Enabling Connectivity and CollaborationGS1 Ireland Annual Report 2016

GS1 believes in the power of standards to transform the way we work and live.

We create a common foundation for business by uniquely identifying, accurately capturing and automatically sharing vital information about products, locations and assets.

We enable visibility through the exchange of authentic data.

We empower business to grow and to improve efficiency, safety, security and sustainability.

We are…• Neutral and not-for-profit• User-driven and governed• Global and local• Inclusive and collaborative

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Chairman's Statement 2

CEO's Statement 4

Unlocking the Powers of Standards 6

Sectors Report 9

Retail 10

Apparel, Fashion & Footwear 11

Food & Grocery 12

Healthcare 14

Services & Solutions 19

The Internet of Things 20

Smart Manufacturing 21

GSMP Report 22

GS1 SmartSearch 23

Industry Engagement 24

Barcode Manager 28

Financial Statements 31

Board of Directors 48

Table of Contents

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Chairman’s Statement

Welcome to the GS1 Ireland Annual Report for 2016.We are delighted to share the highlights of our yearin delivering GS1 standards and solutions for thebenefit of our members and all involved in thedelivery of goods and services in Ireland andglobally.

Our Strategy 2016 - 2018GS1 Ireland’s strategic vision is a world in which GS1is the preferred industry standard to Identify,Capture, Share and Use information amongparticipants in the supply chain for products,services, business locations and more. Today, in itsrealisation of its strategic vision, GS1 is proud toserve over three thousand businesses andorganisations in Ireland and more than 1.5 millionglobally.

The end of 2016 marked the completion of the firstfull year of our strategic plan for 2016 to 2018, and Iam pleased to report that we met or exceeded eachof our priority area targets. The five key strategicobjectives for the organisation are defined as:

1. Implement Member Centricity 2.0 – to proactivelyenhance the value of GS1 to members andprospects through a suite of digital services;

2. Advance Branding and Awareness – to growawareness of GS1 Ireland among members and keystakeholders, as the primary source of globalstandards and solutions that enable efficiency,traceability and communications;

3. Build Industry Engagement – to build a practiceof engagement to secure the endorsement andcommitment of industry to implement GS1standards-based solutions;

4. Deliver Transformational Services and Solutions– to identify and deliver, with approved partners, asuite of transformational services and programmesto fulfil identified members’ needs;

5. Ensure Organisational Sustainability andCapability – to be a highly effective and innovativeorganisation that supports and enables its people toachieve the organisation’s objectives.

In meeting these objectives for 2016, this reportillustrates examples where GS1 Ireland enhanced itsprovision of new innovative member-centric servicesand applications across our core business, such aswith the introduction of Barcode Manager and GS1SmartSearch, and further developed the capabilitiesof existing services such as DataSync.ie andfTrace.ie. The report will also describe how GS1Ireland increased the awareness of the value of itsglobal standards through Industry Engagement in itsKnowledge Centre and Solution ProviderProgramme, and participation in various industryevents.

Finally, complementing its work in IndustryEngagement, GS1 Ireland also played a key role inthe development of new GS1 standards incollaboration with our colleagues in GS1 GlobalOffice and through our engagement with the GlobalManagement Standards Process (GSMP) and otherpublic sector standards bodies such as the NSAI,CEN and ISO.

Meeting the needs of our members – IndustryEngagementWhen industry leaders work together on how to useGS1 standards to solve community challenges, theycreate better ways of doing business that benefit allstakeholders. The application of GS1 standards isever evolving, driven by technology and ongoingengagement with industry leaders working togetherto forge new paths and create better ways of doingbusiness. Over time what once was new, becomesthe norm.

GS1 Ireland also continued its work in 2016 on dataquality through its Digital Data Quality (DDQ)Committee and Solution Provider Programme (SPP).GS1 was delighted to welcome several new solutionproviders to the Partner Community including Cisco,VisionID, Enterprise System Partners (ESP), Portalisand Diomac. We look forward to working with ourSolution Partners for the benefit of our members in2017 and in the years to come.

An equally important ingredient of the success of anIndustry Engagement Programme is the ongoingeducation of all stakeholders. In the reporting year,GS1 Ireland supported the expansion of the Solution

The application of GS1 standards is ever evolving,driven by technology and ongoing engagement withindustry leaders working together to create betterways of doing business.

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Provider Programme by building an eLearningplatform whereby both Members and SolutionProviders can enhance their knowledge of GS1standards and how best to implement them intheir solutions and business processes.

The reporting year was also a significant year inhealthcare not only in Ireland but around theworld. The increasing regulatory requirementsfrom both the Food and Drug Administration(FDA) in the US, the European Commission andother regulatory bodies worldwide resulted in asignificant and determined drive towardsstandardisation. I am very pleased to say thatGS1 standards are now the recognised standardsfor healthcare for global unique productidentification, barcoding and the standardisationof data sharing. In Europe, bothpharmaceuticals and medical devices will berequired to have a unique identifier in the formof a barcode by 2019/2020 respectively andthroughout 2016 GS1 Ireland has been busysupporting our members to get ready for thesedeadlines.

As this report shows, the activities of theHealthcare User Group (HUG) continued and thiswork has been key to advancing the adoption ofGS1 standards for procurement at a nationallevel by the HSE. During the reporting year, asignificant milestone was achieved whereby theUDI (Unique Device Identifier)/GTIN (GlobalTrade Item Number) is now requested in HSEtender documents. GS1 standards are alsoincreasingly seen as a key enabler to supportimproved patient safety as well as supportinglogistics and supply chain processes. In thisregard, the HUG event hosted in November 2016was the first HUG event to engage the clinicalcommunity with over 80 senior leaders from Irishhealthcare representing suppliers, HSE andhospitals in attendance.

Throughout the year members of the GS1Ireland team participated in a number of highprofile industry events, conferences and awardsceremonies, both nationally and internationally.

We are delighted to support these events and topromote the benefits accruing from theimplementation of GS1 standards.

Governance and Board During the reporting year GS1 Ireland adoptedits new Company Constitution, includingMemorandum and Articles of Association, asrequired by legislation following the adoption ofthe Companies Act 2014.

Also during the reporting year one new memberwas elected to the Board – Fergal Wall (Glanbia).I would like to welcome Fergal to the Board andwish him well during his term of office.

Two Directors retired from the Board during thereporting year – Tony Minogue (Glanbia) andCatherine Phelan (Mars Ireland). I would like tothank Tony (who served as Chairman and ViceChair of the Board) and Catherine (who servedon the Digital Data Quality Committee) for theirvalued contribution to GS1 Ireland during theirtenures on the Board and working committees.

ConclusionFinally, I would like to thank each of themembers of the Board for their very valuablecontributions and support during the year, andfor their active participation in the workingcommittees. I wish also to congratulate Mike andhis colleagues in the Executive on an excellentperformance in 2016 and we look forward tocontinuing success in 2017.

John O’CallaghanGroup IT DirectorMusgrave GroupChairman GS1 Ireland

Chairman’s Statement 2016

The Year in Review Since the start of the 21st Century we have seenunprecedented business volatility in Ireland andglobally on many fronts – economic, social andtechnological – which has continually challenged thesupply chain capabilities of many businesses andorganisations. In meeting these challenges, GS1Ireland is proud to have supported our 3,000 plusmembers in Ireland, and more than 1.5 million othermembers in the wider GS1 community worldwide,enabling them to grow efficiently, sustainably andsafely through the use of our standards andsolutions. To address rapidly developing andchanging customer needs, our standards haveenabled the trading companies and organisationswe serve to identify, capture, share and useinformation accurately and confidently, creating acommon language that underpins supply systemsand processes across more than 20 sectorsworldwide.

In 2016, many of GS1 Ireland’s members witnessedthe general improvement in Ireland’s economy as itcontinued to grow from the previous two years.This was particularly evidenced by two keyindicators from the Department of FinanceEconomic Bulletin which reported that Ireland’s realGDP growth in 2016, as a whole, was 5.2% year onyear, with personal consumption expendituregrowing by 3%, year on year. Much of this growth isunderpinned by increasing consumer demand and isenabled by the widening adoption of innovative GS1standards and solutions by our Members,particularly in the Retail and Consumer PackagedGoods, Healthcare, and Transport & Logisticssectors. However growth in Ireland’s generaleconomy, which is also evidenced in increasedmembership of GS1 and the use of our standardsand solutions, should also be balanced against thepotential for future economic uncertainty as thenegotiations around Brexit commence.

Sector Report and Review of BusinessGS1 Ireland continued to support our members in2016 by offering a broad range of standards andservices in a variety of industry sectors. Each ofthese standards is designed to enable improvedefficiency and effectiveness in supply chains.

I am therefore pleased to report a strong businessperformance for GS1 Ireland in 2016. The coremembership of the organisation remained stableand mature, with the number of active members andlicence holders increasing by 6.5% to 3,304 during

the reporting year (2015: 3,103). Total income,inclusive of deposit interest, for the year ended 31December 2016 also remained strong at €1,908,602(2015: €1,777,503).

Business is about PeopleAs the Chairman noted, central to our currentstrategy, and the cornerstone of StrategicObjectives 1 & 2, is our commitment to transformGS1 Ireland – the organisation itself, our servicesand our business process - to put the customer, ourmember, at the heart of everything we do.

Being member-centric is about creating a holisticview of the customer. However for this approach tobe truly effective we must get to know the peopleworking at each of our member companies.

We recognise that it is only by talking and engagingwith people can we truly understand the actualbusiness needs and the everyday challenges thatIrish businesses are facing across the supply chain –be that in food, consumer goods or healthcare.

The Board and staff of GS1 Ireland are fullycommitted to putting the people, processes andtechnology in place to make that engagementhappen. Internally we are investing in our IT systems,particularly for licensing and customer services.Continued development and integration of ourMember Database with the ecommerce functionalityon our website enables existing and new membersto carry out self-service transactions at any time ofday that suits them.

We are also committed to adopting best-in-classmarketing practices and tools to ensure customerscan connect with us through their preferred channeland to receive the information that is relevant tothem at their particular stage of GS1 supply chainstandards implementation – whether that is applyingfor barcodes for the first time or setting up an EDIconnection with a new supplier.

Healthcare SectorDuring the reporting year, the wider benefits of theuse of GS1 standards in Healthcare gained furthertraction with Regulators and other industrystakeholders both internationally and in Ireland. In2016, the Delegated Acts for the EU FalsifiedMedicines Directive on Safety Features werepublished, confirming the 9th February 2019 as thedate for compliance. This means that all packs soldinto the European market must have a 2D barcode

CEO’s Statement

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“GS1 standards enable higher operationalperformance in volatile times”

printed on the packaging which includes aunique identifier with key data elements such asproduct code, batch, expiry and serial numberand that barcode must then be scanned at thepoint of dispense. Manufacturers will be requiredto upload the serialisation information for eachpack to a central repository. The repository forIreland is expected to be appointed by the IMVOin 2017.

In addition, the European Union also outlinedtheir plans for the Medical Device Regulation ofwhich Unique Device Identification (UDI) is onecomponent. The regulation is expected to bepublished early 2017 and current guidance isthat from 2020 all manufacturers will be requiredto register the UDI and associated data in theEuropean database EUDAMED.

In 2016, GS1 Ireland continued to engage withkey stakeholders in Healthcare through itsHealthcare Committee and its active support ofthe industry Healthcare User Group (HUG). On4th November, the HUG hosted a briefingentitled “Safer more efficient care starts with asimple scan” in the Boardroom of the HSE, DrSteeven’s Hospital. The event was very wellattended by over 80 senior leaders from Irishhealthcare representing suppliers, hospitals andthe HSE. The event more than met its goal ofcreating awareness about the patient safety andefficiency benefits of barcoding for healthcare inIreland through the full adoption of GS1standards. Of the speakers presenting, RichardCorbridge, CIO for the HSE, endorsed therequirement for a standards-based approach forUnique Identification and stated “we can’tdeliver without GS1 and data standards; weneed to be able to uniquely identify all parts ofthe care journey”. He also outlined plans for thelaunch of the Individual Health Identifier (IHI)which will be based on the GS1 identifier forpatients.

Looking ahead, GS1 Ireland will continue in 2017to engage with the key stakeholders in Irishhealthcare and expects to further increase itswork with the HSE and Hospital Groups,focusing on transformative projects to enableend-to-end traceability, patient safety andefficiency.

GS1 Ireland’s Solution Provider ProgrammeThroughout 2016, the Internet of Thingscontinued to receive significant attention frommany industry stakeholders, with a key focus onsmart manufacturing. In October, GS1 Irelandwas very pleased to welcome Cisco Ireland to itsSolution Provider Programme and to sign apartnership agreement to drive adoption ofindustry standards for digital manufacturing.

Together, our two organisations will collaborateto enable the digitisation of manufacturing forusers of the GS1 system of standards. Theinitiative will focus on supporting businesses tomake both commercial and operational gains.These will be achieved by improving andautomating business processes, including supplychain integration.

Industry Engagement and Professional & Advisory ServicesDuring 2016, all of our communication withMembers and external stakeholders throughemail, surveys, social media or face-to-facemeetings served to provide us with dailyfeedback on the topics of interest to membersand the burning issues facing organisations. Ourgoal remains to continuously improve andpersonalise that engagement with each andevery one of our Members.

The launch of the GS1 Knowledge Centre lastyear and the expansion of our IndustryEngagement and Professional & AdvisoryServices activities in 2016 serve to furtherunderpin the face-to-face interaction withindustry users of our standards and are the lifeblood of GS1 as a service organisation. TheIndustry Engagement Team, which wasstrengthened in 2016 with additional resourceand staff, has worked with selected suppliers,retailers and solution partners on the roll out ofnew services including Barcode Manager,fTRACE and the GS1 Learning Zone platform.This work will continue in 2017 with a rollout toour wider membership.

Throughout 2016, successful engagement withindustry, with the support of senior experts fromthe GS1 Professional Services team, led to thedelivery of a number of practical projects in thefields of Food Traceability, Omni-channel Retailand Patient Safety. These industry-led projectsdemonstrate the everyday benefits that GS1standards deliver to consumers, patients,businesses and industry as a whole, and GS1Ireland will continue to provide a tailored rangeof services for our members in 2017.

Finally, I would like to thank the Board, each ofour working Committees and all of GS1 Ireland’smembers for their support during 2016 and Ilook forward to further success and continuedprogress in 2017.

Mike ByrneChief Executive OfficerGS1 Ireland

CEO’s Statement 2016

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Unlocking the Power of Standards

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Unique Identification

Unique identification forms the cornerstoneof usable data by making it possible to linkthe right information to the right product.

Unique identification is the passport to the e-commerce economy – a fact fullyembraced by the major online marketplaces.Smart data is now a must-have for thebillions of items sold online with somemarketplaces now requiring every product tohave a unique product identifier. As theonline marketplaces continue to grow the useof GS1 Identifiers (EAN and UPC codes) is ofincreasing significance.

“We must take action to enable uniqueproduct identification and to drive thechanges that are necessary to bring it to life.”

Barron Witherspoon, Vice President, IndustryAffairs, Procter & Gamble

Smart Data

Smart data is critical for companiesoptimising business processes, forconsumers making purchasing decisions,and for regulators protecting public safety.

Our reliance on data is exploding in ourwork and lives with no end in sight. But wedon’t just need data—we need smart data.Smart data is not only accurate andreliable - it is structured so that it can flowthrough all of our information ecosystems.Smart data is visible, linkable, searchable,sharable, and traceable.

Smart Data is foundational for:

• improved product information• increased supply chain efficiency• safer products and patient care• smarter analytics• better search

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Industry Collaboration

When industry leaders work together onhow to use GS1 standards to solvecommunity challenges, they create betterways of doing business that benefit allcompanies.

The application of GS1 standards is ever-evolving, driven by technology andongoing engagement with industry leadersworking together to forge new paths andcreate better ways of doing business. Overtime what once was new, becomes thenorm.

The GS1 Global Standards ManagementProcess (GSMP) is the engine room drivingand facilitating this collaboration andinnovation.

Implementation for Growth

Companies of all kinds are able to put datato work to help mitigate business problemsand grow their businesses with GS1standards at the foundation.

With accepted industry standards and bestpractices in place, GS1 Ireland providesresources and advisory services to thebusiness community to help them tounderstand and implement thosestandards effectively.

At GS1 we work with Members to shareour implementation expertise and offersolution-neutral, impartial advice. WithGS1 support you can ensure your supplychain transformation project achieves itgoals and delivers cost savings, productionefficiency and enhanced safety.

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Omni-channel

Traceability

Sustainability

Consumer Engament

Inventory Management

eHealth

Patient Safety

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SectorsThe needs of the businesses and organisations in ourcore industry sectors - Retail, Consumer Goods, Foodand Healthcare - drive our annual strategy and ourpriorities on a daily basis.

GS1 standards ensure a strong foundation for thesesectors. They underpin supply and demand chains,reduce costs and deliver exceptional efficiency.Transforming the way we work and live is our guidingmotto - helping businesses to provide their customerswith a seamless shopping experience and to supportindustry efforts to maintain consumer and patient safetyat all points in the supply chain.

Every consumer journey is a blend of online andoffline shopping experiences. Whether an e-commerce or a “bricks and mortar” storetransaction, the retail landscape is changing. It’s nolonger about a store, a website or a smartphone –it’s about all of these things; and to functionsuccessfully they must work in harmony. Retailersand brand owners without an omni-channel outlooksimply won’t survive.

At GS1, we are certain that trading partners willsucceed when they open the door to the supplychain efficiencies that standards bring. We believethat any omni-channel strategy must be built on aglobal language of business. GS1 standards help to identify, capture and shareinformation about products across global supplychains, on the internet and around the world.

This year, we ratified and published the GS1SmartSearch standard, which makes it easier tokeep information about products visible in searchengines across the web, within manufacturer andretailer websites, and via social media.

To a consumer, a web page with GS1 SmartSearchlooks no different from a page without. But to asearch engine, a web page that is GS1 SmartSearch-enabled contains structured data that it can easilyadd to its index.

Also in the past year, thanks to unprecedentedindustry participation, GS1 made tremendousprogress on our UniqueID program, a multi-yearinitiative dedicated to making it easier to efficientlymanage GS1 Global Trade Item Numbers (GTINs). With the ratification and release of the new GTINManagement Standard, GS1, with collaborative inputfrom industry, simplified and clarified the GTINManagement Rules to help industry better addressthe challenge of unique, persistent productidentification.

The ultimate goal of the UniqueID program is toprovide consumers with the right productinformation at the right time, thanks in part to moreintuitive and easy-to-understand GS1 standards.

GS1 standards enable retailers to servetoday’s consumers more efficiently byimproving processes that drive theshopping experience

www.gs1ie.org/retail

GS1 Standards in Retail

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Today’s consumers want to seamlessly research, purchase and interact with products,no matter where they shop, and GS1 can help

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Today’s fashion brands and manufacturers must beable to keep a range of sizes and colours in stock,bring new products to shelves quickly andefficiently, and source materials from a worldwidenetwork of suppliers – all while meeting thedemands of consumers who expect a seamless andconsistent experience every time they shop, evenwhen they switch between in-store purchases and e-commerce.

GS1 standards can help boost speed-to-market,streamline sourcing and improve inventorymanagement and accuracy.

The increased adoption and use of RFID technology,powered by GS1 standards, has helped pave theway toward serialised item-level productidentification in the apparel sector.

For several years, GS1 has been helping industry touniquely identify and track individual items from thepoint of manufacture across the global supply chain,instead of simply identifying batches of items.

GS1 is currently working with industry to create aguideline devoted to serialisation in footwear and aglobal Tagged Item Performance Protocol (TIPP)working group is now striving to develop a gradingsystem for EPC-enabled RFID tags. This will make iteasier for both retailers and suppliers to identify thebest tag to choose for each product and use case.

We are also identifying best practices that we hopewill increase the adoption of GS1 EDI by apparelsector trading partners and ensure that informationmade available about retail items is complete,correct and up to date.

As trading partners in this sector increase theirfocus on sustainable sourcing, GS1 stands ready toprovide traceability solutions.

GS1 Ireland, together with our Solution Partners, isinvesting in the GS1 Knowledge Centre to showcasethe latest supply chain and retail solutionsspecifically for the apparel sector. In a relativelysmall island economy such as Ireland, where retail isheavily influenced by international operators, it isimportant to ensure domestic retailers andproducers, many of whom operate in an artisan orspecialist capacity, are best placed with the latestknow-how and technology to capitalise on marketopportunities locally and internationally.

If you are a clothing or fashion retailer or producerand are interested in learning more about the costsaving and efficiency benefits of standards-basedRFID and barcode technologies for productidentification, inventory management, to meettrading partner demands or to satisfy consumers inthe new omni-channel world, please get in touch.You can keep up to date with our news and activitieson our website at www.gs1ie.org/apparel

GS1 standards bring many benefits to this complex and truly global supply chain thatconnects raw material providers, manufacturers and retailers

Apparel, Fashion & Footwear

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By leveraging GS1 standards and deploying best practices, enterprises can steadilyimprove supply chain performance

Food is Ireland’s largest industry sector. It accountsfor €25bn in annual turnover, €11bn in exports and230,000 jobs. The food sector supplies much of thecountry’s €14bn domestic grocery sector, is thelargest net exporter of dairy ingredients, beef, andlamb in Europe, and the UK’s largest supplier offood and drink.

Understandably, this is also GS1 Ireland’s mostimportant industry sector with companies from theFood & Beverage, Agriculture, Forestry and Fishingsectors accounting for 54% of all members, and 57%of new members in 2016.

The Minister for Agriculture, Food and the Marine,Mr. Michael Creed TD has said that the 2016 value ofIrish agri-food and drinks exports had exceeded€11bn for the first time, marking the 7th successiveyear of growth. Ireland is now well-positioned togrow towards its €19bn export goal, as set in FoodWise 2025.

This growth is being driven in part, by the growth inthe world’s population, which is expected to growby over a billion by 2030 and will require an increasein food production by 50% to cope with demand.Growth is also being driven by a doubling of theworld’s middle class to well in excess of 3.2bn by2020. It is evident that major Irish companies likeKerry Group, Glanbia and Greencore are alreadygearing up to exploit this increased demand.

The government’s agri-food strategy, “Food Wise2025”, has set out ambitious targets for the sectorfor the next decade, and predicts that Ireland canincrease the value of exports by 85% to €19bn, pushthe value added to the sector by 70% to €13bn, andgrow the value of primary production by 65% to€10bn.

This is also reflected in the growth in GS1Membership which has grown overall by 13.1% since2014, while the corresponding growth in the Foodsector membership was 17.3%.

Given the importance of the agri-food sector to theIrish economy, these targets for output growth willhave an important impact on Ireland, especially inrural Ireland, where it is hoped that agri-businesscan help deliver on the rural employment objectiveswithin the Commission for Economic Developmentin Rural Areas report.

GS1 Ireland are an important part of thisdevelopment, and are positioned to help ourmembers to exploit these opportunities by enablingthem to trade more efficiently, reduce costs andimprove food safety through the use of ourstandards.

Food & Grocery

www.gs1ie.org/food

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Find Nutmost online on Facebook, Twitter, and throughthe #NutsWithBenefits hashtag.

Member Spotlight

NutmostActivated Nuts During 2016, Andrew Wynne, founder of food start-up Nutmost, introduced a taste revelation to theIrish health food market. His Nutmost range ofactivated nuts are healthier than regular nuts, and ashe also says are “addictively delicious”. Andrew is afan of healthy living, and he first came acrossactivated nuts while visiting Los Angeles. Uponreturning home he found that it was impossible toget activated nuts in Ireland, forcing him to make hisown. It was a lightbulb moment, and lead to thecreation of the Nutmost range.

While nuts are a healthy snack, they possess anumber of chemical compounds which can inhibitdigestive absorption in humans. Activated nuts arefirst soaked in water and salt. Once the germinationprocess begins, the nuts are carefully dehydrated ata low temperature. Activating the nut in this fashionremoves the digestive inhibitors, giving the fullnutritional benefit to the eater. It also happens toleave the nut tasting even better than before.Andrew produces a variety of nuts and flavours,including Himalayan salt almonds, maple flavouredwalnuts, and tamari flavoured almonds.

Andrew launched his business by attending anumber of food markets, before expanding intoFresh Good Food Markets and a selection ofindependent health food stores. “The feedback fromconsumers was great; the nuts tasted amazing andthey were an interesting product” he recalls.However, awareness of activated nuts remained lowwithin the Irish marketplace. This presented achallenge to create consumer recognition of theproduct, but also delivered first mover advantage toNutmost.

Andrew is a graduate of Supervalu’s Food Academy.“Getting listed with Supervalu requires a much morecommercial approach in terms of production, distribution, and packaging”. Scaling up a businessas a sole trader can be challenging, but Andrew’sadvice is to “grow smart and take the right steps foryour business”. As a part of scaling up and adoptinga more commercial approach, Andrew put GS1barcodes onto his products. GS1 barcodes were akey part of preparing Andrew’s product fordistribution with mainstream retailers.

With fierce competition for shelf space, it’simportant for products to stand out. Andrew madethe decision to change his packaging from a tub to amore functional re-sealable pouch. He also investedin improving the branding and aesthetic of hispackaging, giving it a premium look and feel tomatch the high quality of the product.

Andrew’s goals for 2016 included getting thebusiness firmly established and growing brandawareness. The end of 2016 saw Nutmost on theshelves in 30 Supervalu stores, as well as health foodstores across the country. The Nutmost brand cameto national prominence when Andrew braved theDragon’s Den on RTÉ, introducing the Irish public toactivated nuts, and providing great exposure for thecompany.

2017 will see Andrew scale up production, with theopening of new manufacturing facilities in Donegal.The extra capacity will allow Nutmost to cement itshold on the Irish market, and begin expanding intothe UK.

www.gs1ie.org/Our-Members

GS1 Standards in Healthcare

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Safer, more efficient care starts with a simple scan

“Use of GS1 allows us to do things likeidentify patients, scan in medicines,medical devices and make sure theright thing, gets to the right person atthe right time and so it has a hugecapacity to help patient care.”

Professor Terence Stephenson, Chair of GeneralMedical Council, UK

Introduction2016 was a significant year for healthcare inIreland and around the world. The increasingregulatory requirements from both the FDA, EUand other regulatory bodies has resulted in ahuge drive towards standardisation. GS1standards are now the recognised standards forunique identification, barcoding and thestandardisation of data sharing in healthcare.

In Europe, both pharmaceuticals and medicaldevices will be required to have a uniqueidentifier in the form of a barcode by2019/2020 respectively and we have been busysupporting our Members to get ready for thesecompliance dates.

Project ImagineIn June 2016, the GS1 Global Office launchedProject Imagine, which is focused on engaginghealthcare providers and patient advocacyorganisations to foster a deeper understandingof the benefits of GS1 standards, particularly inthe current environment of increasing patientempowerment. Engagement with hospitals hasbeen a key focus for GS1 Ireland and we areseeing an increasing requirement fortraceability throughout hospitals for manyapplications to increase patient safety anddeliver efficiencies. As one hospital commented“we manage our risk well, but with manualprocesses. This is not safe, sustainable, efficientor scalable.”

Scan4SafetyIn the UK, the NHS launched their Scan4Safetyprogramme, currently being rolled out to mandatethe use of GS1 standards by all Trusts and suppliers,starting with identifying the patient, product andlocation.

The six demonstrator sites are very activelypromoting the implementation programme. It wasan exciting year which culminated with a news itemrun by the BBC and Sky News on the importance ofbarcoding. The Scan4Safety programme is drivingfantastic clinical endorsement and we are starting tosee the effects of that in Ireland as well.

Events, Projects and New DevelopmentsThe work of the Healthcare User Group (HUG)throughout 2016 was instrumental in progressingthe adoption of GS1 standards for procurement at anational level by the HSE. The UDI (Unique DeviceIdentifier)/GTIN (Global Trade Item Number) is now

requested in relevant HSE tender documents. GS1standards are seen as a key enabler to supportimproved patient safety as well as supportinglogistics and supply chain processes.

The HUG reached a significant milestone as itentered its third year. The HUG Breakfast Briefing,hosted in November 2016 was our first event toengage the clinical community. The event had anexcellent attendance with over 80 senior leadersfrom Irish healthcare representing suppliers,hospitals and the HSE present.

Guest speaker Chris Tulloch, Associate MedicalDirector and Consultant Orthopaedic Surgeon ofNorth Tees and Hartlepool Hospitals NHS Trust (oneof the 6 UK Demonstrator Sites) spoke about “GS1standards improving clinical effectiveness andpatient safety”. Chris had a powerful message onthe importance of barcoding for patient safety andinventory management.

Our work with St. James’s Hospital (SJH) continuedin 2016. In the previous year St. James’s Hospitalran a very successful proof of concept to trackprecious samples as they travelled from theatre tothe laboratory, using Radio Frequency Identification(RFID) based on GS1 EPC standards. Following onfrom this success the project went live inSeptember. A case study on this work will bepublished in 2017.

The project at St James’s Hospital followed on fromthe work that the Galway Clinic carried out to trackhospital patients using RFID. This case study waspublished in the GS1 Global Healthcare ReferenceBook and was also presented at the GS1 UKHealthcare Conference in April last year.

Another very exciting development in 2016 was theestablishment of the “Scan for Surgery” project inSt. James’s Hospital. Introduced to enable producttraceability, analytics and automated reordering, it

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Pictured at the HUG Breakfast Briefing (from left) Siobhain Duggan,GS1; John Swords, HSE; Pat Tracey, DCC Vital; Michael Kelly, GS1;Chris Tulloch, North Tees; Richard Corbridge, HSE; Joan Cahill,Pfizer; Nicola Hickie, HPRA; Siobhan Dunphy, HSE; Mike Byrne, GS1.

is firmly focussed on patient safety. Previously it hadbeen very difficult for hospitals to know whathappened ‘behind the red line’. The hospital neededa standardised way of capturing details aboutpatients as they flow through the hospital.Leveraging some of the work done in the UK on theScan4Safety initiative, SJH utilised the GS1 ScanningApp to complete an audit of all products in theatre.The survey showed that over 80% of the productshad a GS1 barcode which supported the businesscase to get funding to introduce scanning of allproducts in theatre. Go-Live is planned in early 2017for two theatres.

The eProcurement project at St James’s Hospitalprogressed with additional suppliers commencingtesting, of which a number are close to go-live in2017. When suppliers are live the link to the scan forsurgery project will allow for fully automatedreordering of products – a first for Ireland.

Finally, under the guidance and support of itshealthcare committee, GS1 Ireland continued toengage with key stakeholders and policy makers andthere is widespread recognition of the work that GS1is doing to enable safer, more efficient care. Weanticipate an exciting year ahead for 2017.

HSE Masterclass

In May 2016 the HSE hosted its third annualMasterclass and once again it was anexcellent event. There were a range ofspeakers from inspirational to thoughtleaders from various fields, both clinical andnon-clinical. The theme for the event was‘Building a Better Health Service – Care,Compassion, Trust and Learning. This was avaluable opportunity for over 800 seniorleaders and managers from both public andprivate healthcare organisations to cometogether to focus on building leadershipcapacity. GS1 Ireland was delighted to beinvited again to share the stand with HSEProcurement, Health Business Services andto attend the leadership event.

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Over 85% of medical devices currently beingregistered to the FDA database areregistered with a GS1 identifier. Here inIreland we reached our own milestone as wesupported the first Irish medical devicemanufacturer to publish their data to theFDA database. This proved to be quite adifficult exercise and full credit goes to theGS1 technical team that ensured its success.It was a valuable opportunity to buildexpertise that will benefit other memberswho may need to publish to the FDA and theEU databases in the future.

HSE Adoption of GS1 Standards for Patient Safety

The Healthcare User Group Leadership Team metregularly during 2016 with several subgroupmeetings to progress various work items. The mainobjective of the group is to support theimplementation of GS1 standards in Irish healthcare,with a focus on demonstrating the benefits of theGlobal Trade Item Number (GTIN) as a uniqueidentifier.

In 2016 GS1 Ireland continued it work with the HSENational Distribution Centre (NDC) and conducted asurvey of all product lines in the NDC. Using theGS1 Scanning App on a tablet PC, each productbarcode in each warehouse bay was scanned andlinked to existing master data in SAP. The findingsfrom the survey (shown in the graph) demonstratethe potential of the GS1 barcode as a uniqueidentifier for the HSE.

79% of products scanned had a GS1 barcode with43% of the GS1 barcodes also containing expiryinformation and 44% containing batch information.This will prove to be very important for futuretraceability programmes.

The next steps are to capture the GTIN informationfor products in other HSE warehouse locations aspart of the move to a single financial managementsystem.

By matching internal HSE data to the GTIN the linkcan be made to the National Product Catalogue, aGS1 certified datapool. This allows data to be easilyshared between suppliers and healthcare providersand ultimately to address the need for accuratemaster data.

GS1 GTINs79%

No identifier4%

No barcode15%

HIBC Codes2%

NDC Barcode Survey ResultsProduct identifiers found for medical

devices and consumables

“The adoption of GS1 standards isviewed as a very important priorityto ensure best practices and safetyfor patients.”

John Swords, Head of Procurement, HSE

GUDID

First Irish Medical Device Supplier Publishes to the FDA Global UDI Database

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Regulatory Update Further product recalls and counterfeit productsentering the healthcare supply chain have ledregulators to look seriously at addressing theseissues. Regulations have been brought in by boththe US FDA and by the EU Commission to improvetraceability in healthcare.

PharmaceuticalsIn 2016, the Delegated Acts for the EU FalsifiedMedicines Directive on Safety Features werepublished, confirming the 9th February 2019 as thedate for compliance. This means that all packs soldinto the European market must have a 2D barcodeprinted on the packaging. This will include a uniqueidentifier with key data elements such as productcode, batch, expiry, and serial number, and thatbarcode must be scanned at the point of dispense.

Manufacturers will be required to upload theserialisation information for each pack to a centralrepository. The repository for Ireland is expected tobe appointed by the IMVO in 2017.

Medical DevicesThe UDI regulation is now well established in the USand over 85% of devices registered to the US FDAGlobal UDI Database have a GS1 code. The EU hasoutlined their plans for the Medical DeviceRegulation of which UDI is one component.

The regulation is expected to be published early in2017 and current guidance is that, from 2020, allmanufacturers will be required to register the UDIand the associated data in the European databasecalled EUDAMED. The dates to place the UDI in abarcode on the product packaging will start withClass 3 devices in 2021 and this will be a phasedapproach for other classes of devices similar to theFDA approach. Furthermore, the EU will requirehealthcare providers to capture and store the UDI,preferably electronically. GS1 is working with manyorganisations to support compliance with theseregulations.

• Compliance dates are rapidly approaching forthe Falsified Medicines Directive and UniqueDevice Identification with implications for allstakeholders in healthcare.

• A Healthcare User Group Information Day isplanned for early 2017 and additional workinggroups on traceability in hospitals. The GTIN isthe unique identifier which can support anational product file.

• St James’s Hospital are due to go live with theirScan4Surgery initiative and we expect to seeexciting results. All suppliers are invited to getinvolved.

• HSE National Medical Equipment AssetRegistry and traceability using RFID

• HSE National Patient Identifier linking to theIndividual Health Identifier

• Track and trace projects, particularly inhospitals, to enable increased patient safety,efficiency, elimination of paper and improvedvisibility of what is happening along the patientjourney.

Future Agenda

2017 will be an exciting year for GS1 Ireland in the Healthcare sector. GS1 is playing a key role insupporting the following activities:

GS1 Ireland will continue to engage with the key stakeholders in Irish healthcare and expects to furtherincrease its work with the HSE and Hospital Groups, focusing on transformative projects to enable end-to-end traceability, patient safety and efficiency.

GS1 makes is possible forhealthcare providers and lifescience companies to put patientsafety and operational efficiencyat the heart of their organisationsby adopting GS1 standards as thefoundation of their businessprocesses.

www.gs1ie.org/healthcare

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SmartSearch

Unique ID

Data Analytics

Data Quality

Industry Collaboration

Partnerships

IoT

Services andSolutions

Application providers, end users and regulators areincreasingly accessing GS1-powered services andsolutions. Business is easier when customers, suppliersand partners all speak the same language.

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The Internet of Things Unleash the full power of IoT with GS1 standards

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The Internet of Things (IoT) is the concept of manyobjects, smart devices, machines, consumers, patientsand services being increasingly able to be connected,to solve problems in new and more effective ways. Inturn, increased connectivity will facilitate automation,visibility and access to services. The Internet of Thingspromises to enable commercial companies andgovernmental organisations to increase their ability totailor products and services to individual needs and toensure they are delivered accurately and effectively.

The IoT is not any single, specific new technology. It isa framework for integrating digital technologiesassociated with identification, sensing and datamanagement.

IoT applied to manufacturing opens new opportunitiesfor GS1, as illustrated by the initiatives that surroundsnew business strategies such as Industry 4.0, alsoknown as Smart Manufacturing, Digital Industry orDigital Manufacturing.

GS1’s “Global Language of Business” connects thephysical and digital worlds, laying the foundation forIoT. Unique identification of objects, assets, locations,etc. (things) and automatic data capture, powered byGS1 barcodes and EPC/RFID, enable interoperabilityand are key requirements for IoT.

Seamless, trusted sharing of “big data” is enabled byGS1 standards. IoT is driving increased connectivity of“things” – which leads to massive data collection.

GS1 standards are fully compliant with ISOStandard 29161: Unique identification for theInternet of Things.

IoT

The term the “Internet of Things” wascoined at the Auto-ID Center at theMassachusetts Institute of Technology(MIT) during the early days of RFIDdevelopment work. In 1999, the vision wasto connect “things” to object-specific dataon the internet, which could be accessedusing a unique tag attached to the object.A set of standards was built around thethree core concepts of identification, datacapture and information sharing. That workspurred the creation of EPCglobal®, a GS1subsidiary, and continues to befoundational to the GS1 system ofstandards.

IoT and the ConsumerConsumers are changing the ways in which theyinteract with retailers, brands and products - both inthe physical world and online. They increasinglydemand that their shopping experiences be relevant,timely, personal, secure and seamless. More andmore, these interactions occur with, and between,smart-connected devices. We are moving into theage of the Consumer Internet of Things (C-IoT).

Though IoT has traditionally been leveraged withinthe B2B space, it is already prevalent across retailchannels and it is expected that healthcare andother industries will follow suit.

Consumer IoT represents a move beyond theboundaries of a traditional supply chain and focuseson the “life” of a product post-purchase. Thisextension of the supply chain is referred to as the“consumption chain”.

The consumption chain includes activities such asset up, installation, use, customisation, storage,

subscription, replenishment, maintenance, repair,reorder, resale, share and disposal. Focusing on this new landscape of product useenables GS1 and its stakeholders to extend theirconversation with consumers far beyond the point-of-sale.

Fragmented standards, protocols and services willbe the most significant bottlenecks for theactualisation of C-IoT. It will be necessary to build onexisting global standards and technologies to createa framework for C-IoT to ensure that consumerneeds and business processes run seamlessly.

In today’s hyper-connected world, the creation of aC-IoT standards framework will be foundational tothe relevance of GS1 in the coming decades. Webelieve that a unique opportunity exists for industryto leverage decades of investment in standards andto extend the GS1 system of standards to becomeindustry’s global language of business, people— andthings.

www.gs1ie.org/IoT

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It has never been more important that Ireland is atthe forefront of manufacturing practices. Disruptionis not a temporary phenomenon and is somethingIrish companies can mitigate if they leveragetechnology to create digital businesses.

Throughout 2016 GS1 Ireland together with theother participants in the Smart Manufacturing Groupinitiative, Cisco, IBM, Hanley Automation andRockwell, worked to raise awareness of smartmanufacturing practices for Irish companies.

The objective of the Smart Manufacturing Group isto create a digital production environment whereequipment, platforms and people are linked, therebyenabling manufacturers to take advantage of a newera of connectivity. This promises greaterproductivity, improved utilisation of assets, andbetter decision-making.

Driving much of this change is the ability to bringtogether information technology and operationstechnology, enabling businesses to access the dataat their disposal and transform it into actionableinformation.

Integrated operationsKnowledge-enabled enterprises are using advancedmanufacturing technology, and incorporatingdevices and processes to enhance productivity,safety, security, sustainability and performance. In the form of smart manufacturing, this evolutiondemands the integration of three key productivityfactors: automation, operations information, andadvanced analytics. These factors link machines andequipment through open platforms and enable themto ‘think’.

Smart manufacturing examples include systems thatinteract with one another, analyse data to predictfailure, configure themselves and adapt to changeswithin the manufacturing process itself.

In the smart factory, the goal is to improveproductivity within an operation and ultimatelyacross the entire value chain by increasing visibilityand access to contextual information connected toprocesses and products; to get the right informationto the right people at the right time.

While many manufacturers have made substantialprogress connecting plant floor data to thecompany network, integrating plant floor data withenterprise systems - not to mention bringinginternet connectivity to production operations -poses substantial challenges. Foremost amongthese are cost, the complexity of integratingtechnologies from different vendors, and securityconcerns.

Getting insights from data is one of the biggestchallenges. Using GS1 global standards to uniquelyidentify, capture and share data about things,people and processes helps companies make senseof data, and allows companies to get valuableinsights from smart manufacturing initiatives. GS1Ireland is excited about what the SMG can do tosupport Irish companies bridging the gap withadvanced manufacturing technologies and to bringsignificant business value for those manufacturerswilling to overcome the initial challenges.

GS1 joins the Smart Manufacturing Group (SMG) to drive the adoption of smartmanufacturing practices in Ireland and help maintain Ireland as a global leader inadvanced manufacturing.

Smart Manufacturing

The Global Standards Management Process (GSMP)is critical to the success and growth of the GS1organisation. GSMP is the forum in which GS1standards are developed. It is a community-basedplatform for businesses facing similar problems towork together and develop standards-basedsolutions – in effect standards created by industry,for industry.

As a neutral participant in the process, GS1facilitates the dialogue between business andtechnical people from nearly sixty countries. Theindustries represented include retail and consumergoods, fresh foods, healthcare, transport andlogistics, governments and more.

GS1 Ireland is an active participant in the GSMP.Following the BSE crisis in the 1990’s GS1 Irelandplayed an instrumental role in the introduction ofbarcoding standards that enabled meat producersto capture traceability information about theslaughtering and production of animal products asthey move through the value chain. These standardsare now used ubiquitously across the globe toensure farm-to-fork traceability.

Furthermore, GS1 Ireland was instrumental inintroducing similar barcoding functionality for theglobal fishing community in 2014. These newstandards allow suppliers to communicate if the fish

being traded has been previously frozen, the date itwas caught or harvested and even what fishingtechnology was used to catch the fish. Naturally, thishas considerable benefit for consumers who havebecome much more conscious about the origin oftheir food and sustainability in general.

In the Healthcare sector GS1 Ireland has played asignificant part in the adoption of barcodetechnology for the serialised identification formedical products. Experts from GS1 Ireland werekey to the inclusion of drug potency details inbarcode identification processes to help supportpatient safety initiatives and reduce related human-error factors.

2016 saw the continuation of GS1 Ireland’scontribution to GSMP. With the drive towards theintroduction of DataMatrix and GS1-128 barcodesfor the identification of medical devices andpharmaceutical products, there has been anincrease in the number of companies providingfeedback to GS1 on individual implementations.Leveraging that input GS1 Ireland reviewed thetraditional encoding methodologies of bothDataMatrix and GS1-128 symbologies to suggestchanges to simplify their adoption in healthcare andother industries. These changes took effect inJanuary 2017.

GSMP Report

The GS1 Global Standards Management Process pairs efficiency with consensus-building to develop standards that address real business challenges

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www.gs1ie.org/gsmp

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GS1 SmartSearch

www.gs1ie.org/smartsearch

Today’s consumers research products on the web atmany points during their shopping journey. Theywant to find more relevant and accurate searchresults, quickly and easily. In fact, whether in storeor online consumers expect more, and better,product information.

Companies are responding to these demands.Manufacturers that once had only physical locationshave now gone digital. Retailers are embracingomni-channel strategies. Everyone is working to giveconsumers a seamless shopping experience.

That is why GS1 is working with industry to extendour global language of business to be as pervasiveand valuable in the digital world as it has been in thephysical.

With the newly ratified GS1 SmartSearch standardcompanies can include Global Trade Item Numbers(GTINs) and product attributes from the Global DataDictionary (GDD) in the code of product web pagesin a machine readable format.

This is a more precise way to describe products andas a result, search engines and other web or mobile

applications can better process the information, soconsumers can receive more relevant search resultsthat match their needs and preferences.

This, in turn, helps brands, retailers and others getnoticed. Preliminary pilot testing shows that productweb pages containing GTINs and standard productdata within their code show up higher on searchresults pages.

Another driving force behind our work in thisdomain is the basic fact that searches often fail toreturn images of the right product. This is a realproblem in a world where millions of people areusing thousands of different apps to share photosand illustrations, every day. The GS1 Digital AssetManagement project is working to embed GS1standards in the metadata hidden behind the photosand graphics on web pages to improve theirfindability.

GS1 has issued an open invitation to agencies andbrand owners to pilot the GS1 SmartSearchstandard. Please get in touch if you are interested ingetting involved.

Search

The GS1 SmartSearch standard enables increased sales through more relevantsearch results delivered through structured product data linked to the product’sGTIN. Structured data is used by applications such as search engines andsmartphone apps to deliver a richer experience for the consumer.

New User Interest Groups

At a global level, there are numerous workinggroups that address the challenges Members face ona daily basis. In 2016 a number of new groups wereestablished to support industry in addressing thesechallenges.

The new working groups include:

• The Transport & Logistics Industry User Group(IUG) - formed to improve supply chainefficiency and the visibility of operations bydeveloping and adopting GS1 global standardswithin the sector.

• The Fresh Foods Industry User Group - focussedon becoming the global platform for industrystakeholders to develop a consistent approach tobusiness processes, traceability, data alignment,and item level identification across all fresh foodsectors to drive supply chain efficiencies andreduce food waste.

In Healthcare the mission of GS1 is to lead thesector to the successful development andimplementation of global standards, bringingtogether technical and clinical experts to enhancepatient safety and deliver supply chain efficiencies.In Ireland the Healthcare User Group (HUG) mirrorsthese objectives and has been actively working ontheir successful realisation.

Industry Engagement Report

We develop our global supply chain standards in partnership with industry expertsand the business teams that use them. By facilitating industry engagement we cansolve common business problems together.

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Industry Engagement is core to the activity of GS1 Ireland. It is the means by which we remain at thepulse of industry needs, and is fundamental to supporting standards users in new and core sectors alike.Keeping up-to-date with changing business priorities and evolving technologies is essential to ensure thatGS1 standards, and the solutions based on them, remain relevant to business in today’s world.

Championing Education

An important ingredient of the success of the GS1 IndustryEngagement Programme is the ongoing education of allparties. GS1 Ireland was delighted to welcome a new memberof staff in 2016 to champion this initiative. Tim Daly willsupport the ongoing expansion of GS1 Ireland’s educationinitiatives through the launch of an eLearning platform thatwill be available to both Solution Providers and Members, tobuild and enhance their standards knowledge.

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Tim Daly, Industry Engagement Executive

Building a Community of Committed Solution Providers

There is a clear opportunity for GS1 Ireland to have GS1 standards included in new supply chain solutions.Forming partnerships with Solution Providers that build on GS1 standards delivers benefits for the entirecommunity.

In the coming years, members can expect a more widespread and tighter integration of GS1 standards intothe solutions and services they procure. They will also be able to choose from a larger number of informedand experienced implementation partners. This leads to potentially faster and better solutions that have agreater beneficial impact on business.

On a daily basis our Members seek out solution providers to help them implement new solutions,incorporating GS1 standards. To this end, GS1 Ireland was delighted to welcome several providers to thePartner Community this year:

• TrueCommerce, a long-term Partner of GS1 Ireland thatdelivers a next generation EDI and e-invoicing managed serviceto companies large and small looking to improve efficiency andreduce cost. The focus of our collaboration is to growawareness of the benefits of EDI among existing and new users.

• Cisco and GS1 Ireland are working in partnership to helpdigitise the manufacturing process for users of GS1 supplychain standards. The objective of the partnership is to future-proof many of the new processes and requirements of moderndigital manufacturing for both supply and demand chains.

• Enterprise System Partners (ESP) is a leading global consultingand project engineering company that supports manufacturingIT solutions for the life sciences industry and is working withGS1 to support the implementation of serialisation solutionsbased on GS1 standards.

• GS1 Ireland was also delighted to welcome Diomac to theprogramme in 2016. Diomac have demonstrated a commitmentto adopting GS1 standards in their specialised and fullyintegrated management information systems for small tomedium size businesses.

• VisionID has recently become a GS1 Platinum Partner and isworking with GS1 Ireland to bring next generation solutions tothe market for the manufacturing, retail, food, healthcare andapparel sectors.

In practical terms, many new solutions such as fTRACE and Global Data Synchronisation are activelysupported by GS1 Ireland to achieve better traceability and data alignment across multiple industry sectors.Many technology and solution providers are actively promoting solutions to enable and improve supplychain performance. To align with these efforts GS1 Ireland has begun deepening its partnership with thesesolution providers to ensure they are promoting the use and benefits of GS1 standards to our members.

Full details of all our Programme Partners and the solutions they offer can be found on the Meet OurPartners page on the GS1 Ireland website.

www.gs1ie.org/partners

Conferences & Events

GS1 Ireland was well represented industry conferences and events throughout 2016 in a range of industrysectors including food, healthcare and technology. We were honoured to have many opportunities to speakand exhibit and welcome each opportunity to share our expertise of supply chain standards.

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GS1 receives Checkout IndustryInnovation Award

In June 2016 we were honoured to be awardedthe Checkout Industry Innovation Award for thework we have done in the area of FoodTraceability.

We were delighted to accept the award onbehalf of our food sector Members who haveadopted GS1 standards as the foundation oftheir production and traceability systems.

Agribusiness Awards

The second annual Agribusiness Awards wereheld in November 2016 and provided a uniqueopportunity for the leaders and innovators ofthis dynamic sector to come together tocelebrate their significant achievements. DenisO’Brien, Director of Standards and Solutions,GS1 Ireland, presented two awards on thenight.

Aidan Cotter, the out-going chief executive ofBord Bia, was awarded Agribusiness Leader inrecognition of his outstanding public serviceover the last 36 years.

Our congratulations also go to Marie Curtin ofTemple Dairy, Co Limerick, who was namedAgribusiness Rising Star..

Mike Byrne & Denis O’Brien, GS1 Ireland

Aidan Cotter, Bord Bia, receives the Agribusiness LeaderAward from Denis O’Brien, GS1

Denis O’Brien, GS1, presents Marie Curtin, Temple Dairy,with the Agribusiness Rising Star Award

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The Pharma Industry Awards

GS1 Ireland was delighted to be a sponsor atthe Pharma Industry Awards 2016.

Congratulations to Pfizer Ireland who won theOperational Excellence Award, sponsored byGS1 Ireland. The awards night, which tookplace on 13th October, was a very successfulevent attended by over 400 delegates.

National Procurement and Supply Chain Awards

On December 6th, procurement and supplychain professionals gathered at the ClaytonHotel – Burlington Road, to recognise andcelebrate outstanding achievements within theindustry. GS1 was delighted to again attend andsponsor the event with the opportunity topresent two awards on the night.

Our congratulations go to the Food AcademyTeam, with representatives from SuperValu,Bord Bia and the Local Enterprise Network,who won the Procurement Collaboration Award(Private Sector).

The consortium of departments behind theorganisation of events to commemorate the1916 Rising won the Procurement CollaborationAward (Public Sector) as well as the OverallExcellence in Procurement and Supply ChainAward.

Mike Byrne, GS1 presents the Food Academy Team withtheir Award for Procurement Collaboration (PrivateSector)

Ailbhe Garrett and John Cummings (OGP) and AlishaNaughton (OPW) receive the award for ProcurementCollaboration (Public Sector) from Mike Byrne, GS1

The Pfizer Ireland Team receiving the award forOperational Excellence from Mike Byrne, GS1

Barcode Manager

1234 5678

The accurate, stress-free way to manageyour barcodes

Barcode Manager is an easy-to-use online tool thatsimplifies the allocation and storage of barcodenumbers and associated product details. GS1Ireland launched Barcode Manager in September2015 as a way of making barcode allocation easierand more efficient. Barcode Manager allowsmembers to:

• Generate barcode numbers for a new product

• Store barcode numbers and associated productinformation for existing products

• Compile detailed data profiles for products

• Print or export a product information sheet

• Generate barcode symbols in a range of fileformats

• Upload existing product information from othersystems via spreadsheet

Barcode Manager now boasts 478 users and 15,947allocated barcodes. Throughout 2016, both new andexisting members were on-boarded to BarcodeManager and at the year-end 89% of all newmembers in 2016 were using the tool to managetheir barcodes and associated product information.Feedback from users has been very positive. Barcode Manager has greatly simplified the processof allocating a barcode for members, while reducingthe chance for error and possible loss of records.

The majority of users are CPG companies, both foodand non-food, who account for 88% of users and 87%of the barcodes stored on the system. Users fromother sectors such as DIY and Healthcare have alsobeen using Barcode Manager to manage theirbarcode allocations.

Small firms with a turnover of under €5 millionaccount for 92% of users and 77% of barcodesallocated. Despite Barcode Manager being initiallytargeted at smaller firms, a number of largercompanies have also adopted Barcode Manager as amore accurate and efficient alternative to theircurrent method of barcode allocation and storage.Large companies will likely be an area of substantialgrowth to the user base in 2017.

An easy way to accurately and effortlessly manage product data and generate barcodenumbers and symbols

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Barcode Manager hasgreatly simplified theprocess of allocating abarcode for members

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Building on feedback from our users, a number ofimprovements to the software have been developed,leading to the rollout of ‘Barcode Manager 2.0’ which isscheduled for mid 2017.

These changes will make allocating barcodes andmanaging product data with Barcode Manager eveneasier. The upgrade will also introduce new functionalityfor advanced users, including the ability to:

• Export product data from Barcode Manager into theClavis Data Tool

• Publish products to a Global Registry• Manage multiple prefixes with ease• Improve data quality with additional supports and

attributes

2017 will see continued growth of the user base, withthe rollout of Barcode Manager to existing members. Arange of support tools, training resources, and webinarsmake getting started with Barcode Manager a simpleprocess. For users with specific queries, extensiveproduct ranges, or other complexities, a one-to-one on-boarding session can be arranged.

If your organisation would be interested in usingBarcode Manager to allocate their barcodes and managetheir product data, please contact our MembershipServices at helpdesk@GS1ie.org to get started.

1234 56771234 56781234 5679

www.gs1ie.org/barcode-manager

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Corporate and FinancialInformation We are pleased to share the results of the financial year 2016together with information about our governance details.

31

32

Report and Financial Statements 2016

Contents

Directors and Other Information 33

Directors’ Report 33

Directors’ Responsibilities Statement 36

Auditors’ Report 37

Income and Expenditure Account 38

Balance Sheet 38

Statement of Changes in Equity 39

Statement of Cash Flows 39

Notes to the Financial Statements 40

33

Board of DirectorsJohn O’Callaghan – ChairmanThomas Shortall – Vice Chairman Justin CartonJim CopelandSean DennisonTony GrahamDamian HarteMichael KellyDaragh MonahanBob SemplePJ TimminsPat TraceyFergal Wall

Secretary and Registered OfficeMike Byrne2nd FloorThe Merrion CentreNutley LaneDublin 4

Registered Number: 404327

AuditorsMazarsChartered Accountants &Statutory Audit FirmHarcourt CentreBlock 3Harcourt RoadDublin 2

BankersBank of Ireland College Green, Dublin 2

Bank of Ireland Merrion Road, Dublin 4

SolicitorsMason, Hayes and Curran6th Floor South Bank HouseBarrow StreetDublin 4

Gore & GrimesCavendish HouseSmithfieldDublin 7

Directors and Other Information

The directors submit their report together withthe audited financial statements for the yearended 31 December 2016.

1. Change in nameOn 26 July 2016 and in accordance with therequirements of the Companies Act 2014, thecompany changed its name from GS1 (GlobalStandards 1 (Ireland)) Limited to GS1 (GlobalStandards 1 (Ireland)), being a companylimited by guarantee (CLG), not having ashare capital.

The directors applied for, and were grantedthe exemption under Section 1180 of the Actand are therefore the company is notrequired to include CLG as part of its legalname.

2. Principal activities The mission of the company is to supportorganisations in their efforts to improvesupply and demand chain efficiency. Theprincipal activities of the company are thelicensing of global company prefixes andglobal location numbers to identify productsand locations for the purpose of automaticdata capture and for EDI. The GS1 global

standards cover Bar Coding, eCommerce,Data Synchronisation and EPC/RFID. Thecompany also provides a range of relevantprofessional and advisory services for its userorganisations, including education, training,and verification services.

3. Results and review of businessTotal income, inclusive of deposit interest, forthe year ended 31 December 2016 was€1,908,602 (2015: €1,777,503).

The number of active user companies was3,304 (2015: 3,103). The surplus for the yearafter taxation, amounted to €255,773 (2015:€226,039). The reserves at 31 December2016 were €1,796,442 (2015: €1,540,669).The core membership of the company isstable and mature.

4. DividendsThe company is a not for profit company andclause 5 of the Memorandum and Articles ofAssociation indicates that distributions to themembers will only arise upon the winding upor dissolution of the Company and after thesatisfaction of all debts and liabilities.

Directors’ Report

34

5. Events since the year endThere have been no significant eventsaffecting the company since the year end.

6. Research and developmentThe company undertakes research anddevelopment relevant to the implementationof GS1 standards and solutions. Thecompany is also participating in research anddevelopment projects in a number of sectorsincluding Retail Foods (GS1 DataBar),Healthcare (the use of GS1 barcoding andRFID in the tracking of patients and medicaldevices and other equipment) and Marine(Traceability & Labelling).

7. Future developmentsIn Ireland, and the other 112 countries whereorganisations have adopted our standards,GS1 has successfully established a commonlanguage among suppliers and retailersacross more than 20 sectors, including Retail,Healthcare, Transport and Logistics,Automotive, Financial Services and Defence.GS1 Ireland continues to play its part in thedelivery of global standards for our membersthat enable greater efficiencies in theirsupply chains and that deliver the benefitsachievable through the adoption of newtechnologies such as DataSync.ie. In sodoing, GS1 Ireland will continue to focus onensuring that our service offering remainsvalued by our membership.

8. Directors The election and retirement of directors is inaccordance with the Articles of Association.

The names of the persons who were directorsat any time during the year ended 31December 2016 are set out below. Unlessotherwise stated, they all served as directorsfor the entire year ended on that date.

John O’Callaghan – ChairmanTony Minogue – (resigned 10 June 2016)Justin CartonJim CopelandSean DennisonTony GrahamDamian HarteMichael KellyDaragh MonahanCatherine Phelan – (resigned 10 December 2016)Bob SempleThomas ShortallPJ TimminsPat TraceyFergal Wall – (appointed 4 December 2016)

Mike Byrne is the Company Secretary.

9. Directors and secretary and their interestsThe company is limited by guarantee anddoes not have any share capital. Therefore,the directors and secretary who servedduring the year did not have a beneficialinterest in the company.

10. Transactions involving directorsThere were no contracts or arrangements ofany significance outside the normal course ofbusiness for the organisation in relation tothe company’s business, or that of relatedcompanies, in which the directors orsecretary of the company had any interest, asdefined in the Companies Act 2014, at anytime during the year ended 31 December2016.

11. Risks and uncertaintiesThe Board of GS1 Ireland is responsible forthe organisation’s risk managementframework, which is designed to identify,manage and mitigate potential material risksto the achievement of GS1 Ireland’s strategicand business objectives.

The Board has approved a Risk ManagementPolicy which sets out delegatedresponsibilities and procedures for themanagement of risk in GS1 Ireland. ThisStatement informs the internal controls thatare maintained in those areas.

The Board regularly reviews theorganisation’s Risk Register to ensure thatboth documented and emerging risks aremanaged appropriately.

Roles & Responsibilities:The detailed roles and responsibilitiesassigned as part of the risk management andcontrol framework are summarised below:

Board:The Board is responsible for theorganisation’s Risk Management Policy andfor determining its appetite for risk. TheBoard is also required to report on the annualreview of the effectiveness of riskmanagement and internal control systems.

Audit & Risk Committee:The Audit & Risk Committee is responsiblefor assisting the Board by taking delegatedresponsibility for risk identification andassessment and for reviewing the Group’srisk management and internal controlsystems and making recommendations to theBoard thereon. It fulfils its responsibilities byreviewing relevant reports from the Executiveand Auditors. The Chairman of the Audit &Risk Committee reports to the Board meetingon its activities.

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Executive:The Executive [through the Chief ExecutiveOfficer] is required to maintain acomprehensive risk register, which isreviewed and updated regularly forsubmission and approval by the Audit & RiskCommittee and, thereafter, by the Board.Risks are categorised as Strategic (S),Financial (F), Operational (O), orReputational & Compliance (R) and are ratedin terms of Business Impact and Likelihood.The Register also includes a description ofthe Consequences of the Risk, the Ownershipof the Risk, and an Action Plan for addressingeach risk.

All changes to key risks are documented anddeclared to the Board by the CEO at eachBoard Meeting.

12. Governance and committeesGS1 Ireland is a member organisation of GS1AISBL and is required to comply with itsstatutes, code of practice and other relevantagreements as adopted under the GeneralAssembly of GS1. In addition to theSupervisory Board, which meets four times ayear and is responsible for the strategy andoverall performance of the organisation, thedirectors also participate in four committees:

a. Operations Committee:The Operations Committee consists ofthe Chair, Vice Chair and CEO. Thecommittee meets four times a year inadvance of the scheduled SupervisoryBoard meetings and reviews in detail theorganisation’s management accounts,risk register and operational reports.

b. Remuneration Committee:The Remuneration Committee consists ofthe Chair, Vice Chair and one otherindependent director. The committeemeets on average once a year todetermine and agree the policy for theremuneration of the company’s CEO.

c. Nominations Committee:The Nominations Committee consists ofthe Chair, Vice Chair and the CEO. Thecommittee meets on average twice ayear and the objectives of the committeeare to recommend to the SupervisoryBoard individuals suitable for nominationto the Board and to provide theSupervisory Board with advice on thestructure and general composition of theBoard.

d. Audit and Risk Committee:The Audit and Risk Committee consistsof the Vice Chair and two other directors,with the CEO in attendance. Thecommittee meets at least once a yearand is responsible for the oversight ofthe company’s audit and controlfunctions. This includes financialreporting and accounting, external audit,regulatory compliance, the effectivenessof the internal control environment andprocesses, and risk management.

13. Accounting RecordsThe measures that the directors have takento secure compliance with the requirementsof sections 281 to 285 of the Companies Act2014 with regard to the keeping ofaccounting records, are the employment ofappropriately qualified accounting personneland the maintenance of computerisedaccounting systems. The company’saccounting records are maintained at thecompany’s registered office at 2nd Floor, TheMerrion Centre, Nutley Lane, Dublin 4.

14. Statement of relevant audit informationIn the case of each of the persons who aredirectors at the time this report is approvedin accordance with section 332 of CompaniesAct 2014:

• so far as each director is aware, there isno relevant audit information of whichthe company’s statutory auditors areunaware, and

• each director has taken all the steps thathe or she ought to have taken as adirector in order to make himself orherself aware of any relevant auditinformation and to establish that thecompany’s statutory auditors are awareof that information.

14. AuditorsMazars, Chartered Accountants andStatutory Audit Firm, continue in office inaccordance with Section 383(2) of theCompanies Act 2014.

On behalf of the Board

John O’CallaghanThomas Shortall

9th March 2017

36

The directors are responsible for preparing thedirectors’ report and the financial statements inaccordance with applicable Irish law andregulations.

Irish company law requires the directors to preparefinancial statements for each financial year. Underthe law, the directors have elected to prepare thefinancial statements in accordance with CompaniesAct 2014 and FRS102 “The Financial ReportingStandard applicable in the UK and Republic ofIreland” issued by the Financial Reporting Council,and promulgated by the Institute of CharteredAccountants in Ireland (“relevant financial reportingframework”). Under company law, the directorsmust not approve the financial statements unlessthey are satisfied they give a true and fair view ofthe assets, liabilities and financial position of thecompany as at the financial year end and of theprofit or loss of the company for the financial yearand otherwise comply with the Companies Act2014. In preparing these financial statements, thedirectors are required to:

- select suitable accounting policies and thenapply them consistently;

- make judgements and estimates that arereasonable and prudent;

- state whether the financial statements havebeen prepared in accordance with applicableaccounting standards, identify those standards,and note the effect and the reason for anymaterial departure from those standards; and

- prepare the financial statements on the goingconcern basis unless it is inappropriate topresume that the company will continue inbusiness.

The directors are responsible for ensuring that thecompany keeps or causes to be kept adequateaccounting records which correctly explain andrecord the transactions of the company, enable atany time the assets, liabilities and financial positionof the company to be determined with reasonableaccuracy, enable them to ensure that the financialstatements comply with the Companies Act 2014and enable the financial statements to be audited.They are also responsible for safeguarding theassets of the company and hence for takingreasonable steps for the prevention and detectionof fraud and other irregularities.

On behalf of the Board

John O’CallaghanThomas Shortall

9th March 2017

Directors’ Responsibilities Statement

37

We have audited the financial statements of GS1(Global Standards 1 (Ireland)) for the year ended 31December 2016 which comprise the Income andExpenditure Account, the Balance Sheet, theStatement of Changes in Equity, the Statement ofCash Flows and the related notes. The relevantfinancial reporting framework that has been applied intheir preparation is the Companies Act 2014 and FRS102 The Financial Reporting Standard applicable in theUK and Republic of Ireland issued by the FinancialReporting Council.

This report is made solely to the company’s members,as a body, in accordance with section 391 of theCompanies Act 2014. Our audit work has beenundertaken so that we might state to the company’smembers those matters we are required to state tothem in an auditor’s report and for no other purpose.To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other thanthe company and the company’s members as a body,for our audit work, for this report, or for the opinionswe have formed.

Respective responsibilities of directors and auditorsAs explained more fully in the Directors’Responsibilities Statement the directors areresponsible for the preparation of the financialstatements and for being satisfied that they give a trueand fair view and otherwise comply with theCompanies Act 2014. Our responsibility is to audit andexpress an opinion on the financial statements inaccordance with Irish law and International Standardson Auditing (UK and Ireland). Those standards requireus to comply with the Auditing Practices Board’sEthical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about theamounts and disclosures in the financial statementssufficient to give reasonable assurance that thefinancial statements are free from materialmisstatement, whether caused by fraud or error. Thisincludes an assessment of: whether the accountingpolicies are appropriate to the company’scircumstances and have been consistently applied andadequately disclosed; the reasonableness of significantaccounting estimates made by the directors; and theoverall presentation of the financial statements. Inaddition, we read all the financial and non-financialinformation in the directors’ report to identify materialinconsistencies with the audited financial statementsand to identify any information that is apparentlymaterially incorrect based on, or materiallyinconsistent with, the knowledge acquired by us in thecourse of performing the audit. If we become aware

of any apparent material misstatements orinconsistencies, we consider the implications for ourreport.

Opinion on financial statementsIn our opinion the financial statements:• give a true and fair view of the assets, liabilities and

financial position of the company as at 31December 2016 and of its surplus for the year thenended; and

• have been properly prepared in accordance withthe relevant financial reporting framework and inparticular with the requirements of the CompaniesAct 2014.

Matters on which we are required to report by theCompanies Act 2014• We have obtained all the information and

explanations which we consider necessary for thepurposes of our audit.

• In our opinion the accounting records of thecompany were sufficient to permit the financialstatements to be readily and properly audited.

• The financial statements are in agreement with theaccounting records.

• In our opinion the information given in thedirectors’ report is consistent with the financialstatements.

Matters on which we are required to report byexceptionWe have nothing to report in respect of our obligationunder the Companies Act 2014 to report to you if, inour opinion, the disclosures of directors’ remunerationand transactions specified by sections 305 to 312 ofthe Act are not made.

Mairéad Divillyfor and on behalf of MazarsChartered Accountants & Statutory Audit FirmHarcourt CentreBlock 3Harcourt RoadDublin 2

9 March 2017

Independent Auditors’ Report To The Members Of

GS1 (Global Standards 1 (Ireland))

38

Income and Expenditure Account

Year ended Year ended31 December 31 December

2016 2015Notes € €

Income 5 1,904,235 1,771,101

Expenditure <1,655,276 > <1,558,124 >

Operating surplus 9 248,959 212,977

Gain on financial assets 12 2,447 11,014

Interest receivable and similar income 8 4,367 6,402

Surplus before taxation 255,773 230,393

Taxation 10 - <4,354 >

Surplus after taxation 255,773 226,039

Other comprehensive income - -

Total comprehensive income 255,773 226,039========== ==========

All income is in respect of continuing operations.

GS1 (Global Standards 1 (Ireland))

Balance Sheet31 December 31 December

2016 2015Notes € €

Fixed AssetsTangible fixed assets 11 244,719 237,985Financial assets 12 339,594 337,147

584,313 575,132

Current AssetsDebtors 13 170,005 152,068Cash and cash equivalents 1,497,317 1,309,879

1,667,322 1,461,947CreditorsAmounts falling due within one year 14 <445,907 > <487,124 >

Net Current Assets 1,221,415 974,823

Total assets less currrent liabilities 1,805,728 1,549,955

Provision for Liabilities 15 <9,286 > <9,286 >

1,796,442 1,540,669============ ============

Capital and ReservesIncome and expenditure account 1,796,442 1,540,669

============ ============

On behalf of the Board John O’Callaghan and Thomas Shortall, 9th March 2017

39

Statement of Changes in EquityIncome and TotalExpenditure Equity

€ €

At 1 January 2015 1,314,630 1,314,630

Excess of income over expenditure 226,039 226,039

At 31 December 2015 1,540,669 1,540,669

Excess of income over expenditure 255,773 255,773

At 31 December 2016 1,796,442 1,796,442============ ============

Statement of Cash FlowsYear ended Year ended

31 December 31 December 2016 2015

€ €

Cash flows from operating activitiesSurplus after tax for the year 255,773 226,039Depreciation 46,892 41,798Gain on financial assets at fair value <2,447 > <11,014 >Loss on disposal of fixed assets 319 -Interest and similar income <4,367 > <6,402 >Tax charged to the profit and loss - 4,354<Increase>/decrease in debtors <17,937 > 10,418<Decrease>/increase in creditors <41,217 > 33,845Interest received 4,367 6,402Income taxes paid - <1,780 >

Net cash flows from operating activities 241,383 303,660

Cash flows from investing activitiesPurchase of tangible fixed assets <53,945 > <248,567 >

Net cash flows from investing activities <53,945 > <248,567 >

Net cash from financing activities - -

Net increase in cash and cash equivalents 187,438 55,093Cash and cash equivalents at beginning of year 1,309,879 1,254,786

Cash and cash equivalents at end of year 1,497,317 1,309,879============ ============

GS1 (Global Standards 1 (Ireland))

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Notes to the Financial Statements

1. Company informationGS1 (Global Standards 1 (Ireland)) Limited is a company incorporated under the Companies Act2014, without share capital, the liability of which is limited by the guarantee of its members, suchamount as may be required, but not exceeding €1.00. The company is a not-for-profit companyand its Memorandum and Articles of Association expressly forbids any form of distribution to themembers of the company.

The mission of the company is to support organisations in their efforts to improve supply anddemand chain efficiency. The principal activities of the company are the licensing of globalcompany prefixes and global location numbers to identify products and locations for thepurpose of automatic data capture and for EDI. The GS1 global standards cover Barcoding,eCommerce, Data Synchronisation and EPC/RFID. The company also provides a range ofrelevant professional and advisory services for its user organisations, including education,training, and verification services.

2. Statement of compliance The financial statements have been prepared in accordance with accounting standards issued bythe Financial Reporting Council, including FRS 102 “The Financial Reporting Standard applicablein the UK and Republic of Ireland” (“FRS 102”).

All references to 2016 are to the year ended 31 December 2016. All references to 2015 are tothe year ended 31 December 2015.

3. Significant judgements and estimates The company makes estimates and assumptions concerning the future. The resulting accountingestimates will, by definition, seldom equal the related actual results. The estimates andassumptions that have a significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next financial year are discussed below:

a) Establishing lives for depreciation purposes of tangible assetsLeasehold improvements comprise a significant portion of the total assets. The annualdepreciation charge depends primarily on the estimated lives of these assets and estimatedresidual values. The directors regularly review these asset lives and change them as necessary.Details of the useful lives is included in the accounting policies.

b) Providing for doubtful debtsThe company makes an estimate of the recoverable value of trade debtors. The company usesestimates based on historical experience in determining the level of debts, which the companybelieves will not be collected. These estimates are based on such factors as the records of thedebtor in the Companies Registration Office, the level of communication with the debtor andhistorical experience. The level of provision required is reviewed at the end of each financialyear.

4. Accounting policiesThe significant accounting policies applied in the preparation of these financial statements areset out below. These policies have been consistently applied to all years presented unlessotherwise stated.

a) Basis of preparationThe financial statements have been prepared in compliance with Financial Reporting Standard102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland” (“FRS 102”)and Companies Act 2014. The financial statements have been prepared on a going concernbasis under the historical cost convention, modified to include certain items at fair value.

41

b) IncomeIncome represents the amounts derived from the provision of services which fall within thecompany’s ordinary activities, stated net of value added tax.

Income from the provision of services is recognised in the accounting period in which theservices are rendered, the outcome of the contract can be measured reliably and economicbenefits will flow to the company. Income from a contract to provide services is recognised inthe period in which the services are provided. Accordingly, income received from customers inrespect of periods which fall after the end of the financial year are not recognised as income andare included in creditors as deferred income.

The company derives income from the following services:

• Membership income;• Licensing income;• Training and education of members;• Professional services.

c) Interest incomeInterest income is recognised as it is received.

d) Currencyi. Functional and presentation currencyThe financial statements are presented in euro, which is the company’s functional andpresentation currency and is denoted by the symbol €.

ii. Transactions and balancesForeign currency transactions are translated into the functional currency using the spotexchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate.Non-monetary items measured at historical cost are translated using the exchange rate atthe date of the transaction and non-monetary items measured at fair value are measuredusing the exchange rate when fair value was determined. Foreign exchange gains andlosses that relate to borrowings and cash and cash equivalents are presented in the Incomeand Expenditure accounts within finance (expense)/income. All other foreign exchangegains and losses are presented in the Income and Expenditure accounts within ‘Otheroperating (losses)/gains’.

e) Taxation

The company is managed and controlled in the Republic of Ireland and consequently, is taxresident in Ireland. Tax is recognised in the Income and Expenditure account, except to theextent that it relates to items recognised in other comprehensive income or equity. In this casetax is also recognised in other comprehensive income or directly in equity respectively.

i. Current taxThe company is exempt from corporation tax on its ordinary activities in accordance withthe Taxes Consolidation Act, 1997. The company is however, liable for corporation tax onits earned deposit interest and other passive income.

ii. Deferred taxDeferred taxation is calculated on the differences between the company’s taxable profitsand the results as stated in the financial statements that arise from the inclusion of gainsand losses in tax assessments in periods different from those in which they are recognisedin the financial statements. Full provision for deferred tax assets and liabilities is made atcurrent tax rates on differences that arise between the recognition of gains and losses inthe financial statements and their recognition in the tax computation, including differencesarising on the revaluation of fixed assets. Deferred tax assets are recognised only to theextent that it is probable that they will be recovered against the reversal of deferred taxliabilities or other future taxable profits.

On the basis of the above, as the company is exempt from Corporation Tax, deferred taxdoes not apply with exception of tax arising on timing differences on passive income suchas the unrealised gain on financial investments.

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f) Tangible fixed assetsTangible fixed assets are measured at cost less accumulated depreciation and any accumulatedimpairment losses. Depreciation is calculated to write down the cost less estimated residualvalue of all tangible fixed assets, over their expected useful lives, using the straight-line method.Residual values and useful lives are reviewed and adjusted if appropriate at each reporting date.At present it has been estimated that all items of tangible fixed assets have no residual value.

The rates applicable are:

Computer, software and office equipment 20% / 50% straight lineFurniture and fixtures 20% / 50% straight line Leasehold improvements 12.5% straight line

On disposal of tangible fixed assets the cost and related accumulated depreciation andimpairments are removed from the financial statements and the net amount, less any proceeds istaken to the Income and Expenditure accounts.

g) Financial assetsThe company holds investment in a fund consisting of equitable shares in a number ofcompanies which are listed and actively traded on recognised stock markets. The fund ismanaged external to the company. These investments were initially recognised at cost andthereafter valued at fair value which is the bid price of the securities in an active market at thereporting date after considering the tax payable on any gains earned.

h) Operating leasesLeases in which substantially all the risks and rewards of ownership are retained by the lessor areclassified as operating leases. Payments made under operating leases (net of any incentivesreceived from the lessor) are charged to the Income and Expenditure account on a straight-linebasis over the period of the lease.

Operating lease incentives received on entering a new operating lease are credited to theIncome and Expenditure account to reduce the lease expense, on a straight line basis over theperiod of the lease.

i) Cash and cash equivalentsCash and cash equivalents include cash on hand, demand deposits and other short-term highlyliquid investments with original maturities of three months or less.

j) Debtors and other receivablesSales invoices are raised and expected to be received within the company’s normal credit terms,such sales do not bear interest. At the end of each reporting period, the carrying amounts ofthe debtors and other receivables are reviewed to determine whether there is any evidence thatthe amounts are not recoverable, and whether an impairment loss should be recognised.

k) CreditorsCreditors are classified as current liabilities if payment is due within one year or less. If not, theyare presented as non-current liabilities. Trade creditors are recognised initially at the transactionprice and subsequently measured at amortised cost using the effective interest method.

l) Employee benefitsThe company provide a range of benefits to employees, including annual bonus arrangements,paid holiday arrangements and defined contribution pension plans.

i. Short term benefitsShort term benefits including holiday pay and other similar non-monetary benefits arerecognised as an expense in the period in which the service is received.

ii. Annual bonus plansThe company recognises a provision and an expense for bonuses where the company has alegal or constructive obligation as a result of past events and a reliable estimate can bemade.

iii. Pension and post retirement benefit scheme Pension costs arising under the company facilitated Personal Retirement Savings Account(PRSA) scheme are charged to the Income and Expenditure account as incurred. The

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company also operates a defined contribution executive pension scheme in respect ofcertain employees. Contributions to the scheme are charged to the statement ofcomprehensive income as incurred.

5. Income

All income derives from activities in the Republic of Ireland. The analysis of income by activity isas follows:

2016 2015€ €

Licensing income 1,690,492 1,587,794Professional advisory and training services 76,570 80,342Membership registration income 137,173 102,965

1,904,235 1,771,101=========== ===========

6. Staff numbers and costs

The average monthly number of employees, including executive directors, during the year,analysed by category, was as follows:

2016 2015Number Number

Administration 11 11

The aggregate payroll costs of these employees were as follows:

2016 2015€ €

Wages and salaries 796,162 718,294Social welfare costs 79,716 73,383Retirement benefit costs 100,683 98,981

976,561 890,658========= =========

7. Pension and post retirement benefit The company facilitates a Personal Retirement Savings Account (PRSA) scheme for itsemployees, the contributions to which are paid to an independently administered fund. Theretirement benefit cost for the year represents contributions payable to the fund. Thecontribution charged (including death in service) to the Income and Expenditure account for theyear was €54,856 (2015: €53,154).

The company also operates a company sponsored defined contribution executive scheme,supported by an external trustee. The assets of the scheme are vested in independent trusteesfor the sole benefit of the executives. The contribution charged to the Income and Expenditureaccount for the year was €45,827 (2015: €45,827).

8. Interest receivable and similar income 2016 2015€ €

Interest receivable 4,367 6,402======= =======

9. Operating surplus 2016 2015€ €

Operating surplus is stated after charging:Directors’ emoluments in respect of qualifying services - -Operating lease charges 111,020 108,639Depreciation 46,892 41,798

======== ========

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10. Taxation 2016 2015€ €

Current tax:Corporation tax for the year - 1,601

Deferred tax:Arising on timing differences (note 15) - 2,753Total tax charge for the year 4,354

====== ======

Factors affecting tax charge for yearThe current tax charge for the year is different to the current charge that would result fromapplying the standard rate of Irish corporation tax to the surplus before taxation. The differencesare explained below:

2016 2015€ €

Surplus before taxation 255,773 230,393========= =========

Surplus for the year multiplied by standard rate ofcorporation tax in Ireland of 12.5% 31,972 28,799

Effects of:Non-taxable mutual trading <32,530 > <27,999 >Passive income taxable at higher rate 558 801Deferred tax on unrealised gain on financial investment - 2,753

Total tax charge for year - 4,354====== ======

In accordance with the Taxes Consolidation Act, 1997, the company is exempt from corporationtax on its ordinary activities on the basis that any surplus arising is derived from business donewith its members. The company is only liable to corporation tax in respect of its deposit interestand any other passive income at the rate of 25%.

11. Tangible fixed assets

Leasehold Fixtures Officeimprovements & fittings equipment Computers Total

€ € € € €

CostAt 31 December 2015 321,443 2,020 48,134 303,240 674,837Additions 5,238 4,625 3,372 40,710 53,945Disposals - - - <9,925 > <9,925>

At 31 December 2016 326,681 6,645 51,506 334,025 718,857

DepreciationAt 31 December 2015 158,301 2,020 28,899 247,632 436,852Charge for year 22,633 346 4,873 19,040 46,892Disposals - - - <9,606> <9,606>At 31 December 2016 180,934 2,366 33,772 257,066 474,138

Net Book AmountAt 31 December 2015 163,142 - 19,235 55,608 237,985

========= ========= ========= ========= =========

At 31 December 2016 145,747 4,279 17,734 76,959 244,719========= ========= ========= ========= =========

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In respect of the prior year:

Leasehold Fixtures Officeimprovements & fittings equipment Computers Total

€ € € € €

CostAt 31 December 2014 143,570 2,020 25,940 254,740 426,270Additions 177,873 - 22,194 48,500 248,567At 31 December 2015 321,443 2,020 48,134 303,240 674,837

DepreciationAt 31 December 2014 143,570 2,020 25,940 223,524 395,054Charge for year 14,731 - 2,959 24,108 41,798At 31 December 2015 158,301 2,020 28,899 247,632 436,852

Net Book AmountAt 31 December 2014 - - - 31,216 31,216

========= ========= ========= ======== =========

At 31 December 2015 163,142 - 19,235 55,608 237,985========= ========= ========= ======== =========

There were no assets held under finance lease included in the tangible fixed assets.

12. Financial assets 2016 2015€ €

Listed investments At 1 January 337,147 326,133Increase in fair value of investments 2,447 11,014

At 31 December 339,594 337,147========= =========

The listed investments are part of a specified investment fund managed externally to thecompany. The investments are recognised on active markets and measured at fair value throughincome and expenditure account in line with the company’s accounting policy following itstransition to FRS102 in the prior year. The fair value was determined by reference to the bid priceat the financial year end date. The above investments are due to mature 20th March 2018 andcannot be surrendered before that date.

The above values are not realised values and are not guaranteed. The actual realisable value willdepend on the performance of the investment at the date of maturity. The above investments are100% capital guaranteed. The protected amount, before tax, is the higher of:

- the original amount invested- 100.1% of the value of the fund at that stage

The capital protection on the investment with Irish Life Assurances Plc is provided by PermanentTSB. If, over the investment term, the returns are greater than the capital protection, thenBarclays has contracted to provide to Irish Life Assurance Plc the potential returns for the fund.

13. Debtors 2016 2015€ €

Trade debtors 50,827 32,296Corporation tax 1,600 92Value added tax 4,847 1,592Paye/prsi 3,718 3,521Prepayments 109,013 114,567

170,005 152,068========= =========

All debtors fall due within one year. All trade debtors are due within the company’s normalterms, which is 30 days.

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14. Creditors 2016 2015Amounts falling due within one year € €

Trade creditors 74,262 104,512Accruals 321,097 322,807Deferred income 38,667 47,257Other creditors 11,881 12,548

445,907 487,124========= =========

The repayment of trade creditors varies between on demand and 90 days. No interest is payableon trade creditors. The terms of accruals and sundry creditors is based on underlying contracts.

Tax and social insurance are subject to terms and conditions of legislation. Interest accrues onlate payments, however no interest was due at the financial year end date.

Other amounts in creditors are unsecured, interest free and payable on demand..

15. Provision for liabilities 2016 2015€ €

Deferred tax

At 1 January 9,286 6,533Charged to income and expenditure account - 2,753

At 31 December 9,286 9,286====== ======

Unrealised fair value gains on listed investments (note 12) are not subject to current tax andtherefore a timing difference arises until the realisation of gains on settlement.

16. Related party transactions Income of €1,829,973 (2015: €1,710,212) in relation to licensing fees was received from thirdparties in the year. These third parties are considered related parties of the company as theyhold membership of the company under its ownership structure.

Included in the amounts above is income of €117,959 (2015: €88,153) from member entities ofGS1 Ireland who are also represented on the Board of the company. There were no amountsoutstanding in relation to this amount at the balance sheet date.

Key management personnel compensationThe senior employees who have authority and responsibility for planning, directing andcontrolling the activities of the company are considered to be key management personnel.

Total remuneration in respect of these individuals is €400,413 (2015: €398,462).

17. Financial instrumentsThe analysis of the carrying amounts of the financial instruments of the company required undersection 11 of FRS 102 is as follows:

2016 2015€ €

Financial assets at fair value through income and expenditure accountListed investments 339,594 337,147

========= =========Financial assets that are debt instruments measured at amortised costTrade debtors 50,827 32,296Cash and cash equivalents 1,497,317 1,309,879

=========== ===========Financial liabilities measured at amortised costTrade creditors 74,262 104,512

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18. Commitments The company holds a 35-year lease with 10 years remaining for its premises at The NutleyBuilding, Merrion Road, Dublin 4. The annual commitment of €94,200 is subject to review at 5year intervals.

On 29 January 2015, the company entered into a new 10-year lease, with a five year break clausein respect of the additional space at the Nutley Building. The annual rent commitment is€32,745.

Total future minimum lease payments under non-cancellable operating leases are as follows:

2016 2015€ €

Due:Within one year 126,945 126,945Between one and five years 507,780 507,780After five years 475,035 601,980

1,109,760 1,236,705=========== ===========

With regard to DataSync.ie, the company also has commitments to payment of annual licencefees to 1WorldSync and annual certification fees to GDSN Inc. The current licence commitmentsexpire in August 2017.

The company also has commitments to GS1 Global in respect of the ongoing product licensingarrangements.

19. Approval of financial statements The financial statements were approved by the board of directors on 9 March 2017.

Detailed Income and Expenditure Account

Year ended Year ended31 December 31 December

2016 2015€ €

Income Licence fees 1,696,042 1,587,794Other income 208,193 183,307

1,904,235 1,771,101============ ============

ExpenditureAdministration costs 1,121,363 1,040,154Establishment costs 442,463 434,026Communication costs 91,450 83,944

1,655,276 1,558,124

Operating surplus 248,959 212,977

Gain on financial assets 2,447 11,014Interest receivable 4,367 6,402

Surplus before taxation 255,773 230,393========== ==========

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Board of DirectorsThe Board of GS1 Ireland is comprised of representatives from its membership base and furtherstrengthened by expertise from a number of independent advisors. The board includes participants fromboth retail and supply organisations from across the key food, consumer goods, DIY, healthcare and publicsectors.

Each of the industry leaders and experienced professionals elected to the GS1 Ireland Board serve in avoluntary capacity and receive no financial remuneration for their time or expertise.

The management and staff of GS1 Ireland are indebted to the Board Members for their ongoing support,advice and guidance.

Justin CartonDirector of InformationCarton Bros.

Jim CopelandHead of Member RelationsHardware Association Ireland

Sean DennisonHead of ITBWG Foods

Tony GrahamIndependent Advisor

Damian HarteHead of Commercial Support OfficeTesco Ireland

Michael KellyIndependent Advisor

Daragh MonahanCommercial DirectorEast Coast Bakehouse

Bob SempleIndependent Advisor

PJ TimminsIndependent Advisor

Pat TraceyGroup Operations DirectorDCC Vital/Fannin

Fergal WallGlobal Business Solutions Director

Company Secretary: Mike Byrne Chief Executive OfficerGS1 Ireland

Vice-ChairmanThomas ShortallICT Director

Chairman John O'CallaghanGroup IT Director, Musgrave Group

GS1 Ireland

2nd Floor The Merrion Centre, Nutley Lane, Donnybrook, Dublin 4, Ireland.T: +353 1 2080660 E: info@gs1ie.org www.gs1ie.org

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