership and company culture, and in-office support.

Members of the coalition members carefully considered how it can measurably improve the quality of life for their employees who are new parents and their infants.

“To help fulfill our mission to bring health through food to as many people as possible and be an even better place to work, we are going to improve our parental leave practices and want to inspire others to do the same. Today, all of our companies in the USA can commit to improving parental benefits, with the commitment of getting to 6 months of paid parental leave, inclusive of primary caregivers within same sex couples.”

– Luciana Nunez, General Manager of Danone Nutricia Early Life Nutrition, who also conceived of the Working Parent Support Coalition with CGI.

Danone’s US-based companies committed to the coalition include Dannon, Danone Waters of America, Happy Family Organics, Nutricia North America, Nutricia Early Life Nutrition, Stonyfield Farm and YoCrunch.

No effort is too small, and every improvement counts to help improve health and economic outcomes. The new Coalition is unique because it will inform and inspire other companies to join in a collective movement to improve the quality of life for parents and their newborns when a child and mother’s health are so heavily influenced.

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Working Parent Support Coalition Announcement, Sept 2015

Founding member of the Working Parent Support Coalition launched in 2015

For more information on the Working Parent Support Coalition visit www.workingparentsupportcoalition.launchrock.com

Following the 1998 FIFA World Cup in France, Danone created an international football tournament: The Danone Nations Cup. With 32 participating countries, the Danone Nations Cup is the world’s biggest football tournament for children aged 10 to 12. Through-out this competition, the values of Fair Play, Openness, Sharing and Pleasure, helping instill in these young players the lessons of respect and dignity in victory and in defeat.

Every year since 2000, around 2.5 million children take part in lo-cal, regional and then national Danone Nations Cup competitions, before the winners fly off to compete in the World Final. In 2015, the Danone Nations Cup World Final took place in Morocco.

In May 2015, teams from across the USA traveled to the ESPN Wide World of Sports as part of the Disney Memorial Day Soccer Shootout presented by Danimals®. During the weekend the teams participated in the Danone Nations Cup National Tournament to determine the team that would advance to the World Final and representing the US in Morocco.

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In 2015 the team representing the USA came in 13th place out of the 32 teams playing in Morocco.

Fair play, openness, respect and enthusiasm inspire the DNC teams.

For more information on the Danone Nations Cup visit www.danonenationscup.com

2.5 million kids

34,000 schools

11,000 clubs

40 countries

More than just soccer - making dreams come true for as many children as possible

ALIMENTATION

The first five years of the journey towards strong, profitable and sustainable growth for Danone.

As a core part of the roadmap to strengthen the economic and social impact of Danone’s growth and engage Danone’s employees in our dual commitment for profitable and sustainable growth, Danone 2020, was launched in 2015.

Through an innovative, broad co-creation and company-wide deployment process of Danone 2020, this business transformation program is designed for a sustainable, collaborative and community-engaging future that is focused on three streams: Alimentation, Food & Water Cycle, People & Organization.

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Looking ahead on our journey for economic & social progress

Beyond selling food & beverage products

We want to create healthier eating and drinking behaviors that nourish and satisfy individuals as

well as socially and culturally bring people together.

FOOD & WATER CYCLEBeyond buying materials

We want to protect and valorize the essential resources of the planet, in

collaboration with communities.

PEOPLE & ORGANIZATIONBeyond traditional structure and process

We want to be agile, open and collaborative; and we want diverse people to flourish here.

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looking after our health is The biggest Responsibility

We love yogurt. And we enjoy making foods that are nutritious, delicious and fun to eat. We also have some very deep-rooted beliefs, which are expressed and realized through our commitment to sustainable development. At Dannon, we understand that being a driving force for improving the lives of the people in the communities where we do business is complementary to our business priorities.

We invite you to visit us at www.dannon.com and www.danone.com to see the many ways we are committed to bringing health through our products to the communities we serve.

it’s an adventure we have chosen to participate in. Join us on this journey as together, we make a change.