Open Trade Methodology That’s why we continue to develop better solutions to help you meet the needs of today’s consumers, and find out where they’re headed next. We study consumers in more than 100 countries to give you the most complete view of trends and habits worldwide. And we’re constantly evolving, not only in terms of where we measure, or what we measure, but also in how our insights can help you drive profitable growth.

Receive Scan data from cooperative chains We then process and consolidate the data into our reports Independent Drug Scan Data Independent Supermarket “Donor store” methodology using KA supermarket as panel stores Retail Report Consolidate

KEY OBJECTIVES OF OT PANEL To refresh our panel stores and offer more granularity SPEED & QUALITY It Is our global initiative to modernize our data collection methodology in order to ensure quality and timeliness of data collected DIGITAL Having more digitized format of data collection enables future enhancement such as trade analytics, pricing and more accurate Open Trade execution strategy. COOPERATION With a more digitized cooperating panel of stores, we can accurately represent the right balance of big and smaller Open Trade stores in Hong Kong

FUTURE ENHANCEMENT Empowered by digital collection methodology MORE TIMELY DELIVERY MORE GRANULAR READ TRADE ANALYTICS More prompt reporting of in-market data Weekly & by region/district Robust analytics on store segmentation & execution

Steps for Open Trade projection The panel is designed to represent market reality of retail landscape Universe Estimation & Sample Size Design Stratified Sampling Cell structure based on Geographical Area and Shop Type Maximize homogeneity within cell Disproportionate Sampling Unequal sample size ratio among cells Based on cost effectiveness to determine sample size Universe Estimation Base on Census information, to get the Universe number and structure (store type allocation) by panel. Sampling Method 20 40 120 15 34 24 7 12 10 UNIVERSE 2 4 13 6 5 3 SAMPLE SHOP TYPE GEOGRAPHICAL AREA HK Island Kowloon New Territory Example Supermarket Drug Store CVS Grouping outlets into segments by geographical area & shop type 1. Decide how many samples we need to project - before understand how many sample we need to project , we have to know the size of universe - allocate how many samples 1.1 estimation -> we use rolling census Control

Steps for Open Trade projection The panel is designed to represent market reality of retail landscape Hide 2,3 Universe Estimation & Sample Size Design Sample Selection Sample Projection Universe Estimation Rank Stores in Each Cell Data collection from Sample stores Base on Census information, to get the Universe number and structure (store type allocation) by panel. Base on sampling framework Stock Purchase Record Any wholesale/ return goods Stratified Disproportionate Allocation Systematic Random Sampling Randomly select the 1st sample Determine fixed interval = Universe / Sample Size Systematically Select the Remaining sample stores with fixed interval Grouping outlets into segments by geographical area & shop type

Steps for Open Trade projection The panel is designed to represent market reality of retail landscape Universe Estimation & Sample Size Design Sample Selection Sample Projection Universe Estimation Rank Stores in Each Cell Data collection from Sample stores Base on Census information, to get the Universe number and structure (store type allocation) by panel. Base on sampling framework Stock Purchase Record Any wholesale/ return goods Stratified Disproportionate Allocation Systematic Random Sampling Randomly select the 1st sample Determine fixed interval = Universe / Sample Size Systematically Select the Remaining sample stores with fixed interval Grouping outlets into segments by geographical area & shop type Control

Summary of Open Trade Methodology 1. Determination of sample stores based on Universe estimation 2. Collection of data for those sample stores to project 100% open trade market 3. Continuous monitoring of the accuracy and representativeness of our open trade data through coverage and pick-up analyses Universe Estimation & Sample Size Design Sample Selection Sample Projection