The Launch of a new brand extension for Danone Beblac 100g sachet

The Executive |Summary

Situational Analysis

The marketing objectives The Marketing Plan The Marketing Budget Target Market Strateies

The Infant nutrition market is becoming more and more attractive for the companies with different background. Among the producers of infant nutrition can be found food companies as well as pharmaceutical companies. The attractiveness of the infant nutrition industry increases competitiveness on the market. Nowadays ther e are top five multinational companies (Big5) producing infant nutrition: Mead Johnson , Nestle, Danone, Wyeth and Abbott representing about 55% of the Infant nutrition market in Asia and 85% in America. The Big5 have worldwide scope and has production plants and sales offices all over the world. The rest of the companie s producing infant nutrition have stronger focus on the home region markets. Current market dynamic and specific characteristics of the infant nutrition industry may change competition between Big5 and local heroes. The specificity o f the infant nutrition market is determined by the strict quality requirements, governmental restrictions on advertising infant nutrition and specific customer perception (culture, education and religion of customers has a great impact on t he infant nutrition industry). Currently Domo as a supplier of milk and whey ingredients and infant base powders and final formulas, has its focus on Big5. Over 90% of sales are counted on the share of business with Big5. But Domo expects that increased rivalry and spe cific characteristics of the infant nutrition market may change their customer orienta tion. In 2010 Domo is on the stage of Mid Long Term planning and Business development

Competitors estl claims to be the world's largest and most diversified food company, marketing its products in almost every country in the Nworld. It has gr own in the Americas and in Europe, mainly by buying up smaller food companies, by joint ventures and take-overs. In 1985 Nestl acquired Carnation to win a share of the lucrative US baby food market. Later it bought the Wyeth division of baby foods in Canada. In Asia, there are fewer companies to take over but Nestl expects to grow faster on its own steam. At a press meeting in 2003, Nestl pointed to the 2.4 billion consumers in China and India combined and said it counted on China to become the company's biggest market. Indonesia with 220 million people is a big third in Nestl's planning. In terms of product development, Nestl was quick to have seen the potential growth of 'functional' foods compared to normal foods. Functional food, Nestl researchers say, provides a specific health or performance benefit over that of consuming a normal healthy diet (sic). Its market grows at about 9% per year, versus 2% for normal food. Instead of creating new brands, Nestl has been adding a claimed health benefit to existing products and portrays those benefits through branded active ingredients or logos such as Prebio 1 or Omega Plus, Comfort Proteins and Bifidus. In consumer reports, shareholder publications and in reports to the WHO, Nestl claims to abide by the International Code. Evidence in this report once again shows otherwise. The consumer Boycott of Nestl products continues in some 20 countries aiming to force the company to fulfill its pledge to comply with the Code. As a first step, Boycott organisers have asked Nestl to accept that the Code and Resolutions are minimum requirements for all countries. The company refuses to do so. In 1999 the UK Advertising Standards Authority ruled against Nestl's claim that it markets infant formula 'ethically and responsibly'. In 2000 the company refused to attend a European Parliament hearing into its marketing of baby foods. In January 2004, the UK Trading Standards Office asked retailers to stop displaying and selling US parenting magazines containing advertisements for infant formula, including Nestl brands. Nestle's interpretation of the Code restricts the scope to infant formula and follow-on formula by the same brand name. Even under this very limited interpretation, Nestle breaks the rules as demonstrated by evidence in this report. See Section 1. Where national measures are inadequate or have expired, as is the case in Armenia and Thailand, Nestle and other companies are quick to return to aggressive and competitive marketing tactics, including free formula supplies to hospitals, samples for mothers, media advertising and seducing health workers with gifts. They only abide by the Code grudgingly when forced. In September 2001, Nestl claimed it supported the WHO recommendation of exclusive breastfeeding for six months and would change labels of complementary foods, including infant cereals and jarred baby foods currently marketed between 4 and 6 months in more than 150 developing countries. Article 5.1 of the Code prohibits advertising and all other forms of promotion of products under the scope of the Code. Article 5.2 and 5.4 of the Code prohibit companies from giving samples and gifts to mothers. In Argentina, a Nestl distributor uses the Internet (www.etoledo.com.ar) to

promote sales of Nan 1 and 2, Nidina and Nestl cereals. The text includes an idealising statement which claims Nan 2 is a maternalised milk. Nestl gives free samples of Nan 1 in Bulgaria. A magazine ad in Lithuania promoting Nan 2 shows an infant hand reaching for support from an adult. In Switzerland, an advertisement Baby Nutrition from Nestl in a supermarket magazine promotes Beba 2 and other products and states that parents can be assured that their child gets, at any step of his development, the nutrition precisely correspondent to his needs. From milk formulas to the delicious little complete menus. There is a picture of a happy mother and child. A parents magazine in Luxembourg advertises Beba Sensitive special formula with the claim that Beba is nearly lactose free and suitable for infants who are sensitive to lactose and the product gives the safe feeling to make the right choice. A French magazine ad says Nidal Bifidus 2 thanks mothers for being the model thereby equating its formula to mothers milk. Nestl maintains a US web site: verybestbaby.com It promotes Good Start formula with the slogan Its the Good Start that will last a lifetime. The baby formulas section claims its Good Start Comfort Proteins are gentle on a babys tummy and are patterned after breastmilk containing the recommended levels of fat, carbohydrates, vitamins and minerals for babys first year. Nestl sends sales reps to shops and supermarkets in Fuzhou, Nanjing and Wuhan in China to promote Nan and Lactogen. Fortnightly, Nestl representatives leave promotional materials on Nan products at a pharmacy in San Cristobal in the Dominican Republic. Employees receive free samples for themselves and to pass on to customers. In Indonesia, Nestl promotes Lactogen and Nan through salespeople in pharmacies in Gowa and Sidoardjo. It also offers discounts to customers buying Nan 1 in shops in Surabaya. In Thailand, Nestl gives out samples of products like Lactogen 1 and Nan 1 to mothers in shops. In Armenia, there are special displays of Nan. Posters of the blue bear logo

have the slogan Start with the best. In Indonesia, a display of Nan products is prominently set up near the entrance of a shop in Solo. Nestle promotes Nan HA 1 and Nan 1 by organising special sales in Taiwan. In Malaysia, Nan 2 sold out quickly when promoted as a special offer. A supermarket magazine in Switzerland promotes a range of Nestl formulas and complementary foods such as Beba 2 and Beba 2 HA and jarred foods all recommended as suitable from four months Gifts to health workers Article 7.3 provides that there should be no financial or material inducement, to promote products. In Colombia, Costa Rica and the Dominican Republic, gifts such as mouse pads, diaries, clocks, prescription pads and stationeries, all with the Nestl name and logo, are distributed to health workers. In Germany, Nestl provides health workers with information records used for the transfer of newborns during emergencies. The Alete brand logo appears at the bottom of the sheet with the slogan All the best for your child. Labelling Article 9 of the Code requires labels to NOT discourage breastfeeding and to inform about the correct use of the product and the risk of misuse. In most developing countries, Nestls formula labels comply with the Code to a large extent although they use small print for the required warnings. Several, however, do violate Article 9 by comparing the product to breastmilk and by using idealising statements such as: In China, Nan 1 labels say Choose quality food, choose Nestl and claim that the product is close to breastmilk. Nan 1 is idealised by the claim that its low phosphorous content helps calcium absorption and promotes the growth of Bifidus bacteria. The Nan label in Finland claims that it can be used from birth as an addition to breastmilk or to substitute it and that the amino acid composition of the product has been renewedable to reduce the amount

of protein which is now closer to the protein level of breastmilk. In Mexico, Nestls Nan 2 label and in Peru Nan 1 claim the product have new improved protein efficiency from start. In South Africa, the Lactogen 1 label suggests the product has the same benefits as breastmilk with the claim that it "has all vitamins and minerals required by an infant for growth and development." The Pelargon label in Tanzania promotes its higher acidic content as being able to aid digestion. Nestl occasionally fails to comply with the local language requirement on infant formula labels. In some cases, there is inaccurate translation. For example: In Armenia, the Alfar label has instructions in 13 languages and translation is inconsistent. For example the statement: Semi-elemental formula with low osmotic activity in Russian reads as semi-elemental formula with low asthmatic activity in Armenian. Translation is also inconsistent on the Nestogen label. In Russian, there is a statement that breastmilk is the ideal nutrition for anewborn, meaning a baby below one month, while in Armenian breastmilk is said to be ideal for a baby. Promotion to the public Article 5.1 of the Code prohibits advertising and all other forms of promotion of products under the scope of the Code. Article 5.2 and 5.4 of the Code prohibit companies from giving samples and gifts to mothers. Promotion in health facilities WHA Resolution 47.5 (1994) urges an end to free or subsidised donations of products to all parts of the health care system. Labelling WHA Resolution 54.2 (2001) advises exclusive breastfeeding for 6 months which means that the recommended age for use of complementary foods cannot be under 6 months. In the Dominican Republic, mothers receive free samples of Nestl Cereals in health facilities (July 2003). In Indonesia, Nestl put up a signboard for a maternity in Indonesia which features the names of Nestl and the Cerelac brand at the entrance of a health facility (April 2003). The aftershocks of the 2008 financial meltdown echoed through 2009, with recessions in many economies, and continued through 2010 and into 2011, with concerns over what may be still to come. This unpredictable and volatile macro-environment, particularly in the developed world, has weighed heavily on consumer confidence. On the other hand, the emerging world has rallied quickly, demonstrating that many economies in Asia, Africa and Latin

America are more robust, and less dependent on the developed world than was perhaps thought. One might say that many emerging economies are indeed emerging, and doing so on their own terms, with their own priorities, rather than simply having a me too ambition to mimic the developed world. This must be a good thing, both for those economies and for global trade and development. This environment has required specific, individual country-by-country approaches from your Company, so that we could identify opportunities for growth in areas characterised by low levels of consumer demand and also capitalise on buoyant demand in other markets. These approaches shared a common strategic purpose, described in the Nestl Roadmap, which identifies our operational and strategic priorities. Our priorities were to ensure that we put consumers first; that we offered outstanding value propositions through our products and services, appropriate to our different consumer segments; that we achieved a high level of differentiation of our brands from those of our competition; and that we continued to increase investment in innovation, in consumer communication, in operations and in distribution. And that we did this whilst driving improved operational efficiency across the business, simultaneous to achieving ever higher standards of process and product quality. This commitment lies at the heart of our performance in 2010, a year that saw Nestls stock market valuation make it preeminent amongst its consumer goods peers and one of the leading companies in Europe. Nestls organic sales growth was 6.2%, including real internal growth (RIG) of 4.6% and pricing of 1.6%. The strength of the Swiss franc relative to many other currencies had a 3.6% negative impact on reported sales, whilst divestitures, net of acquisitions, resulted in a fall of 0.6%. Overall, sales rose by 2.0% to CHF 109.7 billion. The Groups EBIT rose to CHF 16.2 billion and the EBIT margin rose by 20 basis points to 14.8%. Our continuing operations had organic growth of 6.0% and RIG of 4.4%. Despite a higher level of investment in marketing and R&D, the EBIT rose to CHF 14.0 billion

and the EBIT margin by 30 basis points to 13.4%. The Groups underlying earnings per share rose 7.4% to CHF 3.32, and by 10.3% in constant currencies. The reported net profit was CHF 34.2 billion, reflecting the profit on disposal of our remaining holding in Alcon, as well as the underlying improvement in our performance. The operating cash flow was CHF 13.6 billion. The Groups return on invested capital decreased by 10 basis points to 15.5% including goodwill, but increased 100 basis points to 36.1% excluding goodwill. In view of this performance, and your Companys robust financial position, your Board is recommending a dividend per share of CHF 1.85, an increase of 15.6% from last year. This will be paid in 2011, and is in addition to the current CHF 10 billion share buy-back, split equally between 2010 and 2011. The 2010 results, achieved in an exceedingly challenging environment, were not the reflection of a single-minded focus on achieving short-term performance, but were achieved whilst investing for the future and laying foundations to shape the future direction of the Company: in January we announced the acquisition of the leading USA p Performance Nutrition: While nutritional status has improved worldwide over the past fifty years, malnutrition and obesity still require solutions. To ensure both taste preference and nutritional superiority in our products, we assessed CHF 36.4 billion of our product portfolio and renovated 6502 products for nutrition or health considerations. To provide lowerincome consumers with greater access to affordable food products, Our competitive advantages are: Our unmatched product and brand portfolio, with strong market positions. Over 20 Nestl brands have annual sales of over CHF 1 billion. Whether global or regional, our brands are always relevant to consumers locally. Our unmatched R&D is the unseen impetus behind the growth of our brands. It is science-based, consumercentric and focused on differentiation from our competitors. It goes

beyond food to cover new products, packaging, technology and manufacturing, quality and safety. Our unmatched geographic presence has been established over many years and is a reflection of both the breadth of our presence, with our brands available more or less everywhere, and the duration for which we have been present in countries the world over. Our people, culture, values, and attitude enable us to be decentralised and entrepreneurial. It combines devolved responsibilities with a cohesive strategic direction. We are patient and not averse to taking reasonable risks. Our speed and focus enable us to remain competitive in spite of any challenges in the marketplace. Our growth drivers are: Nutrition, Health and Wellness. Each of our product categories, from Chocolate to Baby Food, has a specific strategy to ensure that it can be the nutrition leader in its space. Emerging markets and Popularly Positioned Products. We have tailored not just our products, but also our business models and marketing mix to ensure that we are best able to realise the growing opportunity to provide nutritious, affordable, branded food to lower income consumers around the world. Out-of-home consumption is growing faster than in-home. We are the largest branded manufacturer, with a business built on branded ingredients but increasingly achieving new standards in customer solutions, systems and service. Premiumisation. Incomes are increasing; so is leisure time. These are just two trends that point to accelerated growth in premium food and drinks, each a moment of affordable luxury, a moment of pleasure. Each of our product categories has its own specific premium strategy, encompassing brands such as Nespresso, S.Pellegrino, Perrier, Hagen-Dazs and Cailler. Our operational pillars are: Innovation & renovation. Innovation is about big steps and changing the rules of the game, or even changing the game. It is hard to copy. Its rewards can be measured by profitable growth for years to come and sustainable

competitive advantages. Renovation is more incremental, and lies behind the still-growing success of brands such as Nescaf and KitKat, both over 70 years old. Operational efficiency seeks to ensure that we have the highest quality, the lowest cost and best customer service. The aim is to improve our sustainability by being better, faster, more efficient, less wasteful and, as a result, higher performing. Whenever, wherever, however is the expression of our aim to have our products always at an arms reach of our consumers. We have created specific business models, distribution strategies and product solutions to meet this objective. Consumer communication is about building trust, exciting consumers, and learning from them to help drive our R&D. It is about citizenship and responsibility and being aligned with the expectations of our 2010 sales The Group achieved organic growth of 6.2%, including real internal growth (RIG) of 4.6%. Foreign exchange impacted sales by 3.6%, whilst divestitures, net of acquisitions, reduced sales by 0.6%. Overall, Group sales increased by 2.0% to CHF 109.7 billion. Continuing operations organic growth was 6.0%, with real internal growth of 4.4%. The foreign exchange impact was 3.8%, and acquisitions, net of divestitures, added 1.8%. Overall, continuing operations sales increased by 4.0%. Organic growth for the Food and Beverages operations was 5.7% in the Americas, 3.7% in Europe and 10.2% in Asia, Oceania and Africa. We achieved 11.5% organic growth in emerging markets, as well as growth in the developed world. This performance reflects market share gains in each of the regions and across our categories. It has been driven by continued investment in our growth pillars, aligned with our strategic roadmap. These include increasing distribution of Popularly Positioned Products (PPPs) and the continuing roll-out of premium products in both emerging and developed countries; our focus across all our categories on Nutrition, Health and Wellness; expanding our reach

in the out-of-home market; building our innovation pipeline; and increasing our consumer marketing and brand investment. Profitability The Groups EBIT margin increased by 20 basis points to 14.8% of sales. The EBIT margin is not comparable to that of 2009 following the disposal of the remaining interest in Alcon in August 2010. The continuing operations EBIT margin increased by 30 basis points to 13.4%, both reported and in constant currencies. This improvement was delivered at the same time as we increased our investment in our brands: our marketing expenses increased by 100 basis points, with consumer facing marketing spend up 13.2% in constant currencies. The improvement in EBIT margin was driven by our sales growth and business mix, as well as by the achievement of operating efficiencies of over CHF 1.5 billion through Nestl Continuous Excellence, which benefited the cost of goods sold, distribution and administrative costs. This reflects our continued drive for operational excellence from farm to fork. We achieved significant cost savings at the same time as increased levels of safety, quality, service and environmental performance. These actions contributed significantly to our 2010 performance; and at the same time laid foundations for further performance improvement in 2011. The continuing operations cost of goods sold reduced by 40 basis points. Savings and the leverage from our growth more than compensated the cost pressures during the year, which increased in the second half. Danone We increased our market share once again to end 2009 with sales up 8%an excellent performance considering the slackening trends in many countries. But while the economic crisis has led to lower birth rates and thus lower demand in industrialized countries, there has been no softening on emerging markets. Asia was once again a main source of momentum, with sales up 12%. Our team in China is doing an extraordinary job in unusually diffi cult conditions, and that market will become our biggest, ahead of France, in

2010. This despite the fact that our share of the French market has continued upward to reach 50%, placing us 20 percentage points ahead of our nearest rival. In Indonesia, sales were up 15% and there is a promise of even better to come. In Europe, too, we saw strong growth in Switzerland, Poland and the UK (a country where sales rose 18%). We have plenty of scope for future growth in Britain. Our two business platforms both reported excellent results. The fi rst, entirely dedicated to formula offering specifi c benefi ts, placing special emphasis on reinforcing the immune system Aptamil, Nutrilon, Bebilon and Dumex brandsscored sales growth three times the market average. The second, dedicated to superior nutrition, where our brands include Bebelac, Bledina, Cow & Gate, SGM, Milumil and Bebiko, relaunched its complete care offering that ranges from infant formula with high nutritional value to complementary foodsjars, cereals and stewed fruitfor toddlers. Our strategy for growth and communications promoting the advantages of growing-up milks over cows milk for infants aged 10 to 12 months paid off in many countries. We will be continuing our drive to make mothers and healthcare professionals more aware of how such growth formulas can benefi t children as a complement or follow-up for breastfeeding in their fi rst three or four years of life. Our role is to remind everyone that babies are not simply miniature adultsand to explain the difference. On another theme, our contribution to group efforts to reduce our carbon footprint has begun with a detailed assessment of the current situation, which will allow us to draw up an effective action plan for the next three years. Well be aiming at optimizing our milk drying and packaging technologies. Baby nutrition and metabolism Recent studies show that infant and early childhood nutrition can play a crucial role in adult metabolic health, with specifi c nutritional ingredients and compositions infl uencing predispositions for chronic conditions such as obesity, diabetes, asthma, and heart disease. Danones Baby Nutrition division is participating in several research programs designed to increase understanding of human metabolic programming. New insights into the benefi ts of breast milk will help our researchers improve infant formulas. Bebelac powers new segment Launched in a single province for a six-month test in the premium segment of the infant formula market, Bebelac rapidly won 10% market share. The brand made its debut in nine Chinese provinces in 2009, and promises to be another growth engine for Nutricia in China. Bebelac joins Dumex, our umbrella brand, which leads the pack with 40% market share in the super-premium segment.

Aptamil honored for effective advertising In September 2009, Aptamil Austrias Aura campaigndeveloped and broadcast in 2008won an Effi e Award for effectiveness in advertising. The spot highlights the intrinsic benefi ts of Aptamil but underscores emotional value, showcasing a brand that goes beyond science to listen and stay close to mothers. Reaction was swift: since the campaign aired, sales have soared 33% and market share

3.1.1 Studying the Nigerian Population Data In business, we work with information. And it must be information that is verifi able and also scientific. And that is why our first port of call is to study the Nigerian population data. Study of a population data is very important. The population of a country determines the level of demand for goods and services. Going by the population figures, the total population as per 2006 census amounte d to a figure of 140,003,542 made up of 71,709,859 males and 68,293,683 females. Knowledge of the total population of a country is very important but it is not a ll. Other information about the population is equally important. For example the number of males have been disclosed. So also the total number of females in the population. 3.1.2 Demographic trends We have been presented with data on the Nigerian population. The information on the total population is not all that we require. We will also require information on demographic trends. Demography is the study of human populations and the ways in which they change. Let us now discuss the components of a demography. The age distribution of the population breaks down the population into the various age groups for example as is shown below: AGE (YEARS) POPULATION 0 5 5,000,000 6 - 10 8,000,000 11 18 10,000,000 19 - 40 30,000,000 41 and above 20,000,000 Total 73,000,000 Figure 5.1: Age distribution of a population (imaginary data) The importance of the age distribution of population is that it assists the entr epreneur to know in advance the total size of the market he or she wants to go into. For exa mple, an entrepreneur wishing to go into the manufacture of baby napkins must first find out the number of children in the age bracket that usually uses napkins. When the number of children that are of napkin using age are known then it will be easier to evalua te the size

of the baby napkin market. The size of the working population When you look at a population, major information that you must wish to extract i s the size of the working population and the trend over time. Not all members of a pop ulation are economically active. Practically, working population can be found within the age bracket of between 18 to 60 years of age. In most cases, people below 18 years o f age are dependants of their parents. Also, people above 60 years of age may not be economically active. The importanc e of estimating the working population is that it enables the entrepreneur to measure the 49 purchasing power of a population. The total work force in Nigeria can be divided into two namely. - public sector employees - private sector employees apart from knowing the size of the workforce, it will be very important to know the income levels of the entire components of the workforce. The birth rate and the death rate In studying the demographic trend, it is also important to look at the birth and death rates and track their movement over time. The birth rate and death rate both affect th e size of the population. If the birth rate exceeds the death rate, then the population wi ll increase. But if the birth rate is lower than the death rate, the population size will dec rease. If that happens demand for goods and services will shrink. The Sex distribution of a population Of course you are aware that there are goods that are peculiar to the female fol k. One of such goods is the sanitary towel. There are also goods that are peculiar to the male folk. One of such goods is the shaving cream. Before embarking on a manufacturing mission, the entrepreneur must know in advan ce the number of his or her target market. For example a hair shampoo manufacturer targeting the University of Lagos community should first arm him or herself with information on the number of females in the University of Lagos. Without that ty pe of information, disaster may await the entrepreneur. Ethnic and religious structure of a population When you look at a population data, you do not just measure the total size of th e population. It is important that you understand both the ethnic and religious st ructure of the population. For example, in Nigeria today, it will be important for the entr epreneur to know the number of Hausa or Yorubas in a given population. The reason is for exa mple the Hausa man or woman has a peculiar mode of dressing which is different from t he Yoruba mode of dressing. Apart from ethnic considerations, the religious structure of the population need

s to be also estimated. For example only a foolish entrepreneur will try to sell pork to a la rgely muslim community. This is so because the Islamic religion does not welcome the e ating of pork.

Regional Business We are currently offering the following products in Afghanistan. BEBELAC 1 Human breast milk is the best source of nourishment for human infants. As an alt ernative, it is important to choose an infant milk that has been specifically fo rmulated to provide similar benefits to breast milk. Bebelac 1 is an infant formula ensuring babies get the nourishment needed from 0 -6 months in case breast feeding is not possible. It can also be used as complementary feed to breast-feeding, in case the supply of breast milk is insufficient. BEBELAC 1 meets important international recommendations and regulations. Contains the key nutrients for healthy growth and development. Contains prebiotic fibers, which promotes healthy digestion and good stool chara cteristics comparable to breastfed infant Enriched with iron, antioxidants, omega 3 and 6 fatty acids, and nucleotides Product Information: Presentation: 400 g tin Shelf life: Unopened tins 18 months after production. After opening, the content should be consumed within 4 weeks, provided that the tin or pack is kept in a cool dry place. Prepare the food per serving and use within 2 hours. Standard dilution: 13.7 g powder (= 3 scoops) + 90 ml water = 100 ml formula. (S coop size 4.6 g.) After 6 months it is recommended to gradually substitute BEBELAC 1 for BEBELAC 2 . BEBELAC 2 The needs for nutrients and energy are increased, after 6 months and the infant is ready to chew its first semi-solid (weaning) foods. During weaning, milk will still be an important part of the diet. Cows milk is not considered to be the optimal drink for the infant under 1 year, because it contains too much protein and not enough essential fatty acids, iron and other important micro-nutrients. If the infant is unable to be breastfed, then choosing a follow- on formula to supplement the weaning diet is required. BEBELAC 2 is a nutritionally balanced follow on formula for healthy infants from 6 to 12 months, to be used as a part of a daily mixed diet. Bebelac 2 can also be used as complementary feed to breast-feeding. BEBELAC 2 may also be used to prepare plain cereals and porridge BEBELAC 2 meets important international recommendations and regulations. Contains the key nutrients for healthy growth and development. Promotes healthy digestion BEBELAC 2 is enriched with iron, antioxidants, omega3 and 6 fatty acids, and nuc leotides Presentation: 400 g tin. Shelf life : Unopened tins 18 months after production. (In 20 degree C, 24 mo) After opening, the content should be consumed within 4 weeks, provided that the tin or pack is kept in a cool dry place. Prepare the food per serving and use within 2 hours. Standard dilution 14.7 g powder (= 3 scoops) + 90 ml water = 100 ml formula. Scoop size 4.9 g.

BEBELAC 3 BEBELAC 3 is a nutritionally balanced growing up formula for healthy toddlers fr om 12 months onwards, to be used as a part of a daily mixed diet. BEBELAC 3 meets important international recommendations and regulations. Toddler is usually applied to 1 and 2 year old child. In this period, growth is still r apid and specially central nervous system is continuing to develop. Therefore an appropriate energy and nutrient intake are required. The toddlers diet is often inadequate in iron, zinc, vitamin D and essential fatt y acids. Cows milk provide significant : energy, protein & saturated fatty acids and miner als However it has nutritional limitations : vitamin D, and vitamin C, iron, essenti al fatty acids.These shortcomings can be corrected by replacing cows milk with a nutritionally balanced growing up milk. Product Information Presentation: 400 g tin. Shelf life: Unopened tins 24 months after production. After opening, the content should be consumed within 4 weeks, provided that the tin or pack is kept in a cool dry place. Prepare the food per serving and use within 2 hours. Standard dilution: 15.3 g powder (= 3 scoops) + 90 ml water (40 degree) = 100 ml formula.(Scoop size 5.1 g.) The amount and number of feeding will be determined by babys age, appetite and am ount of solid food consumed. The volume and number of bottles are given as an in dication. HCPs can adapt these quantities to babys specific requirements. Population 155,215,573 (July 2011 est.) note: estimates for this country explicitly take into account the effects of exc ess mortality due to AIDS; this can result in lower life expectancy, higher infa nt mortality, higher death rates, lower population growth rates, and changes in the distribution of population by age and sex than would otherwise be expected Age structure 0-14 years: 40.9% (male 32,476,681/female 31,064,539) 15-64 years: 55.9% (male 44,296,228/female 42,534,542) 65 years and over: 3.1% (male 2,341,228/female 2,502,355) (2011 est.) Median age total: 19.2 years male: 19.2 years female: 19.3 years (2011 est.) Population growth rate 1.935% (2011 est.) Birth rate 35.51 births/1,000 population (2011 est.) Death rate 16.06 deaths/1,000 population (July 2011 est.) Net migration rate -0.1 migrant(s)/1,000 population (2011 est.) Urbanization urban population: 50% of total population (2010) rate of urbanization: 3.5% annual rate of change (2010-15 est.) Sex ratio at birth: 1.06 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 1.04 male(s)/female 65 years and over: 0.94 male(s)/female total population: 1.04 male(s)/female (2011 est.) Infant mortality rate total: 91.54 deaths/1,000 live births male: 97.42 deaths/1,000 live births female: 85.31 deaths/1,000 live births (2011 est.)

Life expectancy at birth total population: 47.56 years male: 46.76 years female: 48.41 years (2011 est.) Total fertility rate 4.73 children born/woman (2011 est.) HIV/AIDS - adult prevalence rate 3.6% (2009 est.) HIV/AIDS - people living with HIV/AIDS 3.3 million (2009 est.) HIV/AIDS - deaths 220,000 (2009 est.) Major infectious diseases degree of risk: very high food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A and E , and typhoid fever vectorborne disease: malaria and yellow fever respiratory disease: meningococcal meningitis aerosolized dust or soil contact disease: one of the most highly endemic areas f or Lassa fever water contact disease: leptospirosis and shistosomiasis animal contact disease: rabies note: highly pathogenic H5N1 avian influenza has been identified in this country ; it poses a negligible risk with extremely rare cases possible among US citizen s who have close contact with birds (2009) Nationality noun: Nigerian(s) adjective: Nigerian Ethnic groups Nigeria, Africa's most populous country, is composed of more than 250 ethnic gro ups; the following are the most populous and politically influential: Hausa and Fulani 29%, Yoruba 21%, Igbo (Ibo) 18%, Ijaw 10%, Kanuri 4%, Ibibio 3.5%, Tiv 2. 5% Religions Muslim 50%, Christian 40%, indigenous beliefs 10% Languages English (official), Hausa, Yoruba, Igbo (Ibo), Fulani, over 500 additional indig enous languages Literacy definition: age 15 and over can read and write total population: 68% male: 75.7% female: 60.6% (2003 est.) School life expectancy (primary to tertiary education) total: 9 years male: 10 years female: 8 years (2005) Education expenditures NA Maternal mortality rate 840 deaths/100,000 live births (2008) Children under the age of 5 years underweight 26.7% (2008) Health expenditures 5.8% of GDP (2009) Physicians density 0.395 physicians/1,000 population (2008) Hospital bed density 0.53 beds/1,000 population (2004)

Income statement ( mln) Download 2009 2010 Changes 2010/2009 Net sales 14.982 17.010 6.9%(1) Organic growth +3.2% +6.9% Trading operating income 2,294 2,578 +7.1%(1) Trading operating margin 15.31% 15.16% +3 bps(1) Current net income (attributable to the Group) 1.412 1.669 Cash flow ( mln) 2009 2010 Changes 2010/2009 Cash flow provided by operations 2.092 2.399 Capital expenditure -699 -832 Purchase of businesses and other investments(2) -147 Free cash-flow(3) 1.427 1.713 +20.0% Financial position ( mln) 2009 2010 Net debt 6,562 7,074 Stockholders equity (including minority interests) Debt/equity ratio 62% 59% Current per-share data 2009 2010 Underlying diluted EPS ) Dividend per share ( ) Changes 2010/2009 (attributable to the Group) 1.2 1.3 +8.3%

18.2%(1)

-695 -

10,609 11,987

2.5

2.71

+12.7%(4

Share info 2009 2010 No. of shares at Dec. 31(000) 646,990,850 Share price at Dec. 31 ( ) 42.83 47.02 Market capitalization at Dec. 31 ( mln) Personnel 2009 2010 Total employees at Dec. 31

647,921,840 27.710 30.465

80,976 100,995

Sales volumes were up 5.2% like for like for 2009 as a whole, compared with a 3.2% rise in revenue, and 8.9% in the fi nal quarter, demonstrating the success of action taken from the fi rst quarter on. With sales up 6.9% like-for-like one of the best performances in the food industry Danone got back on course for strong growth in 2010, harnessing new strategic markets with huge growth potential. Because of your acquisition of Unimilk at the end of 2010? FR: Unimilk is a young company that already held third place on its market and is posting robust growth with a brand portfolio and a geographical presence in sales and production that are perfect complements for Danone Russia, the subsidiary we set up some 20 years ago. The reasoning behind

the tie-up between these two regional champions is very simple: it will give us the base we need to reach the whole of the Russian market, which counts more than 140 million people and is growing fast. Combining Unimilks broad ranges and strong momentum with Danones advanced expertise and operational know-how opens very promising prospects BABY NUTRITION The mission of the Baby Nutrition division is to get babies off to the best possible start in life. We have enormous responsibilities to mothers and to society at large. And we are obsessed with product safety and quality: both are absolutely fundamental to our work and exchanges with healthcare professionals, and to understanding the needs and expectations of local and international authorities.