Grocery Universe 2012

GROCERY UNIVERSE 2015 RESULTS OF THE 53D INVENTORY OF RETAIL GROCERY IN BELGIUM, DRAWN UP BY NIELSEN.

Any reproduction, representation or use of one or various elements of this report must show the full mention: Source: Nielsen TABLE OF CONTENTS

1. Nielsen in brief 2. Belgian Economy & Retail in 2014 3. The Nielsen Grocery Universe 3.1 Turnover and inflation 3.2 Number of stores 3.3 Market share by Shop Type 3.4 Sales surface 3.5 Discounters in Belgium 3.6 Regional characteristics 3.7 Private labels 4. Retailing in Europe 4.1 International Shop Types 4.2 Discounters in Europe 5. The Nielsen Services

For 92 years Nielsen services have been making the FMCG (Fast Moving Consumer Goods) market visible and comprehensible for manufacturers and retailers. Nielsen is the world’s leading provider of information and market analysis in the consumer and service sectors thanks to the quality of its data, the accessibility of its analyses, the expertise it has built up over more than 92 years of practical experience and the rapidity with which it communicates its findings.

• Established in the United States in 1923 by Arthur C. Nielsen • Operates in over a hundred countries • Active in Belgium since 1954 ‒ Over 200 regular clients ‒ Studies more than 400 product categories

This overview represents the results of the 53d inventory of the world of retail grocery sector, drawn up every year by Nielsen.

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. 4 2. THE ECONOMY & RETAIL IN 2014 Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. EBOLA epidemic EBOLA

Gaza fight Oil prices crash prices Oil

Declining inflationon Declining foodprices

Russia put an embargoan puton Russia Air and maritime disastersand maritimeAir food

European ElectionEuropean

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. volumes. grownturnoverThe has toinflationthe by to and the price thanks +2.4% BELGIUM: THE NIELSEN BAROMETEREVOLUTION Food& NonFood % 2010 vs 20092010% vs 20102011% 2012% 2013% vs 20132014%

FMCG: vs vs

2011 2012

(*) (*) Nielsen The Barometer shows the trend as a percentage of sales of a representative group

SalesValue of of FMCG products in the retail sector in Belgium +1.1% +3.2% +2.2% +2.2% +2.4%

SalesVolume +0.9% +0.8% +0.1% +0.0% +1.2%

Price of PackageofPrice Sold +0.3% +2.4% +2.1% +2.2% +1.2%

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. the beginning of 2014. Volumes are declining in Q3 and Q4 2014 versus Volumes2014Q4 2013. and Q3 in of2014. beginning the declining are stays fortrendnoticed of 2013volumeA positive and quarter isthe last for BELGIUM: FMCG TRENDS PER YEAR AND PER QUARTER Source: Source: Nielsen Growth Reporter

3. NIELSEN GROCERY UNIVERSE 2014

DEFINITION OF THE GROCERY UNIVERSE

The grocery sector includes the following: 1. Retail stores in Belgium selling at least four of the following food categories: • Edible fats • Canned goods • Bottled drinks • Drinks in the form of solid substances (e.g. coffee and tea) • Pasta • Confectionery 2. ‘Food’ sales also have to represent at least 40% of total turnover

Are excluded: 1. Stores that generate more than 50% of their turnover through the sale of meat products or fish and shellfish. 2. Stores specialising in diet foods. 3. Stores that are part of petrol stations (e.g. Yelloh, Shop ‘n Go, etc…)

Turnover We take into account the total turnover generated during the course of the past year. For stores that only opened during the course of the year, sales are extrapolated for a full year. For stores that closed during the course of the year, Nielsen assumes that no sales at all were made in that year. For hypermarkets, only the turnover for the food, paper products, care products and cleaning products departments is taken into account.

• Domestic consumption increased slightly (+ 1.6%) while the importance of the Grocery Universe increased by+0.1 pt. Households have spent relatively more in the Grocery Universe compared to their total expenditure.

• The turnover of the Grocery Universe rose to EUR 25 billion in 2014. This means a +2% increase compared to the year before. In 2014, the inflation rate was 0.34%, which is lower than in 2013. This means that the turnover in constant has grown by 1.7%. The Nielsen Growth Reporter showed that volumes and prices are equally growing.

• There were 7 203 stores in the universe in 2014. This is 86 stores less than in 2013. Between 2005 and 2014, the number of points of sale fell on average by 125 stores per year. Between 1995 and 2014, on the other hand, an average of 302 stores closed per year.

• The share of F1 declined by -1.2 pts to 50.3% even if they opened 12 extra stores in 2014 bringing their total to 609 stores.

• F2 and Hard Discounters have increased their market shares. F2 owns a MS of 28.8% which represents an increase of +0.8pt versus 2013. Hard Discount grew by +0.6pt to 16.1% in Belgium. F2 opened 8 new shops (1320 in total) while the number of stores coming from the Hard Discount has decreased (- 2 shops; 737 in total).

• The market share of F3 keeps on declining. In 2014 they lost -0.2 points to 4.8%. The number of stores also decreased to 4 537 stores (-104 stores vs 2013).

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. 11 3.1 TURNOVER AND INFLATION Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. constantpositive.remainsprice effect turnoverthe evolutionat inflation, of the eliminating2014.When Turnover Groceryof the Universe by toincreased+2.0% euro 25 in billion TURNOVER GROCERY UNIVERSE IN Constant Prices: Prices excluding inflation Current Current Prices: Prices including inflation BILLIONS OFEURO

Source: Federal Public Service for Economy, the SME’s, Self - employed employed and Energy

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. negativeover 2014. FoodNon and hand, other the On 2014.in inflationHighest rate in Services noticed is INFLATION TYPE PER PRODUCT/SERVICEOF Source: Federal Public Service for Economy, the SME’s, Self

- Food inflation have been decreasing and Food and inflation havebeen decreasing - employed employed and Energy

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. increased by by 1.7%. increased Eveneffect without the inflation,atof the turnover constant has prices EVOLUTION TURNOVER GROCERY UNIVERSE VERSUS YEAR BEFORE

Current Current Prices: Prices including inflation Fixed Prices: Prices excluding inflation

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. totalin importantour expenditure. pastOver3 years, the universethe grocery more becomehas slightly FOOD UNIVERSE MARKET SHARES IN TOTAL PRIVATE Source: National Bank of Belgium

Nielsen Food Universe CONSUMPTION

3.2 NUMBER OF STORES DEFINITION NIELSEN SHOP TYPES

F1 : LARGE DISTRIBUTION (LIMITED PANEL)

• GROUP CARREFOUR BELGIUM: Carrefour Hypermarkets, Carrefour Market Integrated , Carrefour Market Groupe Mestdagh • GROUP COLRUYT: Colruyt • GROUP DELHAIZE: Supermarkets Delhaize • GROUP LOUIS DELHAIZE: Cora, Match

F2 : AVERAGED SIZE DISTRIBUTION

• ALVO • GROUP CARREFOUR BELGIUM: Carrefour Market Franchised • GROUP COLRUYT: Okay, Spar Retail (supermarkets Spar) • GROUP DELHAIZE: AD Delhaize, Superettes, Proxy Delhaize, Delhaize City, Red Market • GROUP INTERMARCHÉ: Intermarché, Ecomarché • GROUP LOUIS DELHAIZE: Profi, Smatch • Other Supermarkets over 400 m²

F3 : SMALL DISTRIBUTION

All self service shops that have a commercial surface under 400m² that aren’t mentioned above (e.g. Supra, Spar and Prima (Lambrechts), Carrefour Express, Louis Delhaize (Group Louis Delhaize)), and all shops with a « traditional service » (e.g. night-shops »).

HARD DISCOUNTERS Aldi & Lidl

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previous year (%):

- 4%

- 2%

- 1%

- 2% -

86 stores).has 86 number The - 2%

- 1%

- 2%

- 1%

- 3%

- 1%

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. morestores years.over pastthe largeof 609consists storesThe moredistributionopened and scaledand has NUMBER OF F1 STORES: LARGE SCALE DISTRIBUTION

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. in 2014. in totalto 1 320 storesHowever, (+8).in 2014 down slowed rythm the increase overpast yearsthe the bringing increasedF2 storeshas (mostly franchised) profitableshopsof less fromof the number 1995the closing to 2003,After NUMBER OF F2 STORES: MEDIUM

- SIZED DISTRIBUTION

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. Belgium. They haveBelgium. compared2 shops lostto 2013. 2014.in Today declinedhas even Hard Discountershavestores 737 in growththe rate2009, ofyears 2000.Since down. beginning And slowedhas number ofHard DiscountTheoverstores the sharply increased has NUMBER OF HARD DISCOUNT STORES

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. and profit, no funds to invest.profit,and no funds fromcompetition organizedincreasingF3 : salessupermarkets,inadequate profitable.They amountedto4 537 stores for 2014. in Reasonsin decline the storesstorestheygroceryless areF3 becausetend Belgium. down in to close retailerssmallof Thefirstare number the reasonthatexplains the declining NUMBER OF F3 STORES

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. of funds toinvest the lack decline.explain F3 the profitand and salesofinadequate supermarkets,competition increasingThe moreIn traditional2014 stores ( NUMBER OF F3 STORES: SUPERETTES

AND TRADITIONAL STORES - 63) than superettesthan ( 63)

- 41) closed down. closed 41)

3.3 MARKET SHARE BY SHOP TYPE Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. HD. of the MS to benefit the howeverlosing F3 decade. been has remainedrelativelywith 2013.F2 stable comparisonin over declinedthe last market the shareofF1 reaches 50.3%.However, Universe) MS F1 the Evenif they609 storesof own only number of the Grocery the (8%in MARKET SHARES BY SHOP TYPE

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. influenced the marketinfluencedshare positively. 12 extraover2014.The years, stores especially haven’t and of 2014 marketTheoverlast four100declining F1stores share per the has been F1: MARKET The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is SHARES PER to examine whether a given store remains equally important over time. 100 STORES

pos sible

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. despite the decrease of 2013. decreasethe despite forthe MS In 100F2, stores steady has remainedover9 years past the F2: MARKET The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is SHARES PER 100 whether whether a given store remains equally important over time. STORES

pos sible sible to examine 29

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. stabilized since 2003 and is slightly increasing again in againin 2014.increasing slightly stabilizedisand 2003 since late100Hard storesin DiscountThe90’sthe MS per declined but has MARKET SHARES PER 100 HARD DISCOUNTERS The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is whether whether a given store remains equally important over time.

pos sible sible to examine 30

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. The marketThe 100 F3stores shareperlow remainsstable but overtime. MARKET SHARES PER 100 F3 STORES The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is whether whether a given store remains equally important over time.

pos sible sible to examine

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. createadded value and keepup with competition. lossof average, F3shops havea turnoverof 267000 EUR only. They oftenhave to close down because In average a F1shop makes four times theturnover doneby F2shop orby Hard Discount.In TURNOVER PER STORE IN 1000 - making. Only storesthatoffer something specific (Sunday openings, etc.)are able to 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Average Store 3 0693 9712 8602 7362 6042 4892 3402 2102 3 4743 3653 2323

EUR

20 442 20 122 20 77519 440 19 638 18 572 18 24918 342 18 20 659 20 13921 820 20 F1

5 0865 0455 8454 7444 5944 5194 2904 5 4595 2425 1945 4 3404 F2

4 6984 5954 5854 5764 2994 0984 1484 0064 5 4585 1395 9734 HD

267 266 263 267 263 255 249 229 210 207 200 F3

3.4 SALES SURFACE Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. surface issurface however atF2.at biggerF1 than store F2 haveand largest types surface.Per total the store,salessales the F1surface universe grocerytotal the m².in The 3.55reaches millionsales SALES SURFACE IN 2014 HardDiscount F3 StoresF3 StoresF2 StoresF1 Total

Sales surface area area surfaceSales 3 549 0555493 1671361 2462291 741 442 741 200 442 (m²)

Number of storesof Number

7 4 1 737 609 203 537 320

Averagesurfacesales (m²) per store (m²) 2 0182 163 600 861

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. F1 owns the biggestowns F1 theturnoverm², closelyper followed by HardDiscounters. turnover.Oncontrary, the F3hasa far bigger sharesellinginsurface turnover.thanin HardandDiscounters havea comparable share totalof salessurfacetotaland F1 shareThesales surface is significantly sharesmallerthanthe totalof turnover. F2 SALES SURFACE IN 2014 Hard DiscountHard F2 Stores StoresF1

Share of sales surfaceShareof sales area (%) 21% 12% 32% 35%

Share ofShare total turnover (%) turnover 16% 29% 50% 5%

Turnoverper m² (in euro)(in 10235 1 6361 0979 3426

3.5 DISCOUNTERS IN BELGIUM Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. TYPES DISCOUNTERSOF IN BELGIUM – – Features: • • • • • Chains: DISCOUNTERS Lidl Aldi Intermarché Profi Colruyt Low pricesLow communication pricesLow

Smatch

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. up up to(+0.6pt2013). vs43.2% marketstoresgrewTheir 2014toagain138 shops.sharealsoin 1 increased everyDiscountincreasesTheperformanceyear. number ofdiscountThe DISCOUNT STORES Market Share Stores Discount Number of Discount StoresNumber

3.6 REGIONAL CHARACTERISTICS NIELSEN AREA’S

I North West: Provinces of East & West Flanders

II North East: Provinces of Antwerp, Limburg & Flemish Brabant

III Brussels Conurbation: II I Anderlecht Kraainem St-Joost-ten-Node Brussel Laken St-Lambrechts-Woluwe III Drogenbos Linkebeek St-Pieters-Woluwe Elsene Machelen Tervuren Etterbeek Neder Over Heembeek Ukkel IV Evere Oudergem Vilvoorde Ganshoren Schaarbeek Vorst Grimbergen St-Agatha-Berchem Watermaal-Bosvoorde V Haren St-Genesius-Rode Wemmel Jette St-Gillis Wezembeek-Oppem Koekelberg St-Jans-Molenbeek Zaventem

IV South West: Provinces of Hainaut & Walloon-Brabant

V South East: Provinces of Namur, Liège & Luxembourg

40 Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. center of the country.centerof the turnovergrowingTheregions is ; in growth the all rate the lowest is the in EVOLUTION TURNOVER FOOD UNIVERSE PER AREA IN 2014 VS 2013

Current Current Prices: Prices including inflation Fixed Prices: Prices excluding inflation

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. universe. bakeries,etc.)consumers and moreshop oftenstoresin grocerytheNielsenoutside thereNorth, arefar specialistand(fishmongers, more businesses independent consumersSouth,theIn mainly stores ingrocerythe shopin universe. includedIn the turnoverthesharehigherpopulation.than is theof termscontrastThis population.inof is South(Area share wheretheto5) of 4 and the theNorth(AreaInshare2) theterms andin 1 of turnover is lowertheshare than in EVOLUTION IN TURNOVER, NUMBER OF STORESAND POPULATION IN 2014 Area 5 Area Area4 Area3 Area2 Area1 TotalBelgium

Turnover 25022 ( 4 4 2 7 5 mio 436 390 801 546 849

€ )

100.0% 17.7% 17.5% 11.2% 30.2% 23.4% %

Number of Number 1 1 2 2 7 stores 741 092 176 177 018 203

100.0% 15.2% 16.3% 10.3% 30.2% 28.0%

Population 11 (in 000) (in 1 1 1 3 2 853 723 381 549 644 151

100.0% 16.6% 15.5% 12.4% 31.8% 23.7% %

Total of the country theof (areas & 4). There of 2 isincreasestores anthenumber in areain4. islocated mainlyTheshops.(F1) type biggestNorththeshopin hasNorth morestoresThe Areas South.thethan1 &2havemost F3 F2the and NUMBER OF STORES AND EVOLUTION PER HD universe F1 F2 F3

TotalBelgium 4 5374 3201 2037 - 737 609 - 104 12 - 86 8 2

Area 1 1 3121 0182 186 413 107 - - - - 44 43 5 3 1

AREA Area 2 1 3531 1772 250 421 153 - - 35 23 1 7 4

Area 3 542 741 - - 45 75 79 - 13 13 0 2 2

- Area 4 1 1761 EastSouth and 743 121 160 152 2 2 4 1 9

Area 5 1 0921 588 135 251 118 - - - 13 15 0 0 2

West

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. South. and Brusselsin DiscountNorth than more importantin isthe & Hard DiscountgainingMoreareF2 and in over, 2014 MS. MS Hard losing important.F1 isis also F2 (33.4%) toF1 (44%),in North, addition In the NORTH: MARKET SHARESBY SHOP TYPE

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. followed but have by F3 shopslately.been increasing closely smallest, is weightbroadly HD the dominatedby (68.3%).remains F1 beenover3 years, decreasingthe pastthe sharehas Although Brussels BRUSSELS: MARKET SHARES BY SHOP TYPE

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. however losing. Hard Discount (16.2%) and F2 (26.1%) are gainingshare.(26.1%) F2 however Hardand Discount(16.2%) losing. isare F1shops North. the (54.1%)morein importantthan South F1 In the SOUTH: MARKET SHARESBY SHOP TYPE

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. store.turnoverhighestper the has HD South, In the late hours,earlyopening and Sunday ready openings and to by thanks their be explainedsuperettes successfulF3 canhighly arethat F3haveF2F1, and the highestperturnover store. In of resultsBrussels,The AVERAGE TURNOVER PER STORE 1000 (IN EUR South Brussels North

17689 24202 22668 F1

5 5965 8724 4375 HD

)

5 5955 7325 3675 F2

- to -

442 239 246 F3 eat meals.eat

3.7 PRIVATE LABELS Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. realizedby private label. yearsgaining isshare PL again.turnover the Inwas of FMCG 2014more35% thanin Privatelabelshave valuetheirseensharetriple 1985. Especially since thelastinthree SHARE OF PRIVATE LABEL IN BELGIUM Definition Definition private labels =

brands that bear the name of the store or the retailer

Generic Generic brands, exclusive brands (sold Aldi at and Lidl),

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. relativelyis low. label the contrarybeverages alcoholicin and confectionery, the shareof private bakery & toastfrozenand products, have high privateOn share.alsoa labels Two SHARE OF PRIVATE LABEL PRODUCTPER - thirds of the turnover forof freshfromthirdsproducts comes private In labels.

CATEGORY

DEFINITIONS PRODUCT CATEGORIES

Frozen goods Sugar, pasta, rize, Household products and Frozen (ice cream, frozen fish, Grocery canned food, jam, Housekeeping cleaning products meals, vegetables, …) babyfood, cereals, … Fresh products (soup, fruit juices, prepacked Hair care, body care, Wine, spirits, beers, Fresh Products fine meat (charcuterie), Alcoholic Beverages Health & Beauty shaving, dental care, premix, port, … fresh meals, ready to face care, make-up, … use salads, …) Dairy products (butter, Waters, juices, Non Alcoholic Dairy margarine, cheese, milk, lemonades, ice tea, Pet Food Dog and Cat food Beverages yoghurt, desserts, …) energy drinks, … Prepacked bakery, Coffee, tea, hot Bakery & Toast Hot Beverages Confectionery Chocolates and Sweets bread & toast chocolate, … Sweet biscuits, Salted Snacks ( biscuits, Salted Snacks Sweet Snacks waffles, cakes, crisps) industrial pastry, ,…

COUNTRIES AUS = Austria FRA = France NOR = Norway SWI= Switzerland BEL = Belgium GER = Germany POL = Poland UK = Great Britain DEN = Denmark GRE = Greece POR = Portugal CZE = Czech Republic EIR = Ireland ITA = Italy SPA = Spain HUN = Hungary FIN = Finland NED = Netherlands SWE = Sweden SLK = Slovakia

SHOP TYPES • Hypermarkets selling surface over 2500m² • Large Supermarkets selling surface 1000m² - 2500m² • Small Supermarkets selling surface 400m² - 1000m² • Superettes & Traditional selling surface under 400m²

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. 54 Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. having remained stablehavingfor remained fewa years,volume registerincrease. slighta the valueIn index2014 keeps like increasing,on theyears before.After EUROPE: FMCG DEVELOPMENT INDEX (BASE 100 = 2006)

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. Contrarytopast 2 years, the grownthe volumehas over 2014. FMCG TRENDS PER YEAR AND PER QUARTER IN EUROPE Source: Nielsen Growth Reporter

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. Belgium increases equally in volume and prices. volume in and equally increases Belgium FMCG TRENDS PER COUNTRY IN 2014 VS 2013 Source: Nielsen Growth Reporter

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. MARKET SHARES BY SHOP TYPE IN marketshare. have to accounted segment)belong this of the for(which this maintaining markettoHard Discounterstheir managed maintainTheshareover time. SupermarketshaveLargeSmalland Hypermarketsthe TheSupermarkets. Superettes smallestand Traditional in favourstoresareespecially declining of stable Retail Europe 1980 in years. the remainedover pastlandscapethe Since

EUROPE

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. NetherlandshavehighestLargethesharein Supermarkets. FrancehavetheUKand dominated beenby hypermarkets for years.theand Belgium MARKET SHARES BY SHOP TYPES PER COUNTRY IN 2013

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. storesper habitant and a verylarge number ofsmall supermarkets. Belgium holdsthe7th place in totalnumber of Norway,Denmark, Austriaand Germany havethe highestnumber ofstores per million habitants NUMBER OF STORES PER MILLION HABITANTS IN 2013

Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. However Tescoplcto movedplacedown from5 the 2d the place. Carrefourtoplace.placefrom2dup the3d the frommoved up4 the Wal TOP GLOBAL FOOD RETAILERS - Mart remainstheworld’s biggestgrocery retailer. Costco WholesaleCrop. moved 10 3 9 8 7 6 5 4 2 1

The table constitutes a league table of the internationaltop grocery retailers, based the on turnover they achieved in 2013. Casino TargetCorp. Aldi Metro AG Kroger The Co. Tesco Schwarz Carrefour S.A. CostcoWholesaleCorporation Wal -

Einkauf Mart Stores,Mart Inc. plc Guichard Unternehmens

GmbH & GmbH Co.

- Perrachon Retailer

Truehand 2013 oHG

Source: Deloitte “2015Global Powers of Retailing” S.A.

KG )

Country of Country Germany Germany Germany France France Origin U.S. U.S. U.S. U.S. U.K

$ billion (2013)billion$ Turnover US in

Retail 105.2 476.3 th 63.5 75.6 81.0 86.4 98.4 98.6 98.7 98.7 .

th countries of countries Number of Number operation

to the 3dto the 29 17 32 13 26 33 28 2 1 9

Delhaize Group DelhaizeSA Markets,Super Publix Inc. Limited Companies Loblaw Safeway Inc. ITM Sainsbury J Koninklijk Centres Wesfarmers Limited Rewe Seven & WoolworthsLimited Ltd.Co.,Aeon Edeka Groupe The table constitutes a league table of the internationaltop grocery retailers, based the on turnover they achieved in 2013. Développement

Combine Zntrale

Auchan Distributeurs i

Holdings Co., Ltd.Co., Holdings Ahold olc

AG & Co. KGCo.AG&

NV Retailer

International E.Leclerc

2013 (2) Source: Deloitte “2015Global Powers of Retailing”

Netherlands Country of Country Germany Germany Australia Australia Belgium Canada France France France Origin Japan Japan U.K. U.S. U.S.

$ billion (2011) billion$ Turnover US in Retail

29.1 30.7 37.4 43.3 47.7 50.7 51.1 54.2 54.4 59.7 62.4 28 35 38 58

countriesof Number of Number operation 11 18 10 13 9 1 2 3 6 1 7 7 2 2 1

4.2 DISCOUNTERS IN EUROPE Nielsen Grocery Universe 2015 │ Copyright ©2015 The Nielsen Company. Confidential and proprietary. turnover. MoreoverDiscountersvery arestrongrepresentThey43% the of Belgium. in marketThe shareof discountstores 20% Europe in 2013. in reached MARKET SHARE DISCOUNTERS IN EUROPE

15.0% 11%

11% 43%

20% 19%

37%

57% 42%

11%

27% 16% 26%

18% 23% 18%

16%

16.0%

Growing Decline Stable

5. THE NIELSEN SERVICES RETAIL MEASUREMENT SERVICES

NIELSEN RETAIL INDEX This service is available for the Food (ScanTrack) and Tobacco sectors. The Nielsen Retail Index offers to clients a continuous monitoring of the distribution of products to consumers. These sales results are combined with an analysis of the factors which explain their situation, as well as that of their competitors (price, distribution, promotional support, etc.).

SCANTRACK EXPRESS ScanTrack Express is a “mini” version of the normal ScanTrack, developed to offer a quick, flexible and ad-hoc supplement for the regular data. Within this weekly delivered database, clients will be able to temporarily broaden the scope of their current tracking with extra products, extra markets and/or extra facts in order to quickly react on market changes.

BACK DATA When clients launch a new product, they need information on the size, development, concentration, etc. of their specific market. The Nielsen databases contain information about more than 400 markets to answer these information needs.

TOOLS Nielsen | i-sights and Answers Desktop are tools available via Nielsen Answers. Nielsen | i-sights provide an easy access to information and are easily used by professionals of the client service management for instance. They are dynamic graphs and tables which analyze contents and all other information related to the Nielsen databases. Answers Desktop is together with Nitro the tool to analyze in depth the databases content.

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Nielsen modelling explains and quantifies the impact of the various elements that constitute clients’ sales (promotions, prices, range, weather, advertising etc.). In order to do this, an econometric model combines ScanTrack shop-by-shop data with other observations (such as media investments, non standard promotional information, etc.)

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Consumer product companies spend extensively on trade promotions. The disappointing part is that about 40 percent of that spending doesn’t drive the desired results.

Nielsen’s end-to-end revenue management optimization boosts the effectiveness of trade promotions by aligning information-rich, analytic-driven decision making with the complete selling process. In short, we help companies connect revealing sales data with the right technology and proven processes. With a comprehensive vision across these areas, we can help you improve pricing decisions, enhance the efficiency of trade spending and ensure product availability.

Strategic planning: Make more confident annual price and promotion strategies based on extensive scenario planning, driven by using predictive analytics to drive precise promotion strategies and execution-oriented sales plans. Tactical planning: Deliver execution-oriented sales plans aligned to your greatest opportunities verified through event-level scenario planning and predictive analytics. Integrated promotion management: Create promotion programs that effectively integrate execution, management and program fulfillment. Ongoing retail execution: Monitor trade promotion performance in real time to maximize retail promotion compliance, product distribution and inventory availability. Post-event analytics: Perform comprehensive profit and loss analyses after each event to guide future program decisions

Nielsen offers a wide range of studies that answer some of clients’ questions regarding their consumers, their motivation to buy, their satisfaction level about their brands, product, new packaging, … Nielsen uses mostly the “on-line” methodology to conduct these studies.

• The Consumeter on-line study enables clients to assess the penetration of their categories and the positioning of their brands and brand awareness on the Belgian market.

• The Shopper Research study helps to better understand the consumer behaviour in the Shop (behaviour in front of the shelf, …)

• The Trade eQ satisfaction study measures the satisfaction of retailers about products or the way clients manage certain daily issues.

• The ShopperTrends study measures how loyal a shopper is to a store, how often he visits the store, how he perceives the Belgian retailers, … This study also provides a global vision of the shopper of today and his preference criteria for one or more chains

• The Winning Brands study analyses the factors that drive the consumer to buy and defines the strengths and weaknesses of a brand versus its competitors.

• Concepts@work - Packs@work - Ads@work: These three tools will help to know how a consumer perceives a new concept, a packaging or various themes for an advertisement.

• The Price-it-Right study analyses the price perception of an existing or a new product

MERCHANDISING Merchandising is one part of the Category Management process. It is the visual translation of the results of these analyses, including the rational implementation, the financial optimisation, expressed in optimal stock control, turnover or maximum profit. Nielsen provides companies with tools to conduct these studies but also the expertise of its consultants.

MY.SPACEMAN my.spaceman is a software that integrates all the below merchandising applications with a unified user interface. It works on a centralized database and enables to manage users’ profiles more easily.

•Shelf space optimization with Spaceman Suite

• Assortment analysis with Product Planner

• Floor planning analysis with Spaceman Store Planner

•NRPS offers an audit of all FMCG SKUs for all categories, in all the requested stores, at every period required. Retail clients use it for pricing strategy and tactics; it can be based from in-store, online, or EPOS data. •On a regular basis, Nielsen captures, validates and processes the price of every FMCG item in each store you request, and delivers reports that help you: • Evaluate your price position versus other retailers • Plan your pricing strategy and monitor its execution • Implement store-level precision pricing matched to the customers and competitors in each market • Manage pricing for your store brands compared to other retailers’ brands • Pinpoint your most distributed and most price sensitive items • Identify gaps in your product range

Mirrow customer intelligence platform helps consumer goods companies improve account planning, trade terms optimization, maximizing trade-promotion effectiveness. Intuitive user interfaces for a superior user experience. A flexible and modular architecture that enables companies to effectively integrate specific modules or the complete suite.

Mirrow shopper marketing solution: covers all the functions for category managers from creating the strategy and building the plan to monitoring real situation in the stores. Drives enormous productivity to merchandising departments in manufactures and retailers allowing them to manage store specific assortment, planograms and realograms

NIELSEN EYE TRACKING

Eye tracking analyzes the shopper behavior, how the consumer looks at the shelves (or feature) and come to an understanding of the total shopper journey in store by measuring the eye movement of the consumer during his shopping trip.

Brandbank stands between retailers (typically the e-commerce sites) and manufacturers and is a world leader specialized in the process of digitally creating, managing and distributing FMCG product and brand image content for retail syndication across in-store, print promotional and e-commerce platforms. Thanks to Brandbank, you will benefit from databases including high quality pictures and product descriptions maintained, centralised and useful to your whole organization.

Brandbank is currently working with Jumbo Supermarkten and Vomar Voordeelmarkt in the Netherlands, Carrefour in Belgium, Tesco in the UK and distributes supplier digital product content to many other European retailers.

International solutions The Global Services team works together with the local Nielsen offices in more than 100 countries to offer clear and consistent data to its clients about specific markets and categories. Nielsen can answer the following questions relating to the sales opportunities abroad:

· Which markets offer the biggest sales opportunities? · How will entering other markets enhance overall performance? · Are existing market strategies appropriate for new markets? · How do adjacent markets influence my turnover? · How different are market mechanisms and structures between countries?

Knowledge and Information for Decision-Making Information is easily accessible to marketing en sales managers through the Answers technology. Our team can also help companies to integrate solutions or data from different data sources : e.g. ex-factory data, financial information and external market researches.

Innovation Analytics In order to achieve breakthrough innovation success, you need to know which aspects of your products work and which don’t, before you launch. We can help you determine through a consultative approach that illuminates how to capitalize on features that are outstanding and fix those that aren’t.

Nielsen On Shelf Availability (OSA)

Manufacturers and retailers need to manage an ever wider amount of information. Our experts can offer them a solution for all their Direct Data issues (efficient management of the point of sale or the product availability in the shelves)

NIELSEN STORE

In the Nielsen store clients find essential and accessible market information 24/7 to support their fast decisions in order to let their business grow and prosper. It includes European country by country information by category, manufacturer or cross category summaries. www.store.nielsen.com

MDB ADEX Provides clients with the software tools and data for comprehensive reliable media and marketing analysis to help them optimize their business. Generates competitive advertising data (both creative and quantitative) and auditing services using our own state-of-the-art capturing and monitoring systems, algorithms and databases. MDB ADEX provide a wide coverage of the media-mix, whilst offering personalized services tailored to exact requirements: • Advertising Expenditure Monitoring (ADEX) • Media Monitoring & Auditing solutions • Media Audience Measurements & Analysis

ARIANNA / RATING POINT / VIEWTIME Today’s increasingly complex television environment is driving a need for more advanced software to process, manage and interpret the growing amounts of audience data. Arianna, Rating Point and Viewtime are three softwares that help our clients transform local overnight ratings data into a marketplace advantage and more efficiently meet the daily needs of Management, Research and Sales.

TV EVENTS MONITORING SYSTEM Nielsen’s system operates as a fully integrated solution encapsulating all the stages of the TV Events data production process: • Capture of the broadcast content • Automatic search and identification of the commercial spots • Assists the operator to input accurate program details • Runs the quality control • Generates output files that can be integrated in different analysis software applications

The Nielsen Company Belgium

Avenue de Pléiades / Plejadenlaan 73 1200 Brussels Belgium

Tel 32 (0)2 778 70 11 Fax 32 (0)2 778 70 78 www.nielsen.com