Grocery Universe 2012

GROCERY UNIVERSE 2014 RESULTS OF THE 52ND 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 2013 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 91 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 91 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 52nd inventory of the world of retail grocery sector, drawn up every year by Nielsen.

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 4 2. THE ECONOMY & RETAIL IN 2013 Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. Nuclear test in North Koreatest North Nuclear in Nuclear deal in Irandeal in Nuclear Coup d’étatMali, Egypt,in ↘ ↘ Trade barriers Bali PackageBali CivilwarSyria in

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Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. growinginflation. toprice by thanks the +2.2% Thetwo lastyearsTurnover in flatvolumesFMCGremainedBelgium. is BELGIUM: THE NIELSEN BAROMETEREVOLUTION Food & FoodNon % 2009 vs 2008% 2009 vs 2009% 2010 vs 2010% 2011 % 2012 % 2013 FMCG: vs vs

2011 2012

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

Sales Value of of FMCG products in the retail sector in Belgium +2.0% +1.1% +3.2% +2.2% +2.2%

Sales Volume +0.9% +0.8% +0.1% +0.0% - 0.3%

PricePackage of Sold +2.2% +0.3% +2.4% +2.1% +2.2%

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. beginning beginning of 2014). volumepositive a persistsIn lastquartertrendnoted of2013,(which is the BELGIUM: FMCG TRENDS PER YEAR AND PER QUARTER -2% -1% 0% 1% 2% 3% 4% 5% 6% 2.4% 0.8% 3.2% 2011 2.1% 0.1% 2.2% 2012 0.0% 2.2% 2.2% 2013 Average price change price Average

- Q1'12 4.1% 2.8% 1.3% Source: Source: Nielsen Growth Reporter 1.6% 0.0% 1.6% Q2'12 Volume change Volume Q3'12 1.1% 1.5% 2.6%

1.5% 0.1% 1.6% Q4'12 Nominal Nominal growth 1.8% 1.0% 2.8% Q1'13 - Q2'13 0.2% 2.9% 2.7% 2.6% 0.3% 2.9% Q3'13 Q4'13 1.9% 1.1% 3.0% 8

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 (+ 0.8%) while the importance of the Grocery Universe increased by+0.2 pts. Households have spent relatively more in the Grocery Universe compared to their total expenditure.

• The turnover of the grocery universe rose to EUR 24.5 billion in 2013. This is an increase of +2.7% compared with the previous year. Inflation grew in 2013 with 1.1%, less than in 2012. This means that the turnover in constant has a positive growth of 1.6%. The Nielsen Growth Reporter also showed a stabilization of the volumes in Belgium in 2013.

• There were 7 289 stores in the universe in 2013. This is 96 stores less than in 2012. Between 2005 and 2013, the number of points of sale fell on average by 130 stores per year. Between 1995 and 2013, on the other hand, an average of 315 stores closed per year.

• The share of F1 declined by -0.1 points to 51.5% while opening 5 extra stores in 2013 bringing their total to 597 stores.

• F2 and Hard Discounters, on the other hand, gained market shares. F2 has a MS of 28% which represents an increase of +0.2 pts versus 2012. Hard Discount grew by +0.2 pts to 15.5% in Belgium. Noteworthy is that F2 (1312 stores) grew in share with 35 extra stores while Hard Discount (739 stores) increased their number of stores by 4 stores.

• The market share of F3 keeps on declining. In 2013 they lost -0.3 points to 5%. The number of stores also decreased to 4 641 stores (-140 stores vs 2012).

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 3.1 TURNOVER AND INFLATION Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 7.5 7.5 constantforpositiveremains fourpricethe firstin time year. effect turnoverthe evolutionat inflation, of2013. the eliminatingWhen Turnover Grocery ofthe Universe by toincreased+2.7% euro 24.5 billion in TURNOVER GROCERY '81 7.7 8.3 '82 7.7 8.9 '83 7.7 9.5 '84 7.7 '85 10 10.1 7.7 '86 10.4 7.8 '87 10.8 '88 8 UNIVERSE IN 11.3 8.1 '89 8.3 '90 12 12.5 8.4 '91 CurrentPrices 8.5 '92 13 Constant Prices: Prices excluding inflation Current Current Prices: Prices including inflation BILLIONS OFEURO 13.1 8.4 '93 13.5 8.5 '94 8.6 '95 14 14.3 8.7 '96 14.8 8.8 '97 Constant Prices (1981 100)= 15.3 '98 9 15.6

9.1 '99 '00 16 9

16.7

9.2 '01 17.4 9.4 '02 18.2 9.7 '03 18.9 9.8 '04 19.5 9.8 '05 20.3 '06 10

10.1 20.9 '07 21.7 '08 10 10.3 22.4 '09 10.3 22.8 '10 10.2 23.2 '11 10.2 23.9 '12 10.4 24.5 13 13

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. Inflation rateagain 2013 to in declined1.1%. INFLATION YEARPER 8.2% '82 '83 7.7% '84 6.3% '85 1.3% 4.9% '86 1.6% '87 1.2% '88

Source: Federal Public Service for Economy, the SME’s, Self 3.1% '89 3.5% '90 3.2% '91 2.4% '92 2.7% '93 2.0% '94 1.5% '95 2.1% '96 1.6% '97 1.0% '98 1.1% '99 2.6% '00

'01 - 2.5% employed employed and Energy 1.6% '02 1.6% '03 2.1% '04 2.8% '05 1.8%

'06 1.8% '07 4.5% '08 '09 2.2% 0.0% '10 3.5% '11 2.9% '12 1.1% 13 14

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. Jan- 1.3 2.7 2.9 4.9 12 2013. negativeand decreasingisthroughout Non hand, Food other the inflation, on Highestinflation rate reportedis Foodin first the of 2013. in half INFLATION TYPE PER PRODUCT/SERVICEOF Feb- 1.5 3.1 3.2 4.6 12 Mar- 1.4 2.8 3.4

12 4 Apr- 1.5 2.8 2.9 3.8 12 May- 1.6 2.7 2.8 3.3 12 Jun- 1.5 1.6 2.4 3.4 12 Jul- 3.4 1.6 1.8 2.3 12 Source: Federal Public Service for Economy, the SME’s, Self Aug- 3.5 1.6 2.5 3.1 12 Sep- 1.6 2.4 3.2 3.3 12 Oct- Food 3.7 1.5 2.2 3.3 12 Nov- 1.6 1.4 3.1 3.2 12 Dec- 1.6 1.3 3.1 3.2 12 NonFood Jan- 0.2 1.4 1.9 3.7 13

Feb- - 1.1 3.5 13 0.3 2 Mar- - 1.3 2.4 3.8 13 0.9 Apr- - 1.4 1.9 4.5 13 1.2 Services May- 1.1 2.3 4.7 13 - 1 - employed employed and Energy Jun- - 1.3 2.3 5.1 13 0.3 - Jul- 1.1 2.2 4.4 13 0.2 Aug- - 1.3 2.3 3.6 13 1.1 Rent Sep- - 1.2 2.5 3.3 13 1.3

Oct- - 1.3 2.4 2.6 13 1.5 Nov- - 1.4 2.2 2.7 13 1.1

Dec- - 1.5 2.3 2.7 13 0.8 Jan- - 1.9 2.8 14 0.5 2 Feb- - 1.1 2.2 2.4 14 0.3 Mar- - 0.6 2.2 2.3 14 0.2 Apr- - 14 1.4 1 2 3 15

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 1.2 '93 increasing by increasingby 1.6%. Eveneffect without the inflationof the at turnoverconstant is prices EVOLUTION TURNOVER GROCERY UNIVERSE VERSUS YEAR BEFORE - 1.5 2.8 '94 0.8 FixedPrices Current Prices 3.6 '95 2.1 2.3 '96 0.2 3.2 '97 1.6 3.8 '98

2.8 2.1 '99 1.0 2.0 '00 - 0.6 Current Current Prices: Prices including inflation 4.8 Fixed Prices: Prices excluding inflation '01 2.3 4.0 '02 2.4 4.9 '03 3.3 3.4 '04 1.3 3.3 '05 0.5

4.0

'06 2.2 3.0 '07

1.2 3.8 '08 - 0.7 3.2 '09 3.2 1.8 '10 - 0.4 2.1 '11 - 1.4 2.7 '12 - 0.1 2.7 '13 1.6 16

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. total expenditure. Foryear universethe grocerythe secondbecoming moreis important our in 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 et Spar (Lambrechts), Prima (Huyghebaert), Carrefour Express, Louis Delhaize (Group Louis Delhaize)), and all shops with a « traditional service » (e.g. night-shops »).

HARD DISCOUNTERS Aldi & Lidl

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 19 Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. universe. centralizedintense tomoreand due a in organisationdecades lastthe of the Thereare(steadily)289 7grocerystoredeclining is The number Belgium.in NUMBER OF STORES IN THE GROCERY UNIVERSE Evolution

previous year (%):

- 4%

- 2%

- 1%

- 2%

- 1%

- 2%

- 1%

- 3%

- 1%

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. storesyears lastthe stores(+5atsteady a pace 2013). in Theof 597consists large storesdistribution more scaledopening and is NUMBER OF F1 STORES: LARGE SCALE 481 '94 487 '95 497 '96 507 '97 511 '98 519 '99 517 '00 515 '01 DISTRIBUTION 523 '02 534 '03 555 '04 571 '05

583 '06 598 '07 582 '08 592 '09 586 '10

590 '11 592 '12 597 '13 21

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. total to1 312 stores (+35).in 2013 stores,yearsagain the last the increasing in bringing ismostly franchised, of F2 profitableshopsof less fromAfter 1995the number the closing to 2003 NUMBER OF F2 STORES: MEDIUM 1565 '94 1570 '95 1539 '96 1500 '97 1430 '98 1385 '99 - 1305 SIZED DISTRIBUTION '00 1273 '01 1249 '02

1169 '03 1166 '04 1174 '05

1196 '06 1179 '07 1206 '08 1228 '09 1239 '10 1250 '11 1277 '12 1312 '13 22

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. slowing year down. This4 extra shops were totheir total.added 2000. Today HardDiscountershave growthbut 739 stores rate Belgiumin is Hard Discounters storesopened ofat yearsrapidthe beginning a until pace NUMBER OF HARD DISCOUNT 278 '94 310 '95 333 '96 378 '97 401 '98 429 '99 STORES 450 '00 510 '01

536 '02 588 '03 607 '04 662 '05 693 '06 711 '07 719 '08 734 '09 735 '10 741 '11 735 '12 739 '13

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. inadequate sales and profit, leaving no profit, leavingno tofunds invest.and inadequate sales fromcompetition organizedincreasing in clear:F3 are supermarkets, aftertotal year their tobringing 4 641 storesfor 2013.in Reasons decline the groceryprofitablestoresstores storeslessF3 are Belgium. yearin closing of number forresponsible the declining primarily distribution is The small NUMBER OF F3 STORES 10642 '94 10585 '95 10325 '96

9859 '97 9178 '98 8343 '99 7619 '00 6894 '01 6462 '02 6338 '03 6206 '04 5919 '05 5667 '06 5529 '07 5414 '08 5266 '09

5100 '10 4988 '11 4781 '12 4641 '13 24

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. profit, leavingno tofunds invest.and sales fromarecompetitionorganizedincreasing clear: inadequate supermarkets, - In moresuperettes2013 doors stores:traditional than totheir close had NUMBER OF F3 STORES: 109 superettesversus SUPERETTES - 31 traditional stores. F3 31 traditionalin for Reasons decline the

AND TRADITIONAL STORES

3.3 MARKET SHARE BY SHOP TYPE Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 18.9 29.7 45.9 Share of the small distribution is declining year afteryear. yeardeclining is distribution Share small the of Hard F2(28.0%).Discountand (15.5%) attainsis, market however, a Importance shareof 51.5%. favorin declining of With only 597 storesnumber ofstores of the Grocery the Universe)(8%F1in MARKET SHARES BY SHOP 5.5 '85 14.2 31.4 46.8 7.6 '90 11.4 29.7 49.1 9.8 '95 TYPE 11.2 27.9 52.2 8.7 '00

12.4 27.6 52.0 7.9 '01 12.4 27.6 52.8 7.3 '02 F3 12.8 26.9 53.3 7.0 '03 HD

12.9 26.5 54.0 6.6 '04 F2 14.1 26.1 53.5 6.3 '05 F1 14.0 26.7 53.4 5.9 '06 14.6 26.0 53.3 6.1 '07 15.2 26.4 52.2 6.2 '08

15.1 26.6 52.3 '09 6 14.8 27.5 51.8 5.9 '10 27.4 51.9 5.7 '11 15 15.3 27.8 51.6 5.3 '12 15.5 51.5 '13 28 5 27

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. share. Theextra fivemarket on stores the have not influence positive 2013did a in The market100two last F1storesthe slightlyin shareyears.per declined F1: MARKET 10.1 '94 The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is 10.1 '95

'96 10 SHARES PER 9.9 '97 '98 10 to examine whether a given store remains equally important over time. 100 STORES 9.9 '99 10.1 '00 10.1 '01

10.1 '02 '03 10 9.7 '04 9.4 '05 9.2 '06 8.9 '07 '08 9

8.8 '09 8.8 '10 8.8 '11 pos sible 8.7 '12

8.6 '13 28

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. in in sevenyears. lastthe of oneaverageIn the importance F2, storeaftera statusdeclining alsoquo is F2: MARKET 1.9 '94 The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is 1.9 '95 1.9 '96 SHARES PER 100 1.9 '97 2.0 '98 2.0 '99

whether whether a given store remains equally important over time. STORES 2.1 '00 2.2 '01

2.2 '02 2.3 '03 2.3 '04 2.2 '05 2.2 '06 2.2 '07

2.2 '08 2.2 '09 2.2 '10 pos 2.2 '11 sible sible to examine 2.2 '12 2.1 '13 29

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. store stable. UnlikeHard F2,ableto DiscountF1keep & is of oneaverage importance the MARKET SHARES PER 100 HARD DISCOUNTERS 3.3 '94 The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is 3.2 '95 3.1 '96

2.8 '97 2.7 '98 2.5 '99 whether whether a given store remains equally important over time. 2.5 '00 2.4 '01 2.3 '02 2.2 '03

2.1 '04 2.1 '05 2.0 '06 2.1 '07

2.1 '08 2.1 '09 2.0 '10 pos 2.0 '11 sible sible to examine 2.1 '12 2.1 '13 30

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. The market100 F3stores shareperlow remainsstable but overtime. MARKET SHARES PER 100 F3 STORES 0.1 '94 The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is 0.1 '95 0.1 '96 0.1 '97 0.1 '98 0.1 '99 whether whether a given store remains equally important over time. 0.1 '00 0.1 '01

0.1 '02 0.1 '03 0.1 '04 0.1 '05 0.1 '06 0.1 '07 0.1 '08

0.1 '09 0.1 '10 0.1 '11 pos sible sible to examine 0.1 '12

0.1 '13 31

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. (Sunday openings, etc.)are able tocreate added value and hence remain competitive. as a number pointsof of saleare loss F3 storeonlyhad a turnoverof 266000 EUR. It is notsurprising thatsome stores have toclose An average F1storemakes four timesthe turnoverreached F2 in and Hard Discount.An average TURNOVER STOREPER IN 1000 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Average Store 3 069 2 971 2 860 2 736 2 604 2 489 2 340 2 210 2 114 3 365 3 232

EUR

- 20442 20122 19775 19440 18638 18572 18249 18342 18209 21139 20820 making. Only thosestores thatoffer something specific F1

5 086 5 045 4 845 4 744 4 594 4 519 4 290 4 195 5 242 5 194 4 3404 F2

4 698 4 595 4 585 4 576 4 299 4 098 4 148 4 006 3 966 5 139 4 973 HD

266 263 267 263 255 249 229 210 207 200 202 F3

3.4 SALES SURFACE Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. surfaceis howeverfar greater at F2.at F1 than storeF1 F2 and havetypes Per largestthe surface.store,total sales sales the surfaceTheuniverse grocery the in total Thestandssales m².at 3.55 million SALES SURFACE IN 2013 Hard Discount F3 Stores F2 Stores F1 Stores Total

Sales surface area Salesarea surface 3349 550 1699 133 1767 207 765483 443400 (m²)

Number of stores ofNumber 7 289 4 641 1 312 739 597

Averagesurface sales (m²) (m²) per store 2 023 165 600 864

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. per m². Turnoveris perhighest them²F1. in Hard Discount also scores verywell turnoverin sharesurfaceturnover.inselling in than the totalsurface.turnoverhavehand,salesotherthethefar in than F3, on a greater total salessurfacetotal theand turnover.HardDiscount weighssomewhatheavier in sharetotal the of turnovergrocerythe inuniverse. a comparablehasF2 share theof The sharetotal theof surface salesbyis F1 occupied significantly the smallerthan SALES SURFACE IN 2013

HardDiscount F2 Stores F1 Stores

Sharesurface of sales area (%) 22% 12% 32% 34%

Share of total turnover (%)turnover 16% 28% 52% 5%

Turnover per m² (in euro) 10 449 1 610 8 565 6 066

3.5 DISCOUNTERS IN BELGIUM Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. TYPES DISCOUNTERSOF IN BELGIUM – – – Features: • • • • Chains: SOFT DISCOUNTERS Central(*) Cash Intermarché Profi Colruyt

Virtually all product groups on sale productallongroups Virtually brands nationalproductsexclusiveandand Focus genericbrands,on own Low prices /

Smatch

(*) (*) Dial, Eda and Central Cash have been closed since and1998, 20002002

– – – Features: • • • • Chains: HARD DISCOUNTERS Eda Dial (*) Lidl Aldi Limitedrange brands Focus exclusivebrandson ownand Low prices

(*)

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. Marketgrew2012!).sharealso vs(+0.9pt to 42.6% The ofdiscountstores number again shops. 2013increased to in 1 132 DISCOUNT STORES Market Share Stores Discount Number Number of Discount Stores 26.5% '98 '98 805 27.3% '99 '99 843 27.8% '00 '00

815 29.5% '01 '01 874

30.5%

'02 '02 891 31.2% '03 '03 881 32.4% '04 '04 911 34.4% '05 '05 981 35.2% 1020 '06 '06 36.6% 1051 '07 '07 38.4% 1064 '08 '08

39.3% 1086 '09 '09 40.2% 1101 '10 '10 41.0% 1117 '11 '11 41.7% 1114 '12 '12 42.6% 1132 '13 '13 38

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. Market Share per type of Discounter(%) Number of Stores per type of Discounter Total Total Hard Hard Soft Soft Both DiscounterHard stores Softopened & and gained marketshare 2013. in DISCOUNT STORES PER TYPE

2004 2004 32.4 12.9 19.5 607 304 911

2005 2005 34.4 14.1 20.3 662 319 981

1 020 2006 2006 35.2 14.0 21.2

693 327

1 051 2007 2007 36.6 14.6 22.0 711 340

1 064 2008 2008 38.4 15.2 23.2 719 345

1 086 2009 2009 39.3 15.1 24.2 734 352

1 101 2010 2010 40.2 14.8 25.4 735 366

1 117 2011 2011 41.0 15.0 26.0 741 376

1 114 2012 2012 41.7 15.3 26.4 735 379

2013 2013 1132 42.6 15.5 27.1 739 393

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

41 Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. slightly smaller. Turnovergrowing isgrowth East regions. all in Although South the in is EVOLUTION TURNOVER FOOD UNIVERSE PER AREA IN 2013 VS 2012 Current Current prices 2.9% area 1 area 1.8%

Fixedprices 2.9% area 2 area 1.8% Current Current Prices: Prices including inflation Fixed Prices: Prices excluding inflation 2.8% area 3 area 1.7%

2.7% area4 1.6%

2.3% area 5 area 1.2% 42

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. universe. bakeries,etc.) consumers and moreshop oftenstoresin grocerytheNielsenoutside North, therearefar specialistand(fishmongers, more businesses independent InconsumersSouth, the mainly stores ingrocerythe shopin universe. includedIn the turnoverthesharehigher ispopulation.than theof termscontrastThis population.in of is South(Area share wheretheto5) of 4 and the InNorth(Area theshare2) theterms andin 1 of turnover is lowertheshare than in EVOLUTION IN TURNOVER, NUMBER OF STORESAND POPULATION IN 2013 Area 5 Area 4 Area 3 Area 2 Area 1 Total Belgium

Turnover 24 527 ( 4 360 4 322 2 783 7 291 5 771 mio

€ )

100.0% 17.8% 17.6% 11.3% 29.7% 23.5% %

Number Number of 1 107 1 167 2 200 2 061 7 289 stores 754

100.0% 15.2% 16.0% 10.3% 30.2% 28.3%

Population 11 100 (in 000) 1 850 1 721 1 349 3 537 2 643

100.0% 16.7% 15.5% 12.1% 31.9% 23.8% %

Total relativelymorerepresented in Area5. Area4 and more2. stores Area F3 & However,in F2 1 and Area is (F1)large distribution Thereare theremoreare far strikinglystores South: the in than North the in NUMBER OF STORES AND EVOLUTION PER HD universe F1 F2 F3

Total Belgium 4 641 1 312 7 289 - 739 597 - 140 35 96 4 5

Area 1 2 061 1 356 189 414 102 - - 15 - 39 25 1 2

AREA Area 2 1 388 2 200 249 414 149 - - 20 43 16 5 2

Area 3 555 754 45 77 77 - 4 0 1 4 1

Area 4 1 167 741 119 156 151 - - 41 36 1 3 1

Area 5 1 107 601 137 251 118 - - - 21 23 0 0 2

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. Discount South. the in North than more importantin is the & Hard over,MoreDiscountof F3. gainingareshareat expensethe Hard alsovery isimportant.F2 F2 (32.3%) to F1 In (45.2%),in North, addition the NORTH: 10.1 37.4 33.6 '89 19 16.8 39.6 33.8 '90 9.7 16.3 34.8 '91 9.8 39 MARKET SHARESBY SHOP TYPE 15.4 10.6 37.8 36.4 '92 11.3 36.7 '93 15 37 14.5 11.8 36.3 37.5 '94 13.7 12.6 34.7 39.1 '95 12.9 13.2 33.8 '96 40 12.2 13.3 33.5 '97 41 F3 11.6 13.3 33.1 '98 42 10.9 13.7 32.9 42.5 '99 HardDiscounters

10.3 13.6 32.7 43.4 '00 North 14.8 32.1 '01 9.3 44 14.7 31.9 44.9 '02 8.5 15.2 30.9 45.5 '03 8.3 F2 15.4 30.9 45.8 '04 7.9 F1 16.6 30.7 45.5 '05 7.2 16.3 31.2 45.8 '06 6.6 16.9 30.1 46.2 '07 6.7 16.9 30.6 45.7 '08 6.8

16.6 30.8 '09 6.5 46 16.5 31.7 45.4 '10 6.4 16.8 31.5 45.5 '11 6.2 17.3 31.9 45.2 '12 5.6 17.4 32.3 45.2 '13 5.2 45

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15.4 12.5 68.6 gainingis but rapidlyBrussels 2013.in sharein smallesttwo last the in years. the declining has Hard (7.3%) Discount the shareisalthough (69.0%)dominated by F1clearly chains is Brussels BRUSSELS: '89 3.6 14.8 12.1 69.5 '90 3.6 14.1 11.5 70.9 '91 3.4 MARKET SHARES BY SHOP 13.7 11.4 70.8 '92 4.0 12.5 12.3 71.5 '93 3.6 12.3 12.4 71.7 '94 3.6 11.9 11.9 72.2 '95 4.0 11.3 11.6 73.2 '96 3.9 10.5 11.1 73.4 '97 5.0 F3 10.1 75.1 '98 5.0 9.7 10.2 75.0 '99 TYPE 9.8 5.0 Hard DiscountersHard 10.6 75.2 '00 8.9 5.3 Brussels

10.9 74.7 '01 8.3 6.1

11.0 74.7 '02 7.5 6.7 12.0 73.8 '03 7.3 7.0 F2 12.4 73.5 '04 6.7 7.4 F1 12.3 72.6 '05 6.9 8.1 12.9 72.1 '06 7.0 8.0 12.7 71.5 '07 8.0 7.8 12.9 71.2 '08 8.3 7.6 13.4 70.8 '09 7.8 8.0 14.1 70.0 '10 7.9 8.0 14.5 70.3 '11 8.1 7.1 15.3 69.7 '12 8.1 6.9 15.2 69.0 '13 8.5 7.3 46

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. share. are(25.8%)gaining and F2 South. Hardperformance Discountin (15.3%)the the However,North. to negativedue the in Belgium shareloosing F1 is more importantis in distributionthan In the large (55.3%)South, scaled the SOUTH: 11.3 27.2 55.7 5.8 89 10.3 27.6 55.9 6.2 90 28.2 55.8

9.6 6.5 91 MARKET SHARESBY SHOP TYPE 28.4 55.9 8.9 6.7 92 28.1 55.5 8.9 7.5 93 28.6 55.1 8.6 7.8 94 29.3 54.6 8.1 8.1 95 29.1 54.8 7.7 8.3 96 28.1 55.3 7.4 9.2 97 F3 28.2 55.5 7.2 9.1 98 27.8 56.2 7.0 9.0 99 HardDiscounters

27.3 56.5 '00 6.5 9.7 South 11.3 27.3 55.6 '01 5.9 11.1 27.1 56.4 '02 5.5 11.4 26.4 57.1 '03 5.1 F2 11.2 25.2 58.8 '04 4.8 F1 12.6 24.3 58.3 '05 4.7 12.7 24.7 58.3 '06 4.4 13.6 24.3 57.6 '07 4.5 15.1 24.7 55.4 '08 4.8 15.0 24.8 55.6 '09 4.6 14.7 25.6 55.3 '10 4.5 14.8 25.4 55.4 '11 4.4 15.0 25.6 55.5 '12 3.9 15.3 25.8 55.3 '13 3.7 47

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. storeper turnover higher a has to North. compared the F2 In South, the Sunday ready meals. and openings storesand late hours,opening other early of the successfulamong because convenience canexplained F3 superettesthe highly by arewhich be record F1F3 and In the highestperturnover store. Brussels, of F3 resultsThe AVERAGE TURNOVER PER STORE 1000 (IN EUR South Brussels North

17 842 24 949 23 503 F1

5 175 4 490 5 185

)

5 505 5 500 5 088 F2

427 236 247 F3

3.7 PRIVATE LABELS Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. privatelabel. yearsgaining isshare PL turnoveragain. thewas of FMCG In34% 2013, in realized by Private labelshave valuetheirseensharetriple 1985. Especially since thelastinthree SHARE OF PRIVATE LABEL IN BELGIUM 13.3 '85 14.3 '86 14.7 '87 15.8 '88

16.2 '89 16.8 '90 17.8 '91 Definition Definition private labels = 19.2 '92 20.3 '93 21.9 brands that bear the name of the store or the retailer '94 24.3 '95

25.5 '96 Generic Generic brands, exclusive brands (sold Aldi at and Lidl), 26.8 '97 27.9 '98 27.7 '99 28.2 '00 29.2 '01 29.1 '02 29.2 '03 29.7 '04

30.4 '05 29.8 '06 30.1

'07 31.2 '08 31.2 '09 31.7 '10 33.0 '11 33.7 '12 34.4 '13 50

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. and confectionery,sharehand,thetheother privateof on relativelyislabel low. toastfrozen and products,private also havelabelsshare.alcoholica high In beverages Two SHARE OF PRIVATE LABEL PRODUCTPER - thirds of theturnoverfor fresh productscomes from private Inlabels. bakery & 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 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. 55 Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. same time the volumestableindex Europe. remainedin the timesame In the valueindex2013 keeps previous the asyears. in increasingon At the EUROPE: FMCG DEVELOPMENT INDEX (BASE 100 = 2006)

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. -1% 0% 1% 2% 3% 4% 5% 6% In In Europe volume no lastgrowthtwonoted in isyears.the FMCG TRENDS PER YEAR AND PER QUARTER IN EUROPE 3.4% 0.9% 4.3% 2011 3.6% 0.0% 3.6% 2012 - 2.6% 2.5% 0.1% 2013 Average price Averageprice change 0.7% 5.2% 4.5% Q4'11 Source: Nielsen Growth Reporter 4.5% 0.2% 4.7% Q1'12 Volume change Volume - 4.2% 3.4% Q2'12 0.8% - 3.5% 3.1% Q3'12 0.4%

- 3.0% 2.8% Q4'12 0.2% Nominal Nominal growth 3.1% 0.2% 3.3% Q1'13

- 2.7% 1.2% Q2'13 1.5% 2.8% 0.2% 3.0% Q3'13 - 2.3% 1.7% Q4'13 0.6% 57

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. evolution 2013. in Only Turkey,Norway, Sweden and Switzerland volumenoted positive a FMCG TRENDS PER COUNTRY IN 2013 VS 2012 - 2.0% - 0% 2% - 1.0% - 3% 4% - 1.0% - 0% 1% - 1.0% - 3% 4% 0.0% - 1% 1%

Unit Unit value 0.0% - 4% 3% 1.0% 0% 1.0% - 3% 3% Source: Nielsen Growth Reporter 1.0% 2% 0% Volume growth Volume 1.0% 1% 0%

2.0% 1% 1% 2.0% - 3% 2%

2.0% - 3% 1% Nominal Growth Nominal Value 2.0% 2% 0% 2.0% - 3% 1% 3.0% - 3% 1% 3.0% 0% 3% 4.0% 2% 1% 4.0% 4% 0% 4.0% 4% 0% 11.0% 7% 4% 58

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. accountedforthismaintaining market of the share market shareoverThe time. HardDiscounters tobelong thissegment)have(which and LargeSupermarkets. SmallSupermarketsThe havemanaged to maintain their SuperettesTraditionaland stores favourinespeciallyare declining Hypermarkets the of Retail Europelandscapeinremains stable over thelast years. 1980 thesmallest Since MARKET SHARES BY SHOP TYPE IN EUROPE

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. NetherlandshavehighestLargethesharein Supermarkets. FrancehavetheUKand dominated beenby hypermarkets for years.theand Belgium MARKET SHARES BY SHOP TYPES PER COUNTRY IN 2012

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. number storesof perhabitant of which a verylarge number ofsmall supermarkets. Belgium holds thesixth placetotal in Norway, Austria,Denmark and Germany havethe highestnumber ofstores per million habitants NUMBER OF STORES PER MILLION HABITANTS IN 2012

Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. Belgianretailer Delhaize remainsGrouptopthe25. in however, droppedfrom secondplaceto fourth place. growthsecondmajor butplace for Costco from tofifthCarrefour, third place. Wal TOP GLOBAL FOOD RETAILERS - 10 Mart remainstheworld’s biggestgrocery retailer. Tesco movedfromup thirdto 8 7 6 5 4 3 2 1 9

The table constitutes a league table of the international top grocery retailers, based the on turnover they achieved in 2012. Aeon CO.,Ltd. Target Corp. Aldi Metro AG Schwarz The KrogerCo. Carrefour S.A. CostcoWholesaleCrop. Tesco Wal -

Einkauf Mart Mart Stores, Inc. plc Unternehmens

GmbH & Co.GmbH

Retailer

Truehand oHG

2012 Source: Deloitte “2014Global Powers of Retailing”

KG )

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

$ billion (2011) $ billion Turnover US in

Retail 101.3 469.2 63.1 72.0 73.0 85.8 87.2 96.8 98.8 99.1

countries of Number Number of operation 10 17 32 26 31 13 28 1 1 9

Delhaize Group SA LimitedLoblaw companies Alimentation Couche ITM J Sainsbury Koninklijk Safeway Inc. Centres Rewe Casino Wesfarmers Limited Edeka Seven & Woolworths Limited Groupe The table constitutes a league table of the international top grocery retailers, based the on turnover they achieved in 2012. Développement

Combine Zentrale Guichard

Auchan Distributeurs i

Holdings Co., Ltd.Co., Holdings Ahold plc

AG & Co. KGCo.AG&

SA -

Perrachon NV Retailer

- International E.Leclerc TardInc.

2012 (2) S.A.

Source: Deloitte “201’Global Powers of Retailing”

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

$ billion (2011)$ billion Turnover US in Retail

29.2 31.0 32.9 35.8 36.8 42.2 43.3 44.8 49.0 53.4 54.2 55.9 58.3 58.6 59.0

countries of Number Number of operation 11 19 12 11 26 18 13 2 8 1 3 7 2 1 2

4.2 DISCOUNTERS IN EUROPE Nielsen Grocery Universe 2014 │ Copyright ©2014 The Nielsen Company. Confidential and proprietary. accountfor turnover.of the 43% toDiscountcomparisonstores this, whereveryarestrongthey Belgium in The marketshareof discountstores 20% Europe in 2012.In in reached MARKET SHARE DISCOUNTERS IN EUROPE 10.1% 1991 11.4% 1992 12.4% 1993 13.8% 1994 14.9% 1995 15.4% 1996 15.9% 1997 16.1% 1998 16.2% 1999 16.0% 2000

15.8% 2001 Discounters 17.4% 2002 18.2% 2003 18.9% 2004 19.1% 2005 18.0% 2006 18.5% 2007 19.4% 2008 19.2% 2009 18.7% 2010 19.4% 2011 20.0% 2012 65

11.4% 14.0%

7.7%

10.9% 41.3% 19.9%

18.9%

36.6%

56.9%

41.1%

11.1%

27.3%

15.7% 25.7%

18.4% 22.7% 17.7% 16.4%

15.6%

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 i-reports 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.

Nielsen services offer a wide range of ad-hoc solutions; starting from special tracking, in depth analysis to complete marketing models. They are a perfect supplement to clients’ ScanTrack data, enabling them to extend their analysis to another level and providing them with the necessary input to make solid marketing decisions.

• Weekend Out-Of-Stock: surveys executed during a number of key weekends (both on Friday and Saturday) and provide a view of the stock-status, the refill percentage and facings of products at retailers.

• Store observations: service to verify or track a certain parameter (e.g. special promotion, extra shelf space, type of displays, …) within a predefined number of retailers).

• On Trade: information about products in pubs and dancings.

• Store Explorer: study based on re-clustering of stores based on assortment, introduction, type of promotion,…

• Store Testing: evaluation of the impact of changing one of the marketing mix elements in a real life environment (a limited number of test stores).

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.)

• Assortman identifies saturated/expansion segments of a category, products that maximise performance of the category and simulates future scenarios in terms of assortment, in line with clients’ needs and wishes.

• Assortman Promo conducts an in-depth study of promotional pressure and analyses the optimal spread of this pressure over the various categories and segments.

• Scan*Pro Promo conducts an in-depth study of promotions and gives clients crucial information on promotional impact and effectiveness, and on loss of market share etc., both from a reference point of view, and from a brand and category point of view.

• Scan*Pro Price calculates the price elasticity's at the absolute price level and the price differences between competitor’s products and a client’s products.

• Market Forecast forecasts clients’ future sales at category and at total market level.

• Out of Stock Diagnosis conducts an in-depth study of the out of stock issue and calculates the lost sales volume.

• Due to analysis provides marketers with a strategic understanding of the factors which drive sales (distribution, weather and seasonality, macro-economic changes,…)

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

Nexium 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.

Nexium 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.

74 NIELSEN INTERNATIONAL SOLUTIONS

International solutions The Nielsen International Solutions 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 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 helps our clients transform local overnight ratings data into a marketplace advantage and more efficiently meet the daily needs of Management, Research and Sales

77 ADVERTISING INFORMATION SERVICES (AIS)

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 file in any format required by the end users’ chosen analysis software application

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