1. 1© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 EU Energy Label on Vacuum Cleaners: Evaluation and market changes GfK Consumer Choices EEDAL Conference, August 28 th 2015, Lucerne Pierre Geismar, pierre.geismar@gfk.com

2. 2© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Agenda 1. Presentation of the Energy Label & Panel methodology 2. The Cylinders market is renewed 3. Focus on the Label’s criteria 4. Evaluation of the Label: energy savings and value creation 5. Revision of the label

3. 3© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Presentation of the Label and Methodology

4. 4© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Launch of the Label on September 1 st 2014 EU Energy Label on Vacuum Cleaners Main Label Energy efficiency class, according to the annual electricity consumption in kWh/year Energy Efficiency ClassAE (kWh/year) AAE ≤ 28,0 B 28,0 < AE ≤ 34,0 C 34,0 < AE ≤ 40,0 D 40,0 < AE ≤ 46,0 E 46,0 < AE ≤ 52,0 F 52,0 < AE ≤ 58,0 G AE > 58,0

5. 5© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Launch of the Label on September 1 st 2014 EU Energy Label on Vacuum Cleaners 5 additional indicators: Carpet floor cleaning performance class Hard floor cleaning performance class Dust re-emission class Sound level (decibels) Annual average energy consumption in kWh/year New maximum power level authorized: 1600 Watts / 62,0 kWh/year

6. 6© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 GfK Point of Sales Tracking Information Tracking Methods GfK Retail Panel GfK Household Panel Retail Data POS Data Product Data Supply Chain (simplified) Manufacturer Retail Consumer Wholesale Buyer Data Purchase Data Equipment Data Analysis of Vacuum Cleaners POS data, segment Cylinders, on 25 EU countries

7. 7© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 The European Vacuum Cleaners market is largely renewed with greener products

8. 8© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 A 17,3 million units market in 2014 Very stable volume trends on cylinders before the introduction of the EU Energy Label VACUUM CLEANERSEU 25 Countries PanelmarketJan 12-Dec 12 - Jul 14-Jun 15 CYLINDERSales Ths. Units,Sales Mio. Value EUR © GfK 2015 - All rights reserved | 8/2015 Jan 12-Dec 12Jan 13-Dec 13Jan 14-Dec 14Jul 14-Jun 15 17.21817.20017.29516.628 Sales Ths. Units 0 2 4 6 8 10 12 14 16 18 S a l e s T h s. U n i t s ( x 1. 0 0 0 ) 7.290 9.916 7.577 9.607 7.654 9.618 7.242 9.342 CYLINDER BAGGED CYLINDER BAGLESS+ COMBI Jan 12-Dec 12Jan 13-Dec 13Jan 14-Dec 14Jul 14-Jun 15 1.866,31.881,01.934,41.940,2 Sales Mio. Value EUR 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 1,8 2,0 S a l e s M i o. V a l u e E U R ( x 1. 0 0 0 ) 819,6 1.046,0 851,3 1.029,1 881,1 1.052,5 869,3 1.069,2 CYLINDER BAGGED CYLINDER BAGLESS+ COMBI

9. 9© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Low consuming products are replacing high wattages Cylinders accounting for more than ¾ of volume sales in 2013 did not fit EU wattage requirements

10. 10© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Faster renewing of models sold on the market after the introduction of the label

11. 11© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 The market is now built on more energy-efficient products Development of a new offer, <800 Watts

12. 12© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Energy Label’s criteria A majority of A models and some potential on silent models

13. 13© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 The energy efficiency A class already accounting for 39% of sales The A class is a high-end offer, with a 154€ average price compared to 124€ on all renewed models VACUUM CLEANERSEU 25 Countries PanelmarketJuly 2014 - June 2015 CYLINDER Launch after Jul14 < 1600 WEnergy Label EUSales Units %,Sales Value % © GfK 2015 - All rights reserved | 8/2015 PRJ 90812 - RG 4156126 - RP 25587325 - ID 452012344 A B C D E F G Others Sales Units %Sales Value % 3,1 10,7 4,5 6,4 7,0 28,2 39,0 7,4 6,6 7,7 4,8 22,8 48,5

14. 14© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Improvements may still be made on the carpet floor performance class and on dust re-emission

15. 15© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 On renewed products, silent models (<75 dB) account for 16% of volume sales only Sales <60 dB have appeared since the introduction of the label VACUUM CLEANERSEU 25 Countries PanelmarketJuly 2014 - June 2015 CYLINDER Launch after Jul14 < 1600 WSales Units %,Sales Value % © GfK 2015 - All rights reserved | 8/2015 PRJ 90812 - RG 4156126 - RP 25587328 - ID 452012348 < 60 DB 60 < 65 DB 65 < 70 DB 70 < 75 DB 75 < 80 DB 80 < 85 DB >= 85 DB Others Sales Units %Sales Value % 6.804840.200 Ths. 2,7 11,7 40,1 29,6 7,8 5,9 10,8 31,4 29,7 12,0 10,6 3,0

16. 16© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Evaluation of the label’s impact: Energy savings and value creation

17. 17© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Average maximum wattage power level Reduction in the power level of vacuum cleaners Source EC POS data, Cylinders EU 25 countries Forecast EC, in case the Label would not have been introduced Introduction of the Energy Label

18. 18© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Average annual electricity consumption in kWh/year Reduction in the electricity consumption of vacuum cleaners Forecast EC, in case the Label would not have been introduced POS data, Cylinders EU 25 countries Label basis: 50 cleaning actions per year on 87 m², with 4 strokes over each point Introduction of the Energy Label Source EC (1 h use per week)

19. 19© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Cylinders Euro Average price The label is creating added-value on the market Sales volume are declining  No Label impact on sales Significant rise in average price  The Label is adding value to the market  Consumers better informed, and thus less reluctant to invest more? POS data, Cylinders, EU 25 countries

20. 20© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Revision of the Energy Label: Significant advances on labeled devices, but a declining perimeter of application

21. 21© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Label updated in September 2017 Revision of the Energy Label on vacuum cleaners Main Label Energy efficiency class, according to the annual electricity consumption in kWh/year Energy Efficiency ClassAE (kWh/year) A+++AE ≤ 10,0 A++ 10,0 < AE ≤ 16,0 A+ 16,0 < AE ≤ 22,0 A 22,0 < AE ≤ 28,0 B 28,0 < AE ≤ 34,0 C 34,0 < AE ≤ 40,0 D AE > 40,0 Technical requirements Maximum power level of 900 Watts, instead of 1600 Watts / 43,0 kWh/year Maximum sound level of 80 dB

22. 22© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 The perimeter of application of the EU Energy Label is reduced The development of Rechargeable Handsticks is reducing the perimeter of application of the Label on vacuum cleaners

23. 23© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Conclusion

24. 24© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Conclusion EU Energy Label on Vacuum Cleaners: evaluation and market changes Energy Label introduced on Vacuum Cleaners in September 2014 On renewed products, the A general class accounts for 39% of volume sales The introduction of the Label is enabling energy savings 916 Watts max power level; average annual electricity consumption of 34,5 Kwh/year Consumers seem ready to invest more Rising average price on cylinders The perimeter of application of the Label is reduced Cylinders are losing shares in front of battery-operated devices

25. 25© GfK 2015 | EU Energy Label on Vacuum Cleaners | EEDAL Conference | Lucerne August 28 th 2015 Thank you for your attention! Pierre Geismar pierre.geismar@gfk.com T : +33 1 74 18 60 91 | M : +33 6 45 48 17 14