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GLOBAL HIGHLIGHTS

QUARTER BY NUMBERSQ1 2018

Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.


CONTENTSWELCOME .............................................................. 03

REGIONAL HIGHLIGHTS

ASIA-PACIFIC ................................................... 04

NORTH AMERICA .............................................. 10

EUROPE WEST ................................................... 14

EUROPE EAST ................................................... 20

LATIN AMERICA ................................................26

AFRICA/MIDDLE EAST ...................................... 31


WELCOMEAround the globe, how companies do business is changing. Consumer behaviors are evolving as demographics shift and advances in technology open up new avenues for people to engage with content and brands.

These new connections are unlocking opportunities for marketers to reach consumers. But knowing how and where to connect with consumers in this increasingly complex marketplace can be challenging. As multinationals seek growth across the globe and local companies look beyond their borders, they need help identifying the opportunities that are right for their business.

Our Quarter by Numbers reports help our clients do just that. This quarterly series provides a global snapshot of what’s going on in our markets today. In first-quarter 2018, we cover 62 countries across five regions—and we’re adding more every quarter.

We produce five reports to help clients zero in on specific regions of the world. The series is available free of charge to all Nielsen clients. They are also for sale to non-clients. This lite report represents an overview of the insights detailed in the five regional reports.

Our five market-level reports are as follows: Asia-Pacific (15 countries), North America (two), Latin America (seven), Africa and Middle East (eight) and Europe (30).

If you are interested in purchasing one or more of the individual regional reports, please visit www.global.shopnielsen.com.

4 Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 4At Nielsen, data drives everything we do—even art. That’s why we used real data to create this image. Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

ASIA-PACIFIC


Laura McCulloughMarketing Effectiveness & Sales Effectiveness Practice Leader: Developing

THE BIG PICTURE: ASIA-PACIFICThe Asia-Pacific region remains a dynamic region of change. In recent months, there was a flood of events that could fundamentally change the playing field in the region. The Korean Peninsula is on the precipice of change with April’s historic summit between the leaders of North Korea and South Korea greatly increasing prospects of a formal peace treaty. In May, a new political party was voted into power in Malaysia for the first time in 60 years, heralding major political and economic reforms. Meanwhile, China’s Belt and Road initiative continues to be a major topic for countries and companies alike and is set to provide many opportunities and challenges for the region.

Behind the headlines lies the relatively normal backdrop of continued economic expansion and growing opportunities in many of the region’s markets. With increasing populations, rising disposable incomes and rapidly connecting lifestyles, the Asia-Pacific is quickly expanding its influence on the global economy.

Across the region, Vietnam, India, China and the Philippines boasted the highest economic growth for the quarter, supported by strong and growing consumer confidence in these markets. While there is always a myriad of reasons behind a country’s economic growth, there are some commonalities between these markets that contribute to their healthy outlook. For example, accelerating urbanisation and increasingly youthful populations are creating bigger workforces with more disposable income, which in turn is boosting domestic demand in these countries. Other markets face more challenging economic situations, such as Japan, South Korea, Australia and New Zealand. In these mature economies with aging populations, finding new avenues of growth is more difficult.

But no matter the backdrop, whether younger or older populations and positive or challenging economic environments, there are common themes emerging across all Asia-Pacific markets. Consumers are increasingly aware (and often more skeptical) about what products and services they buy. As their lives become more connected, they are clearer about what they want and what they don’t want in products and services and will actively read reviews and compare prices before they buy. Consumer expectations are edging higher and higher, and their voice has never been louder as they hold companies accountable by voting with their wallets.


THE BIG PICTURE:ASIA-PACIFICEmerging trends are shaping shopper choices. Health remains a top concern among consumers. Across many markets, health categories are growing fast while some categories with unhealthy products are flat or declining. Sugar taxes have recently been introduced in the Philippines and Thailand, and consumers in these two countries are more intent than anywhere else in the region to actively reduce their consumption of categories like sugary beverages (45% and 38%, respectively).

Meanwhile, more than half of consumers across the region actively read packaging and nutritional information on products to inform their purchasing decisions. Corporations are responding with more innovations in this space, often led by niche players that seem most in touch with evolving consumer needs in the health space.

Sustainability and waste avoidance is another emerging signal of change. Almost three-quarters (73%) of consumers across Asia-Pacific are concerned about food and/or packaging waste, and over 80% want companies to improve their environmental footprint. A consumer groundswell is demanding less plastic bags and packaging waste and governments and companies are beginning to respond in many markets.

Signals of change surround us, and it’s essential that we connect the dots between them and look at potential disruptors in and outside of our industry. In doing so, we gain insights into how the future operating environment might look and its likely impacts. With this knowledge in hand, we can better prepare for change and futureproof our businesses.

*Nielsen Global Survey 2017

Trying to reduceconsumption

of sweet beverages*

32%ASIA-PACIFIC ASIA-PACIFIC

83%Want companies to

implement programs to improve the environment*


ASIA-PACIFIC AT A GLANCEECONOMIC PULSE OF CONSUMERS AROUND ASIA-PACIFICThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen measures perceptions of local job prospects, personal finances and immediate spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

Q1 2018

Q1 2018 vs

Q4 2017

Philippines 128 -3

Taiwan 79 -3

New Zealand 104 -2

Korea 59 -1

Hongkong 107 -1

Thailand 110 -1

Q12018

Q1 2018 vs

Q4 2017

Malayasia 104 10

Vietnam 124 9

Singapore 97 3

Indonesia 127 2

Japan 86 2

China 115 1

Australia 91 1

India 130 0

GDP % change pa Inflation

6.8 3.9

3.0 1.6

- -

2.9 1.3

4.7 2.4

4.8 0.6

GDP % change pa Inflation

5.4 1.8

7.4 2.8

4.3 0.2

5.1 3.4

0.9 1.3

6.8 2.0

2.3 1.9

7.4 4.6

CONSUMER CONFIDENCE INDEX

CONSUMER CONFIDENCE INDEX *NZ Q1 ‘18 GDP is not available

Countries where economic growth is highest also have some of the most optimistic consumers.

The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.Source: GDP and Inflation reflects % change per annum to Q1 2018 Economist Intelligence Unit (EIU)/local governments where not available in EIU


Savings continues to be a key priority for consumers across the region with increasing focus in particular markets like

Singapore and Philippines.

3225 30

15 15

2835

27

13

27 28 26

14 1817 17

413847

16

44

19

APAC AU CN HK ID IN JP KO MY NZ PH SG TH TW VN

Health 1 2 3 -3 1 0 -1 -4 3 0 -2 3 1 5 1

The Economy 2 -2 4 5 -2 0 2 1 -2 1 1 -3 -1 1 2

Health

The Economy

26 232620

23

CONSUMER SENTIMENTS IN ASIA-PACIFICWHAT ARE THE TOP TWO CONCERNS IN THE NEXT SIX MONTHS? Q1 2018

Type of concern

ASIA-PACIFIC AT A GLANCE

Bars reflect Q1 2018. Table shows comparison to Q4 2017


APAC AU CN HK ID IN JP KO MY NZ PH SG TH TW VN

Putting into savings 0 -2 -1 3 -2 0 0 4 4 5 6 6 1 3 1

Holidays / vacations 3 3 2 4 0 4 6 9 -1 0 6 0 4 6 2

Putting into savings

Holidays/vacations

WHO’S SPENDING, SAVING AND INVESTING? Q1 2018After living expenses, how is spare money spent

53

333937

31

64 64 68 6865 65 6563 62 67 6673

5951

61

30 32 32

44 4148 49 4654

43

IN = India ID = IndonesiaThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.

2222 23


FAST-MOVING CONSUMER GOODS MARKET DYNAMICS Weighted average – APAC – 14 countries

WHERE ARE THE FMCG GROWTH OPPORTUNITIES?Average volume growth Q4 2017 and Q1 2018

LOOKING THROUGH ASIA-PACIFIC’S FMCG LENS

MAT YA

MAT TY

Q1 18Q4 17Q1 17Q2 16 Q2 17Q3 16 Q3 17Q4 16

2.1% 1.8% 1.7% 2.3% 2.4% 2.1% 2.3% 2.0%2.3%2.3%

3.5%2.4%1.4%

0.6%

1.9%1.5% 3.4%

2.7% 2.5%2.9%2.2%2.9%

Unit value Growth

Volume Growth

Nominal growth

Avg. volume growth increasing versus last period

Color coding indicates growth or declining trend compared to same 6 month period year ago

Average volume growth of Q4’17 & Q1’18 vs Q4’16 & Q1’17. Vietnam represents latest annual growth; no 2016 % growth available for comparison

Avg. volume growth decreasing versus last period

Japan (-0.3%)

Korea (+0.4%)

Taiwan (-0.4%)Hongkong (-0.2%)

Philippines (+0.5%)

Singapore (-2.1%)

Australia (+1.5%)

New Zealand (+1.3%)

Vietnam (+0.9%)

Indonesia (-0.9%)

Malaysia (+5%)

India (+8.1%)

Thailand (-4.7%)

China (+3.7%)

3.6%4.4%

3.8%

5.9%

4.8% 4.9% 4.9%5.2%


NORTH AMERICA


THE BIG PICTURE: NORTH AMERICAAN OPTIMISTIC START TO 2018Fast-moving consumer goods (FMCG) across North America saw positive dollar performance in the first quarter of 2018. This was met with an uptick in optimism. Up four points from the end of 2017, North American consumer confidence reached an index score of 121 this quarter.

While Canadians hover just below the global average (106), with a consumer confidence index of 103, America soars over 20 points higher at 123.

Americans are feeling better about their job prospects, and this has driven positive consumer sentiment. The economy, terrorism and health remain top concerns for U.S. consumers; however, they’re concerning to fewer individuals than we’ve seen previously.

While the perception of job prospects has improved for Americans, financial position has driven optimism for Canadians. In fact, 65% of surveyed Canadians indicate that they feel positively about the state of their personal finances over the next 12 months, up from 59% last quarter.

It’s clear that job prospects and personal finances have each bolstered American and Canadian consumer confidence, respectively. But confidence does not rule out concern, as debt has become top-of-mind in both countries. From an FMCG perspective, dissecting this consumer sentiment to understand spending intentions, can help guide your next steps forward.

CONSUMER CONFIDENCE FACTORS Q1 2018

North America Canada U.S.

Job Prospects

Personal Finances

Good Time To Buy

67%71% 72%

65% 62%

46%

64%

53%

68%

TOP CONCERNSCANADA U.S.

The Conference Board® Global Consumer Confidence Survey is conducted in collaboraCon with Nielsen.

Q4 2017 Q1 2018

The economy

The economy

Food prices

TerrorismDebt HealthHealth DebtUtility bill

Job Security

19 1924 24

22 2220

17 182125

2124

20 21 1913

16

914


NORTH AMERICA AT A GLANCECONSUMER SENTIMENTS IN NORTH AMERICA

TOP TWO CONCERNS OVER NEXT SIX MONTHSQ1 2018

The economy

Terrorism Health Debt Food prices

Political stability

ImmigrationJob security

Utility bills

Crime

2224

22

1518

21

3 2 45

2119

1614

11 12 129

11

20

CA U.S.

While both nations are most concerned about the economy this quarter, Americans and Canadians diverge among

other top concerns across North America.

TOP AREAS FOR SPENDING SPARE MONEY

The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.

Q4 2017

Q1 2018

Savings

Paying off debts

Holidays

Home improvements

Clothes

45

28

32

23

27

43

36

36

28

27

4842

36

25

18

25

39

34

19

23

Compared to the end of 2017, more Americans are paying off debt with their spare spending money, while increasingly

more Canadians are vacationing with their extra cash.

CANADA U.S.


CANADA FAST-MOVING CONSUMER GOODS MARKET DYNAMICSLatest 52 Weeks - Q1 2018

U.S. FAST-MOVING CONSUMER GOODS OFFLINE MARKET DYNAMICSLatest 52 Weeks - Q1 2018

Q1 posts highest dollar and volume growth in over a year.

For the first time since late 2016, the market has shown positive performance across both dollar and unit volume.

While growth remains modest, conditions have greatly improved compared to a year ago.

Source: Nielsen MarketTrack, National All Channels, 52 Weeks to March 31, 2018 Excludes Fresh Random weight - Canada

Source: Nielsen Retail Measurement Services, Total Food View, Total U.S. (All Outlets Combined (xAOC), 52 weeks to March 31, 2018, UPC-coded and random-weight/non-UPC data

MAT YA

MAT YA

MAT TY

MAT TY

Q1 18

Q1 18

Q4 17

Q4 17

Q1 17

Q1 17

Q2 16

Q2 16

Q2 17

Q2 17

Q3 16

Q3 16

Q3 17

Q3 17

Q4 16

Q4 16

1.0% 1.7% 1.6% 0.9% 0.6% 2.3% 3.2%1.8%1.7%

1.4%

0.4%1.3%

-0.4% -0.2%

1.7%0.9%

-0.1%

1.7%0.0%

1.5%

0.0% -0.4%

0.3%0.8%

Unit % Change

Unit Inflation/Deflation

Dollar % Change

Unit % Change

Unit Inflation/Deflation

Dollar % Change

2.5%

1.7%

0.9%

2.3%

1.5%

1.9%

3.5%2.6%3.0% 3.4%

0.0%

1.1%

2.6%

0.7%0.8%0.2%

-1.8%

0.3%

0.7%1.4%

1.0%0.4%

0.0% 0.4%0.7%

1.4% 1.3% 1.8%

0.8%

-0.6% -0.6%-0.5%-2.2%-0.3%0.4% 0.3%


EUROPE WEST


Olivier LamareRetail Services Developed Markets

THE BIG PICTURE: EUROPE WESTWith this edition of Quarter by Numbers, we are pleased to provide an even fuller picture, as we now include seven new markets (Austria, Denmark, Finland, Ireland, Norway, Sweden and Switzerland).

After tough times in the last few years, 2017 showed a dynamic economic environment across Europe, with positive consumer confidence in the region reaching some of the highest levels seen for some time. If Europe remains far below the global average for consumer confidence, early 2018 confirms the positive trend in markets like Germany, Switzerland and Portugal (up 5 index points).

Among the national issues of greatest concern, health is high on the list. Some countries, like Portugal, Finland and Ireland, show notable peaks, but the whole region lists health as a concern, with great opportunities in this field (organic items and stores, “free from” products, healthy innovations).

GDP growth across the European Union (EU28) slowed at the start of 2018 after a stronger-than-expected 2017, in a recovery phase after a decade of financial and economic crises. Most countries saw their GDP growing at a slower pace this quarter. The more sluggish economic growth (+0.4%) in the first quarter was related in some degree to cold weather, but the consensus is that this is the start of a normalization of growth after a number of years of monetary stimulus by the European Central Bank (ECB).

After a strong end to 2017, FMCG performance in the first quarter weakened slightly, with volume growth receding to +0.9% (down from +1.7% in Q4). However, this is still close to the underlying trend of the last 12 months. Value sales across Europe increased by +3.7%, down from +4.4% in the fourth quarter. There was also a growth upside in the first quarter from an early Easter in 2018 (calendar effect). A few markets lead growth in the region, like Germany (+4.4%) and Portugal (+4.1%), with solid growth in value. Inflation is feeding growth in every market, but volumes are declining in several countries.

Putting money into savings is the first priority for the majority of markets, and consumers continue to navigate the retail environment with a savings mindset, seeking the best deals when shopping in terms of price and promotions, but also brands and channels.


Private label and discounters are on the rise in many markets (France and Portugal being the exceptions), pushing hard and gaining share. Many retailers across the region have revamped their own brands, upgrading ranges and investing in communication.

In a significant number of markets, FMCG leaders are also threatened by small brands and local champions that are capitalizing on revived “local pride,” leveraging an appeal from consumers toward local consumption and a push from retailers.

Inflationary pressures continue with unit value growth of +2.8%. At the moment, there is no indication across most of the bigger European economies that FMCG spend is being affected by the continuation of moderate inflation. Looking ahead, the second quarter will be a better indication of both consumer sentiment and shopper behavior for the rest of the year.

*European Growth Reporter Q1 2018


EUROPE WESTMARKETS AT A GLANCEECONOMIC PULSE OF CONSUMERS AROUND EUROPEThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen measures perceptions of local job prospects, personal finances and immediate spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

Consumer sentiment improves across most of Western Europe’s key markets.

Q12018

Q1 2018 vs

Q4 2017

Spain 91 -2

Denmark 114 -2

Austria 100 -2

Italy 66 -2

Q12018

Q1 2018 vs

Q4 2017

Portugal 90 5

Germany 108 5

Switzerland 104 5

Belgium 88 3

Sweden 99 2

Norway 89 2

Finland 82 2

Netherlands 101 1

UK 96 0

France 79 0

Ireland 103 0

GDP (annual % growth) Inflation

2.9 0.9

-0.8 0.7

3.1 1.9

1.4 0.8


2.0 0.8

2.3 1.3

- 0.7

1.6 1.5

- -

2.1 2.0

2.7 0.8

3.1 1.2

1.2 2.4

2.1 1.5

7.0 0.5



GDP and Inflation reflect % change per annum to Q1 or (-) indicates not available at time of publicationSource: Economist Intelligence Unit (EIU)/OECD/local government sourcesThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.


EUROPE WESTMARKETS AT A GLANCE

CONSUMER SENTIMENTS IN EUROPEWHAT ARE THE TOP 2 CONCERNS IN THE NEXT SIX MONTHS?

Type of concern

WHO’S SPENDING, SAVING AND INVESTING?After living expenses, how is spare money spent




Saving remains a key priority for majority, with an increasing focus for consumers in Italy and the U.K.

Health

Holidays/vacations

Job Security

EU AT BE CH DE DK ES FI FR GB IE IT NL NO PT SE

Health 0 3 3 5 3 -1 0 3 3 1 4 -3 1 -2 3 4

Job Security

0 -3 2 0 1 0 2 1 0 1 1 0 -3 2 1 -4

EU AT BE CH DE DK ES FI FR GB IE IT NL NO PT SE

Putting into savings 2 0 2 1 1 -2 4 6 0 7 4 8 3 5 1 5

Holidays/vacations 1 -1 3 3 6 5 -1 2 6 5 1 -4 0 -1 5 3

New clothes 0 -2 0 2 -3 3 0 4 8 2 2 -2 0 -3 0 1

6

6

20

30282822

262019

40 4350

37 37

18 18 20 21

9

21

13

29

11

18

11

30

138

128

17 15 16 15 1716


New clothes

29 28

48

28

5148 47 43

29

5549

4433

24

4237 36

5245

33

4839

30

48

3743

53

3528

5246

28

48

25 22

52

38

25

3535 34 35 37

17


FAST-MOVING CONSUMER GOODS MARKET DYNAMICS – Q1 2018 Weighted average – West Europe – 15 countries

WHERE ARE THE FAST-MOVING CONSUMER GOODS GROWTH OPPORTUNITIES?Average volume growth Q4 2017 and Q1 2018

LOOKING THROUGH EUROPE WEST’S FMCG LENS

Spain (+1.6%)

Switzerland (-0.1%)

Finland (-0.2%)

Austria (+1.4%)

Italy (+2%)

Germany (+0.8%)Netherlands (-0.2%)Denmark (-0.8%)

Norway (+0.7%)

Sweden (+0.6%)

Portugal (+1.9%)

France (+0.3%)

Belgium (-0.5%)

Ireland (+2.1%)

U.K. (+0.9%)


Colour coding indicates growth or declining trend compared to same 6 month period year ago

Average volume growth of Q4’17 &Q1’18 vs Q4’16 & Q1’17.


Unit value change

Volume change

Nominal growth

AT BE CH DE DK ES FI FR GB IE IT NL NO PT SE

1.5%-0.7%

-1.3%

2.9%

2.6%3.4%

0.8%

1.1%

3.0%

0.6%3.0%

0.3% 0.7%-0.8%

2.0%

0.2%

1.8%

-1.0% -1.0%

2.0%1.0%

1.9%

0.6%

-1.3%

0.8%

3.6%

3.1%

0.8% 1.0% 2.0%

2.9% 3.1%

2.4%2.6% 2.8%

4.1%

3.2%9.3%

2.6%

8.2%3.3%

1.4%

9.7%

6.1%1.8%

2.1% 0.7%

4.4%

-0.6%

20 Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 20

EUROPE CENTRAL AND EAST

At Nielsen, data drives everything we do—even art. That’s why we used real data to create this image. Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.


Daniel ChorbadjianManaging Director Eastern Europe

Roberto PedrettiGroup Managing Director Turkey and Central Eastern Europe

THE BIG PICTURE: EUROPE CENTRAL AND EASTMyriad factors across Eastern and Central Europe are influencing consumer sentiment and the performance of FMCG markets. Political unrest, new laws and government policies, inflation rates, Easter dates and even weather conditions are among the many mentioned by our market leaders in the first quarter.

Understanding how these affect FMCG market performance can be challenging at times, especially when multiple drivers are often at play in the one market. While our Quarter by Numbers indicators provide strong clues to what is going on, sometimes we need to dig deeper and look at the relationships between the different factors to really understand the story.

In the first quarter, we see many such examples at the macro level. For instance; the Czech Republic, Hungary, Latvia and Slovakia all have growing GDP, relatively low inflation rates and increasing consumer confidence. However, while FMCG growth in the first three countries is relatively strong and balanced, retail spend slowed in Slovakia. Meanwhile, Kazakhstan, Turkey and Ukraine are also enjoying strong GDP growth, but high inflation and other factors in these markets have dampened consumer confidence and led to different FMCG results. In Kazakhstan, rising inflation has pushed people into a savings mode and slowed FMCG growth, while wage increases in the Ukraine offset inflation and led to accelerating FMCG growth. Many influencing factors are even more specific and unique to a country. In this quarter alone, we saw the impact of minimum wage increases in Latvia, reduced Sunday trading in Poland, and voluntary food labelling changes in Russia, just to name just a few.

Each quarter, our Nielsen market leaders help reveal the story behind the numbers in all our focus countries. However, it’s more important than ever for FMCG companies to also closely track the various dynamics at play in each country where they operate. By doing so, FMCG players will have clearer insights into how the market will evolve in the coming quarters and be better positioned to develop the strategies needed to manage risks and seize opportunities.


Despite the unique context of each market, regional trends are still apparent. One clear insight is that smaller players in both the retailing and manufacturing space are winning market share as they prove more agile to adapt to short-term market cycles. With that said, it’s important to keep an eye on the future and build longer-term strategies and capabilities. Some of the general takeaways when we look across Eastern and Central Europe are as follows:

• Many countries will experience population declines through 2025.

• All countries will become more urbanised, but many Central and Eastern European countries will have large populations residing in smaller urban centres.

• There will be a significant ageing in most countries.

• More of the population will be connected through technology.

These will not be new insights for most readers, and how FMCG companies are integrating these factors into their planning and development varies considerably. For example, some players are looking to develop age-focused health products while others are intent on expanding their retail outlets into smaller towns.

We hope our insights on the future macroeconomic environment and “What’s Next” in the evolving consumer, retail and packaged goods environment can help inform your strategies.


A mixture of regional tensions and improving economic conditions have been the main reasons for Consumer

Confidence Index movement.

EUROPE CENTRAL AND EAST’S MARKETS AT A GLANCEECONOMIC PULSE OF CONSUMERS AROUND EUROPEThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen measures perceptions of local job prospects, personal finances and immediate spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

Q12018

Q1 2018 vs

Q4 2017

Turkey 89 -23

Bulgaria 81 -8

Ukraine 58 -3

Kazakhstan 79 -3

Lithuania 77 -2

Russia 68 -1

Q12018

Q1 2018 vs

Q4 2017

Latvia 86 13

Czech Rep. 108 4

Hungary 78 4

Slovakia 90 4

Greece 61 2

Romania 91 1

Belarus 60 0

Poland 103 0

Estonia 81 0

GDP (annual

% growth)Inflation

7.4 10.3

3.5 2.0

3.1 13.8

4.1 6.8

3.5 3.4

1.0 2.4


5.2 2.0

4.4 1.9

4.4 2.0

3.6 2.4

1.5 0.3

4.0 4.7

5.1 6.0

5.1 1.5

3.6 3.1



GDP and Inflation reflect % change per annum to Q1 2018 /latest available data Source: Economist Intelligence Unit (EIU)/local government sourcesThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.


EUROPE CENTRAL AND EAST’S MARKETS AT A GLANCE

Health

Job Security

EU BG BL CZ EE GR HU KZ LT LV PL RO RU SK TR UA

Health 0 2 6 3 1 0 2 4 -2 -4 3 -4 -1 0 -6 1

Job Security 0 -5 -1 1 -5 0 0 4 3 -8 2 -2 -1 4 1 -3

EU BG BL CZ EE GR HU KZ LT LV PL RO RU SK TR UA

Puttinginto savings 2 5 1 5 3 6 1 -2 2 -7 2 -2 -1 3 0 -2

Holidays / vacations 1 4 -4 8 -1 5 2 0 2 -3 4 2 -4 2 -2 -4

New clothes 0 -2 -9 -1 -5 5 2 -3 -1 -4 6 0 -1 -3 4 -6

14

22

6

19232427

20

29

20 22

33

22

34

24

14

28

19

40

29 2923 23 21 21

3127

38 3836 36 37 37

45 48 48

3225

29 27 2734

40 4039

4754

31 303237

25 262215

1817

30 33 33 3037

2524 2619

18

27 27 2821

33

11

25

37

20 2022

104

WHO’S SPENDING, SAVING AND INVESTING?After living expenses, how is spare money spent


Holidays / vacations

New clothes

CONSUMER SENTIMENT IN EUROPEWHAT ARE THE TOP TWO CONCERNS IN THE NEXT SIX MONTHS?

Type of concern




Putting money into savings is a leading response and highlights a cautious mindset across Europe.


FMCG MARKET DYNAMICS Weighted average – Europe Growth and Emerging – 19 countries

Unit value change

Volume change

Nominal growth

BG BL CZ EE GR HU KZ LT LV PL RO RU SK TR UA

3.1% 3.1% 3.7% 3.8% 3.6%1.9%1.5%

4.6%3.0%

2.3%

10.5%

3.5%4.8%

6.1%

13.3% 10.4%

15.6%

20.8%

8.6%

5.8%4.9%

-1.9%

4.7%

4.7%

4.4% 4.7% 1.6%

3.9%

5.1%

0.9%-3.1% -2.1%-0.1%

2.6% 0.9%8.0%5.7% 4.6%

2.7%4.6%

8.3%

2.8% 2.6%

-1.8%1.2%


Russia (+2.1%)Czech Rep. (+0.5%)Estonia (-2.9%)Latvia (+1.1%)Lithuania (-2.3%)

Kazakhstan (-3.2%)

Ukraine (+9.8%)

Romania (+3.7%)Bulgaria (+5.8%)Turkey (+3.3%)Greece (+5.2%)

Belarus (+3.7%)

Poland (+3.8%)Slovakia (+1.2%)

Hungary (+4%)


Colour coding indicates growth or declining trend compared to same 6 month period year ago.

Average volume growth of Q4’17 & Q1’18 vs Q4’16 & Q1’17.

*BL = Belarus


LOOKING THROUGH EUROPE CENTRAL AND EAST’S FMCG LENS

26 Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 26

LATIN AMERICA

At Nielsen, data drives everything we do—even art. That’s why we used real data to create this image. Copyright © 2018 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.


THE BIG PICTURE: LATIN AMERICAAcross Latin America, economic recovery is looking promising in a number of markets, with increasing optimism that will continue throughout 2018 due to improved global FMCG performance, higher raw material prices with increasing private and public investment in many markets. However, experts from BBVA* forecast there may be economic softness in countries like Argentina, due to the impact of severe drought conditions affecting one of the world’s biggest producing soybean countries, and Peru, as a result of recent political instability. Across Latin America, 2018 is set to be a year of political change, which will bring economic uncertainty, with many countries facing upcoming elections and corruption scandals.

Inflationary pressure is easing across many markets, with the exception of Argentina and Mexico, where levels remain high, but show signs of improvement. The economy remains the No. 1 concern across the region, creating a cautiousness in consumer spending. Consumers are most likely to spend spare cash paying off debt and putting money into savings. More than three in four consumers across the region are looking to save money on household expenses by cutting down on out-of-home entertainment, cutting back on clothes and switching to cheaper grocery brands. To maximize the effectiveness of in-home consumption, Latin American consumers are looking for smarter ways to manage their budgets and seeking alternatives to manage higher prices. A robust pricing strategy is critical in this environment. That will help drive short-term consumption opportunities via promotions, multipacks, or larger value pack sizes while planning ahead to ensure strategies that consider channel diversification, smart marketing investment and innovation can drive medium- to long-term success.

*BBVA: Bilbao Vizcaya Argentaria Bank


THE ECONOMIC PULSE OF CONSUMERS AROUND LATIN AMERICAThe Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen measures perceptions of local job prospects, personal finances and immediate spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

Political noise and negative sentiment toward future economic prospects across the region contributed to a

decline in confidence

Sources: The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with NielsenGDP and Inflation from Latin Focus, Q1 2018

Latin Focus Economics

GDP (annual % growth) Q1 2018

Inflation Q1 2018

Brazil 2.2 2.9

Chile 3.6 2.5

Mexico 1.6 5.1

Colombia 2.6 3.4

Peru 3.6 1.0

Argentina 3.3 24.1

Costa Rica 3.3 2.4

Consumer Confidence Index

Q1 2018Q1 2018 vs.

Q4 2017

88 3

95 -3

93 5

99 -1

95 -9

83 -5

83 -3


LATIN AMERICA AT A GLANCECONSUMER SENTIMENTS IN LATIN AMERICA

WHAT ARE THE TOP THREE CONCERNS IN THE NEXT SIX MONTHS?Type of concern (%)

ACTIONS TAKEN TO SAVE ON HOUSEHOLD EXPENSESTop 3 actions taken to save money (%)

Bars reflect Q1 2018 - Table shows comparison to Q4 2017

Bars reflect Q1 2018 - Table shows comparison to Q4 2017

Source: The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen

Latam BR CL MX CO PE AR CR

The economy 0% -1% 0% -3% -1% -1% 6% 10%

Crime 1% 5% 1% 3% 0% 6% -6% -2%

Job security -3% 2% 2% -4% -8% -2% -1% 1%

Latam BR CL MX CO PE AR CR

Grocery Brands 2% -1% 4% 5% -2% 6% -1% 1%

Out-of-home entertainment 1% 2% -3% -2% 2% 5% -5% 8%

New Clothes -2% -6% 5% -3% -4% 6% 0% 5%

38

20

24293132

15

352827

35

243332

49

2223

4844

54

37

47

35

49

34

49

60

44

30

47

32

4240

58

39 42 40

30

4436

11

24

3733

292628

18Job Security

Crime

The economy

Grocery Brands

New Clothes

Out-of-home entertainment

Consumers are seeking ways to deal with the high prices; Chilean, Colombian and Argentinian are the most budget

conscious with FMCG.


FAST-MOVING CONSUMER GOODS MARKET DYNAMICSWeighted average – Latin America – 13 countries*


LOOKING THROUGH LATIN AMERICA’S FMCG LENS

Color coding indicates growth or declining trend compared to same 6 month period year ago

Average volume growth of Q4 ‘17 & Q1 ‘18 vs. Q4 ‘16 & Q1 ‘17

(*) Mexico, Nicaragua, Panama, Costa Rica, El Salvador, Guatemala, Honduras, Colombia, Chile, Argentina, Brazil, Peru and Uruguay, data from Q1’14 until present.

Excluded: Venezuela, Puerto Rico and Dominican Republic.

Avg. volume growth increasing

Color coding - Average Q4 2017 & Q1 2018 VS. Q4 2016 & Q4 2017

Avg. volume growth decreasing

Costa Rica (+0.4%)

Peru (-5.3%)

Colombia (-0.3%)

Chile (-0.5%)

Mexico (+2.7%)

Brazil (-1.7%)

Argentina (+8.3%)

Unit Value Growth

Volume Growth

Nominal growth

MAT YA

MATTY

-1.2

8.6

5.5 4.04.44.16.98.2

9.39.2

-0.80.1 0.9 0.6-2.6 -2.3 0.6-1.2

Q1 ‘16 Q1 ‘17Q2 ‘16 Q2 ‘17Q3 ‘16 Q3 ‘17Q4 ‘16 Q4 ‘17

1.5

-2.2

7.3

4.3

8.57.0

5.64.6

4.8 4.5 4.8

2.1


AFRICA AND MIDDLE EAST


THE BIG PICTURE: AFRICA AND MIDDLE EASTWe expect 2018 to be a more prosperous year for many of the Africa and Middle East (AME) markets, which faced numerous economic, political and social challenges in 2017. Market conditions will continue to be fluid as reforms and changes filter through to consumers, playing out in adjusted shopping and buying behavior. Equally, manufacturers and retailers are adapting to the altered consumer circumstances and actions by redefining their positioning and offerings to meet the new and changing consumer needs while pursuing growth.

The implementation of government taxation on consumer goods has been high on the agenda in Saudi Arabia, United Arab Emirates and South Africa. These markets have implemented Value Added Tax (VAT), sugar taxes or changes in VAT tariffs. Consumers have responded with varying degrees of pessimism, while manufacturers and retailers have responded with tactics to minimise price increases. These manoeuvres will continue to evolve during the year until a suitable equilibrium is achieved.

The easing of inflation in Egypt, Nigeria, Ghana and South Africa has restored some growth to these markets, as consumers are increasingly able to open up their wallets to products and categories beyond the day-to-day essentials. Opportunities are abundant for businesses that can tap into essential needs and provide small treats for consumers with growing discretionary cash.

Retailing in AME’s markets will continue to be diverse and progressive, with development not limited to modern trade formats. There are shifts to formal, branded channels when they are established and where assortment and pricing is more competitive. But there is also no shrinking of traditional trade formats, which in tougher cycles, are flexible in adjusting to smaller shopping baskets and fulfilling immediate or daily needs.

Looking further ahead, Africa and Middle East will soon have the most youthful population around the globe, and young, urbanised and digitally primed consumers will have unique needs to satisfy, which all starts with identifying the opportunities of tomorrow, today.


AFRICA AND MIDDLE EAST AT A GLANCEECONOMIC AND CONSUMER PULSE The Nielsen Consumer Confidence Index measures perceptions of local job prospects, personal finances and immediate spending intentions. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

CCI Q1 2018

CCI CHGVS P/Q

Morocco 67 -13

Nigeria 113 -9

United Arab Emir

110 -8

Nigeria 95 -4

CCI Q1 2018

CHG VS P/Q

South Africa 95 15

Kenya 102 8

Egypt 85 1

Ghana 120 0

GDP (annual growth)

Inflation

3.9% 2.5%

1.9% 11.2%

0.0% 3.4%

-1.2% 2.8%

GDP (annual growth)

Inflation

1.5% 4.1%

5.0% 4.2%

5.3% 11.6%

8.1% 10.4%



Source: Trading Economics: GDP and inflation, The Conference Board® Global Consumer Confidence Survey is conducted in collaboration with Nielsen.

GDP and Inflation are annualised, based on the latest quarter available GDP – Q3’17, Inflation Q4’2017

Consumer confidence responds favourably across most of the AME markets as economic indicators improve and inflationary pressure eases.


Egyptians, Emiratis and Saudis are opting to save due to uncertain economic conditions and rising prices.

15%

43% 43%

30%22% 19%

39%

16%

32%

46%

WHO’S SPENDING, SAVING AND INVESTING?After living expenses, how are consumers using their spare money?

Job Security

The Economy


I have no spare cash

23%31%

17%

26% 23%28%

24%27%

42% 45%

Chart - Current quarter, Table – Change vs PQ Top Concern and Spending data unavailable for Ghana, Kenya and Nigeria

EGY MOR KSA UAE ZA

The Economy -3 0 -1 -5 2

Job Security 7 1 1 -5 6

EGY MOR KSA UAE ZA

I have no spare cash 0 3 1 -3 8

Putting into savings 21 -2 21 23 -6

Source: The Conference Board ® Global Consumer Confidence Survey is conducted in collaboration with Nielsen

AFRICA AND MIDDLE EAST AT A GLANCE

CONSUMER SENTIMENTTop 2 concerns in the next six months


EGY MOR KSA UAE ZA NGR GH KNY

Nominal value growth

Volume growth

Unit value growth4.6%

0.0%-3.6%-3.7%

-6.6%

-11.5%4.8%19.3%

23.9%

-0.6%

-2.8%

2.2%

2.2%

4.9%

2.8%

1.3%

5.5%

-4.2% -0.6%

0.2%

-0.3%-3.8%

-2.9%

-0.9%

WHERE ARE THE FAST-MOVING CONSUMER GOODS GROWTH OPPORTUNITIES?Average volume growth Q4’17 and Q1’18 vs year ago

Colour coding indicates growing or declining trend – Average Q4’16 & Q1’17 vs Q4’17 & Q1’18

Avg. volume growth increasing

Avg. volume growth decreasing

Morocco (-4.6%)

Ghana (+2.1%)

Nigeria (-8.6%) Kenya (-6.7%)

South Africa (+3.4%)

Saudi Arabia (-10.8%)

United Arab Emirates (-2.6%)

Egypt (-0.6%)

FAST-MOVING CONSUMER GOODS - MARKET DYNAMICSWeighted average growth Q1’18 vs year ago

FAST-MOVING CONSUMER GOODS RETAIL LENS


INTERESTED IN ADDITIONAL INSIGHTS?If you are interested in purchasing one or more of the regional Quarter by Numbers reports, please visit www.global.shopnielsen.com.


ABOUT NIELSENNielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

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