1. Dulux Decorator Centres UK Anne Tattersall, Head of Commercial, DDC 8 th May 09

2. Amsterdam Licensee Symposium Outline – Turnover & Profitability – Network Development – Operational Excellence – Supplier Management – Category Management – Price Architecture

3. Amsterdam Licensee Symposium 190 Stores £150m turnover 1200 employees Dulux Decorator Centres

4. Amsterdam Licensee Symposium Split by Channel & Category Channel Split Category Split

5. Amsterdam Licensee Symposium

6. DDC Efficiency Measures Efficiency Measures2008 Average Credit collection – Days sales outstanding52.1days Stock turn8.3 times Stock availability – PDS99.0% % of slow moving stock1.9% Sickness absence rate2.5 days Manpower costs (% sales)11.5% Cost Base% of sales Stores manpower 11.5% Stores property & dep’n 6.5% Other direct stores costs 6.0% Total direct stores costs 24.0% Head Office costs 7.0% Total costs31.0%

7. Amsterdam Licensee Symposium Network Growth & Development Acquisition & Greenfield Sites Distribution Strategy Objective: Share Optimisation Regional brand share Mapping Competitor review Strategic Acquisition Greenfield's: Low cost model

8. Amsterdam Licensee Symposium DDC Refurbishments

9. Amsterdam Licensee Symposium DDC Refurbishments

10. Amsterdam Licensee Symposium Operational Excellence Category Management Category segmentation & strategy Customer focused ranging Take advantage of new opportunities Data modelling & customer & store input Visual merchandising Supplier Management Consolidation Sustainability Service expectations

11. Amsterdam Licensee Symposium Range Reviews: Supplier Rationalisation No. of Suppliers 20 40 60 80 100 120 Preparation Products Preparation Equipment Application Finishing & Cleaning Wallpapering tools 2005 2006 2007 140

12. Amsterdam Licensee Symposium Range Reviews: SKU Rationalisation Preparation Products Preparation Equipment Application Finishing & Cleaning Wallpapering tools No. of SKU’s 200 400 600 800 1000 1200 1400 1600 2005 2006 2007

13. Amsterdam Licensee Symposium Category Segments

14. Amsterdam Licensee Symposium Turf Defending Traffic Building Image & Excitement Creation Profit Generating Transaction Building Image Enhancing Assortment & Range Reviews Pricing Merchandising Promotion Service Sourcing Destination Occasional/Seasonal Preferred Convenience Category Roles Determine…..Category & Strategies which….. Map to Specific Tactics Category Strategy: Segments & Roles

15. Amsterdam Licensee Symposium Visual Merchandising Bringing category strategies to life in store: Sales & margin aspirations Footfall measures Product availability Ease of purchase Help customers understand the proposition Trade up

16. Amsterdam Licensee Symposium Understanding Hierarchies BEST BETTER GOOD

17. Amsterdam Licensee Symposium The Benefits Stock turn improvement Increased efficiency through reduced products & suppliers Increased margin through cost reduction Increased sales through clarity / choice

18. Amsterdam Licensee Symposium Understanding Hierarchies SOLVENT USAGE WATER-BASED USAGE 4” 9”4”9”

19. Amsterdam Licensee Symposium Zonal Merchandising General Fixing Knives & Blades HD Tools Scraping Measuring Accessories & Kits

20. Amsterdam Licensee Symposium Promotional Merchandising Right Product / Right Quantity / Right Site Linked purchase opportunities Link POS message and displays Clear & easy to understand communication to stores & our customers – Quality briefing – Consistency of display & message across all stores

21. Amsterdam Licensee Symposium Promotional Merchandising

22. Amsterdam Licensee Symposium Promotional Merchandising Clutter Free Promotional Areas Impactful & Inviting Displays

23. Amsterdam Licensee Symposium Summary Network Development Operational Excellence Differentiation