US Growth Reporter

GROWTH REPORTER Europe Market Dynamics

. Compares overall market dynamics (value and unit growth) in the Fast Moving Consumer Goods sector across Europe.

. Is based on the sales tracking Nielsen performs in every European market.

. Covers sales in grocery, hypermarket, supermarket, discount and convenience channels

. Is based on the widest possible basket of product categories that are continuously tracked by Nielsen in each of these countries and channels

Context . Economic Growth (GDP) in Europe in Q1 increased to +1.9% (source: Eurostat 28 countries ) which is an improvement on both Q4 and Q1 2016.

. The improving economic picture is expected to continue even allowing for the political uncertainty with elections still to come in the largest economies of UK, France, Germany and Italy.

Trend

. With Q1 distorted by a later Easter, Nominal growths were +0.2% and Volume Growth -0.7%.

. However Unit Value Growth remained stable at +0.9% indicating that there is little `inflationary` pressure in Consumer Packaged Goods in the first 3 months of 2017.

. The `big 5` Western European countries continue to have the lowest growth and the best momentum is still in Eastern Europe, Portugal and Spain. The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 ©

. Price Increases: typically when there is an upward pressure on the cost of goods (e.g commodity prices, global harvests, regional weather, price of crude oil, currency depreciation).

. Less Promotions: 23% of sales are sold on promotion in Europe *. There is still an upwards direction for branded promotions in a number of countries e.g France, Spain, Portugal, Netherlands.

. Channel Switch: to move expensive retailers or formats. In Europe however, most sales momentum continues to the lower priced Discounter channels.

. Trading Up: to more expensive brands or to premium private label. Private label value share also continues to grow in Italy.

. Trading Down: to more smaller and more expensive packs. Products can also be `re engineered` with less volume (content) but sold at the same price (called `shrinkflation) to avoid shelf price increases . This is a Q1 trend in the UK following currency depreciation in 2016. The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 ©

Copyright * Strategic Planner 9 countries, FY 2016 4 REGIONAL SUMMARY – EUROPE Fast Moving Consumer Goods market dynamics

Volume change Unit value change Nominal Value Growth

3,8% 3,6%

3,1% 3,0% 1,7% 2,6% 2,4% 2,2% 2,4% 2,0% 1,6% 2,1% 1,7% 1,8% 1,3% 1,7% 1,8% 1,7% 1,5% 1,3% 1,3% 2,3% 1,6% 1,1% 0,9% 1,7% 1,5% 0,7% 0,8% 0,9% 1,1% 1,0% 1,9% 1,3% 0,8% 0,7% 0,8% 0,8% 0,7% 0,7% 0,2% 0,4% 0,3% 0,8% 0,1% 0,3% -0,6% -0,7%

The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 © Europe - Austria, Belgium , Czech Rep., Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, Turkey, UK.

Volume growth Unit value Nominal Value Growth

11,6%

5,7%

1,0% 3,9% 3,4% 1,2% 2,8% 4,4% 5,9% 2,2% 2,3% 1,7% 1,3% 1,6% 0,0% 2,7% 2,1%1,2% 1,2% -3,2%0,9% 2,8% -0,8% 0,7% 0,5% 0,8% 0,1% 0,0% 1,7%-0,2% 0,0% 2,2%0,1% 0,2% 2,9% 2,2% -0,3%0,9% 1,9%-0,4% 0,9% -0,5% -0,9% 0,5% 0,3% -1,6% -1,2% -0,8% -1,9% -0,9% -2,1% -2,4% --4,3%1,5% -1,5% -2,3% -4,5% -6,7% -1,0%

Nominal Growth Finland

Norway Russia Sweden Estonia

Latvia Denmark Lithuania Belarus Ireland Nether- Great Britain lands Poland Germany Ukraine Belgium Czech Republic Slovakia Moldova France Austria Hungary Switzer- Romania land Slovenia Croatia Bosnia- Serbia Herze- Bulgaria Turkey govina Monte- Italy Mace- Portugal negro Spain donia Albania Greece The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 © Growth Rate above Europe Average Growth Rate between “Zero” and Europe Average Copyright Growth Rate below “Zero” 7 Q1 2017 GROWTH RATES PER COUNTRY (VERSUS Q1 2016)

Unit Value Growth Finland

Norway Russia Sweden Estonia Latvia

Denmark Lithuania

Ireland Belarus Nether- Great Britain lands Poland Germany Ukraine Belgium Czech Republic Slovakia Moldova France Austria Hungary Switzer- Romania land Slovenia Croatia Bosnia- Serbia Herze- Bulgaria Turkey govina Monte- Italy negro Mace- Portugal donia Spain Albania Greece The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 © Growth Rate above Europe Average Growth Rate between “Zero” and Europe Average Copyright Growth Rate below “Zero” 8 Q1 2017 GROWTH RATES PER COUNTRY (VERSUS Q1 2016)

Volume Growth Finland

Norway Russia Sweden Estonia

Latvia

Denmark Lithuania

Ireland Belarus Nether- Great Britain lands Germany Poland Ukraine Belgium Czech Republic Slovakia Moldova France Austria Hungary Switzer- Romania land Slovenia Croatia Bosnia- Herze- Serbia Bulgaria Turkey govina Monte- Italy negro Mace- Portugal donia Spain Albania Greece The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 © Growth Rate above Europe Average Growth Rate between “Zero” and Europe Average Copyright Growth Rate below “Zero” 9 MAJOR COUNTRIES The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 ©

Copyright 10 FRANCE Highlights Context . On this 1st quarter, all FMCG departments sales are declining - with the exception of weather-sensitive categories & departments like beverages and ice-creams, due to heat and sunny weather this quarter.

. After several years the French market remains impacted by the price war (deflation on national brands) and promotional focus, enabling shoppers to find very good deals and savings.

. At the same time, consumers confirm their taste for innovations and quality products - making a kind of good balance between cheap, value offers on one hand, and premium items on the other one.

. Dynamic channels like ecommerce and convenience keep growing while hypermarkets and supermarkets are suffering.

Trend

. Calendar effect of Easter lowering the trend in Q1, as Easter happened in Q1 in 2016, but took place in Q2 in 2017.

. Nominal sales are negative for the first time for years now (-0.8%), with volumes remaining stable this quarter and thus not compensating the drop in value change.

Volume change Unit value change Nominal growth

2,2% 2,2% 0,2% 1,9% 1,7% 1,6% 0,2% 1,5% 1,3% 1,4% 0,2% 1,0% 1,0% 1,1% 2,0% 0,9% 1,1% 1,7% 0,3% 0,8% 0,7% 1,3%0,6% 0,6% 0,4% 0,8% 0,5% 1,1% 0,8% 0,0%0,6% 0,8% 0,2% 0,6% 0,4% 0,7% 0,9% 0,3% 0,4% 0,1% -0,2% 0,0% -0,7% -0,8%

-0,8%

Click & Drive channel included from 2013 data (2014 trends) and Convenience Stores included from 2014 data (2015 trends);

. The German economy continues to develop positively. Q4 2016 ends with an economic growth of +1,7%. In 2016 the year-round growth is 1.9%.

. This positive growth is mainly affected by the positive job expectations and the positive prospects of the international economic cycle.

. Apart from this, the expansive monetary policies of the EZB is pushing the economic growth.

. In 2017 the upturn is likely to continue. Four working days less lead to a weakened increase in GDP to an estimated growth of + 1.4%. Without this special effect, experts estimate, the German economy will expand at almost the same rate as in 2016.

Trend

. The FMCG market can not quite take the positive momentum of 2016 at the beginning of 2017 and is decreasing by -1.7% versus Q1 2016 . Although there was a sharp price increase again, the volume sold remained below the previous year's level (-3,1 % versus Q1 2016).

. In particular the weaker sales development of the hypermarkets over 2.500 m2 and the supermarkets up to 1.000 m2 curb the market – also in the hypermarkets the promotion pressure has been decreased. The Nielsen Company. The Nielsen Company. Confidentialand proprietary. . © 2017 © An average price increase of 16 % makes fats and oils one of the strongest growth category (+ 8,9% versus Q1 2016).

Volume change Unit value change Nominal growth

3,5% 2,8% 1,5% 2,5% 2,1% 0,4% 1,4% 1,5% 1,3% 1,3% 1,5% 1,5% 2,0% 2,4% 2,8% 1,6% 1,7% 0,8% 1,5% 0,8% 0,4% 0,4% 1,7% 0,9% -0,1% 1,2% 1,0%0,2% 0,9% 1,2% 0,3% 0,3% -0,8% 1,1% -1,1%0,3% -0,8% -0,2% -0,2% -0,3% -0,6% -1,2% -1,5%

--4,3%1,5%

Context

. YTD trend is affected by the calendar effect of Easter which contained sales ev. in comparison with a year ago.

. Prices dynamics have been driven by an inflation that turned back to growth (+1,4%) after closing 2016 with a flat evolution (0,01%).

. Growing prices highlighted consumers research for saving, increasing the gap between Prices and basket value evolution. In fact volumes that grown in 2016 (2.09%), started to decreased in 2017, weakening also the mix evolution (-0,6%)

Trend . In the last quarter Nominal sales growth has been influenced by the growth in prices.

Volume change Unit value change Nominal growth

2,0% 1,9% 1,8% 1,6% 1,5% 1,1% 1,4% 0,5% 0,3% 1,2% 1,9% 2,1% 0,8% 1,8% 2,1% 1,4% 1,0% 1,5% 1,1% 0,4% 0,3% 0,0% 0,9% 0,4% 0,7% -0,1% 0,6% -0,3%0,1% 0,2% -0,5% -0,5% -0,6% -0,2% -0,6% -1,0% -0,5% -0,9% -0,2% -0,9% -0,7% -0,6% -0,2%

. The later Easter had an impact on growths but the recovery of sales at the top4 Supermarkets (67% of Total Till sales) continues, but at a slow pace.

. Promotional spend continues to fall and hit a11 year low of 26% of sales.

. Incremental growth is coming from additional spend in Confectionery, Beverages e.g spend for Events and in Fresh Foods, which is driven by a `little and often` shopping trend.

. Structural change is underway in the UK. The shift in sales away from big stores towards online and to small stores continues.

. Discounters also capturing more of the regular, weekly shop with a new market share high of 13%.

Trend . Inflation returned to the Economy (+2.8%) but an intense price war has held back CPG inflation.

. A seasonally affected -1.5% fall in nominal sales and a -3.1% decline in volumes.

The Nielsen Company. The Nielsen Company. Confidentialand proprietary. . The consumer mind-set will inevitably move towards uncertainty as `Brexit `gains momentum but there has not yet been any dramatic change in CPG shopping behaviour in Q1. © 2017 ©

Volume change Unit value change Nominal growth

1,2% 2,3% 2,2% 0,7% 1,3% 0,5% 0,5% -0,4% 0,1% -0,3% -0,7% 0,2% 0,4% -0,5% 0,7% 0,7% -0,2% --0,2%0,3% 0,0%-0,3% 0,2%--0,5%0,3% -0,3% -0,1%0,6% 0,0% -0,6% -0,5% -1,1% -0,4% -0,5% -0,5% -1,1% -0,2% -0,1%1,6% -1,9% -0,8% -0,5% -0,7%

-1,6% -2,5% -1,6% -1,5% -3,8% -1,8%

Context

. Spanish economy continues showing a solid performance: GDP 3 % growth in Q1 is similar to last 2016 quarter

. Unemployment rate is still high (above 18 %) although nearly 2 points less than last year

. Population is no longer contributing to FMCG growth, as in last decade

. Supported by new stores opening, large supermarkets and proximity stores are the fastest growing channels

Trend . Q1 2017 was also a positive period for FMCG market in Spain (+2.2 %), basically supported by volume sales performance

Volume change Unit value change Nominal growth

3,6% 3,6% 3,1% 3,0% 3,1% 0,1% 0,3% 2,7% 2,4% 1,2% 0,8% 2,2% 0,9% 2,0% 1,4% 2,1% 0,4% 0,0% 3,5% 3,9% 0,9% 2,8% 2,1% 2,2% 1,6% 0,9% 1,3% 1,7% 0,7% 0,7% 1,0% 1,1% 2,2% 1,4% 0,9% 1,9% 0,3% 0,7%0,2% -0,6% --1,1%0,1% -0,3% -0,7% -1,4% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Copyright 20 PORTUGAL Highlights Context . With the increase of the consumer confidence and the economic stabilization, there is also an increase in the demand for premium products related to beauty, convenience, health or small indulgences.

. In the last years, the price promotions have gained special importance in the Portuguese retail, achieving more than 40% of sales in value and leading to deflation.

. In this period, this deflation scenario shows signs of recovery with a price effect of 1.2pp.

. Some categories (like dairy, groceries, commodities, frozen products, etc.) that in the last year were in a “price war”, have now stabilized their prices. Trend . Nominal Sales increased by 1.6% in the first quarter of 2017. In this period, Sales in volume grew by 0.3%, so Portugal presents a positive price effect of 1.2pp, the highest since 2012.

. One of the reasons of the sales in volume slower increase is that the Easter period of the last year is considered in this first quarter unlike the Easter of 2017. This is a relevant period for Portuguese consumption. The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 ©

Volume change Unit value change Nominal growth

4,0% 0,6% 3,2%

2,5% 2,5% 0,5% 3,6%1,8% 1,6% 1,4% 2,3% 2,7% 3,4% 1,3% 3,1% 1,8% 2,6% 1,7% 0,9% 1,2% 1,1% 0,5% 1,2% -0,1% -0,4% 0,3% -0,5% 0,0% -0,1% -0,3% -1,0% 0,5% 0,3% -0,6% -1,8% -0,9% -1,5% -1,3% -0,6% -1,4% -1,1% -0,4% -0,9% -1,8% -2,4% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Context

. In 2016 inflation varied mostly between 0-1%, but is now increasing to 1.5% in Q1

. The unemployment rate is decreasing: 6% in 2016, dropping to 5.4% end of Q1

. Consumer expenditures are up 2.4% (average of January and February), which is more than in 2016 (+1.3%)

Trend

. Volume growth is limited in recent years in the Netherlands

. In Q1 Nominal growth is pulled down by Volume growth

. Volume growth is largely effected by Easter period which was considered in this first quarter of 2016 unlike the Easter of 2017. The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 ©

Volume change Unit value change Nominal growth

1,7% 1,5% 1,4% 1,4% 1,2% 1,3% 1,2% 1,0% 0,9% 1,9%0,9% 1,9% 1,5% 1,8% 1,8% 2,1% 2,0% 1,1% 0,7% 0,6% 1,2% 0,6% 1,7% 0,7% 2,0% 1,7% 0,9% 1,3% 0,8% 0,0% 0,2% -0,3% 0,0% -0,5% -0,2% -0,1% -0,9% -0,5% -0,6% -0,2% -0,6% -1,0% -1,0% -1,2% -1,9% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

. The Easter season peak took place earlier last year and shifts to Q2 in 2017 instead of Q1 in 2016.

. Organic products and premiumization are also accelerating total sales growth and contribute significantly throughout various categories.

. Another influencing factor is the insolvency of the retailer Zielpunkt in the end of 2015 – approximately half of all former Zielpunkt stores were reopened by other market players in course of last fall, leading to an additional contribution to the nominal value sales increase in Q1/2017.

. Consumer sentiment is still showing positive momentum due to improved job prospects and on-going positive impact of last year’s tax reform. Trend

. The nominal sales value increased substantially – an influential factor was that March weather had an all-time high leading to earlier spring/outdoor season activation.

. Nominal sales increased by +2,8% in Q1/2017 above all due to a growth in volume of +1,7% which is strongly impacted by the The Nielsen Company. The Nielsen Company. Confidentialand proprietary. performance of the discounters in Austria. © 2017 ©

Volume change Unit value change Nominal growth

5,8% 2,0% 3,8% 3,4% 1,2% 2,8% 2,9% 2,7% 2,8% 2,1% 2,5% 1,8% 2,0% 2,1% 1,8% 1,0% 1,3% 2,5% 3,8% 1,7%0,8% 1,3% 1,2% 2,7% 2,5% 2,5% 1,1% 1,4% 0,7% 2,6% 2,3% 0,8% 1,7% -0,9% 0,6% -0,2% 0,2% -0,1% 1,3% -0,3% -0,4% -0,9% -0,6% -1,0% -3,5%

The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 © ** Data has been restated from Q1 2015

Context

. Economy continues with stable performance: The GDP increased by +1.2% in volume over 2016

. The employment situation is also getting better : Unemployment rate was of 7.9% in 2016 (versus 8.6% in 2015)

. Price dynamics have been driven by an inflation : The inflation was of 1.97% in 2016 (versus 0.6% in 2015)

Trend . In Q1, Volume growth rate is improved and reflects optimism for future

Volume change Unit value change Nominal growth

5,7% 2,0%

2,4% 1,2% 3,7% 1,7% 1,7% 3,4%1,7% 2,6% 0,3% 1,5% 2,9% 1,5% 0,9% 1,2% 1,1% 1,5% 2,3% 2,3% 1,2% 1,4%0,8% 1,4% 1,7%0,6% 1,2% 0,3% 0,0% 0,4%0,2% 0,4% 0,0% 0,0% -0,6% -0,1% -1,1% -1,6% -0,2% 0,2% -0,8% -0,8% -1,7% -0,9% -2,9%

. From macroeconomic point of view overall market situation in Poland is optimistic. At the end of the year (Q4’16) GDP has been higher than year ago.

. The situation in the labour market in Q1’17 is also better than a year ago hitting the lowest level of unemployment rate.

. Increasing inflation has been observed in the past months – now it is 2,0% – which is more positive sign for trade sector than for consumers.

. Reffering to FMCG Growth Reporter in Q1’17 Sales value change has been driven by increased level of average price, while volume sales impacted it negatively.

Trend

. In Q1’17 Nominal growth of FMCG sales value is on a similar level comparing to Q1’16 (+0,5%).

. Volume sales growth has been observed since 2013. However in Q1’17 volume sales change was lower than year ago. The situation may be caused by the Easter sales shift (in 2016 it was reflected in Q1’16, while in 2017 will be in the second quarter). The Nielsen Company. The Nielsen Company. Confidentialand proprietary. . The prices of consumer goods were higher than in Q1’16. The highest change of average price change was observed in Dairy industry,

Volume change Unit value change Nominal growth

6,2%

0,5% 5,1% 4,4% 4,0% 4,2% 2,2% 1,2% 3,6% 3,4% 3,2% 0,7% 0,2% 0,1% 5,7% 2,4% 1,4% 2,6% 4,1% 2,2% 2,9% 3,5% 2,6% 3,1% 2,7% 3,3% 1,5% 1,2% 3,2% 2,2% 1,3% 1,0% 2,9% 1,7% -0,1% 1,5% 0,7% 0,5% 0,2% -0,2% 1,2%0,0% -0,2% -0,1% -2,4% -1,0% -1,2% -2,7% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 © ** Data has been restated since Q2 2015 with Discounters Premium Read (Biedronka scanning included) Data for FY 2014, 2015 and to Q1’15 (incl.) based on the previous market definition Copyright 30 NORWAY Highlights

Context

. Economic momentum is building gradually and GDP has grown by 1.8% annually in Jan 2017

. A rapid deceleration in inflation after it surged in late 2016, combined with declining unemployment, is giving households some respite.

. In FMCG, calendar effect of Easter lowering the trend in Q1, as Easter happened in Q1 in 2016, but took place in Q2 in 2017.

Trend

. In Q1/17, volume sales dropped to -0.91%, first time since Q1/15

. Even though the value sales remains stable from Q4 at 2.1%, drop in volume sales results in a nominal growth of 1.2%, which is the lowest measured in the Norwegian market the last three years. The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 ©

Volume change Unit value change Nominal growth

6,0%

1,8% 4,3% 4,3% 1,5% 3,6% 3,5% 3,5% 1,7% 3,3% 3,0% 3,0% 3,1% 2,6% 2,3% 2,1% 1,3% 2,2% 0,8% 2,1% 4,2% 0,5% 2,0% 2,0% 1,7% 2,5% 3,2% 2,8% 2,6% 1,0% 2,5% 1,2% 1,7% 1,4% 2,1% 1,2% 1,4% 2,1% 0,9% -0,1% 2,0% -0,1% 1,3% 0,0% -0,9% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Volume change Unit value change Nominal growth

4,4% 3,7% 0,7% 0,3%3,2% 2,7% 3,2% 2,4% 2,3% 2,3% 2,2% 2,1% 1,8% 2,0% 0,4% 1,7% 3,4% 1,7% 2,9% 3,0% 1,4% 1,0% 0,9% 2,8% 3,1% 3,2% 2,9% 2,9% 2,3% 1,5% 2,6% 1,2% 1,2% 1,3% 0,4% -0,2% -0,6% -0,7% 0,0% -0,9% -0,2% -0,5% -1,1% -1,5% -1,5%

Volume change Unit value change Nominal growth

1,8% 0,2% 1,7% 1,5% 0,3% 1,2% 0,0%1,0% 0,2% 0,9% 0,1%0,8% 1,7% 0,1% 1,2% 1,5% 1,0% 0,5% 1,0% 1,0% 0,7% 0,4% 0,7% 0,3% 0,3% 0,6% 0,6% 0,2% 0,4% -0,4% -0,1%0,2% 0,1% 0,0% 0,0% -0,2% -0,4% -0,1% -0,4% -0,7% 0,0% -0,9% -0,4%

Volume change Unit value change Nominal growth

0,8% 0,3% 0,9% 0,1% -0,7% 0,3% 0,0% 0,4% 0,2%0,1% -0,1% -1,6% 0,7% -1,8% -0,3% -1,9% -1,1% -2,7% -2,0% -1,8% -2,3% -2,3% -3,2% -1,5% -2,8% -1,4% -3,4% -0,7% -4,5% -2,0% -1,8% -2,2% -3,9% -2,3% -2,2% -2,5% -2,5% -2,9% -3,2% -0,7% -4,4% -4,1% -3,9% -2,1% -1,6% -5,5% -6,0% -6,6%

The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 © ** Data has been restated from 2012

Unit value change Volume change Nominal growth

3,4% 5,4% 4,5% 2,5% -0,6% -0,7% 0,1% 3,1% 1,0% 0,8% -0,3% -0,9% -0,7%0,7%0,0% --0,6%0,2% -3,1% -0,5% 2,5% --0,7%1,4% -0,8% 0,4% -0,8% -1,7% -1,5% -0,9%-2,3%1,4% -2,6% -2,2% -2,6% -8,7% -2,9% -6,7% -9,8% -3,9% -12,2% -6,2% -6,7% -6,8% -15,3% -7,3%

-10,7%

Volume change Unit value change Nominal growth

8,3% 7,9% 1,7% 1,8% 6,7% 6,4% 5,8% 2,6% 5,1% 2,2% 4,9% 5,0% 1,7% 4,4% 4,5% 4,1% 1,7% 6,6% 3,4% 2,8% 1,9% 2,8% 2,7% 2,4% 4,1% 4,1% 4,2% 3,2% 6,1% 1,6% 3,3% 4,9% 4,4% 3,4% 3,9% 2,5% 2,2% 1,7% 3,2% -1,0% -1,1% -0,6% 0,4% -1,6% -2,5% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Volume change Unit value change Nominal growth

4,0%

0,0%2,4% 4,6% 2,6% 2,3% 2,2% 2,1% 0,3%2,0% 1,3% 0,6% 0,9% 1,7% 1,5% 1,2% 0,6% 1,7% 1,1% 1,1% 2,3% 0,6% 0,7% 2,4% 1,3% 2,2% 1,4% 1,8% 0,3% 1,1% 1,5% 0,8% 0,4% 1,2%0,3% 0,1% 0,5% -0,6% --1,4%0,6% -0,5% -2,1% -2,3% -1,7% -4,0% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Volume change Unit value change Nominal growth

6,0%

Volume change Unit value change Nominal growth

4,8% 4,5% 0,6% 0,8% 3,9% 3,5% 3,5% 3,6% 3,1% 0,1%3,2% 2,8% 1,4% 0,2%2,7% 0,6% 2,7% 4,5% 3,6% 2,0% 3,9% 3,7% 3,5% 4,2% 3,4% 0,2% 2,3% 1,1% 3,0% 2,5% 1,0% 1,8% 0,4% 0,9% 2,5% 0,3% 1,1% 0,7% -0,1% 0,0% 0,7% -0,7% -0,8% -0,2% -0,9% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Volume change Unit value change Nominal growth

4,9% 4,2% 3,9% 3,8% 2,6% 3,3% 3,2% 0,2% 1,8% 2,5% 2,6% 2,7% 1,2% 2,5% 2,8% 2,3% 1,9% 0,6% 0,8% 3,1% 1,6% 1,5% 1,8% 1,2% 2,4% 2,3% 0,2% 1,4% 1,9% 2,6% 1,9% 2,0% 1,0%0,6% 1,9% 1,1% 1,3% 0,8% 1,4% 0,1% 1,0% 0,4% -0,2% -0,4% -2,3%

Volume change Unit value change Nominal growth

1,7% 0,3% 1,2% 1,3% 1,0% 0,5% 1,1% 0,9% 1,4% 0,4% 0,5% 0,8% 0,3% 0,7% -0,4%0,1% 0,4%0,1% 0,3% 0,3% 0,8% 0,1% -0,7% -0,3% -0,3% -0,3% 0,1% --1,3%0,4% -0,4% -0,7% -1,5% -1,2% -1,3% -0,7% -1,0% -1,6% -0,9% -1,3% -1,5% -1,6% -1,1%

Volume change Unit value change Nominal growth

16,9%

14,7% 13,6% 13,7% 13,5% 13,1% 12,3% 12,4% 9,0% 11,6% 9,7% 8,2% 9,1% 9,5% 8,1% 9,0% 9,7% 8,9% 8,8% 8,1% 5,7% 9,4% 9,5% 9,5% 4,7% 6,8% 6,4% 9,2% 7,9% 8,5% 5,7% 5,4% 5,4% 4,7% 5,0% 2,9% 3,6% 5,9% 2,1% 2,4% 4,1% 2,7% 2,9% 0,3% 1,2% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 © Due to exclusion of Alcohol and Tobacco, history is updated from Q3 13 From 2017; Turkey began to include "ŞOK" (one of three major hard discounters in Turkey) in FMCG Track data. Copyright 44 Copyright © 2017 The Nielsen Company. Confidential and proprietary. EXTENDED EUROPE Categories covered food in and drug channels Based on Bimonthly reporting cycles Latvia Israel Estonia Croatia Bulgaria Bosnia Ukraine Serbia Slovenia Romania Russia Macedonia Lithuania BOSNIA-HERZEGOVINA Fast Moving Consumer Goods market dynamics

Volume change Unit value change Nominal growth

7,8%4,3% 3,3% 2,5% 3,0% 4,0% 3,0% 1,6% -0,5% 1,2% -0,7% 1,0% -1,4% -0,5% -1,3% -1,8% -2,6% 0,0% -0,8% -0,9%0,3% 0,1% 0,1% 1,1% -1,4% --2,9%1,3% -1,1% -2,5% -1,5% -3,5% -1,4% -1,5% -1,9% -2,4% -4,5% -2,2% -8,4% -4,0% -0,2% -4,7% -2,6% -6,6%

-1,7% -10,1%

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Volume change Unit value change Nominal growth

3,1% 2,7% 2,9% 3,8% 2,5% 2,5% 2,0% 0,1%2,0% 2,0% 1,3% 2,4% 1,6% 2,8% 1,5% 1,4% 0,3%1,1% 0,8% 1,1% 1,6% 0,1%0,4% 2,0% -0,8% 1,1% 0,9% 1,1% 0,7% 1,0% 0,5%0,3% -0,1% 1,1% 1,1% -0,5% 1,5% 0,3% -0,9% --1,6%0,9%

-5,5% -6,2% -4,5% -4,7%

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Volume change Unit value change Nominal growth

0,1%3,3% 2,1% 2,3% 4,3% 2,9%1,7% 1,7% 2,3% 0,5% 3,2% 1,1% 1,8% 1,8% 1,1% 2,3% 1,2% 0,8% 0,6% 0,2% -0,1% -1,2% 1,7% -0,2% -1,2% -1,2%0,0% 0,1%-0,1% 0,9% -1,7% -0,4% -1,1% -2,6% -1,1% -1,6% -3,1% -3,5% -2,4% -2,8% -3,9% -3,9% -4,4% -2,4% -5,5%

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Volume change Unit value change Nominal growth

5,7% 5,3% 4,8%

2,5% 2,8% 3,2% 2,8% 5,8%2,5% 2,3% 2,2% 4,3% 1,8% 2,0% 1,9% 2,8% 0,5%1,2% 2,7% 2,4% 1,0% 0,9% 2,4% 3,6%1,2% 2,0% 1,9%0,4% 1,1% 0,7%1,2% 0,7% 1,3% 0,8% 0,7% 0,2%0,3% 0,6%0,1% -1,0% -1,5% 0,1% -1,5% -2,4% -3,3% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Volume change Unit value change Nominal growth

4,4%

2,4% 4,9% 3,0% 1,8% 1,2% 0,6% -1,8%0,5% 0,7% 0,4% 1,4%0,4% 0,3% 0,1% -1,5%0,8% -1,0% -1,0% -0,7% -0,5% -0,5% 0,6% --1,1%0,7% -0,4% -0,5%-1,1%0,6% 0,5% -2,0% -2,8% -1,7% -1,9% -2,5% -1,2% -1,6% -3,4% -2,5% -2,6% -3,8% -2,0% -2,8%

Volume change Unit value change Nominal growth

24,3% 22,1% 21,8% 20,0% 13,2% 17,2% 15,2% 15,2% 14,1% 15,3% 17,8% 8,2% 8,9% 15,8% 13,9% 14,1% 13,2% 11,9% 14,7% 8,9% 6,2% 5,3% 10,4% 2,3% 7,5%1,8% 4,2% 7,0% 1,3% 0,9% 4,9% 4,1% -1,3% 1,0% 3,1% -1,7% -3,0% -2,2% -11,8% -5,8% 0,6% -7,4% --9,7%4,8% -7,0% -13,5% -10,4% -9,5% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 ON-ND DJ-JF FM-MA AM-MJ JJ-JA AS-SO ON-ND DJ-JF FM-MA AM-MJ JJ-JA AS-SO ON-ND

Volume change Unit value change Nominal growth

4,1% 4,1% 3,7% 3,4% 3,1% 3,0% 2,7% 2,9% 2,0% 1,9% 2,2% 5,2% 2,0% 1,9% 2,9% 3,4% 3,1% 1,8% 1,1% 1,0% 2,3% 1,5%1,0% 1,3% 2,0% 1,2% 1,8% 0,9% 0,5% 0,0% 0,9% 1,1% 0,0% 0,4% 0,3% -0,4% 0,2% 0,2% -0,1% -0,4% 1,1% 0,2% 0,1% 0,2% -1,1% -0,5% -0,6% -1,1% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Volume change Unit value change Nominal growth

2,4%5,4% 4,4% 3,9% 3,9% 3,2% 2,1% 5,3% 2,2% 1,7%2,6% 5,5% 1,4% 2,4% 1,8% 1,7% 3,0% 1,7% 2,8% 1,7% 0,9% 1,0% 1,4% 1,9% 2,8% 1,8% 0,8% 1,9% 3,5% -0,4% 1,9% -0,2% -0,5% -1,0% -0,9% 0,4% -0,2% -3,4% -3,0% -6,1% -3,1% --7,3%3,8% --8,9%3,4% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 © 2017 ©

Historical data has been changed as there is a change in Total Country selection from 2014 onwards Copyright 53 MONTENEGRO Fast Moving Consumer Goods market dynamics

Volume change Unit value change Nominal growth

2,3%5,7% -0,1%2,7% 0,9% 2,9% 1,6% 0,4% 2,2% 2,4% 3,3% 1,5% 1,2% -0,3%0,4% 3,4% -4,3%3,5%0,7% 3,6% 0,9% 2,5% -0,7% -5,9% -5,6% 0,3% -3,1% -3,2% -13,9% -6,1% -5,5% -11,1% -5,8% -20,5% -19,9% -16,8% -9,9% -12,5% -30,6% -14,3% -16,5% -18,8% -34,4%

-30,8% -29,7%

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Volume change Unit value change Nominal growth

8,4% 8,5% 0,1%9,0% 14,2%7,5% 6,2% 6,3% 5,6% 8,9% 10,9% 8,1% 10,8% 4,2% 12,2% 8,9% 0,6% -1,6%1,2% 3,6% -1,5%1,1%0,4% 0,4% -2,4% -0,5%-0,8%0,3% -2,4% -1,3%0,4% -2,8% -2,5% -1,7% -5,8% -6,6% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Dec-Apr 14 Apr-Aug 14 Aug-Dec 14 Dec-Apr 15 Apr-Aug 15 Aug-Dec 15 Dec-Apr 16 Apr-Aug 16 Aug-Dec 16 © 2017 ©

Reworked data with all the major RMS categories included Copyright except for: Cigarettes, Make-up & Incontinence, reduction of VAT from 24% to 9% for food categories. New chains integration. 55 RUSSIA Fast Moving Consumer Goods market dynamics

Volume change Unit value change Nominal growth

14,1% 13,0% 12,5% 12,5% 12,4% 12,0% 11,3% 9,5% 8,7% 9,1% 15,0% 6,9% 14,0% 6,7% 7,0% 15,0% 11,8% 6,1% 10,3% 12,1% 14,7% 14,… 13,8% 8,4% 7,2% 7,7% 8,3% 6,9%3,2% 2,6% 7,6% 6,8% 1,1% -0,7% -1,6% -1,4% 0,4% -1,2% -0,9% -3,8% -4,3% -2,0% -3,1% -1,9% -1,5% 0,1% -3,5% -2,7% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 DJ/JF '15 FM/MA AM/MJ JJ/JA '15 AS/SO ON/ND DJ/JF '16 FM/MA AM/MJ JJ/JA '16 AS/SO ON/ND DJ/JF `17

Volume change Unit value change Nominal growth

15,7%

17,4% 14,0%6,2% 3,7% 3,9% 4,4% 4,2% 1,7% 3,7% 2,4% 2,7% 1,3% 1,4% 0,9%0,5% -4,0%0,3% 6,0% 4,3% -1,4%1,4% 0,4% 2,3% -3,6%1,2% 2,3% 0,0% -0,4% -0,4% -4,6%0,1% -5,4% -1,7% -1,7% -1,7% 0,9% 0,6% -2,7% -4,0% -7,8% -4,1% -10,6% -10,2% -6,3% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. © 2017 ©

Volume change Unit value change Nominal growth

2,0% 2,0% 3,1% 2,5% 1,5%0,7% 0,8% -0,7%0,9% 0,6% -1,0% -1,0% -0,5% 0,0% 0,3% -1,6% -0,8% --1,4%0,5% 0,1% -2,5% -1,2% -1,0% -2,5% -2,6% -0,9% -3,2% -0,7% -1,6% -4,2% -0,5% -1,4% -1,8% -2,1% -2,0% -2,0% -0,6% -2,4% -2,7% -4,6% -2,5% -1,1% -3,9% -4,3% -4,5%

The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Dec-Apr Apr-Aug Aug-Dec Dec-Apr Apr-Aug Aug-Dec Dec-Apr Apr-Aug Aug-Dec Dec-Apr Apr-Aug Aug-Dec

Volume change Unit value change Nominal growth

31,5% 28,7% 27,8% 26,9% 21,6% 21,3% 36,0% 3,3% 16,9% 41,1% 36,8% 15,1% 13,9% 29,2% 13,0% 11,3% 11,8% 11,6% 18,3% 3,1% 9,9% 18,5% 27,7% 7,0% 11,4% 11,2% 16,1% 10,8% 3,8%8,0% 9,0% -1,0% 4,1%2,9% 10,5% -1,7% -0,6% 0,1% -1,5% -6,4% 1,6% 2,6% -7,3% -9,6% -9,9% The Nielsen Company. The Nielsen Company. Confidentialand proprietary. 2014 2015 2016 Dec-Apr Apr-Aug Aug-Dec Dec-Apr Apr-Aug Aug-Dec Dec-Apr Apr-Aug Aug-Dec Dec-Apr Apr-Aug Aug-Dec

• Nominal value growth: • Percentage change in value sales (expenditures) as measured by the total basket of reported product categories • Unit value growth (≈ ‘price’ change): • Percentage change in the average retail price per unit in the total basket of reported product categories • The unit of volume in the basket varies by category (e.g. litres, kilograms, tonnes, etc) • The change in average price per unit may result from: • Price changes of individual products • Change in the mix of purchased products; more or less expensive products, more or less promotions, etc. • Channel switching; more or less purchases in discount stores, or hypermarkets, or convenience outlets, etc. • Product or channel mix changes may be induced by price change or may just be the result of market dynamics. • The unit value growth reflects how consumers experience ‘cost of living’ in their actual grocery shopping behavior. • Volume growth: