Trian Partners Activist Presentation Deck
Long Investment Idea: Danone
DANONE
Share Price: €48
Market Cap: €29bn
Enterprise Value: €36bn
Dividend Yield: 3%
▪ Trian holds an approximate 1% economic interest in
Danone ("Danone" or the "Company")
■
21st Century Portfolio
- Yogurt: 46% of EBIT
- Baby/Medical Nutrition: 37% of EBIT
- Bottled Water: 17% of EBIT
■
52% of Sales in Emerging Markets
- Among the highest exposures within consumer staples
- Margins at or above those in developed markets
▪ Attractive valuation
- 7% free cash flow yield, 14.8x P/E; 9.3x EV/ EBITDA (2013E)
- Trading in-line with slower-growth, structurally challenged US peers
▪ Trian believes Danone's implied target value per share
could be approximately €78 by year-end 2014 (¹) (current:
€48)
We believe the market is offering investors a world-class business for relatively
low multiples of earnings and cash flow
Source: Company filings.
Note: Market data as of November 2, 2012. EBIT contribution represents first-half 2012 trading operating profit results. Balance sheet data used for calculation of market cap and
enterprise value as of June 30, 2012.
- 4 -
(1) Includes dividends received over ~2-year holding period.View entire presentation