Corporate Quality General Management – May 05 1

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

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

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

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 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

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

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

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

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

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

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

Corporate Quality General Management – May 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.

Corporate Quality General Management – May KPIs Consumer Satisfaction

Corporate Quality General Management – May 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

Corporate Quality General Management – May 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

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

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

Corporate Quality General Management – May 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.

Corporate Quality General Management – May 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.

Corporate Quality General Management – May 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

Corporate Quality General Management – May 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