SRD Scorecard Program: Q3 2015 Jul-Aug-Sep Parameters Shikhar SRD Scorecard Program: Q3 2015 Jul-Aug-Sep Parameters

Revenue based Tiering Tier A 0 – 2 Cr Tier B 2 – 5 Cr Tier C > 5 Cr SRDs are categorized into Tiers as per their Revenue (basis previous Quarter). Hence, Tier of SRD in the program may vary each quarter.

Q3’15 Shikhar Scorecard   Parameter Measurement Achievement Slab Max Points Total points Business Parameter Value Growth % Tertiary value growth over Q2’15 avg (Apr-May-Jun) Every 1% growth = 10 points 200 400 Max points = 200 Focus Model Growth (for July - A5, E5, E7, Z1, J1) % Vol growth over Q2’15 avg (Gate criteria – min 100 units combined sales across focus models for Jul) For Non-SOFS SRDs SCR Score Month Avg achievement of Net SCR score <70% achv = o points 300 >=70% and <80% = 50 points >=80% and <85% = 100 points >=85% and < 90% = 200 pts >=90% = 300 points OR For SOFS SRDs Forecast accuracy SKU wise forecast accuracy % (average of all weeks of the months) <45% = 0 points 150 >=45% and <50% = 50 points >=50% and <55% = 75 points >=55% and < 60% = 100 pts >=60% and < 65% = 125 pts >=65% = 150 points Purchase RTF Achievement Ratio of Expected Supply (supply availability to SRD) / SRD Total Purchase <75% = o points >=75% and <85% = 50 points >=85% and <95% = 100 points >=95% = 150 points Operational Parameter Smartphone WOD % of Avg SP WOD (Jul-Aug-Sep) over Q2’15 Avg Overall WOD (Apr-May-Jun) <70% Ach – Nil 100 >=70% - 80% - 25 points >=80% - 90% - 50 points >=90% - 100 points Zero billed outlets (Focus model achievement – A5,E5, E7, Z1, J1) Avg of days of stock availability at billed outlets <40% - 0 points >=40% - 45% - 25 points >=45% - 50% - 50 points >=50% - 55% - 100 points >=55% - 60% - 150 points >=60% - 200 points Total 1000 Note: * Forecast accuracy & Purchase RTF instead of SCR score will be considered for SRDs where SOFS has been rolled out.

Reward categories     Category Tier A (0-2 Cr) Tier B (2-5 Cr) Tier C (>5 Cr) Platinum Gold Silver Min Points Cut-Off 750 600 <600 650 550 <550 500 400 <400 Category will be assigned basis the final quarterly score earned by the partner * Note: If an SRD does not qualify on Hygiene parameters, then that SRD would move to Silver Category

Terms and Conditions Only those partners who are active in the system as on 30th June will be considered for this program. Any partner who resigns any time during Jul-Aug-Sep 2015 will get disqualified for this program. For any SRD area realignment cases My Pumi approval of the RSM is required to be shared with Shikhar program team before 4th of Oct’15 Approval path - DM (consent), RDM (consent), RSM (Approval) with Notification to – Namit Sharma/Ajay Goyal (for resp regions) + Swati Dhasmana + Nishan Konar The SOFS parameter (Forecast Accuracy & Purchase RTF) will be measured instead of SCR score for SRDs where SOFS has been rolled out. Data source for calculation of scores will be SOP team Focus models may vary in every month Focus models for JULY are – Samsung Galaxy A500G, E500H, E700H, Z130H & J100H Qualification Gate : Total 100 units (Combined sales) across above focus models. NO individual model gate.

Terms and Conditions For Zero billed outlets achievement - Only outlets which have been billed in the last 60 days or past 2 months from current program month for the focus models will be taken for consideration . Ex - For July, the outlets billed for Focus Models in May-June will be considered For Aug , the outlets billed for Focus Models in June-July will be considered and so on Final Scorecard will be prepared and validated on basis of data from DMS

Definitions of Terms SCR (Stock Commitment Ratio) is percentage of models stocked as per suggested norms and measures the partner’s commitment to Suggested stock norms. Formula to calculate SCR = No. of Models above stock norms/total no. of Models considered for SCR Net SCR is the SCR netted for stock availability with upstream partner Formula to calculate Net SCR = No. of Models above stock norms/(Total no. of Models considered for SCR-Number of Models for which upstream partner doesn’t have stocks) Zero billed outlets will be calculated as – Monthly average of day wise stock availability of focus models at outlets which have previously billed those models in last 60 days

Calculation methodology of Parameters Tertiary Value Growth: Value Growth parameter will be calculated for the entire quarter Q3 (July –Aug-Sep) The Base will be Q2’15 tertiary (Apr-May-June) The average monthly tertiary for Q3 will be calculated and its growth over monthly average tertiary of Q2 will be calculated Q3 ter = (Jul + Aug + Sep)/3 Q2 ter = (Apr + May + Jun)/3 Growth % = Q3/Q2 -1 Example: If SRD does INR 3 Cr value ter in July, INR 4 Cr in Aug and INR 5 Cr in Sep Overall SRD tert = 3 + 4 + 5 = 15 cr Monthly SRD average = 15/3 = 5 cr Overall Q2 Base for SRD = INR 12 cr in Q2 = 12/3 = 4 cr monthly base in Q2 Growth = 5/4-1 = 20%

Calculation methodology of Parameters Focus Model Growth: Focus Model points will be calculated on monthly basis with 200 points divided in 3 parts each carrying 33.3% weightage The Base will be Quarter 2 tertiary (Apr-May-June). The monthly focus model base will be average sales of the combined units sold for THOSE models in Q2 The monthly focus model achievement will be combined sales of focus models in that particular month. The monthly growth % will be calculated for each of the three months. The Points will be awarded accordingly for each month and then tallied with 33.3% weightage for each month Example: If in July SRD 1 has 15% growth in focus model over Q2 monthly base, 10% in Aug and 20% in Sep. In July Focus Model Achiv points = 15% * 10 = 150 In Aug focus model Achv points = 10% * 10 = 100 In Sep focus model points = 20% * 100 = 200 Final Focus model points = 150 *33.3% + 100*33.3% + 200*33.33% = 150 points Note : Points will be awarded only if SRD fulfills minimum gate criteria for the month

Calculation methodology of Parameters SCR Score: SCR score is computed daily for SRDs. For each month we will get monthly Net SCR score The final score will be average of 3 months Example: SRD1 has 85% in July, 90% in Aug and 95% in Sep Final Q3 Net SCR score = (85 + 90 +95)/3 = 90% Forecast Accuracy: FA & Purchase RTF score is computed weekly for SRDs For each month we will get monthly FA and Purchase RTF score based on the weeks in that month SRD1 has 45% in July, 50% in Aug and 55% in Sep Final Q3 FA score = (45 + 50 +55)/3 = 50% Similarly for Purchase RTF

Calculation methodology of Parameters Zero Billed Outlets: This is a measure of days of stock availability of Focus models at retailers under a particular SRD. This is to reduce stock outs of Focus models at outlets which previously billed the particular Focus model. Example – Consider an SRD has 5 outlets R1, R2, R3, R4, R5. These outlets billed the following Focus models in the past 60 days For month of July, all outlets billed by SRD in May and June will be considered We will consider the number of days in the month of July where there was stock available for models previously billed Outlets Models billed in Previous Quarter R1 A5,E5,E7 R2 A3,A5 E5 R3 A3,A5 R4 A3,A5,A7,E7 A3,A7,E7

Say for R1, A5: Stock available on 25 days in July and stock out on 6 days A7: Stock available on 20 days and stock out on 11 days E7: Stock available on 30 days and stock out on 1 day Even availability of 1 unit at the retailer will count as stock available Now, for Retailer R1- A5 score = 25/31 =81% A7 score: 20/31 =63% E7 score: 30/31 = 97% Overall Score = Average of each model score = (81+63+97)/3 = 80% Similarly we will calculate for other 4 retailers Final score for SRD: ( R1 + R2 + R3 + R4 + R5 )/5 in % terms The whole idea is SRD should ensure maximum stock availability and minimum stock outs for Focus Models at its outlets Note : All outlets billed by SRD in past 60 days will be considered For July : outlets billed in May and June For Aug : outlets billed in June and July For Aug : SRDs billed in July and Aug

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