1© GfK 2015 | 117 th Canton Fair | 16. April 2015 Home Appliances – Innovation and Connectivity Canton Fair, Guangzhou, China Peter Goldman GfK Consumer Choices April 16, 2015

2© GfK 2015 | 117 th Canton Fair | 16. April 2015 AGENDA: Home Appliances – Innovation & Connectivity Driving Growth and Future Opportunities HOME APPLIANCE GROWTH INNOVATION & CONNECTIVITY

3© GfK 2015 | 117 th Canton Fair | 16. April 2015 HOUSEHOLD APPLIANCES

4© GfK 2015 | 117 th Canton Fair | 16. April 2015 HOUSEHOLD APPLIANCES

5© GfK 2015 | 117 th Canton Fair | 16. April 2015

6 Household Sizes in Major Countries – Convergence Towards 2-3 Person Households Average household sizes in various European and North American countries Source: GfK Verein January 2014, “Under One Roof”

7© GfK 2015 | 117 th Canton Fair | 16. April 2015 Forecast: 1&2 Person Households will Increase Significantly by 2030 Household structure person HH2-person HH3+ person HH China Source: GfK e.V.: Under one roof, 2014; projection for 2030

8© GfK 2015 | 117 th Canton Fair | 16. April 2015 Forecast: 1&2 Person Households will Increase Significantly by 2030 Household structure person HH2-person HH3+ person HH GermanyJapanRussiaUnited Kingdom ChinaUnited States Brazil Source: GfK e.V.: Under one roof, 2014; projection for 2030

9© GfK 2015 | 117 th Canton Fair | 16. April 2015 Middle Income Growth - Correlation Between Income, Relative Market Size and Product Group Structure World 2013 GDP - per capita in USD MDA/Household y = 0,1485ln(x) - 1,084 R² = 0,83

10© GfK 2015 | 117 th Canton Fair | 16. April 2015 HOUSEHOLD APPLIANCES

11© GfK 2015 | 117 th Canton Fair | 16. April 2015 Except 2009, Continuous Growth of MDA Market GfK World Market Estimation (100% Coverage) MDA9* | (status ) | Bln.USD *9 product groups = Washing Machines, Tumble Dryers, Dishwashers, Refrigerators, Freezers, Cookers/Ovens, Hobs, Hoods, Microwave Ovens ** Euro US$ exchange rates fluctuated massively, and resulted in negative US$ growth despite the fact that major markets were all positive. +10 % +8 % -1 % +3 % MDA SDA +7 % +10 % +1 % +4 % +5 % +2.5 %

12© GfK 2015 | 117 th Canton Fair | 16. April 2015 Home Appliance - Global Growth Drivers

13© GfK 2015 | 117 th Canton Fair | 16. April 2015 Sales value € growth PY, Panelmarket incl. CN online | 2014 vs Market segments with an impact on total growth of ≥ 0,2 percent points Solid growth for SDA, with several products pushing the SDA market 1 关键产品增长带来整体小家电市场稳定增长 Home Comfort Kitchen AppliancesPersonal Care Handstick vacuum cleaner Aircleaner Rice cookers Handheld vacuum cleaner Liquidiser Laser/ IPL Electric fans Waterfilter mounted/ under sink Kitchen machines Airtreatment: dehumidifier Slow Juicer Low oil deepfryers Toothbrush solo

14© GfK 2015 | 117 th Canton Fair | 16. April 2015 New Trend in Vacuum Cleaning: Handheld Bedding Cleaner 吸尘器新趋势：手持吸尘器（床用除螨）

15© GfK 2015 | 117 th Canton Fair | 16. April 2015 FC 6231/81 ONLINE EXCLUSIVE CHINA: PHILIPS LAUNCHING NEW MODELS 中国：飞利浦推新型号 PRICE: RMB 1899 （ 1588 ） FIRST ACTIVITY ： Aug,2014 MAX WATTAGE ： 450W

16© GfK 2015 | 117 th Canton Fair | 16. April 2015 SDA total | World incl. Chinese online Panelmarket | Sales mn € 1 Without U.S. Global SDA market 1 is driven by INNOVATION 全球小家电市场由创新推动 Hot water dispenser Trad. filtercoffee with int. coffee grind Waterjet solo Window cleaner Slow juicers Elec. cooking pots Handsticks rechargeable Others Robot vacuum cleaners Massage mat Foodpreparation with cooking function Laser/IPL (Hair Removal) Foodpreparation with shredder Deep fryers with low oil 448 mn ,193 mn Elec. Personalscales with Mobile Connect. 立式可充电 吸尘器 机器人 吸尘器 电煮锅 原汁机 空气炸锅

17© GfK 2015 | 117 th Canton Fair | 16. April 2015 GfK Panelmarket 28 CTR EU | MDA TOTAL 9 | Number of Models | 2004 – 2014 FA = First Activity of newly launched models Major Appliances - Number of models increases as an effect of innovation and individual clients’ needs satisfaction 随着创新和满足消费者个性需求的结果，型号数量增多

18© GfK 2015 | 117 th Canton Fair | 16. April 2015 The Internet as an Enabler: Connectivity and Innovation

19© GfK 2015 | 117 th Canton Fair | 16. April 2015 In 2014 close to 2 Billion „Core Internet Devices“ will be sold, out of these 1.2 Billion will be Smart Phones Smart Phones Tablet Notebooks/ Netbooks Desk PC / All in One TV Sum [Mio Units] [Mio Units]

20© GfK 2015 | 117 th Canton Fair | 16. April 2015 How connected are we to our connected devices 我们如何使用互联网设备 40× a day, a mobile device is used by an average user 66% of all mobile users wake up with their phone 75% of mobile users use their phone even on the toilet!

21© GfK 2015 | 117 th Canton Fair | 16. April 2015 Connectivity: Devices which are already connected to the Internet – Global Flat TV Portable media player Digital still camera Blu-ray player With InternetNo Internet Access

22© GfK 2015 | 117 th Canton Fair | 16. April 2015 Mobile Devices - Transforming Health Routines Personal Diagnostics Today – Connected Devices Personal ScalesDigital ThermometersBlood Pressure Monitors Activity/Sleeping TrackerRunning Tracker Health & Fitness Tracker Glucose Meters

23© GfK 2015 | 117 th Canton Fair | 16. April 2015 Strong growth for Scales with mobile connection PERSONAL SCALES (electr.) l Panelmarket l Sales Value % 2014 Mobile Connection No Mobile Connection Germany % Great Britain % France %

24© GfK 2015 | 117 th Canton Fair | 16. April 2015 Trends now and in the future – Smart Robots Take Over! Home Inside Robot Vacuum Cleaner Pleasure Pet Feeding Robot Massage Robot Home… Window Cleaner Robot Lawn Mower Robot Solar Panel Cleaner Robot Pool Cleaner Robot … Outside What‘s next? …Cooking Robot …Ironing Robot…? The race for the “connected home” and “fully connected individual” is on!

25© GfK 2015 | 117 th Canton Fair | 16. April 2015 谢 谢 THANK YOU. CONTACT: