May 20 th, 2010

Wholesalers Distributors Danone Costs Control Distributors End Game: Gaining the control of POP at best cost to drive brand Equity Sales & Distribution in Vietnam

Lowest cost in China & Thailand VIE, MAL, IND above region average ASIA distributor margin landscape

Very consistent profit situation all across Asia

Distributor & retailer margin impact our profitability significantly Total distribution margin % to CANN (TDM%) CANN Retailer margin Distr. margin DBN CO% Impact on RSP DBN profitability

Sales & Distribution in Vietnam Sub-Distributor Important impact on costs drivers Opportunity to shorten the RTM Model and generate saving in the value chain while improving overall control on operations?

1.Cost to serve 2.Demand planning & Inventory management across current multi-tiers model 3.Limitation in Geographical expansion and store coverage (few Distributors focused on Key cities and limited number of stores) 4.In-store control / Compliance vs Picture of success Sales & Distribution in Vietnam

Sub-Distributors: 61 out of 82 exclusive

June 30th July- Aug Sept 1st June 15 th Jun 15th May 24th 5 Map Universe vs Actual Stores -> Provision Store (incl. Dumex) -> DRC -> Ideal Route Planning Territory (pilot) Pilot Audit As-Is -> Pic of success Compliance -> OSA -> Uncovered Stores -> Delivery: * $$ missed opportunity of Existing Model Simulation of Resources Required -> #Presellers -> # vehicles -> Freq Visits per Cluster/Channel -> Time Study with with SubDist -> Delivery: * FTE * Cost to serve 6

1.Cost to serve 2.Demand planning & Inventory management across current multi-tiers model 3.Limitation in Geographical expansion and store coverage (few Distributors focused on Key cities and limited number of stores) 4.In-store control / Compliance vs Picture of success Sales & Distribution in Vietnam

11 DMS VN quick silver SFA Order (sell out) : Assessment of Group solution Newspage Kicked-off. -SFA Pilot July-August, Business Case Reco for budget preparation -DMS+’VN Quicksilver’ : Gap assessment to be scheduled with KL team (end of June) 2 opportunities: - Get Outlet Universe (Mapping/Census) -Route optimization -=> 3 Solutions currently under study (reco by end of June)

5 Map Universe Actual Stores Universe to select stores -> Potential Blue Store Candidate List -> Criteria of Selection Toolkit for Sales force 6 Training Sales Force Follow-up tools / KPIs ASSESSMENT*** / potential enhancement / GonoGO 7 *** Recruitment and Efficiency of the program

Points missing: – Integrate Approach to quantify number of distributors (Profile?) – Assess approach which consists on phasing changes of Distribution model: For instance: – Year 1 : Hanoi + HCMC – Year 2: Key cities – Year 3: Other – Then Specify future rules to move from Sub-Dist to Distributor profile in our Distribution model Test Distribution Model and SFA separately to get right ‘apple-to-apple’ comparison but consider implementing then together when it comes to offer a new approach to distributor.