1 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

ZOOM INTO

CONSUMER TRENDS

Gabriela Luca Research Executive Consumer Panel Services

September 5th 2012

2 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Agenda

2 In-Home Consumption Trends

3 Final Thought

1

The Big Picture

3 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

The Big Picture

4 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Source: WIIW forecasts, March 2012; National Institute of Statistics – Romania for Inflation %

Romania Macroeconomic Environment

2

-1,3

1,5

2,5

0,0

1,0

EU-27

Romania

GDP Real Growth %

2012 2011 2010

5 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Left

In

Source: WIIW March 2011 & Deskresearch

Big Influencers

6 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Unemployment Level

Source: National Institute of Statistics

9,7

7,3

9,6

7,3

9,8

7,5

EU-27

Romania

GDP Real Growth %

2012 2011 2010

7 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Expected Employees

Source: Ziarul Financiar, February 2012. Note: In retailers case, this years hiring estimations were made based on medium number of emplowees of a store. In eolian parks case, the

number of jobs was estimated based on the number of MW, taking in consideration that a MW creates 1,7 jobs.

Company No. New Employees

Lidl 1.300 – 3.600

Mega Image 1.600

Profi 500

Billa 500

Kaufland 400

De’Longhi 600 – 1.000

Eolenvest 880

Autoliv 600

Wienerberger 400

Emerson 400

Bosch 300

Cesiro din Sighisoara 150

Preh Romania 120

Yazaki 100

Energias de Portugal (EDP) 100

Deichman 85 – 90

Iberdrola 80

8 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Wage change in line with price changes

Source: National Institute of Statistics & European Commission

1407

1475

1520

2010 2011 HY 2012

Average Net Wages per person, RON

6,1% 5,8%

3,1%

2010 2011 2012

Inflation, %

9 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Austria = 100

Purchasing power comparison in Europe Year 2010/2015*

Source: WIIW, July 2011 I *projection assuming a 50% of the average growth differential with respect to EU-15 from 2014.

Parity of purchasing power (Austria=100%)

100 94

80 80 78

69 66

64 59

49 51 50 52

46 41 41

38 36 35

30 28

21 18

100 95

83 79 80

71

65 67

71

59 55

51 54 52

46 45

39 38 38 36 30

23 20

A D SP EU-27

GR SLO P CZ SK HR H PL EE LT RUS LV TR RO BG KAZ MAC BA UA

10 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Consumers Mindset

Source: GfK Omnibus, Consumer Confidence Barometer I Base: National 15+ (Ian 08 – Mai 12); ~1000 respondents (all) /wave; %

The consumer confidence indicator is calculated based on answers to the questions on the financial situation of households, the general economic situation, unemployment expectations

and savings, all over the next 12 months.

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20

ian.-

08

feb.-

08

mar.

-08

apr.

-08

mai.-0

8

iun.-

08

iul.-0

8

aug.-

08

sep.-

08

oct.

-08

nov.-

08

dec.-

08

ian.-

09

feb.-

09

mar.

-09

apr.

-09

mai.-0

9

iun.-

09

iul.-0

9

aug.-

09

sep.-

09

oct.

-09

nov.-

09

dec.-

09

ian.-

10

feb.-

10

mar.

-10

apr.

-10

mai.-1

0

iun.-

10

iul.-1

0

aug.-

10

sep.-

10

oct.

-10

nov.-

10

dec.-

10

jan.-

11

feb.-

11

mar.

-11

apr.

-11

mai.-1

1

iun.-

11

iul.-1

1

aug.-

11

sep.-

11

oct.

-11

noi.-1

1

dec.-

11

ian.-

12

feb.-

12

mar.

-12

apr.

-12

mai-12

iun.-

12

jul.-1

2

aug.-

12

UE

Poland

Romania

Germany

11 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

41% of the budget goes to food and beverages

Source: National Institute of Statistics – Romania

4 4 4 1 1 2 5 4 4

11 11 11

4 5 5 5 4 4

16 16 20

7 5 4 7 8 7

41 42 41

2008 2011 Q1'12

Average annual personal consumption per household, %

Food and beverages

Alcoholic drinks and tobacco

Clothing and footwear

Housing and energy

Furniture, equipement and maintenance

Health services

Transport and communication

Education; Recreation and culture

Hotels and restaurants

Other goods and services

12 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

In-Home Consumption Trends

13 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Value growth, but volume is still going down

Source: GfK Consumer Panel Services, based on monitored FMCG categories I *versus JanJune2011

-11%

7%

-9%

7%

21% 11%

25%

10%

17% 19%

6%

-5%

5% 2%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jan-June 2012*

Value Change % (RON)

14 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Food the most affected segment by the decrease of value per trip

Source: GfK Consumer Panel Services, based on monitored FMCG categories I Jan-Jun 2012 vs. Jan-Jun 2012

Value

change%

Frequency

change%

3

1

4

4

4

2

5

5

-2

2

Home Care

Personal Care

Beverages

Food

FMCG

-1

3

1

-6

-2

Value per trip (RON)

change%

15 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

4

1

1

0

-4

-6

-7

-11

Beer

Mineral Water

Juices

Plain Yoghurt

Coffee (R&G)

Edible Oil

Fruit Yoghurt

Chocolate Tablets

Personal Care is on a recovery path

GfK Consumer Panel I Jan-Jun 2012 vs. Jan-Jun 2012

6

7

9

-1

-4

-6

Deodorants

Hair Shampoo

Toilet Soap

Toothpaste

Hand Dishwashing

Windows Cleaners

Volume Change %

16 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Modern Trade reaches 49% value share

GfK Consumer Panel Services based in monitored categories

11 12 12 4 4 3

40 37 35

1 1 1

10 10 10

13 14 14

21 23 24

2010 2011 Jan-May 2012

Value Share %

Hypermarkets

Supermarkets

Discounters

Cash&Carry

Small Grocery

Street Vendors

Others

17 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

14

16

11

4

35

8

Purchase Frequency

58

50

49

10

79

46

Hypermarkets

Supermarkets

Discounters

Cash & Carry

Small Grocery

Street Vendors

Penetration %

Jan-May'12 Jan-May'11

Outlet Types Drivers

GfK Consumer Panel Services based in monitored categories

18 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Promotions value share is bellow the average

Source: GfK Consumer Panel Services I Europanel I 2011

12 9 9

49

28 35

8

17 19 18

33

Romania Bulgaria Serbia Czech Republic

Hungary Slovakia Poland France Germany Spain UK

Promotions Value Share %

19 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Source: GfK Consumer Panel Services I Calculation based upon consumer basket including monitored product categories I 2010 2011 Value % I *Jan-May 2012 vs Jan-May 2011

Private Labels continue to gain ground

Romania

8% 11%*

Poland

21% 24%

Czech

Republic

19% 20%

Hungary

28% 27%

Slovakia

28% 29% Croatia

16% 18%

Bulgaria

6% 10%

20 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Private Labels Growth Drivers

Source: GfK Consumer Panel Services

8

2

5

13

8

10

3

7

16

11

Home Care

Personal Care

Beverages

Food

Total FMCG

Private Label Value Share across FMCG Segments (RON)

JanMay2012 JanMay 2011

7

6

2

3

10

8

8

2

4

12

Frequency

80

41

16

49

86

82

49

24

56

89

Penetration

21 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

Take away snapshot

22 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

FMCG Value

Growth, but

Volume going

down

Promo Share

bellow regional

average

Food the most

affected by

volume cut

Personal Care

regains some of

the lost volume

Private Labels

enter new

categories, gain

buyers and build

loyalty

Modern Trade

reaches half of

spending for

FMCG

23 © GfK 2012 | Romanian Consumer Trends 2012 | 5th September 2012

THANK YOU FOR YOUR ATTENTION!

http://www.gfk-ro.com/

Gabriela Luca I Research Executive Consumer Panel Services I gabriela.luca@gfk.com