Modèle Word ddr danone

Group’s policy 
Operational currency risk management 
The Group’s policy is to hedge its highly probable commercial transactions so that, as of December 31, its residual exposure in respect 
of the whole of the following fiscal year is significantly reduced. However, when the hedging conditions of certain currencies have 
deteriorated (less availability, high cost, etc.), the Group may be required to limit the hedging of its highly probable commercial 
transactions in its currencies, by not hedging or only partially hedging the exposure. The Group uses forward currency contracts and 
currency options to reduce its exposure. 
The execution of the hedging policy for currency risk related to operations consists of providing the necessary hedges to subsidiaries 
through a centralized management system, or, in the case of subsidiaries where such hedges are legally prohibited, through a 
monitoring and control process. 
The Group mainly applies cash flow hedge accounting. 
Based on pend
ing transactions as of December 31, 2019, the Group’s residual exposure after hedging of exchange risks on its highly 
probable commercial operating transactions is significantly reduced for 2020, the main currencies partially hedged being the Russian 
ruble, the Brazilian real, the Turkish lira and the Uruguayan Peso. 
Management of currency risk related to financing activities and translation risk on net assets 
The Group has established a policy for monitoring and hedging the net assets of certain subsidiaries, with regular assessments of risks 
and opportunities to use hedging instruments. 
The Group’s policy consists of maintaining the debt and/or surplus cash positions of Danone and its subsidiaries in their respective 
functional currencies. Furthermore, in compliance with its policy of managing risks centrally, the Group may manage multi-currency 
borrowings and surplus cash. 
As part of these policies, the Group therefore uses cross-currency swaps.