© Kantar Worldpanel Taiwan 2013 Quarter 4 FMCG Monitor

© Kantar Worldpanel 2 KEY ECONOMIC INDICATORS - VS. A YEAR AGO +3.5% GDP 2013 Q4 +0.2% CPI 2013 Q4 -2.2% Unemployment rate 2013 Q4 +4.0% Total FMCG MAT13Q4 Taiwanese FMCG market struggled in the second half of 2013, with pessimistic on economy and series of food safety scandals, consumers were more cautious on shopping and caused purchase frequency to drop. However, nonfood market remained its growth especially on high price products, which supported the market growth. As to outlets, traditional channels such as Carrefour, RT mart, and PX mart had a disappointing performance in In the other hand, emerging channels such as Costco, direct order from producer, and online shops continued their good performance. Going into 2014, unemployment rate in January hits lowest point in over five years, and Consumer Confidence Index(CCI) also grows for two months consecutively, therefore we expect a stabilized growth in FMCG market in 2014.

© Kantar Worldpanel 3 Despite of the low unemployment rate in 2013, Taiwanese consumers were not optimistic about the economy, which reflected in market recession in Q TAIWAN TOTAL FMCG 52 WEEK ROLLING EVOLUTION Stable Recovery Value +4% VSLY -0% VSLQ Source: Household Panel Stable

© Kantar Worldpanel 4 Recovery Food market performed poorly because of the food safety scandals including toxic starch and illegal cooking oil. These caused consumers to be more cautious, and dropping purchase frequency for the first time in over 3 years. 。 TAIWAN FOOD CATEGORY 52 WEEK ROLLING EVOLUTION Stable Ghost Festival Stable Value +3% VSLY -1% VSLQ Source: Household Panel Stagnant

© Kantar Worldpanel 5 In terms of nonfood market, average purchased volume remained high, while the high price products were driving the market value to grow. TAIWAN NON-FOOD CATEGORY 52 WEEK ROLLING EVOLUTION Stable Recovery Stable Value +6% VSLY +3% VSLQ Source: Household Panel

© Kantar Worldpanel 6 DESSERT DECLINED FOOD CATEGORIES COOKING OIL NOODLES FROZEN FOOD Growth>5%0.5%<Growth<5% Growth<-0.5%

© Kantar Worldpanel 7 HOT NON-FOOD CATEGORIES SKINCARE(AA)ORAL CARE INTERFOLD PAPER PREMIUM SHAMPOO Growth>5%0.5%<Growth<5% Growth<-0.5%

© Kantar Worldpanel 8 Hyper stopped declining while PX stopped growing. Emerging channel such as Internet & Company Order grew fast. KEY CHANNEL SNAPSHOT – VALUE % TTL FMCG Food Category Non Food Category

© Kantar Worldpanel 9 Among Hyper, RT & C4 declined, only Costco kept growing and getting closer to the share of C4. KEY CHANNEL SNAPSHOT – VALUE % TTL FMCG Food Category Non Food Category

© Kantar Worldpanel PX Mart 7-ELEVEN Carrefour Costco RT Group A Mart Wellcome Family Mart Watson’s Source: Kantar Worldpanel Taiwan Household Panel Simple Mart Matsusei Cosmed POYA RETAILER HEALTH – TRAFFIC vs. BASKET VALUE

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