Danone Stock

BEARER SHARES

Shares are categorised as "bearer shares" when the name of the owner is not disclosed to the issuing company. However, these shares are not anonymous since they appear in the account managed by the financial intermediary. In France, most shares traded on the Stock Exchange belong to this category.

REGISTERED SHARES

Shares are categorised as "registered shares" when the name of the shareholder appears in the share register of the company. The use of registered shares makes communication between the company and its registered shareholders easier. This method may take two forms:

• shares are "managed registered shares" when the management of the securities account is entrusted to a financial intermediary. The service is billed by the financial intermediary.
• shares are "pure registered shares" when they are entered directly and only in the share register of the issuing company. The issuing company is in charge of the administrative management of the shares and no custodian fees are paid.

In the case of Danone, Uptevia is in charge of managing registered shares.

This formula is advantageous to persons who do not intend to make frequent trades in the Danone shares they hold.

PURE REGISTERED SHARES

ADVANTAGES

• The shareholder receives regular information on Danone (including notices of Shareholders Meetings, in particular).
• No payment of custodian fees is charged.
• The dividend is paid by Uptevia without any delay.
• Double voting rights are granted to all fully paid-up shares held in registered form in the name of the same shareholder since at least two years.
   

DRAWBACKS

• If the shareholder is a registered shareholder for his entire portfolio of shares, he receives as many statements as he owns registered shares, which may be burdensome when he files his income tax report.
  
   

MANAGED REGISTERED SHARES

ADVANTAGES

• The shareholder receives regular information on Danone may place trading orders through his financial institution.
• He receives only one securities account statement at the time of his income tax return.
• Double voting rights are granted to all fully paid-up shares held in registered form in the name of the same shareholder since at least two years.
   

DRAWBACKS

• The payment of custodian fees is required.
• The dividend may be paid by the institution administering the securities account after a delay.