Grocery Universe 2016 Results of the 54Th Inventory of Retail Grocery in Belgium, Drawn up by Nielsen

GROCERY UNIVERSE 2016 RESULTS OF THE 54TH 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 2015 3. The Nielsen Grocery Universe 3.1 Turnover and inflation 3.2 Number of stores 3.3 Market share by Shop Type 3.4 Sales surface 3.5 Discounters in Belgium 3.6 Regional characteristics 3.7 Private labels 4. Retailing in Europe 4.1 International Shop Types 4.2 Discounters in Europe 5. The Nielsen Services

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

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

This overview represents the results of the 54th inventory of the world of retail grocery sector, drawn up every year by Nielsen.

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 4 2. THE ECONOMY & RETAIL IN 2015 Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. Microsoft introducesMicrosoft Refugeeroilscrisis Windows10 EU

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Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. remained steady.remained grownturnoverThe has inflation.volumeby toThe the price thanks +1.2% BELGIUM: THE NIELSEN BAROMETEREVOLUTION Food& NonFood % 2011 vs 20102011% 2012% 2013% vs 20132014% vs 20142015% FMCG: vs vs

2011 2012

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

SalesValue of of FMCG products in the retail sector in Belgium +3.2% +2.2% +2.2% +2.4% +1.2%

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

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

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. performance on Q2 and Q4. on and Q2 performance drivesthe mix price 2015increase.Thevolume Q3 show a Q1 and BELGIUM: FMCG TRENDS PER YEAR AND PER QUARTER -2% -1% 0% 1% 2% 3% 4% 5% 6% 2.2% 2.2% 2013 1.2% 1.2% 2.4% 2014 1.2% 1.2% 2015 Average price change price Average

Q1'14 1.0% 1.7% 2.7% Source: Source: Nielsen Growth Reporter 2.0% Q2'14 3.7% Volume Volume change 5.7% - Q3'14 1.4% 0.8% 0.6%

- Q4'14 0.3% 0.2% 0.1% Nominal growth Nominal Q1'15 0.3% 1.4% 1.7% - Q2'15 0.4% 0.3% 0.1% Q3'15 1.5% 0.2% 1.7% - Q4'15 1.5% 2.3% 0.8% 8

3. NIELSEN GROCERY UNIVERSE 2015

DEFINITION OF THE GROCERY UNIVERSE

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

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

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

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

• The turnover of the Grocery Universe rose to EUR 25.5 billion in 2015. This means a +2.4% increase compared to the year before. In 2015, the inflation rate was 0.6%, which is higher than in 2014. This means that the turnover in constant has grown by 1.9%.

• There were 7 161 stores in the universe in 2015. This is 42 stores less than 2014. Between 2005 and 2015, the number of points of sale fell on average by 116 stores per year. Between 1995 and 2015, on the other hand, an average of 290 stores closed per year.

• The share of F1 declined slightly by -0.4pt to 49.9% with the closing of 4 stores, bringing their total to 605 stores in 2015.

• F2 has increased its market share up to 29.6% which represents an increase of +0.8pt versus 2014. F2 opened 24 new shops (1344 in total)

• Hard Discount lost -0.4pt to a 15.7% market share in Belgium. Its number of shops has decreased as well to 735 shops (-2 stores versus 2014).

• The market share of F3 keeps on declining. In 2015 they lost -0.1 points to 4.7%. The number of stores also decreased to 4 477 stores (-60 stores vs 2014).

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 11 3.1 TURNOVER AND INFLATION Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. '90 12 12 constantpositive.remainsprice effect turnoverthe evolutionat inflation, of the eliminating2015.When Turnover Groceryof the Universe by toincreased+2.4% euro 25.6 billion in TURNOVER GROCERY 12.1 12.5 '91 12.3 '92 13 12.1 13.1 '93 12.2 13.5 '94 12.5 '95 14 12.5 14.3 UNIVERSE IN '96 12.7 14.8 '97 13.0 15.3 '98 Current Prices Current 13.2 15.6 '99 Constant Prices: Prices excluding inflation Current Current Prices: Prices including inflation BILLIONS OFEURO 13.1 '00 16 13.4 16.7

'01 13.7 17.4 '02 Constant Prices (1981 = 100) Prices Constant 14.2 18.2 '03 14.3 18.9 '04

14.4 19.5 '05 14.7 20.3 '06

14.9 20.9 '07 14.8 21.7 '08 15.3 22.4 '09 15.2 22.8 '10 15.0 23.2 '11 15.0 23.9 '12 15.2 24.5 13 15.5 25 14 15.8 25.6 15 13

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 2015. 0.6% in inflationThe rate overyears decreasedthe pasthas globally reached and INFLATION YEARPER 8.2% '82 '83 7.7% '84 6.3% '85 1.3% 4.9% '86 1.6% '87

1.2% '88 3.1%

'89 Source: Federal Public Service for Economy, the SME’s, Self 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% 1.6% '02 1.6% - employed employed and Energy '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 '12 2.9% 13 1.1% 0.3% 14 0.6% 15 14

Jan-14 negative.and decreasinghas been Foodrecovered inflation Non hand, over 2015.On other the 2015.in inflationHighest rate in Services noticed is INFLATION TYPE PER PRODUCT/SERVICEOF Rent Services Food Non Food - 2.2 2.4 1.1 Feb-14 0.3 - 0.6 2.2 2.3 Mar-14 0.2 - 3.0 1.0 2.0 Apr-14 1.4 - 0.3 2.0 2.0 May-14 1.2 - 0.3 2.1 2.1 1.1

Source: Federal Public Service for Economy, the SME’s, Self Jun-14 - 0.4 2.2 2.8 Jul-14 1.2 - - 2.2 2.5 Aug-14 1.4 0.7 - - 2.3 2.5 Sep-14 1.5 1.1 - - 2.5 2.7 Oct-14 1.3 1.2 - - 2.3 2.6 1.5 0.9

Nov-14 - - 2.6 2.6 Dec-14 2.0 0.7 - - 2.8 3.0 Jan-15 3.1 0.2 - 0.2 2.9 3.6 Feb-15 2.8 - employed employed and Energy - 0.3 2.9 3.2 Mar-15 2.2 - 3.7 1.9 3.0

Apr-15 2.6 - 1.6 2.9 3.9 May-15 2.1 - 1.8 3.1 4.3

Jun-15 1.9 - Food inflation - 1.3 3.7 4.9 Jul-15 2.1 - 1.0 3.1 5.1 Aug-15 2.0 - 0.9 3.1 4.7 Sep-15 1.5 - 1.8 3.2 5.4 Oct-15 1.6 - 1.9 3.4 5.4 Nov-15 1.4 - 1.7 3.4 5.5 1.7 15 Dec-15

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 2.3 '96 increased by by 1.9%. increased Eveneffect without the inflation,atof the turnover constant has prices EVOLUTION TURNOVER GROCERY UNIVERSE VERSUS YEAR BEFORE 0.2 3.2 '97 1.6 Fixed PricesFixed CurrentPrices 3.8 '98 2.8 2.1 '99 1.0 2.0 '00 - 0.6 4.8

'01 2.3 4.0 '02 2.4 4.9 '03 3.3 Current Current Prices: Prices including inflation Fixed Prices: Prices excluding inflation 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 2.0 '14 1.7 2.4 '15 1.9 16

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 100 150 200 50 0 totalin importantour expenditure. pastOver3 years, the universethe grocery more becomehas slightly FOOD UNIVERSE MARKET SHARES IN TOTAL PRIVATE 14.7 48.3 80 13.5 88.6 90 12.3 141.3 '02 Private Consumption (in milj. EUR) milj. (in Consumption Private 144.6 12.6 '03 Source: National Bank of Belgium 12.5 150.5 '04 12.5 156.2 '05

12.4 163.6 '06 12.2 171.1 '07 -

Nielsen Food Universe CONSUMPTION 12.0 180.2 MS Food Universe in Private Consumption (%) Consumption Private Food in MS Universe '08 179.8 12.4 '09 12.1 188.1

'10

11.9 195.1 '11 11.9 200.9 '12 12.0 204.0 '13 12.1 207.3 '14 210.7 12.2 15 11 12 13 14 15 17

3.2 NUMBER OF STORES

BELGIUM | RETAIL UNIVERSE Definition Shop Types

F1 : LARGE DISTRIBUTION, HYPERMARKET (Limited Panel) © Nielsen Food Universe 2015 Universe Food Nielsen © • CARREFOUR GROUP BELGIUM : Carrefour Hyper, Carrefour Market, Mestdagh Group • COLRUYT GROUP : Colruyt • DELHAIZE GROUP : Delhaize Supermarket • LOUIS DELHAIZE GROUP : Match, Cora* F2 : AVERAGE SIZE DISTRIBUTION, SUPERMARKET • CARREFOUR GROUP BELGIUM: Carrefour Market (Franchise) Open Market • COLRUYT GROUP : Spar Retail (Retail Partners Colruyt Group), Okay = • DELHAIZE GROUP : AD Delhaize, Proxy Delhaize, Red Market F1 + F2 + F3 • INTERMARCHE GROUP : Intermarché • LOUIS DELHAIZE GROUP : Smatch • Other Supermarkets from 400m² F3 : SMALL DISTRIBUTION All self service shops with a selling surface of less than 400m² (e.g. Spar (Retail Partners Colruyt Group), Carrefour Express, Supra et Spar (Lambrechts), Louis Delhaize (Louis Delhaize Group) not included above), and all shops with a “traditional service” (e.g. night-shops”).

HD : HARD DISCOUNTERS Aldi & Lidl

* CORA is included in F1 in the Food Universe and in F0 in scanning ! 19 Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. centralizedorganisation universe.of the and moreof a intensebecauseoverdecades lastthe decreased (steadily) areThere161 7grocerystores( Belgiumin NUMBER OF STORES IN THE GROCERY UNIVERSE 13.8 '90 Evolution 13.0 '95 vs

previous year (%): 9.9 '00 9.2 '01 8.8 '02

- 2% 8.6 '03

- 8.5 '04 1%

8.3 '05 - 2%

8.1 '06 - 2% -

42 stores).has 42 number The 8.0 '07 - 1%

7.9 '08 - 1%

7.8 '09 - 1% 7.7 '10

- 2% 7.6 '11

- 1% 7.4 '12

- 7.3 13 3%

7.2 14 - 1%

7.2 15 - 1%

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. more and fewmoremoreand shops over pastthe 4 stores years, closed 2015. in has largeof 605consists storesThedistribution scaledafterand, having opened NUMBER OF F1 STORES: LARGE SCALE 487 '95 497 '96 507 '97 511 '98 519 '99 517 '00 515 '01 523 '02 DISTRIBUTION 534 '03 555 '04 571 '05 583 '06

598 '07 582 '08 592 '09 586 '10 590 '11 592 '12 597 '13 609 '14 605 '15

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. totalto 1 344 stores (+24).in 2015 overpast yearsthe the bringing increasedF2 storeshas (mostly franchised) profitableshopsof less fromof the number 1996the closing to 2004,After NUMBER OF F2 STORES: MEDIUM 1570 '95 1539 '96 1500 '97 1430 '98 1385 '99 1305 '00 1273 '01 - SIZED DISTRIBUTION 1249 '02 1169 '03 1166 '04

1174 '05 1196 '06 1179 '07

1206 '08 1228 '09 1239 '10 1250 '11 1277 '12 1312 '13 1320 '14 1344 '15 22

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. Belgium. They haveBelgium. compared2 shops lostto 2014. over2015.slightlydeclinedToday Hard Discountershave735 stores in growththe rate2010, ofyears 2000.Since down beginning and slowedhas number ofHard DiscountTheoverstores the sharply increased has NUMBER OF HARD DISCOUNT 310 '95 333 '96 378 '97 401 '98 429 '99 450 '00 STORES 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 '13 737 '14 735 '15 23

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. and profit, no funds to invest.profit,and no funds fromcompetition organizedincreasingF3 : salessupermarkets,inadequate profitable.They amountedto4 477 stores for 2015. in Reasonsin decline the storesstorestheygroceryless areF3 becausetend Belgium. down in to close retailerssmallThefirstare of the reasontonumber explain declining the NUMBER OF F3 STORES 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 4537 '14 4477 '15 24

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. of funds toinvest the lack decline.explain F3 the profitand and salesofinadequate supermarkets,competition increasingThe moreIn traditional2015 stores ( NUMBER OF F3 STORES: 8193 2392 '95 7833 2492 '96 7326 2533 '97 2545 6633 '98 5841 2502 '99 SUPERETTES 5252 2367 '00 4715 2179 '01 4375 2087 '02

AND TRADITIONAL STORES 4205 2133 '03 - 40) than superettesthan ( 40) 4129 2077 '04 3972 1947 '05 3780 1887 '06 3590 1939 '07 3479 1935

'08

3342 1924 '09 - 15) closed down. closed 15) 3217 1883 '10 3168 1820 '11 3148 1633 '12 Traditional Service Traditional Superettes 3117 1524 '13 3054 1483 14

3009 1468 15 25

3.3 MARKET SHARE BY SHOP TYPE Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 18.9 29.7 45.9 overlastdecade. the increasedhas steadycompared haveand HD to 2014. F3 ofF2that lost to the benefit MS marketa 49.9%relatively remained F1 has GroceryUniverse)shareand Evenif they605 storesown ofstores only number of the the (8.4%in 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 11.2 27.9 52.2 TYPE 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 12.9 26.5 54.0 6.6 '04

HD 14.1 26.1 53.5 6.3 '05 F2 14.0 26.7 53.4 5.9 '06 14.6 26.0 53.3 6.1 '07 F1 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 16.1 28.8 50.3 4.8 '14 15.7 29.6 49.9 4.7 '15 27

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. than it was 2014.in it than important storesless100 2015isper in lossMS over 2014.The especially F1 marketTheoverpast shareperdeclining 100stores4 years, the has been F1: MARKET 10.1 '94 10.1 The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is '95 '96 10 SHARES PER 9.9 '97 '98 10 9.9 '99

to examine whether a given store remains equally important over time. 100 STORES 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 8.7 '12 8.6 '13 pos 8.3 '14 sible

8.2 '15 28

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. the past 10 years. pastthe forMS 2013,theF2 100in stores losssteadyhas remainedoverMS a Despite 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 2.1 '00 whether whether a given store remains equally important over time. STORES 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 2.2 '11 2.2 '12 pos 2.1 '13 sible sible to examine 2.2 '14 2.2 '15 29

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. ratherthen. steadysince 100has remainedHard storesuntil DiscountThe 2006MS per but declined 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 2.5 '00 whether whether a given store remains equally important over time.

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 2.0 '11 2.1 '12 pos 2.1 '13 sible sible to examine 2.2 '14 2.1 '15 30

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. The F3 marketThe shareper 100stores lowremainsstable but overtime. MARKET SHARES PER 100 F3 STORES 0.1 '95 The market share per store indicates the importance of one average store. the So effect of openings is neutralised and it is 0.1 '96 0.1 '97 0.1 '98 0.1 '99 0.1 '00 0.1 '01 whether whether a given store remains equally important over time. 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 0.1 '12 pos 0.1 '13 sible sible to examine 0.1 '14

0.1 '15 31

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. areable tocreate added value and keep up withthe competition. down becauselossof Discount. F3 shops havean average turnover270 000EURof only. They oftenhave toclose In average a F1shop generatesfourtimes the turnovergenerated by a F2 shoporby Hard TURNOVER PER STORE IN 1000 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

- making. Only storesthatoffer specificadvantages (Sunday openings, etc.) Average Store 3 0693 9712 8602 7362 6042 4892 3402 3 5793 4743 3653 2323

EUR

20 442 20 12220 775 19 440 19 638 18 57218 249 18 21 137 21 65920 139 21 820 20 F1

5 0865 0455 8454 7444 5944 5194 5 6545 4595 2425 1945 4 3404 F2

4 6984 5954 5854 5764 2994 0984 1484 5 4895 4585 1395 9734 HD

270 267 266 263 267 263 255 249 229 210 207 F3

3.4 SALES SURFACE Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. surface per storesurfacefor biggerF1is shopsthan F2. the store F2 haveand largest types surface.However, total the sales sale the F1surface universe grocerytotal the m².in The 3.56reaches millionsales SALES SURFACE IN 2015 HardDiscount F3 StoresF3 StoresF2 StoresF1 Total

Sales surface area area surfaceSales 3 556 0345563 3811501 7052211 752 948 752 000 441 (m²)

Number of storesof Number 7 4 1 735 605 161 477 344

Averagesurfacesales (m²) per store (m²) 2 0192 168 600 860

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. F1 owns the biggestowns F1 theturnoverm², closelyper followed by HardDiscounters. turnover.Oncontrary, the farhasF3 a share biggersellinginsurface turnover. thanin HardandDiscounters havea comparable share totalof salessurfacetotaland F1 shareThesales surface is significantly sharesmallerthanthe totalof turnover. F2 SALES SURFACE IN 2015 Hard DiscountHard F2 Stores StoresF1

Share of sales surfaceShareof sales area (%) 21% 12% 32% 34%

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

Turnoverper m² (in euro)(in 10467 1 6041 1489 6056

3.5 DISCOUNTERS IN BELGIUM Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. TYPES DISCOUNTERSOF IN BELGIUM – – Features: • • • • • Chains: DISCOUNTERS Lidl Aldi Intermarché Profi Colruyt Low pricesLow communication pricesLow

Smatch

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. marketTheir shareremainedrather stable 2015in (43.1%). rather wentof shops down tostableover130 shops. The 1 . number 2015 DiscountoverincreasedThethe pastperformanceyears remained but has DISCOUNT STORES Market Share Stores Discount Number of Discount StoresNumber 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

43.2% 1138 '14 '14 1130 43.1% '15 '15 38

3.6 REGIONAL CHARACTERISTICS NIELSEN AREA’S

I North West: Provinces of East & West Flanders

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

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

IV South West: Provinces of Hainaut & Walloon-Brabant

V South East: Provinces of Namur, Liège & Luxembourg

40 Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. the South Westcountry. South the of the part turnovergrowthgrowingThethe regions is ; the in rateall lowestis the in EVOLUTION TURNOVER FOOD UNIVERSE PER AREA IN 2015 2.4% area 1 1.8% 3.0% area 2 2.4% Current Current Prices: Prices including inflation Fixed Prices: Prices excluding inflation Current prices 2.6% area 3

2.1% Fixedprices

VS 1.3% area 4

2014 0.8%

2.6% area 5 2.0% 41

universe. bakeries,etc.)consumers and moreshop stores oftenin grocery Nielsenof outside thereNorth, arefar specialistand(fishmongers, more businesses independent consumerstheSouth,In mainlystores inshop thegroceryin included universe. In the sharepopulation. thethethanof higher is country theSouthonlyof (area placewhereThe 5) istheshare the turnover 4and of EVOLUTION IN TURNOVER, NUMBER OF STORESAND POPULATION IN 2015

Turnover ( 25 629 25 mio 4 5504 4474 8752 7697 9875

€

)

100.0% 17.8% 17.4% 11.2% 30.3% 23.4% %

Number of storesNumber 1 1031 1721 1602 9901 1617 736

100.0% 15.4% 16.4% 10.3% 30.2% 27.8% %

Population in 000Populationin 11 209 11 1 8611 7371 3901 5643 2

657

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

Totaluniverse Thereincrease storesannumberof is the in areain 5. area2. Southand locatedmainlyshops.(F1) istypebiggest Northshop TheHD andtheF2,inF3 country of NorththemoreThehas stores AreasSouth.the& 2have 1 thanmostthe NUMBER OF STORES AND EVOLUTION PER HD F3 F2 F1

WestHD shopscountry theareof of (areaslocatedthe 1/3 4). 2 and in TotalBelgium 4 477 4 344 1 161 7 735 605 - - 24 - - 60 42 2 4

Area 1 Area 1 284 1 990 1 187 415 104 - - - 28 28 1 2 3

AREA Area 2 Area 1 326 1 160 2 250 434 150 - - 13 - 27 17 0 3

Area 3 Area

536 736 46 75 79 - - 1 0 0 6 5

Area 4 Area 1 172 1 741 162 152 117 - - - 2 0 2 4 4

- Area 5 Area 1 103 1 East 590 135 258 120 11 2 0 7 2

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 16.8 39.6 33.8 9.7 South. and Moreover, Hard Brussels more Discountin importantisthan North the in decreased. has HD the expanded ; ; F2has MS overlost2015 alsoimportant.F1 has is F2 (34.5%) to F1 (43.4%),in North, addition In the NORTH: 90 16.3 34.8 9.8 39 91 15.4 10.6 37.8 36.4 92 MARKET SHARESBY SHOP TYPE 11.3 36.7 15 37 93

14.5 11.8 36.3 37.5 94 13.7 12.6 34.7 39.1 95 12.9 13.2 33.8 40 96 12.2 13.3 33.5 41 97 11.6 13.3 33.1 42 98 10.9 13.7 32.9 42.5 99 10.3 13.6 32.7 43.4 F3 '00

14.8 32.1 9.3 Hard Discounters Hard '01 44 14.7 31.9 44.9 8.5 '02 North 15.2 30.9 45.5 8.3 '03 15.4 30.9 45.8 7.9 '04 F2 16.6 30.7 45.5 7.2 '05 F1 16.3 31.2 45.8 6.6 '06 16.9 30.1 46.2 6.7 '07 16.9 30.6 45.7 6.8 '08 16.6 30.8 6.5 '09 46 16.5 31.7 45.4 6.4 '10

16.8 31.5 45.5 6.2 '11 17.3 31.9 45.2 5.6 '12 17.4 32.3 45.2 5.2 '13 17.7 33.4 44.0 4.9 '14 17.5 34.5 43.4 4.7 '15 44

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. followedlatelyincreased Brussels.in shareHD hasby F3The shops. closely smallest, is weightbroadly HD the dominatedby (67.3%).remains F1 beenover3 years, decreasingthe pastthe sharehas Although Brussels BRUSSELS: 14.8 12.1 69.5 '90 3.6 3.6 14.1 14.1 11.5 70.9 '91 3.4 3.4 13.7 11.4 70.8 '92 4.0 4.0 MARKET SHARES BY SHOP 71.5 71.5 12.5 12.5 12.3 '93 3.6 3.6 12.3 12.4 71.7 '94 3.6 3.6 11.9 11.9 72.2 '95 4.0 4.0 11.3 11.3 11.6 73.2 '96 3.9 3.9 10.5 11.1 73.4 '97 5.0 5.0 10.1 10.1 75.1 '98 5.0 5.0 9.7 10.2 75.0 '99 9.8 9.8 5.0 10.6 75.2 F3 '00 8.9 8.9 5.3 TYPE 10.9 10.9 74.7 '01 8.3 8.3 6.1

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

15.3 68.3 '14 8.6 8.6 7.8 15.9 67.3 '15 8.6 8.6 8.2 45

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 10.3 27.6 55.9 (3.5%) have(3.5%) lostMS. F3 and well. HardDiscounthavegained(15.5%)MS as gainedF2 has MS. are and shops North the (54.3%)morein importantthan South F1 In the SOUTH: 6.2 90 28.2 55.8 9.6 6.5 91 28.4 55.9 8.9 6.7 92 MARKET SHARESBY SHOP TYPE 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

28.2 55.5 7.2 9.1 98 27.8 56.2 7.0 9.0 99 F3 27.3 56.5 '00 6.5 9.7 HardDiscounters 11.3 27.3 55.6 '01 5.9

11.1 27.1 56.4 '02 5.5 South 11.4 26.4 57.1 '03 5.1 11.2 25.2 58.8 '04 4.8 12.6 24.3 58.3 '05 4.7 F2 12.7 24.7 58.3 '06 4.4 F1 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 16.2 26.1 54.1 '14 3.6 15.5 26.7 54.3 '15 3.5 46

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. storeturnoverhighestper South. the in has HD late hours,earlyopening and Sunday ready openings and to by thanks their be explainedsuperettes successfulF3 canhighly arethat F3haveF2F1, and the highestperturnover store. In of resultsBrussels,The AVERAGE TURNOVER PER STORE 1000 (IN EUR South Brussels North

17959 24492 23496 F1

5 5385 0965 5035 HD

)

5 7155 1036 5845 F2

- to -

462 238 246 F3 eat meals.eat

3.7 PRIVATE LABELS Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. realizedby private label. yearsgaining isshare PL again.turnover the Inwas of FMCG 2015more35% thanin Privatelabelshave 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 19.2 Definition Definition private labels = '92 20.3 '93

21.9 '94 brands that bear the name of the store or the retailer 24.3 '95 25.5 '96

26.8 '97 Generic Generic brands, exclusive brands (sold Aldi at and Lidl), 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 35.3 '14 35.5 '15 49

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. relativelyis low. label the contrarybeverages alcoholic on and confectionery, the shareof private bakery & toastfrozenand products, have high privateOn share.alsoa labels Two SHARE OF PRIVATE LABEL PRODUCTPER - thirds of the turnover on productsof freshfrom comesprivate thirdsIn labels.

69.8 FRESH PRODUCTS FRESH

58.6 BAKERY & TOAST & BAKERY

56.8 FROZEN

43.1 PETS PRODUCTS PETS

41.1 SALTED SNACKS SALTED

CATEGORY 41.0 DAIRY

39.7 SWEET SNACKS SWEET

37.7 GROCERY

35.9 HOT BEVERAGES HOT

27.7 HEALTH & BEAUTY & HEALTH

27.6 HOUSEKEEPING

25.2 NON ALCOHOLIC BEVERAGES ALCOHOLIC NON

21.9 CONFECTIONERY ALCOHOLIC BEVERAGES ALCOHOLIC 9.7 50

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 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 54 Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. having remained stablehavingfor remained fewa years, volumethe registers increase. a slight the valueIn index2015 keeps like increasing,on theyears before.After EUROPE: FMCG DEVELOPMENT INDEX (BASE 100 = 2006)

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. -1% The price mix remained stableoverthreefirstmix remained the quartersprice of 2015. The Contrarytokeepsthe volume 2013, growing over 2015. FMCG TRENDS PER YEAR AND PER QUARTER IN EUROPE 0% 1% 2% 3% 4% 5% 6% - 2.6% 2.5% 0.1% 2013 0.7% 1.8% 2.6% 2014 1.3% 1.1% 2.4% 2015 Average price change - Q4'13 2.3% 1.7% 0.6% Source: Nielsen Growth Reporter - 1.7% Q1'14 2.3% 0.6% Volume change Q2'14 2.2% 1.6% 3.8% Q3'14 1.7% 2.0% 0.3%

Q4'14 1.6% 1.5% 3.1% Nominal growth Q1'15 1.7% 1.9% 3.6%

Q2'15 1.7% 0.7% 2.4% Q3'15 1.7% 3.0% 1.3%

Q4'15 1.3% 0.8% 2.1% 56

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. Belgium increases equally in volume and prices. volume in and equally increases Belgium FMCG TRENDS PER COUNTRY IN 2015 - - 0.2% 2.0% 2.2% - - - 1.0% 1.3% 0.3% - 0.9% - 0.1% 0.8% - - - 0.5% 0.3% 0.2% 0.8% 0.1% 0.7% Price change Price 0.0% 1.2% 1.2% 1.2% 1.2% 0.0% - 1.8% 0.3% 1.4% Source: Nielsen Growth Reporter VS 0.5% 1.0% 1.5% Volume growth Volume

2014 1.6% 0.6% 1.0%

0.3% 2.0% 1.7% 0.4% 1.7% 2.1%

2.3% 0.5% 1.7% Nominal Value Growth Value Nominal

2.4% 0.8% 1.3% - 2.4% 0.2% 2.7% 0.9% 1.6% 2.4% 1.3% 1.7% 3.0% 2.0% 1.7% 3.7% 3.9% 2.5% 1.4% 2.5% 2.3% 4.8% 57

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. MARKET SHARES BY SHOP TYPE IN marketshare. have to accounted segment)belong this of the for(which this maintaining markettoHard Discounterstheir managed maintainTheshareover time. SupermarketshaveLargeSmalland Hypermarketsthe TheSupermarkets. Superettes smallestand Traditional in favourstoresareespecially declining of stable Retail Europe 1980 in years. the remainedover pastlandscapethe Since 48% 26% 12% 14% 1980 39% 26% 16% 19% 1985 Superettes Traditional&

29% 25% 20% 26% 1990 21% 26% 21% 32% 1995 EUROPE 16% 26% 23% 34% 2000 Small Supermarket 16% 27% 23% 35% 2001

15% 27% 22% 35% 2002 14% 28% 23% 35% 2003 13% 28% 23% 36% 2004 Large Supermarket 13% 28% 23% 36% 2005 12% 28% 23% 37% 2006 12% 28% 24% 37% 2007 11% 28% 24% 36% 2008 Hypermarket 11% 28% 24% 36% 2009 11% 28% 25% 36% 2010 11% 28% 25% 36% 2011 11% 28% 25% 37% 2012 10% 28% 25% 37% 2013 29% 26% 37% 2014 9% 58

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. NetherlandshavehighestLargethesharein Supermarkets. FrancehavetheUKand dominated beenby hypermarkets for years.theand Belgium MARKET SHARES BY SHOP TYPES PER COUNTRY IN 52% 18% 28% Ger 2% 43% 50% Ned 3% 4% 17% 20% 58% 5% Fra Superette& Traditional 36% 51% 5% 8% Bel 37% 22% 34% Swe 7% 15% 54% 24% Den 7% 67% 15% 10% Aus 8% 11% 20% 60% 9% UK SmallSupermarket 11% 53% 28% Nor 8% 13% 26% 34% 27% Por 17% 20% 40% 23% Spa 2014 18% 28% 24% 30% Ita

Large Supermarket 20% 12% 38% 30% Fin 20% 23% 32% 25% Swi

25% 35% 20% 20% Eir 20% 32% 43% Cze 5% Hypermarket 21% 30% 35% 14% Gre 33% 22% 17% 28% Hun 37% 28% 35% Slva 41% 46% 13% Pol 59

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. Swe Hun Ned storesper habitant and a verylarge number ofsmall supermarkets. Belgium holdsthe7th place in totalnumber of Norway,Denmark, Austriaand Germany havethe highestnumber ofstores per million habitants NUMBER OF STORES PER MILLION HABITANTS IN 2014 Den Nor Aus Spa Gre Ger Swi Cze Por Pol Fra Bel Fin UK Slk Ita Eir 46 53 80 83 91 104 115 118 125 128 131 32 61 165 168 179 181 28

24 46 17 251 113 10 115 54 124 117 9 49 31 137 70 63 67 5 7 162 163 88 172 34 22 45 412 38 19 84 29 201 433 210 11 214 101 15 223 226 363 230 239 5 257 63 3 285 SSM 25

339 LSM 71 38 18 10 452 HM 460 118 11 562 60

Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. Carrefour2d to place.place 6th thethe moveddown from5th to place.3d the the Wal TOP GLOBAL FOOD RETAILERS - Mart remainstheworld’s biggestgrocery retailer. The Kroger movedfromCo. up 10 3 9 8 7 6 5 4 2 1

The table constitutes a league table of the internationaltop grocery retailers, based the on turnover they achieved in 2014. Casino Groupe TargetCorp. Metro AG Aldi Carrefour SA Tesco Schwarz Kroger The Co. Wal -

Einkauf Mart Stores,Mart Inc. plc Guichard

Auchan Unternehmens

GmbH & GmbH Co.

SA - Perrachon Retailer

Truehand 2014 oHG

Source: Deloitte “2016Global Powers of Retailing” S.A.

KG )

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

$ billion (2014)billion$ Turnover US in

Retail 102.7 108.5 485.7 64.5 69.6 72.6 85.6 86.5 98.5 99.7

countries of countries Number of Number operation 29 13 32 17 34 13 26 28 1 1

Wm DelhaizeGroup SA Markets, Super Inc. Publix Safeway Inc. Limited Companies Loblaw Sainsbury J ITM Koninklijk Wesfarmers Limited Centres WoolworthsLimited Rewe Seven & Edeka Ltd.Co., Aeon The table constitutes a league table of the internationaltop grocery retailers, based the on turnover they achieved in 2014.

Développement Morrison Supermarkets Supermarkets Morrison PLC

Combine Zntrale Distributeurs i

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

AG & Co. KGCo.AG&

NV Retailer

International E.Leclerc

2014 (2) Source: Deloitte “2016Global Powers of Retailing”

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

$ billion (2011) billion$ Turnover US in Retail

27.5 28.4 30.8 36.3 37.8 37.8 38.2 43.6 48.1 48.6 49.6 51.2 53.8 61.0 61.4

countriesof Number of Number operation 11 18 11 1 7 1 2 2 1 5 6 2 7 2 1

4.2 DISCOUNTERS IN EUROPE Nielsen Grocery Universe 2016 │ Copyright ©2016 The Nielsen Company. Confidential and proprietary. 1991 9.7% represent17.3% turnover. ofthe MoreoverDiscounterswhereverywell aretheystrong as Belgium in marketThe shareof discountstores 21% Europe in 2015. in reached MARKET SHARE DISCOUNTERS IN EUROPE 10.9% 1992 11.8% 1993 13.1% 1994 14.1% 1995 14.6% 1996 15.1% 1997 15.4% 1998 15.4% 1999 15.2% 2000 15.0% 2001

16.0% 2002 Discounters 16.6% 2003 17.1% 2004 17.1% 2005 17.4% 2006 17.8% 2007 18.5% 2008 18.5% 2009 18.8% 2010 19.2% 2011 19.4% 2012 20.0% 2013 20.6% 2014 20.9% 2015 64

17.0% 13%

10%

10% 43%

22% 17%

41%

62% 42%

11%

27% 16% 24%

20% 26% 20%

8 % 8

13%

Growing Decline Stable

5. THE NIELSEN SERVICES RETAIL MEASUREMENT SERVICES

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

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

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

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

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

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

BRANDBANK

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

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

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

NIELSEN EYE TRACKING

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

The Nielsen Customer Experience solution is a full-fledged, omni channel and end-to-end Customer Experience Management (CEM) framework designed to:

• Ensure the Customer Experience (CX) is designed to deliver on the brand promise and meets customers’ expectations • Consistently and systematically measure the CX delivery on key touchpoints and act on the voice of the customer (NPS, satisfaction, complaints) in real-time. • Enable businesses to convert customer insights into concrete operational improvements and generate analytics that drive business outcomes (e.g. retention)

By merging an omni channel and real-time CEM software platform, based on a unique Alliance with ResponseTek, with advanced analytics and key business insights, Nielsen Customer Experience (NCX) enables organisations to manage performance at an individual consumer level and for all touch points, channels and for both offline and online. For the first time, businesses can link attitudes on customer experiences with actual purchase behaviour and actionable analytics (e.g. churn prediction models) – transforming static CEM reporting into business improvement that strengthens customer relationships and drives improved commercial results.

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

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

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

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

Nielsen On Shelf Availability (OSA)

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

NIELSEN STORE

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

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

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

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

The Nielsen Company Belgium

Avenue de Pléiades / Plejadenlaan 73 1200 Brussels Belgium

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