Trian Partners Activist Presentation Deck
Highly Cash-Generative
Negative sentiment has driven Danone's free cash flow yield to 7%, in-line with
the free cash flow yield that companies comprising the U.S. Packaged Food
Index traded at in March 2009 when U.S. sentiment hit bottom
■
▪ That would have been a good time to buy, as the U.S. Packaged Food Index
has increased 111% since March 2009, and free cash flow yields have
normalized to approximately 5.5%
Free Cash Flow (FCF)
€984
€1,183
CAGR: 15%
€1,427
€1,713
€1,874
€2,000
2007 2008 2009 2010 2011 2012E
2012E Free Cash Yield
Approximately 50-60%
potential upside assuming
Danone trades at same FCF
yield as Unilever and Nestle
4.3%
Nestlē
- 13 -
Source: Company filings, Bloomberg.
Note: Free Cash Flow is defined as operating cash flow less capital expenditures net of tangible asset disposals, plus M&A fees.
4.5%
Unilever
6.9%
DANONEView entire presentation