Eimear HennessyBusiness Unit Director,Nielsen Ireland

THE THREATS AND OPPORTUNITIES AT PLAY FOR OUR FAVOURITE BRANDS

CONSUMER CONFIDENCE & € SPEND

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CONSUMER CONFIDENCE CONTINUES TO RISE

Q4 2012

65Q4 2013

77Q4 2014

90

IRE Consumer Confidence IndexQ4 2012

18%Q4 2013

26%Q4 2014

46%

Job Prospects - Excellent/Good

Q4 2012

27%Q4 2013

40%Q4 2014

45%

Personal Finances - Excellent/Good

Q4 2012

26%Q4 2013

29%Q4 2014

37%

Readiness to Spend- Excellent/Good

Source: Nielsen Global Online Survey Ireland Q4 2012, 2013, 2014, 2015

Q4 2015

99

Q4 2015

56%

Q4 2014

53%

Q4 2015

53%

Burden of financial constraints now improving for the majority.

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CHANGING CONCERNS FOR IRISH CONSUMERSIncreasing Utility Bills remains unchanged illustrating the burden that consumers feel in this area but the biggest change is around Health and Work/Life Balance (pre recession concerns)

Source: Nielsen Global Online Survey, Ireland

8%

13%

14%

11%

8%

8%

13%

15%

5%

14%

20%

5%

Increasing Utility Bills

Job Security

Health

Debt

Economy

Work Life Balance

Q4 2015 Q4 2012

Q7a. What is your biggest concern over the next six months?

2015Consumer Confidence

Index

99

2012Consumer Confidence

65

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2015 MAT vs LY

TOTAL FMCG MARKET WORTH €15.5BNVOLUME-LED GROWTH

Source: Nielsen Strategic Planner , Total Market Read| MAT to Dec 2015

+0.5%

+0.4%

+0.9%

+3.2%

0%

+3.2%

Volume

Price

Value

Nov/Dec 2015 vs LY

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STEADY VOLUME GROWTH OVER 2015Optimistic signs ahead for 2016 in terms of Volume but still significant price resistance.

-1.5

-0.1

0.0

0.9

2.2

3.2

-2.7

-1.0

-0.5

0.4

2.1

3.2

Jan/Feb 2015 Mar/Apr 2015 May/Jun 2015 July/Aug 2015 Sep/Oct 2015 Nov/Dec 2015

VALUE UNITS

Source: Nielsen Strategic Planner , Total Market Read| Bi-Monthly YoY Performance up to Dec 2015

Total FMCG Value and Unit Growth

CHANNELPERFORMANCE

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8Strategic Planner | MAT to Dec 2015 | Scantrack/Market Track incl Discounters & Dunnes| VALUE

MAT to Dec 2015

+0.9%

DISCOUNTERS AND CONVENIENCE WINNING AT THE EXPENSE OF THE MULTIPLES

46.1%

36.2%

17.7%

MULTIPLES + DUNNES

CONVENIENCE

DISCOUNTERS

-1.5%

+7.4%

+1.1%

Nov-Dec 2015

+3.2%

48.7%

34.1%

17.2%

MULTIPLES + DUNNES

CONVENIENCE

DISCOUNTERS

+1.6%

+10%

+2.2%

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DISCOUNTERS STILL CONTINUING TO INVEST IN NEW STORE OPENINGS.Turnover now approaching €2.7 billion

0

50

100

150

200

250

300

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

263 Stores6% Growth

Nielsen Data Science - Discounter Store Numbers 1999 - 2015

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6.5 6.1 5.74.1 4.4

1.3

6.0 6.24.2

3.5 2.0

1.7

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

LIDL ALDI TESCO SUPERVALU DUNNES MARKS & SPENCER

Press TV

LIDL & ALDI MAKING UP 48% OFADVERTISING SPEND AND GROWING.

Supermarket Adspend FY 2015

+13% +6%

+5%

-13%

+8%

+35%

Lidl24%

Aldi24%Tesco

19%

SV15%

Dunnes12%

M&S6%

SHARE OF

SPEND

Source: Nielsen AdDynamix – Full Year 2015/ Includes TV (ROI Channels) and National Newspapers

FMCG based on Defined set including Food, Drink, Health & Beauty, Household, Tobaccco & Accessories / Retailers includes large Supermarkets & Discounters

€m

-5%

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11Source: Nielsen Strategic Planner Total Market Read Data to December 2015

55 50 47 46 44

4336 36 36 35

214 17 18 21

2006 2013 2014 2015 2020

FMCG Trended Channel Share

MULTIPLES & DUNNES CONVENIENCE DISCOUNTERS

DISCOUNTERS REMAIN ON TRACK TO REACH 21% SHARE IN NEXT 5 YEARS

CATEGORY & BRAND GROWTH

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VALUE GROWTH IN ALL CATEGORIESPrice deflation drives volume growth ahead of value growth.

VALUE UNITS PRICE

BIMONTH VALUE €M BIMONTH % CHG BIMONTH % CHG BIMONTH % CHG

GROCERY €464 +2.7 +4.5 -1.7

CONFECTIONERY €423 +4.3 +2.4 +1.9

ALCOHOL €407 +2.5 +3.5 -0.9

TOBACCO & SUNDRIES €263 +4.2 -1.3 +5.6

HOUSEHOLD €104 +1.9 +3.7 -1.7

BAKERY €93 +2.0 +2.1 -0.1

HEALTH & BEAUTY €79 +4.0 +6.1 -2.0

FROZEN FOOD €56 +1.6 +3.2 -1.6

Total value +3.2% Total units +3.2%

Strategic Planner | MAT to Dec 2015 | Scantrack/Market Track incl Discounters & Dunnes| VALUE

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WHICH CATEGORIES DELIVERED THE MOST ADDITIONAL SALES?

Source: Nielsen Strategic Planner Total Market Data MAT DEC 2015

22.8

12.2

11.2

9.5

7.9

7.1

6.9

5.5

4.6

4.2

3.9

3.6

3.4

3.3

3.0

2.8

2.7

2.6

2.4

2.2

CONFECTIONERY

MINERAL WATERS

TABLE WINES

CRISPS/SNACKS/TUBES

NUTS

INSTANT/GROUND COFFEE

SPECIAL DIETARY PRODUCTS

SPARKLING WINES

PETFOOD

WHISKEY

DETERGENTS

GRANOLA BARS

TOILET TISSUES

RTD FLAV MILK & SHAKES

CHEESE

PACKED SALADS

CAKES

YOGHURT, FROMAGE FRAIS AND YOGHURT

BUTTER/SPREADABLE BUTTER

NUT BUTTERS

Incremental Value €'m

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TOP 20 BRAND WINNERS IN 2015These brand winners are using two to four of the levers for success.

MF MALTESERS

MONSTER

CADBURY BOOST

COCA COLA LIFE

PRINGLES

EXTRA

BUDWEISER

VIT HIT

INNOCENT

BALLYGOWAN

ALPRO

CADBURY DAIRY MILK

MOOJU

GUINNESS

KINDER

CARROLL MEATS

CARLSBERG

NICKY

ORCHARD THIEVES

€1.8m€1.8m

€2.2m€2.3m€2.3m€2.3m€2.3m

€2.7m€2.7m€2.8m€2.8m

€3.1m€3.2m€3.2m€3.3m

€4.6m€4.8m€4.8m

€5.2m

Source: Nielsen Scantrack including Discounters – Data up to the 27th Dec 2015

BRAND LEVERS FOR GROWTH

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WHICH BUTTON DO YOU ACTIVATE?As brand owners are we challenging our investments wisely enough?

AVAILABILITY

It is no longer good enough to get listings. Brand owners need to assess the quality of

that distribution.

PROMOTIONS

Ever increasing promotions on

offer but as brands owners

have we measured

their profitability?

ADVERTISING

FMCG Brand owners have

increased their advertising

spend but have they evaluated the reaction it has generated?

INNOVATION

Long term sustainable

growth requires brand innovation but only 10% are deemed as

truly successful.

Retail reality

1

8

18

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THE QUALITY OF YOUR DISTRIBUTION COUNTSTo get products in front of consumers can be a big ask but also with big € returns.

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TOTAL MARKET

+9% +4%

RETAILER SPEND

+11%

FMCG SPEND

Source: Nielsen AdDynamix – Full Year 2015/ Includes TV (ROI Channels) and National Newspapers

FMCG based on Defined set including Food, Drink, Cosmetics & Toiletries, Household, Petcare & Tobaccco & Accessories

Retailers includes large Supermarkets & Discounters

MANUFACTURERS SPENDING HEAVILY WITH RETAILERS REMAINING STEADY

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REACTIONHow did it change their behavior?

RESONANCEDid it positively change their opinions?

REACHWho saw the campaign/content?

MEASURE CAMPAIGN EFFECTIVENESS BY FOLLOWING THE CONSUMER

PAID – OWNED - EARNED

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A THIRD OF MULTIPLES VALUE IS SOLD ON DEAL VARYING BY SECTOR

Source: Nielsen Multiples Data Week Ending 27th Dec 2015

33.2 33.537.2 36.8 38.6 38.3 38.6 38.8

MAT YA MAT TY 12 WEEKSYA

LATEST 12WEEKS

8 WEEKSYA

LATEST 8WEEKS

4 WEEKSYA

LATEST 4WEEKS

Total FMCG - Value % On Deal

38.836.1

29.032.0 33.0

36.0

23.6

ALCOHOL CONFECTIONERY GROCERY HEALTH &BEAUTY

HOUSEHOLD FROZEN FOOD BAKERY

Product Class Value % On DealMAT TY

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DAIRY

75%

MEAT

62%

FRO

ZEN

FO

OD

S

66

%

GEN

ERA

L M

ERC

HA

ND

ISE

60

%

HO

USE

HO

LDC

AR

E

56

%GROCERY

73%

PER

SON

AL

50

%

BAKERY

73%

PET CARE

66%

HEALTH

59%

BEAUTY CARE

50%

PRODUCE

74%

DELI

72%

70-75%65-69%60-64%55-59%50-54%

% OF WEEKS THAT DON’T BREAK EVEN

ON AVERAGE, 67% OF PROMOTIONS DON’T MAKE MONEY.

Trade promotion effectiveness varies from across departments

Source: Nielsen Trade Promotion Landscape Analysis 2014 Q3

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SOME RECENT EXAMPLES OF SUCCESSFUL NPDBy our Favourite Brands offering new Consumer Occasions/Experiences/Packaging

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BUT MOST PRODUCTS HAVE A SHORT LIFELess than 3 out of 10 items survive their first year

Source: Nielsen Innovation Analysis, across France, UK, Italy, Spain

% of new itemswith store sales 100% 55% 24%

LAUNCH

Week 1 Week 26 Week 52

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>75%

Success rate with Nielsen Factors for SuccessTM

All New Products

10%

INCREASING THE ODDS OF SUCCESS

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AT NIELSEN WE CHALLENGE TO CREATE SUCCESS.As brand owners are we challenging our investments wisely enough.

AVAILABILITY

Store Testing allows you to

make informed choices before making a full investment.

PROMOTION

Have you measured how efficiently your

promotions are working

for you? Knowing your profitability allows for

greater agility.

ADVERTISING

Do we continue with

the same media

campaigns or start afresh?

Measure your return on

investment before making that decision.

INNOVATION

Successful innovation is neither luck nor magic there is a

logical framework to

follow to increase your success rate.

THANK YOU