1. May 20 th, 2010

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

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

4. Very consistent profit situation all across Asia

5. 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

6. 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?

7. 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

8. Sub-Distributors: 61 out of 82 exclusive

9. 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 1 2 3 4 Simulation of Resources Required -> #Presellers -> # vehicles -> Freq Visits per Cluster/Channel -> Time Study with with SubDist -> Delivery: * FTE * Cost to serve 6

10. 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. 11 DMS VN quick silver SFA Order (sell out) 1 2 3 4 1-2-3: 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)

12. 5 Map Universe Actual Stores Universe to select stores -> Potential Blue Store Candidate List -> Criteria of Selection 1 2 3 4 Toolkit for Sales force 6 Training Sales Force Follow-up tools / KPIs ASSESSMENT*** / potential enhancement / GonoGO 7 *** Recruitment and Efficiency of the program

14. 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.