Validation: Predicted Change in Consumer Behavior Has Materialized Changed to clustered bar Global Economic Current

What’s Next: Global Behavior Expected to Remain Restrained and Fundamentally Changed Changed to clustered bar When economic conditions do improve, which of these do you expect you will continue to do? Global Economic Current

Where The Change Will Be Most Significant: Confidence levels of Predicted vs. Actual Behavior Delay replacement of major HH items Cut out annual vacation Discretionary Spending: Segments were moderate spending levels may emerge Cut out holidays/short breaks Cut down on at home entertainment Delay upgrading technology Cut down out of home entertainment Spend less on new clothes Cut down/buy cheaper brands of alcohol Switch to cheaper grocery brands Cut down on takeaway meals Use my car less often Cut down on telephone expenses Savings: Consumers will continue behavior Look for better deals on loans, insurance, Cut down on smoking Try to save on gas and electricity Global Economic Current

Online “Recession” discussion is slowing Weekly Overall Buzz Trend* (Data covers 01/01/2009 – 05/13/20z09) *Online consumer conversations taking place on over 100 million blogs, boards and groups. Recession discussion encompasses wide range of topics, including recession, employment, interest rates and subprime crisis. Recovery discussion based on positive economic terms such as “turnaround,” “stimulus” and “progress.” “Economy” Association Map** (Data covers 02/01/2009 – 05/01/2009) SLIDE EXPLANATION: By searching conversations from over 100 million sources, you can see that overall “economic recession” discussion is declining, while “economic recovery” seems to be remaining fairly steady. What’s important to remember is that “recession” may not only be declining because of an “economic recovery”, but consumers might not be discussing it as much since it’s becoming part of everyday life. They typically stop talking about the macro topic (recession) and start to focus on more micro topics (e.g., gas, mortgages, grocery, etc.) and how those have been affected by the macro topic. This is what you see on the association map. When looking at the same data set only from November – March, many of the same topics show up, but not grocery. Instead, there was a greater association with the subprime crisis as well as gas. There seems to have been a shift from gas and subprime, as those things start to settle out, towards grocery and the overall household struggle. Global Economic Current 4 4

UK “recession” buzz peaks in January UK “recession” discussion starts to tail off in February, but pessimistic economic forecasts and news of local job cuts drive a further peak in April. Weekly Overall Buzz Trend -(Data covers 01/01/2009 – 05/13/2009) Global Economic Current Global Economic Current 5 5

Global Consumer & Economic Outlook Fundamental shift in consumer spending as restraint will be the new mantra. Tough but moderating economic conditions. Free fall is over Global Economic Current

Return of Discretionary Spending? Apr 2009 Survey of 10,000 Homescan households Over 50% of HHs said their financial condition is the same or better. Percentage of respondents saying they will increase spending between a little and a lot: Travel 46% Dining Out 43% Out of Home Entertainment 42% Ranked 1st Ranked 2nd Ranked 3rd However, spending is going to be very restrained. Global Economic Current

Economic Recovery: Leaders & Laggards Massive Stimulus, Fastest growing economies, China export & domestic demand, India domestic demand Deep Recession, Economies aren’t as flexibie, Export driven world’s largest energy-exporting economy, mixed Eco data Improving domestic demand, tied to U.S. market Increasing evidence of bottoming, dynamic economy, $14 trillion GDP Global Economic Current

Planning For The Recovery Global Economic Conditions Are Bottoming Emerging economies insulated from the housing bubble or credit crisis will emerge first Consumption patterns within the most development economies may have fundamentally changed Value is resonating but not always differentiating Drivers of success continue to be: Innovation - Measured Media Spending - Targeted Insights and Intelligence - Granular Global Economic Current