RETAIL BOOK OF INNOVATION  2017

Drive Discovery Shape Tomorrow BOOK OF I N N OVAT IO N 2017 WHAT IS ESSENTIAL ‘‘ IS TO BE ALWAYS OPENMINDED, TO BE CURIOUS, TO LISTEN, TO ASK INTELLIGENT QUESTIONS, TO ALWAYS ASSUME THAT ANYTHING CAN BE DONE’’

Belmiro de Azevedo Former Chairman of Sonae RETAIL BOOK OF I N N OVAT IO N 2017 Drive Discovery Shape Tomorrow

SONAE IS INNOVATION Innovation is Sonae

To innovate is not only to change or to transform, it is the search for the new: new models, new methods, new geographies. It is the continuous drive of ambition, determination, curiosity that leads us to do what hasn’t been done, incite exploration, pursue new worlds, and ultimately drive discovery. RETAIL BOOK OF I N N OVAT IO N 2017

Drive Discovery Shape Tomorrow

DRIVING GENERATING OPEN Our future is made VALUE INTO THE INNOVATION INNOVATION of curious minds, creative RETAIL WORLD ECOSYSTEM discoveries, and the courage to innovate. 09 13 25 INVESTMENT INNOVATE SHAPING TEN TYPES AND RETURN BY DOING THE FUTURE OF INNOVATION FACTS AND PROJECTS INNOVATION PROJECTS NUMBERS AT SONAE LIST

29 33 107 111 RETAIL BOOK OF I N N OVAT IO N 2017 01 DRIVING VALUE INTO THE RETAIL WORLD

Drive Discovery Shape Tomorrow RETAIL BOOK OF I N N OVAT IO N 2017

Focus on Innovation

Our continued focus on innovation allows At the same time, we have increased services, processes and products that equip us to envision key challenges for the society our number of innovators – close to Sonae for the future, strengthening the Driving discovery in the upcoming future, and by taking 1,200 employees were directly involved company's core competences for the global risks, leading in unexplored, unfamiliar in Research, Development and Innovation arenas we face where major trends announce and shaping grounds and questioning the established projects in 2017, among many more participants enormous challenges, but also great truth, we materialize an important Sonae in innovation-sparking activities - and their opportunities. tomorrow while heritage as a result of our people's creativity widespread genius. Our open innovation and willingness to change - the innovations network also grew, welcoming world-class This book shows our ways of exploring, consolidating Sonae they introduce, its economic impact and partners and champions in R&D+I in different expanding and exploiting those opportunities how these helped to increase our efficiency fields and geographies that are helping us using innovation as a catalyst for our as a reference in and profitability, as well as the quality of to promote co-discovery, co-development competitiveness by driving discovery and products, services and experiences we and co-creation, converting them all in solid shaping tomorrow while consolidating Sonae the future of retail. provide our customers with. foundations for the new. New solutions, as a reference in the future of retail.

10 Drive Discovery Retail Shape Tomorrow New solutions, services, processes and products.

LUÍS FILIPE REIS PRESIDENT OF FINOV & CHIEF CORPORATE CENTRE OFFICER

11 RETAIL BOOK OF I N N OVAT IO N 2017 02 GENERATING INNOVATION

Drive Discovery Shape Tomorrow RETAIL BOOK OF I N N OVAT IO N 2017 Discovering a new tomorrow

Examples of internal and external actions Events to drive innovation & Initiatives Tailored and targeted actions to “stimulate innovation”

Creating a major Innovation is intrinsic to Sonae: it belongs to us naturally. EVENTS It is our beating heart and it is pumping through all our teams & INITIATIVES impact in our and areas. From inspiration to implementation, it is through AT this path that we drive discovery, with 'tomorrow' always SONAE way of shaping on our mind. Every event and initiative will spark those ideas tomorrow. into our pipeline of projects.

14 Drive Discovery Innovation Shape Tomorrow

15 Organization of “Pitch Day” for Health & Wellness Division

The Pitch Day for Health & Wellness initiative aimed to develop innovative projects by establishing partnerships with the most disruptive European start-ups.

In November 2017, 11 European start-ups from , and the United Kingdom presented their solutions in the areas of health and well-being, to respond to our consumers' needs and challenges in these areas.

Emerging Technologies’ study and experimentation

During 2017, we looked into 56 pairs of novel technologies/retail applications, produced 12 thorough understandings of promising pairs and experimented 17 of the most auspicious use cases envisioned on the aftermath of those studies.

One of the use cases we've developed was the Augmented Reality application for Logistics Personnel Training. The technology was tested to highlight and explain new hirings in order to choose the functionalities of the moving equipment, the necessary actions, the right place and the appropriate way to take them. Augmented Reality proved to be capable of transmitting content with an in loco contextual advantage that foresees increased training effectiveness.

Other types of study and/or experimentation included, among others, "Wearables for Injury Prevention" - the wearable technologies application to prevent accidents and injuries for logistics' workers -, "Conversational Commerce for Customer Service" - the adoption of widespread digital messaging platforms as channels for interaction with customers, supporting different levels of collaboration between chatbots and humans and "High Tech Textiles" - the incorporation of smart features in fabrics to improve performance and/or quality of fashion and sports products.

16 Drive Discovery Innovation Shape Tomorrow The Future of Food: envisioning our food systems international event

The event had ten speakers, more than 100 participants from 54 organizations and nine countries represented.

“The Future of Food: envisioning our food systems” was an event that sought to promote the engagement of R&D and innovation partners and build consortiums around the challenges posed by the Future of Food. It was organized by Sonae in collaboration with Vision 2020, Business France, ICEX Spain and the UK Science & Innovation Network.

Challenge-based innovation programmes with universities

In 2017, we concluded seven challenges with eight universities involving more than 90 students.

As a response to various challenges, Sonae has developed several innovation programmes that aim to engage with students of higher education institutions for addressing distinct innovation challenges. In one of the challenges, integrated in the 's ME310 Product Innovation Program, a group of students has created two solutions for Sonae: a new storefront experience for SportZone and a prototype mobile application for that allows to identify products based on photographs, taken in the moment, and to make online purchases through Continente stores or associated partners.

17 RETAIL BOOK OF I N N OVAT IO N 2017 Constant flow of innovation

Examples of R&D cooperation projects R&D which started in 2017 Projects In co-development with our open innovation network

Bringing knowledge Here, we present examples of R&D cooperation projects which R&D began in 2017 and have increased both our knowledge in the PROJECTS into the retail business. retail business, brand and intellectual property. With a constant AT flow of innovation and the use of the latest technologies SONAE in our processes, models and operations, we have reinforced our competitive advantage.

18 Drive Discovery Innovation Shape Tomorrow

Data Pitch ValorMar Biofoodpack Logistics Development Biocomposite data sources of new sea products packaging

Data Pitch is a co-development R&D project ValorMar, a co-development R&D project Biofoodpack is a co-development R&D project funded by Horizon 2020, between Sonae, funded by Portugal 2020 and led by between Sonae, University of Aveiro, Minho University of Southampton, Telecom Italia, Sonae with many partners such as CIIMAR, University, Cyprus University of Technology and BETA-I, and Open Data Institute, Foodintech, Docapesca and others, Wroclaw University of Science and Technology, with the objective of testing and analysing solution models to develop new sea products, implement a traceability system for funded by Era-net, which has the ambition of developing and from mockups of solutions from different European start-ups seafood throughout the value chain and develop new and healthy testing Biocomposite Packaging for Active Preservation of Food. regarding our logistics data sources. Logistics data is analysed products under the so-called "Sea Economy". This project has an This packaging uses, for instance, low temperatures instead and new big data analytical solutions are developed to industry mobiliser approach that is improved due to partnerships with of pasteurisation and may be applied to Continente private label generate efficiency for Sonae. many universities and companies, under a Portugal 2020 consortium. to apply to Continente own brand suppliers of cream cheeses and take-away meals, therefore increasing shelf-life without compromising organoleptic characteristics.

19 Shaping the future through applied science

SnackFresh MobFood SafeConsume Innovative fruits Tackling new challenges Ensuring food and vegetables of the food sector safety

SnackFresh is a R&D project funded Mobfood is a co-development R&D project SafeConsume is a co-development R&D by Portugal 2020 which with Sonae, funded by Portugal 2020 between Sonae, project funded by Horizon 2020 between, helped by ISA (Instituto Superior Portugal Foods, Primor, Minho University, University of , Universidade Católica de Agronomia), and other partners, Portuguesa, and other partners and advisory board members such as Sonae to reach aims to develop new products based on fruits and with the goal of improving our traceability of fresh a common goal: vegetables, with innovative organoleptic characteristics and food – "Alcobaça" apple, "Rocha" pear and "Serra" nutritional and healthy features. These products will be liquid cheese throughout the whole value chain and allow oversee the development of tools, technologies and products and fresh snacks which can be consumed at any time of day, an advancement in waste reduction of fresh food. capable of ensuring food safety and fight food-related diseases hot or cold, that are easy to open and can be consumed and infections. without any cutlery.

20 Drive Discovery Innovation Shape Tomorrow

Produtech-SIF FODIAC Ypack Industry Valorization New packaging 4.0 of organic waste solutions

Produtech-SIF is a co-development R&D project FODIAC is a co-development R&D project Ypack, funded by Horizon2020, includes Sonae, funded by Portugal 2020 which includes Sonae funded by H2020 which put together the the University of Wageningen, Minho University, and other 37 partners University of Reading, Minho University, INL, the Iberian Nanotechnology Lab, MIGROS, INL, and others and other partners, and aims to constitute an integrated solution for the development of new production systems, based on advanced to tackle the use of nanotechnology towards the recovery with the common objective of finding and testing new technologies which allow general production methods to of organic waste, namely fresh food, including fruits, packaging solutions to increase shelf-life of fresh products be adapted to the challenges of the 4th industrial revolution. vegetables, meat, etc. such as minced meat, salads, strawberries and yoghurts.

Lifana EDI Learn Nutritional support European To reduce for customers Data Incubator carbon footprint

Lifana, a co-development R&D project funded EDI is a co-development R&D project Learn is a co-development R&D project funded by AAL Programme with Sonae and partners between Sonae and partners like Zabala, by Horizon 2020 uniting Fraunhofer IML, ZLC MIT, like Fraunhofer Portugal, Luxembourg Institute Volkswagen, Moody’s and others. Funded TNO, and many other partners and end-users of Science and Technology or Cereneo, by Horizon 2020, such as Sonae, follows up on the Cordon Gris' project and aims to expand it has the objective of providing the necessary tools (hardware with the main goal of helping companies to measure their the nutritional support of customers by developing a solution & software), the means (data) and the resources (funding and carbon footprint. By developing the necessary tools and giving which not only includes a meal planning recommender business orientation) for the future Big Data companies in Europe. the right guidance, this initiative enables businesses to make system but also shopping assistance, grocery delivery at home This initiative stimulates SMEs to create and develop Big Data informed decisions which therefore results in an improved and a tele‑nutrition service model for the elderly in need solutions for companies such as Sonae, Volkswagen, ViaVerde, efficiency and reduced carbon footprint. of specialised care. Yapi Kredi, and others, which are data creators and providers.

21 RETAIL BOOK OF I N N OVAT IO N 2017

Transform Fresh Food Improve store Meu Super Awards yourself Tasted and Tested mobility at MO

• Winner in Food • Best Content • Winner in the Costumer • Winner in Franchising Sustainability category Programme Service Innovation Supermarkets Winners category category Recognized projects and initiatives

Yammi 2 Sport Zone GTMS (Global Trade Jindo Burel Sonae has consistently been Management System) recognised and awarded at national and international level, which has highlighted our • Winner in Kitchen • Winner in Sport • Winner in Innovation • Winner in the Robots category Stores category in Digital Supply Footwear Lifestyle best projects and initiatives Chain Transformation category (Outdoor in different key areas. category segment)

22 Drive Discovery Innovation Shape Tomorrow

Friendly Cookies Closed System Winners Worten Continente Chocolate Napkin of Continente Selection Coffee

• Gold in Digital: Banners and rich • Winner in the Coffee • Winner in the Best • Winner in E-commerce • Winner in Hypermarkets • Flavour of the media formats category Machine Design category Digital Workplace Electronics and Home and Supermarkets category Year 2017 • Silver in Innovation in category Appliances category • Best Private Brand technology category • Silver in Innovation in formats • Bronze in Direct Marketing

• Winner in the Kitchen category • Winner of the HR • Master omni-channel Digital Award retailer 2017

• Gold in Media category • Silver in Promo, Activation and Direct Marketing category • Bronze in the Internet Sonae • New Store Concept at • Missão Continente category Worten - Winner in the - Master of Social Consumer Electronics Responsibility category

• Bronze in Display Continente • Open Innovation advertising: Online and Magazine Challengers Mobile category

• Silver in Interactive: • Winner in Cooking Online Ad category Press category

23 RETAIL BOOK OF I N N OVAT IO N 2017 03 OPEN INNOVATION ECOSYSTEM

Drive Discovery Shape Tomorrow RETAIL BOOK OF 01 Incubator/Accelerator R&D Labs 03 I N N OVAT IO N 04 Universities 2017 Companies 02 Startup 01 07 Suppliers

1% Sonae’s 08 Institutions Maths Innovation Ecosystem 33% 11 R&D Labs Technology Innovation 13 Startups Ecosystem Companies 05 Universities Sonae’s innovation ecosystem gathers universities, 05 startups, R&D entities, incubators, accelerators and other 96 Companies national and international organizations from several areas Incubators/Accelerators 02 and backgrounds. From fields of Technology, Engineering, Arts & Design, Mathematics, to Management and Science, Institution 01 we’ve built an energetic and unified ecosystem which 4% enables us to drive value and to potentiate Innovation Arts & Design at Retail through new products, services and solutions. 01 Supplier 01 Startup 02 Incubators/Accelerators 423 30 4 35 Universities 03 R&D Labs Partners Countries Continents Companies 44 04 Universities Drive Discovery 25 Companies Universities 12 25% Shape Tomorrow 17% Management 46 Institutions Engineering 20% 19 R&D Labs R&D Labs 09 Science

Institutions 04 05 Institutions SCAN TO DISCOVER Startup 01 48 Companies 02 Suppliers

01 Startup 26 01 Incubator/Accelerator R&D Labs 03 04 Universities Companies 02

Startup 01 07 Suppliers

1% Sonae’s 08 Institutions Maths Innovation Ecosystem 33% 11 R&D Labs Technology 13 Startups Companies 05

Universities 05 96 Companies Incubators/Accelerators 02 Institution 01 4% Arts & Design 01 Supplier 01 Startup 02 Incubators/Accelerators

35 Universities 03 R&D Labs

Companies 44 04 Universities

25 Companies Universities 12 25% 17% Management 46 Institutions Engineering 20% 19 R&D Labs R&D Labs 09 Science

Institutions 04 05 Institutions Startup 01 48 Companies 02 Suppliers

01 Startup 27 RETAIL BOOK OF I N N OVAT IO N 2017 04 INVESTMENT AND RETURN FACTS AND NUMBERS

Drive Discovery Shape Tomorrow RETAIL BOOK OF INNOVATION 2017 Inputs Global investment

2016 R&D + I = R&D+I Global Investment 103 in R&D + I Million Euro Facts & in 2016 103 19 84 Global Numbers Investment 105 in R&D + I M€ M€ M€ Million Euro in 2017 R&D + I = R&D + I Inputs and outputs (Projected figure) of Sonae’s innovation activity

Employees Involved 2017 R&D + I = R&D+I (Projected figure) in R&D + I

Financial analysis 2016 2,221 105 19 86 of innovation projects under our impact 2017 (Projected figure) M€ M€ M€ measurement system. 2,265 R&D + I = R&D + I

30 Drive Discovery Numbers Shape Tomorrow

Process Peer Comparasion Number of projects in 2017

Number Investment in R&D vs. Revenues of projects (According to the 2017 Global Innovation 1000 Study by PWC) 652 in 2016

Number 0.27% 0.34% of projects 0.17% 0.19% in 2017 660 (Projected figure) Walgreens Metro LV Sonae

Outputs NPV (Net Present Value) in R&D Projects Contribution and Innovation Projects (WACC 10%) €12 M €45 M €156 M 2016 2017* NPV Total €46 M €53 M *Expected figure 2018* 2019*

31 RETAIL BOOK OF I N N OVAT IO N 2017 05 INNOVATE BY DOING PROJECTS

Drive Discovery Shape Tomorrow RETAIL BOOK OF I N N OVAT IO N 2017 Offering the best value proposition

Innovation is our main lever for long-term value creation

We have learned that in order to maintain ourselves in the top of preferences, we need to keep up with the society evolution, LUÍS MOUTINHO adapting to the customer needs but faithful to our founding CEO SONAE MC principle of offering the best value proposition which comprises price leadership, variety, quality, and service, all propelled by innovation - which is, in fact, our main lever for long-term value creation.

34 Drive Discovery Numbers Shape Tomorrow Build a strong and connected team

Innovation is in the centre of our lives and businesses

We want to continue to build a strong and connected team which MIGUEL MOTA foresees this company as a digital one. FREITAS CEO SONAE There is a clear urge to change, to adapt, to transform, and to have SPORTS & FASHION AND CEO WORTEN innovation in the centre of our lives and businesses. What lies ahead of us is much bigger and faster than what we have ever imagined, but I believe we are prepared for it and to answer the needs of the national and international market. RETAIL BOOK OF I N N OVAT IO N 2017

Single page Other projects

Project Insignia & Brand Project Name

DOBLIN Overview CLASSIFICATION Templates Project statement TEAM MEMBERS Challenge Implementation Results Description Solution The project of the challenges implemented. results reflect that we sales, margins, addressed cost savings with this project. or intangibles.

The project results reflect sales, margins, cost savings or intangibles.

36 Drive Discovery Projects Shape Tomorrow

Double page Sonae Innovation Awards winners and honourable mentions

Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF INNOVATION 2017 Insignia & Brand Project Name

DOBLIN CLASSIFICATION

Project Project statement overview Challenge Implementation Results Team Quote Description Solution The project AWARD of the challenges implemented. results reflect that we sales, margins, addressed cost savings with this project. or intangibles.

SCAN TO DISCOVER TEAM PHOTO

TEAM MEMBERS

37 Best Control at Sonae MC & SR RAID @ Operations

CATEGORY PROCESS

WINNER AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Project Less and overview TEAM MEMBERS better control Cláudio Ferreira Alexandra Gouveia Amaro Amaral “Extremely gratifying to develop Ângelo Correia António Januário Challenge Implementation Results and implement an automatic Carla Araújo monitoring control tool that Carla Nora reinforces control and allows Carlos Ribeiro To diminish the high number of RAID Systematic Controls, with employees to perform other tasks Carlos Silva manual controls (too bureaucratic, features like the analysis of the -€2.5M Hugo Silva weak, exhaustive and time-consuming) exceptions-only and dashboards with more value added.” in client returns, price changes in F/O, for the various levels of management, Estimated annual Isabel Castro reduction of risk of fraud João Maria on-hold sales and voids (6.7M manual control and automatic monitoring Jorge Brito controls per year) and the high of exceptions in the risk transactions, Júlia Santos number of hours spent in these were created to solve this constraint. Lurdes Vilaça activities by the Operations teams. -€6.7M Margarete Castro Paulo Ferreira Growth of small stores without Annual reduction Rita Sousa enough resources to carry out in manual controls Rosário Vieira all controls. Sandra Costa Simone Bezerra h Sónia Sousa -42,100 Susana Francisco Annual reduction Susana Pinto of hours spent

39 Closed System of Continente Selection Coffee

CATEGORY PRODUCT PERFORMANCE

WINNER AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Taste Project overview for exclusivity

Challenge Implementation Results “The biggest challenge was to find the perfect system and to elaborate the Increase and lead the coffee capsules Creation and launch of a coffee best blends so that our clients could market by developing an exclusive machine exclusive for Continente +30% offer by Continente. clients, with high-quality design experience a unique sensation.” and performance. Sales in this category For this machine, was also developed TEAM MEMBERS a range of coffee capsules with Pedro Bruno different flavours, origins and €1M Maria Montoia intensities. Ana Carvalho Margin Rita Pereira Through high quality and genuine Maria Martins flavour, the experience of the clients Manuela Graça was improved. Lourenço D'Orey Catarina Aleixo Márcia Silva Diogo Gonçalves

41 Transform Yourself

CATEGORY PRODUCT PERFORMANCE, BRAND

WINNER AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Project overview No more food waste “Transform (im)possibilities in real field learning and implemented initiatives is specially challenging but highly gratifying due to the joy Challenge Implementation Results and the impact (both environmental and social) of contributing to change Nowadays, food waste is a huge Initiatives to promote reduction of human and organizational behaviour, problem with social, environmental waste (repack/pack fruits, happy-hour +€9M potentially worldwide.” and economic impact but is mainly in take-away, improvement of an issue for the future because the the depreciation process), reuse Social benefits food system is not sustainable. (improvement of donations, utilization of products at the end of lifecycle in the social areas of stores or in + M catering services) and recycling €1 activities (transformation of wastage Estimated cost savings TEAM MEMBERS in other products to be sold at through reduction Pedro Lago Sonae stores in a circular economy initiatives Ângelo Correia approach – example: jam). António Simões Jorge Ferreira + M Marlos Silva €3 Nádia Reis Economic benefits Nuno Fonseca

43 Winners

CATEGORY CHANNEL

WINNER AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

A gamified Project workforce overview

Challenge Implementation Results “Winners gives us a sense of the goal and the path, where we are going and Worten's sales reward has existed One of the innovations was the where we have to go. It also leads us for several years, however, after introduction of game dynamics +1% detailed analysis, certain flaws were in a business environment. Sales to want to go further.” detected, such as the lack of criteria TEAM MEMBERS uniformity, the lack of transparency, Everything begins with the Hugo Neves the lack of alignment with the goals assignment of the goals in points +8% António Peixoto of the business, and the fact that the and the sales made by the vendors Highly motivated Carla Costa award did not actually reward the are transformed in points to reach employees Cristina Alcântara best vendors. the goal. Inês Castro % José Vieira de Almeida To be accurate, there was a clear Winners Platform allows everyone +37 More motivated Maria do Carmo need for change. to see all of their colleagues' current employees Miguel Pereira status, store rankings, seller rankings, Pedro Araujo badges, missions to accomplish, Rui Santos team goal progression and individual -45% Sandra Nobre progression. Lowly motivated Vera Martins employees

45 AGEING Manage Stock Depreciation

CATEGORY PROCESS

HONOURABLE MENTION AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Information Project equals assertiveness overview Challenge Implementation Results

“The control of the Ageing Stock allows The data about Ageing Stock, The solution was for Worten to Worten to have a 'healthier' stock and collected by the financial teams, access this information autonomously -€647K was not shared with the stock and on a weekly basis, obtaining an a proactive management.” management team with the required estimation of the Ageing data Cost savings in a 3 year period regularity. and, therefore, being able to take action in order to reduce stock TEAM MEMBERS This scenario resulted in a reactive provision values. Hélder Alves acting by Worten. André Azevedo Bruno Saraiva Concisely, there was a need of Eduardo Magalhães having this information continuously, Gonçalo Correia enabling the business to manage it Inês Castanheira proactively and minimizing the risk Luís Dinis of having future provisions growth. Mariana Manaia Pedro Gonçalves Ricardo Pires

47 Better and More Portuguese Cherries and Other Fruits in the Stores

CATEGORY PRODUCT PERFORMANCE

HONOURABLE MENTION AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Bringing Project overview regionality back

“We make the road by walking… These Challenge Implementation Results regional and excellent products are now available to Continente consumers. To overcome the problem of having Development of specific techniques For the next campaign, we want even a low quantity of cherries and other used in the orchards which contribute +400ton fruits produced in Portugal and to having more fruit per tree and, at more and better!” guarantee the balance between the same time, to have more quality Quantities produced quantity and quality. (brix, caliber and flavour).

TEAM MEMBERS

Ondina Afonso Rui Matias Nuno Passadinhas

49 Digital Signature 2016's Sonae Annual Report

CATEGORY PROCESS

HONOURABLE MENTION AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Project Saving time through overview safe technology

“The initial scope only included SONAE SGPS's Annual Report but once it was a very successful “experience”, Challenge Implementation Results the same solution was afterwards extended to two more companies: Signing documents is something that Digital signature is the solution and SONAE MC SGPS and SONAE cannot be avoided and it becomes it can be done from any part of the -40Min an even bigger challenge when there world in an easy and fast way. INVESTIMENTOS SGPS.” is a high volume of documents to Time spent to signing these documents sign and a diversity of representatives When it comes to safety, its technical in different locations. capabilities feature high levels of security and universal acceptance One of those processes is Sonae's among international entities. annual report, containing more than 300 pages and requiring the signature of all Sonae's board members (placed across the world).

TEAM MEMBERS

Paulo Cosme Bruno Cardoso

51 Friendly Cookies

CATEGORY CUSTOMER ENGAGEMENT, SERVICE

HONOURABLE MENTION AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER

52 Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Project overview Driven by your desired gifts

“This project helped us to increase sales for the Christmas and “Reyes” period, for Worten to have more notoriety Challenge Implementation Results within the world of marketing and advertising. The following year, One of the most demanded product Friendly Cookies uses retargeting to there were other brands that copied categories in the Christmas season generate lead, both from the people 30K is Technology, but all the brands in who will receive a gift and from the the action.” the market are making an extra effort person who receives the cookie Users reached on social media to be seen in this time of the year. information in a non-invasive way.

Worten being a technology retailer, So, when relatives are browsing wanted to reach out our clients in on the Internet they suddenly see + K an innovative and creative way, our proposal (“Your son wants 3 convincing them to make their this for Christmas”). Users in Worten's Christmas shopping at Worten. community TEAM MEMBERS Worten was the first retailer to use this Luis Hernandez technology with our clients in Spain. Alicia Vicente Fernando Siles Martin Leclercq Rosa Mendez

53 RETAIL BOOK OF I N N OVAT IO N 2017 Well's Health Plan

CATEGORY SERVICE, BRAND

HONOURABLE MENTION AT THE SONAE INNOVATION AWARDS 2017

SCAN TO DISCOVER

54 Drive Discovery RETAIL Projects Shape Tomorrow BOOK OF I N N OVAT IO N 2017

Project overview More access, less expense

“This was one of those consensual ideas, right from the start. It had everything to turn out right! There was Challenge Implementation Results no need to change nearly anything from the original idea, all we had Over 50% of the Portuguese In partnership with AdvanceCare, to do was implement it, and that population don't have a solution to Sonae has developed Well's Health +€1.5M access private healthcare and more Plan - a health plan free of charge is something that seldom happens!” than 5 million people need to pay for Continente Card members which Cost savings for Portuguese families high prices or can't access treatments, allows to access a network of more exams and other health & wellness than 10,000 healthcare providers related services. across the country at significantly reduced prices.

Clients will also receive a 15% cash back on the value of the TEAM MEMBERS medical service. Tomás Ribeiro José Pedro Breda Marta Castro Pedro Meda Rui Duarte Rocha

55 Bagga App

CATEGORY BRAND, SERVICE

TEAM MEMBERS

Pedro Santos Rewarding Nuno Almeida Carla Viana Luis Monteiro our clients Maria Matos

Challenge Implementation Results

Very often customers find themselves An app was developed featuring a waiting in line for several minutes classic game "noughts and crosses" 2.5% at Bagga Stores, ending up leaving in which customers can compete Penetration rate without purchasing anything. between themselves. in transactions

Each time the customer wins, he/she will be rewarded with a token which +1,600 can be traded for food & drinks Downloads at Bagga. 281 Average Active Users per week

+1,390 Average Sessions

56 Bio and Healthy

CATEGORY BRAND TEAM MEMBERS

Sofia Machado Cristina Sousa Providing the ideal Fátima Valinhas Francisco Morais Gustavo Monteiro shopping experience Joana Barros

Challenge ImplementationResults

Consumers are more and more The concept of this area was looking for products which fit on designed to enhance the customers' 40 a balanced and healthy lifestyle. view of the business and to integrate a full experience for them. Stores Reformulated The need to choose the right products and the search for new A 360º plan of action that integrates healthy habits was the basepoint to a hole new branding for the create a new concept for the former area and an improved shopping “Área Viva”, focusing on healthy experience optimised by a new and bio products. layout distribution, versatile equipments, new lightning features, The challenge was to integrate and functional communication this area within the supermarket, and purchase process. providing at the same time the space, comfort, and store experience that this area demands.

57 Island Campaign

CATEGORY BRAND TEAM MEMBERS

Paulo Freitas Ivone Silva The best Arnalda Alves Nelson Almeida Paulo Renato Castro of the island Sara Lopes

Challenge Implementation Results

Highlight the best regional products Development of a specific brochure on Madeira Island, part of the for Madeira island to promote 80 selection available for sale on regional products. Continente Stores. Suppliers Involved Through this brochure it is possible to know the best fresh food from the island (like banana and "Bolo do Caco" % or drinks as Poncha and Brisa). 23 Share of fresh This catalogue presents the best categories' purchases that Madeira has to offer! (in value)

58 Não Pague Mais

CATEGORY BRAND, CHANNEL, PROCESS TEAM MEMBERS Stock-OutStock-Out Tiago Silva Carla Rebelo Gustavo Alves substitution Irina Gomes

Challenge ImplementationResults

Stock-Outs are an issue to a lot Revise Continente Online's of customers and they result in a substitution policy, replacing items 40% lot of complaints, as well as a general which were in stock-out with discomfort, because people don't items of a higher value and quality, General recovery replacing stock-outs receive the products they have and giving the difference price been expecting. in Continente Card.

59 New Concept Worten Mobile 3.0

CATEGORY TEAM MEMBERS BRAND, Luís Correia João Braz SERVICE Luís Costa Foster Mobility Mário Costa Marta Soeiro Miguel Pereira Experience Pedro Leite

Challenge Implementation Results

Adapt Worten to the evolution of the This project of concept adaptation Telecom market, remain competitive had several pillars: new services were +€1.9M and survive its consumption changes offered, such as the on-time repair when it comes to sales, margin service; the range of accessories was EBITDA in one year and concept. extended; an area of free hardware experimentation was included; an interactive omnichannel kiosk with 24h delivery and pick-up was developed; Worten's mobile concept was improved; communication was strengthened; new categories of mobility and connectivity with m3 optimisation were offered.

60 Rebranding Continente Products

TEAM MEMBERS

Pedro Caldas Tiago Simões CATEGORY Pedro Bruno BRAND Ana Isabel Carvalho Constança Fernandes Brand perception Ana Patrícia Lagarinhos Sofia Macedo Cristina Braga da Cruz is key Ana Rita Incio

Challenge ImplementationResults

How to improve Continente private Reorganise brand architecture, create label brand perception through a new and improved brand image, 4,000 packaging? create a packaging system that allows brand consistency as well as flexibility SKUs Modified to differentiate products and, in the end, develop the roll out on more than 4,000 SKUs.

61 Sonae Annual Results 2016 Presentation Event

CATEGORY BRAND TEAM MEMBERS Sonae’s innovation Maria Oliveira Nádia Cruz Tiago Soares showcase Catarina Fernandes

Challenge Implementation Results

Increase the visibility of remarkable Development of an Innovation non-financial accomplishments Showcase, presenting 13 of the €1.3M by business units and improve Group's recent projects and case networking opportunities during the studies, during an informal networking Advertising Value Equivalent Press Conference of Sonae Annual moment. Results 2016, an event hosted by the CEOs and attended by Sonae's Group Each project had a spokesperson and Senior Executives and journalists. was represented through a sample or mockup. 202 News and Articles Published

187 Social Media Posts

62 Multi-Brand Channel Digitalisation

TEAM MEMBERS

José Moreno Arianna Perrone Carlos Gonzalez CATEGORY Celia Fernandez Federico Bareggi CHANNEL Helena de Pedro Juan Herrera Digital Laura Romero María López Marian Molina store tailor Mario Vara

Challenge Implementation Results

To develop tools that improve Development of commercial the visibility of selling points of processes and tools on the website +120 our multi-brand channel and attract such as the LOSAN’s “Find Your Store”, new customers (mature and new which includes outlet name, address, New multi-brand customers markets). contacts, and collections.

900 POS with geolocation

63 Cake Reservation App

CATEGORY TEAM MEMBERS CUSTOMER ENGAGEMENT, Pedro Santos SERVICE Anabela Coelho Andreia Domingues Catarina Simões João Almeida Luís Monteiro Maria Lurdes Vilaça Cake boss Nuno Fonseca

Challenge Implementation Results

To create awareness about the fact The Cake Reservation App was that customers can order personalised created to simplify this process +10% cakes at Continente stores and enable customers to not only and improve the whole process personalise their cakes in an engaging Sales in this category of registration of these requests. way but also to choose the store from which they want to pick it up.

By simplifying this process, “Cake Factory” drives both awareness and sales providing the customer with an interesting experience and improving the order accuracy.

64 Fresh Food Tasted and Tested

CATEGORY CUSTOMER ENGAGEMENT, BRAND TEAM MEMBERS

Bruno Rio Showing João Fernandes Miguel Almeida Rosário Pinho how it's done Tiago Soeiro

Challenge ImplementationResults

To improve the perception of quality Creation of a documentary of the fresh food of Continente television show that supports 16 brand and motivate the consumer the communication campaign to increase the basket. “The nature has our mark” and shows Shows the whole qualitative process in fresh food production since its origin up to its placement in-store, and % product qualification by a chef and 70 a farming engineer. Audience that watched the whole program

2.7M People who had contact with the show

65 OurFutsal

CATEGORY CUSTOMER ENGAGEMENT

TEAM MEMBERS Scoring Marta Kadosh Inês Alfarroba Mónica Pimentel engagement Sandra Barros Silva

Challenge Implementation Results

To energise and enhance the Creation of a movement that fosters support given by SportZone to futsal futsal and gives it the same kind of 481 through a F.P.F. (Portuguese Football visibility usually received by football. Federation) sponsorship. Instagram posts

3.3K Reactions 747 Shares

107K Visualisations

66 Website Worten

TEAM MEMBERS

Paulo Almeida Andreia Soares CATEGORY Duarte Almada CUSTOMER ENGAGEMENT, Filipe Matos Henrique Baeta SERVICE João Lima Nuno Borges Nuno Miller Web Paulo Lima Paulo Moreira Pedro Devesa optimisation Pedro Melo

Challenge ImplementationResults

Worten's website had a reduced Creation of a new website 100% performance, little impact in the responsive and with strong presence +30% consumer's experience and low and performance on mobile devices. conversion. Traffic The UX' design and navigation Along with that, the User Experience were optimised; a total review design was not totally responsive to of the technical catalogue in all the +60% screen devices. categories was done; there was Sales a strong investment in content. With an incomplete and inconsistent technical architecture/ +18% parameterisation, it was important Conversion for it to take Search Engine Optimisation into consideration. +5% Items per order

67 Continente Food Festival

CATEGORY NETWORK, BRAND The festival

where food TEAM MEMBERS Nádia Reis Tiago Soeiro sets the stage Margarida Costa

Challenge Implementation Results

To create an event totally focused A two-day event totally focused in the core of the business and on on food, the whole line of 500,000 food experience capitalising in the contents and on food-related brand's strategic goals, extending experiences, simultaneously Visitors the audience, and enhancing the presenting musical propositions, emotional connection consumers capturing new audiences and have with the brand. new Portuguese families. 1M TV viewers The event had seven chefs and six music bands. 6M Facebook reach 40,000 Facebook interactions

68 Future Leaders @ Retail

TEAM MEMBERS CATEGORY

Paula Abreu, Alexandra Mendes, NETWORK Ana Ferreira, Carlos Silva, Cláudia Martins, Diana Cruz, Dina Oliveira, Elisabete Ramos, Retail Filipa Ferreira, Hugo Moreira, Maria João Gomes, Mariette Azeredo, Rita Barrocas, Rosa Gomes, leadership Sónia Afonso, Vera Rodrigues

Challenge ImplementationResults

To develop a programme that The “Future Leaders at Retail” identifies and captures talent programme is composed of several 1,009 both internally and externally. phases: 63 days of theoretical and practical education; 113 days of Applications received This programme needs to be able practical training in a specific area; to prepare candidates for becoming 5 mentoring sessions; 2 networking future leaders of modern retail. It also sessions with administrators; the 52 needs to be intensive, customized and execution of an individual project Participants aligned with the demand of the major with the goal of presenting solutions areas of the business. or improvements related to real and concrete problems of Sonae MC 65 businesses. Internal trainees 350 Internal tutors

69 Ideation Week for Retail

TEAM MEMBERS

CATEGORY Margarida Carvalho NETWORK, Bruno Mourão BRAND Dina Oliveira Filipe Oliveira Luis Cardeal Luis Monteiro Getting the Mafalda Petra Miguel Cruz Rafael Pires consumer involved Ricardo Alves

Challenge Implementation Results

Retail is constantly facing new An intensive programme of ideation challenges such as the growth of the and entrepreneurship was created. 12 on-line market, changes in consumer behavior, more informed and The participants faced several Retail Challenges demanding consumers, and many retail-related challenges using the more. Fast Ideation methodology by Fábrica de StartUps and were mentored It is imperative to hear the consumer's by Sonae, NOS and Deloitte. 8 opinion and take it into consideration New Ideas so that new ideas and different Participants talked to consumers, Developed perspectives are brought to the table. participated in the challenges and explored all the different ideas and solutions. +30 Participants

70 Sonae at Pixels Camp

TEAM MEMBERS

Bruno Mourão CATEGORY Ana Gonçalves NETWORK, António Soares BRAND Catarina Menezes Maria João Oliveira Mariana Alpedrinha Valença Being part Pedro Torres Rafael Pires Rui Cohen of the community Rui Veloso

Challenge ImplementationResults

The retail industry is in continuous Participation in the biggest hackathon evolution and it is challenged every in the country, where we've tested 4 day by the digital transformation. the participants with four key retail challenges and presented three talks. Challenges addressed Being close to the tech community allow us to be in the front row Activation of a "distinctive booth" of technological advancements made of cardboard, representing 3 and leverage solutions for our Sonae's creativity. Talks main challenges. The activation was complemented with a giveaway of VR Cardboard 57 Headsets showcasing a VR Video News/articles about the HeartBIT work environment. 9 Projects Adressing

71 Sonae at World Retail Congress

CATEGORY NETWORK, BRAND TEAM MEMBERS A business Miguel Albuquerque Fátima Valinhas Bruno Mourão design contest Miguel Moreira

Challenge Implementation Results

Traditional retailers are taking a full The Direção Conceção Loja (DCL) omnichannel approach to serve established a partnership with Escola 31 customers, combining the online Superior de Artes e Design (ESAD), service with the brick and mortar a design university, to develop Students Involved experience. different proposals and has structured five coaching sessions about Taking this as the basis for the Future different themes. Retail Challenge 2017 (a competition 6 integrated on the World Retail This partnership has culminated on Teachers Involved Congress), the task of each team was a Portuguese representation at the to select a pureplay online retailer international contest. and design a physical store reflecting the positioning of the chosen brand. 8 Proposals Presented

72 Concur New Expense Platform

TEAM MEMBERS Vítor Jesus CATEGORY Adelaide Silva Daniela Guimarães PROCESS Eduardo Coelho João Piedade Optimising the João Pinto Raul Silva Rui Teixeira expense process Susana Ferreira

Challenge Implementation Results

To optimise the expense report Use of a SaaS application to handle and approval process and assure the expense process, ensuring -85% its dematerialisation, and the delivery that people submit and receive of the expense report through their expenses earlier and with Expense cycle (submission to payment) multiple platform and inputs, and less concerns. in a mobility context. All integration was built with SAP FI and SAP HR. -60% There was a single sign-on Time spent authentication and integration in on approval mobility context.

-40% Time spent on submission

73 Coolbox

CATEGORY PROCESS Cooling TEAM MEMBERS & reducing Pedro Jesus

Challenge Implementation Results

Integrate the cooling system with Creation of a system that consists the AVAC system to reduce both of converting each display unit to -15% investment and energy consumption. an independent refrigeration unit or a multi-circuit connection, constituted Investment costs by COOLBOX condenser units and a Cooling Drycooler.

The solution integrates the air -20% conditioning system of the sales area and offices to reduce installation and Energetic Consumption operating costs.

-78% Environmental Impact

74 Cutting Equipment Frozen Fish Saw

CATEGORY PROCESS, Better PRODUCT SYSTEM TEAM MEMBERS and safer Pedro Miguel Ramos Pires

Challenge ImplementationResults

To develop a new equipment which A new equipment with no access to reduces the accidental cuts in the the cutting blade area. Work can only -100% frozen fish saws. be done using both hands on the controls and it is also possible to slice Work accidents fresh fish.

It was developed with the goal of reducing not only the accidents -50% but also the number of machines Space occupied in the area, as well as to increase by the equipment productivity.

75 Freshdesk

CATEGORY PROCESS The circle TEAM MEMBERS

Rafaela Silva of efficiency Filipa Cunha

Challenge Implementation Results

To find a solution for customers' and Implementation of a cloud based stores' contacts, which were being solution which required no set up -55% managed using Outlook and Excel. with the technical team and could be configurated by the business. Response time This type of management resulted in two main problems: the lack This new platform enabled a of prioritisation of issues which led better customer and store contacts to critical delays in certain answers. management, allowing multiple 4 agents, stores interface, website, Daily hours saved social media, and reporting integration.

76 GTMS Global Trade Management System

TEAM MEMBERS

Raul Magalhães Ricardo Campos Ana Maia Alvaro Vasconcelos CATEGORY Bruno Vale PROCESS Filipe Fonte Flávio Machado Efficient João Braga Luis Silva Margarida Afonso and scalable Marina Silva

Challenge ImplementationResults

International logistic operations Implementation of GT Nexus and supported on outdated (for imports) of best of breed business processes +250 or non-existent (for export) systems, to enable efficient management and managed based on manual inputs of imports and exports across the Active suppliers from 4 import origins with redundant tasks and incomplete supply chain, collaborating in real information, not always shared on time time with a community of buyers, to all relevant stakeholders. suppliers, logistics providers and customs brokers. % This scenario introduced a lack of -50 visibility in the supply chain, leading Important process to a higher time to market, as well management as increased logistic costs directly impacting operating margins. -20% Lost sales for imported goods

77 META

TEAM MEMBERS

Joana Queirós CATEGORY Célia Dinis PROCESS Fábio Santos Fernando Gomes Fernando Silva Improving Jorge Gonçalves José Casimiro José Félix efficiency through José Soares Nuno Passadinhas Paulo Carvalho flow creation Pedro Duarte

Challenge Implementation Results

With the current conditions, the A review of the current refrigerated Azambuja refrigerated warehouse operation process from reception -15% couldn't support the complexity of to expedition, including an increased present operations nor the expansion productivity of the picking process FTEs plan for Sonae MC stores. and the creation of mechanisms for real control of the operation.

On the expedition stage, due to the -30% lack of space, logistics and store Reception time operations implemented expeditions throughout the day, anticipating the main Continente stores deliveries. +30% Area for expeditions

78 NEXT

CATEGORY PROCESS

TEAM MEMBERS

Joana Oliveira Avelino Cunha Putting the logic Carlos Machado Helder Gouveia João Pinho into logistics Orlando Antunes

Challenge ImplementationResults

To reduce manual workload in the Installation of a mobile app (NEXT) manipulation of products at store on store staff's PDA to help triage -67% level (namely for tasks related to SKU eligibility for specific processes, reserve logistics). like supplier return and inventory Time reduction of articles preparation centralization, and automates needed process to follow-up system activities (example: transfers). +€4.5M Cost savings

79 Obeya Room Supply Chain Worten

CATEGORY PROCESS Operation TEAM MEMBERS

Sérgio Pedro Costa strategy matrix Gina Sarabando Casal

Challenge Implementation Results

The Supply Chain Development Obeya Room is a customised solution Team had the need to implement that was implemented by the BI team. -40% a productive way of assuring the follow-up of projects as well as Contains project core information Time allocated to producing Status to automatically produce a report linked with Matrix X and it allows Reports, Meeting to share with stakeholders. project managers to remotely Presentations, update their status, enabling the Communication The challenge was to create a digital operational control of initiatives of risks/alerts tool to allow an integrated view of progress, risk and alert management, the project lifecycle in alignment with the automatic production of reports, Matrix X. the of team allocation and calculated benefits. +€11K Total team savings per year corresponding to hours saved

80 Request for Schoolbooks On Time

CATEGORY PROCESS, SERVICE TEAM MEMBERS

Helia Filipe Eduardo Brandão Ricardo Ribeiro Delay no more Teresa Oliveira

Challenge ImplementationResults

Delay on the launch of the With the rent of tablets in each schoolbooks' requests and lack store, the recording of schoolbooks' -100% of knowledge of the reservations' requests is made in real time, in front status. of the customer and, furthermore, Service delays this system allows that the customer follow his own request.

81 Smartwatch

TEAM MEMBERS

Hugo Neves CATEGORY António Marques PROCESS Emiliana Sampaio Helena Santos Irene Martins Jorge Brito José Gonçalves Nelson Menino Packaging Nuno Fumega Mónica Ramos Rita Figueirinha on time Rui Santos

Challenge Implementation Results

There were essentially two challenges Implementation of smartwatches to face: fulfilment stores were not through which the order preparation -16h responding to the SLAs that were notifications are sent to the set as goals for the preparation of collaborators. Average order preparation time Home Deliveries and Pick-up-in-Store orders; all the other stores were not This tool allows them to identify responding to SLAs when they had the orders to prepare, quickly to prepare Pick-up-in-Store orders for and in real time. h Sales Assistants. The stores could only -3.2 identify the need to prepare an order Average time via email and a dashboard, but these of preparation of tools were not being consulted a pick-up-in-store in constant and timely manner.

82 Taxpayer Number at Continente Card

TEAM MEMBERS Alberto Miranda, Ana Silva, Ana Pereira, CATEGORY Ana Viana, André Teixeira, Anibal Ramos, Carlos Silva, Cesar Moreira, Cristina Coelho, PROCESS David Milheiro, Gil Fernandes, Gorete Cunha, Hugo Silva, Liliana Neves, Madalena Ruas, Simple Mafalda Barros, Maria Monteiro, Maria Sousa, Pedro Gonçalves, Pedro Fonseca, Rita Resende, Rosário Vieira, Rui Ferreira, Soraia Oliveira, and practical Pedro Troia, Valter Fraguas, Zoraida Fonseca

Challenge ImplementationResults

Avoid that customers with Continente When customers with Continente Card need to state their taxpayer Card need the taxpayer number 100% number when they make a purchase. on the invoice, all they need is to activate a key in POS. Customer satisfaction

83 Transportation Services

CATEGORY PROCESS, PRODUCT SYSTEM TEAM MEMBERS

Ana Leandro Eliminating Pedro Bártolo Rui Franco Celia Dinis inefficiencies Fábio Soares Santos

Challenge Implementation Results

Our Transportation Department We've developed a transportation focuses on the outbound flows of service with our suppliers and +€900K goods from the Distribution Centers it currently has a significant part to stores and these flows create in the inbound flows or in the direct Cost savings in 2017 inefficiencies such as dead mileage provisioning of stores. and spare capacity in returns. The goal is to use the free space in the return from stores, using our suppliers' material.

84 100% Portuguese Custard Tart

TEAM MEMBERS

Catarina Simões Alexandra Alves CATEGORY Ana Filipa Gonçalves PRODUCT PERFORMANCE Ana Sofia Alves Ana Patrícia Lagarinhos Portuguese Carla Costa Marta Pestana Ondina Afonso ingredients only Sofia Macedo

Challenge Implementation Results

Development of a new product that We've decided to commit can help to recover, promote and to Portuguese production and +41% develop the agriculture and the to launch a completely national Portuguese economy. custard tart. Our pastry is the Sales first one in Portugal with totally An innovative high-quality recipe, Portuguese ingredients: besides with national ingredients that the Alentejo flour, it's produced guarantees a truly distinct quality with Azorean milk and national eggs. in the retail sector, based on real An innovative Continente speciality. attributes recognised by customers.

85 Becken Vintage Lovers

CATEGORY PRODUCT PERFORMANCE

Coolness TEAM MEMBERS Alberto Gallego Francisco Catarino is back Gonçalo Carvalho

Challenge Implementation Results

We've come to the conclusion A sub-brand was created – Vintage that, in a global way, the “vintage” Lovers – which offers three models 10 and “hipster” trends continue to of refrigerators in seven different colors. grow, which makes it interesting to Pilot stores penetrate this market niche and make For this brand, a website was also it financially accessible. created as well as in-store spaces dedicated to the concept of this At the same time, the creation of the sub-brand. private label BECKEN turned out to be part of the challenge, as well as the whole client experience and brand recognition.

86 Bilby Shoe

CATEGORY PRODUCT PERFORMANCE

New technology, TEAM MEMBERS Diogo Almeida José Fernandes 360º of performance Pedro Moutinho

Challenge Implementation Results

To create a shoe for active people Creation of Bilby, a shoe that has the who enjoy versatility and uniqueness, best technology and materials for the €40K intended mainly for hiking most demanding outdoor adventures. and approach. Expected Sales for 2018 Featuring a new outsole called Vibram , this shoe enables the consumer to join a wide range of activities in a comfortable way due to its characteristics such as a waterproof neoprene upper, TPU inserts, and 360º airflow channels.

87 Butter with Algarve Salt Flower

CATEGORY PRODUCT PERFORMANCE TEAM MEMBERS

Mariana Alves The artisanal Ana Farinha Claudia Santos Diogo Gonçalves & unique kind Inês Brito

Challenge Implementation Results

Offering customers a more artisanal The product was made in Belgium butter with key distinctive features. with salt flower collected in Algarve. 11K This butter, with a rustic appearance, Units sold in 2 months is hand-wrapped to guarantee the preservation of its unique characteristics.

The taste, appearance and the use of salt flower instead of refined salt are aspects which differentiate it from others of the sort.

88 Cereal Bread from Alentejo

TEAM MEMBERS CATEGORY

João Calvão PRODUCT PERFORMANCE Ana Gonçalves Ana Patrícia Lagarinhos Catarina Simões The original and Ondina Afonso Pedro Parreira Sónia Gonçalves exclusive recipe Sofia Machado

Challenge Implementation Results

To develop a bread recipe that Continente Cereal Bread from privileges authenticity. Alentejo, a 100% Portuguese product, 125 produced from the revival of Made with flour from Portuguese Portuguese wheat varieties, which Tons of bread sold in less than one year cereals, this exclusive recipe was attended by researchers, grain recovers the good taste of bread producers, millers and bakers. and the texture of a bread made in a traditional way. The launch of this product reflects a line of work and demonstrates how Continente recovers, promotes and develops the Portuguese economy and agriculture.

89 Chocolate Napkin

CATEGORY PRODUCT PERFORMANCE Traditional, TEAM MEMBERS but different Marco António de Sá

Challenge Implementation Results

Offering customers a sweet with Creation of a sweet which not only a different ingredient, forgetting the catches the attention of customers +30% usual egg candy which is used in due to its different characteristics most of the products of this nature but also because of its pleasant smell Sales in the category of cakes with cream and can be seen in all the Portuguese and taste. (2016) pastry windows. This sweet is made with a chocolate loaf base, fillings of chromatic lime, red berries, and more chocolate.

90 Cordon Gris

CATEGORY PRODUCT PERFORMANCE, SERVICE TEAM MEMBERS

Tiago Oliveira Tiago Silva Gustavo Alves Fighting Pedro Santos Pedro Atanásio Marlos Silva malnutrition Daniela Mendes

Challenge ImplementationResults

Malnutrition is the number one The consortium created an app that cause for the decline in health integrates an algorithm capable of €122K of senior citizens. combining the dietary wants, needs and budget of each individual senior. Granted funding from the European A poor diet is both the result Commission of unawareness of the ideal foods, Then, it elaborates a meal plan and FCT the loss of autonomy and lack which is then transformed into a of interest in buying groceries. shopping list from Continente Online with the contents being delivered The senior population is growing in to their home. number, importance and purchasing power, so there is a need for these The solution was developed and citizens to be better understood is being tested in real-life situations. and catered.

91 Deeply Universal 40L Backpack

CATEGORY PRODUCT PERFORMANCE

TEAM MEMBERS Pack Francesco Salva Manuel Centeno Pedro Caldas the universe Tiago Lemos

Challenge Implementation Results

There was a need for a backpack The Deeply Universal Backpack which would be able to carry and with a capacity of 40L was created. 66% store a wetsuit after a surf session and a skateboard on the carry straps This backpack, made of Cordura Margins but which could also be commonly water-repellent and durable fabric, used to store anything from laptops has a front-bottom pocket that to books and other accessories. can be used to store a wetsuit in a seam-taped dry bag or other stuff; a main compartment with a high storage capacity; three lateral pockets; a top multimedia pocket; skateboard carry straps; and ultra-durable front fabric resistant to grip abrasion.

92 Development of a variety of cherry tomato with more flavour

CATEGORY TEAM MEMBERS PRODUCT PERFORMANCE The distinctive Nuno Passadinhas Ana Machado Nuno Pita flavour Pedro Camara

Challenge ImplementationResults

Develop a distinct cherry tomato with For four years, Sonae MC worked the best flavour in the market. in partnership with a producer +81% and developed an exclusive variety of cherry tomato which fulfils Sales from 2016 to 2017 simultaneously the four vectors established as non-negotiables in an innovative and disruptive product.

93 Dr.Wells

CATEGORY PRODUCT PERFORMANCE

TEAM MEMBERS Improving Pedro Meda Daniela Ramos Paula Rosa health clinics Teresa Teixeira

Challenge Implementation Results

Sonae's arrival in the dental and A new business supported by: an aesthetic clinics' business and the experienced and credible clinical €0.7M ambition of being the national leading team; technologies of reference; player in both specialties in the convenient locations and schedules; Expected sales for the 1st year medium term. accessible price and financing solutions.

The first clinic was opened at the Colombo shopping centre, in Lisbon.

94 Ergo I Motion

CATEGORY PRODUCT PERFORMANCE TEAM MEMBERS

Nuno Faria Arminda Silva Style Conceição Machado João Silva Marco Sá on the move Rui Lima

Challenge ImplementationResults

Create innovative men’s jeans for An innovative technology applied people who do not fit into the regular both to the belt and to the waistband, 69.4% Salsa jeans. which consists of having invisible elastic bands which adapt to the Margins movement.

In other words, a wider and more K ergonomic fit. €11 Savings

95 Jaguarundi

CATEGORY PRODUCT PERFORMANCE

TEAM MEMBERS

Diogo Ribeiro Pedro Moutinho Running wild José Fernandes

Challenge Implementation Results

Creation of a new trail running shoe A trail running shoe with a megagrip with great value. vibram outsole, mesh and reflective +150% TPU was created. Net Sales Highly breathable and lightweight, it has an instep secure system with webbing eyelets to guarantee a perfect fit, making this product a great-quality and fair-priced one.

96 Jindo Burel

CATEGORY PRODUCT PERFORMANCE

When style TEAM MEMBERS Diogo Almeida José Fernandes meets sustainability Pedro Moutinho

Challenge ImplementationResults

To offer a breathable and Jindo was reinvented and Burel, a thermo-regulatory sneaker Portuguese artisanal fabric composed €48.40 featuring natural 100% Portuguese by 100% wool, was added. materials only. Margins This highly resistant, flexible, water-repellent, and natural thermal insulator, joined the usual cork, making this a stylish, unique but also 1 sustainable sneaker, since its materials Award "ISPO are completely recyclable. Award Lifestyle" 2017

97 Book in Loop

TEAM MEMBERS

Gustavo Alves CATEGORY Ana Margarida Santos PROFIT MODEL, Andreia Marques SERVICE Filipe Crespo Henrique Lopes Helia Filipe Luis Magalhaes Pedro Pinto Rosário Almeida Rui Sousa Sustainable studying Susana Soares

Challenge Implementation Results

Every year, tons of well-kept school Book in Loop, a Portuguese start up, books are thrown in the bin or kept partnered with Continente and Note! 36K inside a closet gathering dust. to gather from families all the used Used books gathered books in good condition. At the same time, parents spend a lot of money buying new books The books are then sold at a fraction K every year. of the original cost, with a percentage €88 of that revenue going to families Value in Continente Card This inefficiency causes both through Continente Card. attributed by Book in Loop environmental hazards and economic stress to families. +6,000 Clients - Foot traffic

+€910K Media Value Equivalent

98 Go Natural Supermarkets

CATEGORY PROFIT MODEL, BRAND

TEAM MEMBERS

Luis Marques Organic retailing Barbara Costa

Challenge ImplementationResults

Sonae’s arrival in retail specialized Creation of a new business based in organic and intolerance food, on the following characteristics: €3.5M with the ambition of being the most convenient locations; >4000 SKUs; specialized company in the field accessible prices; a concept that Expected sales for the first year at a national level. integrates a restaurant and a store; to be a recognised brand (Go Natural); and promotional intensity (e.g. Continente Card).

99 Worten Estrena

CATEGORY PROFIT MODEL, BRAND

Retail TEAM MEMBERS Daniel Molero Iván Andrés by design Roberto Tomé

Challenge Implementation Results

Constant adaptation to To follow this trend, Worten launched a self-reinventing retail world in “Worten Estrena”, a commercial €40K which the ownership of IT goods sub-brand which includes different is being replaced by pay-per-use initiatives to develop this approach. Sales of Worten Estrena smartphones in 6 months models.

Instead of paying the full price of a good, customers prefer to pay a monthly fee to use the product.

100 Clients Feedback App

CATEGORY STRUCTURE

TEAM MEMBERS Know better, José Miranda Catarina Leão Filipa Feijó sell better Rui Gonçalves

Challenge Implementation Results

Improve products and purchasing Development of a “homemade” app efficiency with the incorporation which is installed on store managers' -44% of the clients' feedback in a mobile phone to retrieve clients' structured way. feedback. The items can be found Time invested in the process (in the app) by scanning the barcode or through the merchandising structure. Store Managers and Clients can give feedback on price, color, % quality, size or just regular comments. 100 All the feedback is then collected Items covered and retrieved in a structured way, by the app reducing the time spent compiling the information. All the information is incorporated by the Product Development teams.

101 Expansion Decision Model

CATEGORY STRUCTURE, PROCESS

TEAM MEMBERS Where, Luís Correia José Vieira Almeida Carina Correia what & why Dinis Brito

Challenge Implementation Results

The need to acquire new analytical A new model of sales estimation (per tools to enable Worten to select new store and location) was developed to 80 potential markets to install new stores give Worten a vision of the features in a more precise way, according and market share of each store in Analysed projects at Iberian level to sales potential and market share their area of influence, enabling the growth, prospection of real-estate determination, by analogy, of new projects in the identified regions and locations, taking into consideration its evaluation. the significant variables which affect traffic and sales. In a second phase, the adoption of a SIG which will optimise both the evaluation and information share model.

102 Improving Efficiency in the Fish Distribution Centre

TEAM MEMBERS

Alipio Duarte, Antonio Barros, Exceeding Deolinda Aguiar, Edgar Costa, CATEGORY Francisco Carvalho, Isabel Francisco, STRUCTURE José Brardo, Joao Durão, expectations José Casimiro, Joaquim Candeias, José Beça, Manuela Lacerda, Nelson Domingos, Pascoal Costa, through updates Rodrigo Charro, Rosa Falcão, Rui Braz

Challenge ImplementationResults

Guarantee the Fish Distribution Development of three new layouts Centre will follow up with the for the Fish Distribution Centre to face -42% company's growth and increase the growth of 22 stores per year productivity by 10%. until 2020. Lead time in reception area We've also made some changes in different areas to reduce the lead time: reception, production, + % preparation and expedition. 60 Productivity in production area

+50% Productivity in picking area

103 New Store Concept

TEAM MEMBERS

Mário Costa CATEGORY Catarina Simões Claudia Santos STRUCTURE Joana Leitão Mariana Fernandes Margarida Pereira Buying Nuno Dores Pedro Gandum Ricardo Viegas experience Rita Silva

Challenge Implementation Results

To develop a new store concept to A renewed, improved and attract clients and enable Worten reorganized store environment, +24% to have a competitive advantage with new equipment's, POS over other brands, based in POS communication, new materials, based Reported Net Sales in Refurbished Stores (YoY) experience and innovation. in experimentation, client attention and with innovation as the main axis.

This new store concept transforms + % and improves the client's experience 14 by merging physical with the digital. Reported Net Sales performance in Refurbished Stores (versus other stores)

104 Drive Discovery Projects Shape Tomorrow

105 RETAIL BOOK OF I N N OVAT IO N 2017 06 SHAPING THE FUTURE INNOVATION AT SONAE

Drive Discovery Shape Tomorrow RETAIL BOOK OF I N N OVAT IO N 2017

Ana Catarina Martins Gina Casal Senior Project Manager, IOW Area Leader, Development, BI, Controller António Lessa Innovation Head of Area, MO & Zippy Supply Chain Lourdes Miguel Coordinator of Business Analysis João Esteves & IOW, Operations Area Leader, Marketing, SportZone Paulo Marques Nuno Tamagnini Castro Senior Project Manager, Committee Product Development Manager, Business Analysis Global Sourcing Rodrigo Durão Internal network of Senior Project Manager innovative leaders from the retail business

In order to create the innovation activity in Sonae's retail businesses, the SHIFT team relies on high-level structures such as FINOV, a forum that brings together the innovation structures of all other Sonae businesses, and on the Innovation Committee, an internal network of retail business leaders that seek to implement new projects and add value, ensuring constantly-flowing communication and collaboration to retain the best solutions that apply António Pinheiro Henrique Oliveira to our businesses. PCG Controller Controller

108 Drive Discovery Innovation at Sonae Shape Tomorrow

Adilia Santos Maria Nunes Ana Filipa Ferreira Miguel Castro Albuquerque Project Management Technician, Innovation Analyst at Future Tech, Human Resources Business Partner Project Manager, Store Concept Administrative Services Innovation & Future Tech Ana Oliveira Gaspar Nelson Pereira Ana Silva Mariana Alpedrinha Valença Area Coordinator, Head of Business Development, Business Innovation Specialist, Innovation Innovation Specialist, Innovation Business Development Dr.Wells Development & Future Tech & Future Tech Adelino Miranda Nuno Almeida Catarina Fernandes Marlos Silva Area Manager at Cost Control Head of Business, Bagga Head of Communication, Area Manager, Innovation Carlos Silva Osvaldino Vieira Brand & Corporate Responsibility & Future Tech and Granted Projects Operations Director Senior Project Manager, Expansion Daniela Mendes Nuno Lopes Gama and Development Cristina Braga da Cruz Innovation Analyst, Innovation & Future Tech Head of Innovation & Future Tech Head of Product Development, Pedro Santos Dina Oliveira Pedro Cupertino Miranda Product and Digital Development Head of E-commerce & Mobile Innovation Analyst, Innovation & Future Tech Area Manager, Risk Management Duarte Nuno Rocha Rafael Dias Inês Filipe Coelho Rui Magalhães Area Leader, International Quality Head of Business Development, Food Innovation Analyst, Innovation & Future Tech Future Tech, Innovation & Future Tech Commercial Department Fátima Valinhas Luís Cardeal Tânia Calçada Head of Store Concept Rafael Pires Innovation Specialist, Innovation Area Manager Future Tech, Innovation Innovation Specialist, Business Ilda Campos & Future Tech & Future Tech Information Technology Programme Manager, Manuela Reis Teresa Menezes Business Information Technology Rui Braz Head of Quality and Development, Area Coordinator of Internal Communication, Head of Development, Logistics João Pedro Reis Administrative Services Brand and Corporate Responsibility Project Management Technician, Margarida Côrte Real Tiago Oliveira Product & Digital Development Project Manager, Administrative Services Senior Project Manager at Granted Projects, Innovation & Future Tech

109 RETAIL BOOK OF I N N OVAT IO N 2017 07 TEN TYPES OF INNOVATION PROJECTS LIST

Drive Discovery Shape Tomorrow RETAIL BOOK OF I N N OVAT IO N 2017

BRAND

Bagga App 56 Bio and Healthy 57 Projects Continente Food Festival 68 Fresh Food Tasted and Tested 65 Go Natural Supermarkets 99 Ideation Week for Retail 70 Madeira Island Campaign 58 List Não pague mais 59 New Concept Worten Mobile 3.0 60 Rebranding Continente Products 61 Sonae Annual Results 2016 - Presentation Event 62 Ten types Sonae at Pixels Camp 71 Sonae at World Retail Congress 72 of Innovation Transform Yourself 42 Well's Health Plan 54 Worten Estrena 100

BRAND PRODUCT PERFORMANCE CHANNEL CHANNEL PRODUCT SYSTEM Multi-Brand Channel Digitalisation 63 CUSTOMER ENGAGEMENT PROFIT MODEL Não pague mais 59 NETWORK SERVICE Winners 44 PROCESS STRUCTURE

Organized by the Ten Types of Innovation®, a global firm focused on solving complex problems through an interdisciplinary approach. CUSTOMER ENGAGEMENT

Source: doblin.com/tentypes Cake Reservation App 64

112 Drive Discovery Projects List Shape Tomorrow

Fresh Food Tasted and Tested 65 Request for schoolbooks on time 81 Transportation Services 84 Friendly Cookies 52 Smartwatch 82 OurFutsal 66 Taxpayer number at Continente Card 83 Website Worten 67 Transportation Services 84 PROFIT MODEL

Book in Loop 98 NETWORK PRODUCT PERFORMANCE Go Natural Supermarkets 99 Worten Estrena 100 Continente Food Festival 68 100% Portuguese Custard Tart 85 Future Leaders @ Retail 69 Becken Vintage Lovers 86 Ideation Week for Retail 70 Better and More Portuguese Cherries and Other Fruits Sonae at Pixels Camp 71 in the Stores 48 SERVICE Sonae at World Retail Congress 72 Bilby Shoe 87 Butter with Algarve Salt Flower 88 Bagga App 56 Cereal Bread from Alentejo 89 Book in Loop 98 Chocolate Napkin 90 Cake Reservation App 64 PROCESS Closed System of Continente Selection Coffee 40 Cordon Gris 91 Cordon Gris 91 Friendly Cookies 52 AGEING - Manage Stock Depreciation 46 Deeply Universal 40L Backpack 92 New Concept Worten Mobile 3.0 60 Best Control at Sonae MC & SR - RAID @ Operations 38 Development of a variety of cherry tomato with more flavour 93 Request for schoolbooks on time 81 Concur - New Expense Platform 73 Dr. Wells 94 Website Worten 67 Coolbox 74 Ergo I Motion 95 Well's Health Plan 54 Cutting Equipment - Frozen Fish Saw 75 Jaguarundi 96 Digital Signature - 2016's Sonae Annual Report 50 Jindo Burel 97 Expansion Decision Model 102 Transform Yourself 42 Freshdesk 76 STRUCTURE GMTS - Global Trade Management System 77 META 78 Clients Feedback App 101 Não pague mais 59 PRODUCT SYSTEM Expansion Decision Model 102 NEXT 79 Improving efficiency in the Fish Distribution Centre 103 Obeya Room Supply Chain Worten 80 Cutting Equipment - Frozen Fish Saw 75 New Store Concept 104

113 RETAIL BOOK OF I N N OVAT IO N 2017 For more information retailinnovation@.pt

Sonae Lugar do Espido – Via Norte 4471 – 909 Maia | Portugal Tel: +351 220104000 Fax: + 351 229404634

Content Innovation and Future Tech

Communication Communication, Brand and Corporate Responsibility Department

Concept & Design WHITE_Brand Services

Photography SkyEye pages: 39, 41, 43, 45, 47, 49, 51, 53 e 55

Print Lidergraf

Published 2018