1. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 1 UPCOMING WEBINARS IMPROVING AD PERFORMANCE WITH THE 3 R’S – FEB. 28 TH

2. THINK SMALL FOR BIG RESULTS James Russo - Global Consumer Insights Carman Allison – Shopper & Industry WHAT’S IN STORE 2013

3. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 3 TODAY’S PRESENTER JAMES RUSSO SVP, GLOBAL CONSUMER INSIGHTS, NIELSEN

4. THINK SMALL FOR BIG RESULTS James Russo - Global Consumer Insights Carman Allison – Shopper & Industry WHAT’S IN STORE 2013

5. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 5 THE WORLD HAS CHANGED

6. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 6 THE WORLD HAS CHANGED...PERMANENTLY

7. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 7 $35 trillion $45 trillion $62 trillion 201020152020 29% increase in 5 years 38% increase in 5 years AND THE OPPORTUNITIES ARE IMMENSE $450 TRILLION Source: Nielsen Demand Institute

8. IT’S TIME TO ACT DIFFERENTLY IN THIS SESSSION, WE ARE CHANGING: The way you assess your marketplace How you sell to your customer Your views of advertising Where you innovate Where your growth will be achieved 12345

9. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 9 US GROWTH IS SLOWING Actual and Projected US GDP Growth (2006-2017) Forecast for 2013 Slow Growth Source: IMF World Economic Outlook, Oct 2012; 2012-2014 from Wells Fargo forecasts as of Dec 21 2012; TCG Analysis

10. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 10 WHAT WE DISCUSS TODAY PREPARES US FOR TOMORROW Actual and Projected US GDP Growth (2006-2017) Forecast for 2013 Slow Growth Source: IMF World Economic Outlook, Oct 2012; 2012-2014 from Wells Fargo forecasts as of Dec 21 2012; TCG Analysis

11. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 11 CONFIDENCE HIGHEST IN FOUR YEARS, BUT OFF PRE-RECESSION HIGHS Nielsen U.S. Consumer Confidence Index Source: Nielsen Global Omnibus Consumer Confidence Survey 4Q12

12. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 12 ECONOMIC CONCERNS REMAIN IN THE FOREFRONT OF CONSUMER MINDS What are your biggest concerns over the next six months… Source: Nielsen Global Omnibus Consumer Confidence Survey 4Q12

13. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 13 CONFIDENCE DRIVEN BY ECONOMIC FACTORS WHICH REMAIN VOLATILE, UNCERTAIN, BUT IMPROVING FUEL COSTS EQUITY MARKETS LABOR MARKETS HOUSING INFLATION GOVT

14. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 14 Source: U.S. Census Bureau; The New York Times & USA TODAY/Sentier Research IS THIS THE NEW NORMAL? Median household income in inflation adjusted dollars

15. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 15 CONSUMER SPENDING MODERATED IN 4Q12 DUE TO FISCAL CLIFF CONCERNS Source: Total U.S. All Outlets Combined, All Depts., All Brands (UPC); % Change vs. Year Ago; 13 week quarters, 52-weeks ending 12/29/2012 Dollar Sales Unit Sales

16. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 16 SURVEY QUESTION: DO YOU THINK THE US IS CURRENTLY IN A RECESSION? YES NO NOT SURE

17. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 17 AS WE HEAD INTO 2013….. U.S. Recession Officially Ends 3.5 years June 2009 NBER Nov 2012 NIELSEN 74% of consumers say we are in a recession Source: Nielsen Global Omnibus Consumer Confidence Survey 4Q12

18. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 18 DO YOU THINK YOUR COUNTRY WILL BE OUT OF A RECESSION IN THE NEXT 12 MONTHS? % SAYING YES THE U.S. CONSUMER REMAINS INCREASINGLY CAUTIOUS ABOUT THE FUTURE 25% Most Optimistic 18% Most Pessimistic Source: Nielsen Global Omnibus Consumer Confidence Survey 4Q12

19. FINDING GROWTH IN 2013 THINK SMALL FOR BIG RESULTS

20. EVIDENCE FOUND ACROSS THE ORGANIZATION 1. Economic 2. Demographic 3. Retail 4. Consumption 5.Innovation 6. Advertising 7. Digital 8. Viewing Habits 9. Entertainment 10. Analytics

21. ECONOMIC Reinvigoration of smaller rental housing 1

22. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 22 CONSUMERS ARE RETHINKING HOME OWNERSHIP HOUSING 4Q04 69.2% homeownership Every percentage point drop corresponds to an additional boost of 1 million renter households. 3Q12 65.5% homeownership Source: www.census.gov/housing

23. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 23 AS A RESULT, SHOPPING HABITS WILL CHANGE MORE FREQUENT SHOPPING & SMALLER BASKETS MORE INTEREST IN LOCAL STORES MORE ONLINE REPLENISHMENT SMALL HOME FURNISHINGS FURNITURE & APPLIANCES SMALLER PACK SIZES DUE TO LESS STORAGEWILL CONTINUE TO THRIVEWILL BE SMALLER

24. DEMOGRAPHIC Smaller household size 2

25. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 25 AVERAGE HOUSEHOLD SIZE CONTINUES TO DROP Source: www.census.gov/population/socdemo/hh-fam/hh6.xls

26. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 26 GOODS AND SERVICES CHANGE AS A RESULT

27. RETAIL Where we transact is getting smaller 3

28. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 28 BIG BOXTO ONLINETO SMART PHONES TO CORNER STORES TO VIRTUAL STORES FORMAT EVOLUTION

29. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 29 SLOWING GROWTH IN SELLING SPACE Average annual growth rate of square footage of selling space for the period Source: Nielsen TDLinx 2001 – 2012,, close to 125,000 stores

30. CONSUMPTION Differentiate with local & Fresh 4

31. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 31 WITH SHOPPER TRIPS DECLINING, DIFFERENTIATION IS ESSENTIAL ECONOMIC GROWTHGREAT RECESSIONPOST RECESSION 176 Avg Annual Trips Per Shopper 158 Avg Annual Trips Per Shopper 151 Avg Annual Trips Per Shopper 2002 - 20072008 - 20092010 - 2011 Source: Nielsen Homescan

32. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 32 1.5 to 2.1 Times Larger with Fresh 30% Grocery Store Sales FRESH DIFFERENTIATES 13% OF THE STORE, DRIVING 30% GROWTH Sources: Homescan, TSV 52 weeks ending December 2011; Nielsen Perishables Group Fresh Facts® Total US 52 weeks ending 12/31/2011 (Grocery channel only). Nielsen Global Healthy Eating Survey 5% INCREASE Consumers are interested in healthy/natural foods

33. INNOVATION Targeting growth in new markets 5

34. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 34 GLOBAL PRODUCT INNOVATION Reviewed 35 years of new product concepts 201219782008 Over 175,000 concepts were tested across 73 countries between 1978 - 2012. 50% Sources: Nielsen BASES

35. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 35 POPULATION OF SUB-SAHARAN AFRICA 68 th Kenya 40,046,566 64 th Tanzania 41,892,895 52nd S. Africa49,109,107 15 th Nigeria 152,217,341 68 th 15 th 64 th 52 nd Sources: CIA Worldfactbook

36. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 36 HOWEVER IT IS THE ONLY GLOBAL REGION, WHERE EACH COUNTRY REALIZED GROWTH IN INNOVATION 2012 vs 2011 +43% Kenya +17% Tanzania +12% Nigeria +9% South Africa 43% 12% 17% 9% Sources: Nielsen BASES

37. VIEWING Leveraging how we spend our time 6

38. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 38 SURVEY QUESTION: OF THE TV CHANNELS YOU RECEIVE IN YOUR HOME, WHAT IS THE AVG. NUMBER OF CHANNELS YOU WATCH EACH WEEK?" 0% to 10% 10% to 20% 20% to 30% 30% to 40% 40% to 50% Over 50%

39. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 39 KNOW YOUR AUDIENCE Average hhld receives 180 channels but views only 17 of them each week….9% Sources: Nelsen Television Audience 2012.

40. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 40 Average Length of Tuning Events THE LENGTH PEOPLE TUNE INTO SMALLER NETWORKS IS NOT FAR OFF LARGE CABLE NETWORKS Source: NPOWER Length of Tuning, 10/01/2012 - 10/07/2012 With at least 15 minutes viewed, the likelihood of viewing commercials are just as high. Niche networks are typically smaller. Less than 5 minute difference

41. DIGITAL Smaller devices gaining viewership 7

42. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 42 MULTI PLATFORM VIEWING OVERALL USAGE – NUMBER OF USERS PERSONS 2+ (IN 000S) – MONTHLY REACH -1.7% - Watching TV in Home 4.9% - Watching Time Shifted TV (all TV homes) 7.1% - Watching Time Shifted TV (only in DVR homes) 1.5% - Using the Internet on a Computer 4.2% - Watching Video on the Internet 1.0% - Using a Mobile Phone 35.7% - Mobile Subscribers Watching Video on a Mobile Phone Year over Year Change Q4 2010 vs Q4 2011 Sources: Nielsen Cross Platform

43. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 43 Average Daily Time Spent on Media Activity (h:mm) Total Population, March 2012 BALANCE GROWTH WITH TVS UNMATCHED REACH OTHER 1:05 TV VIEWING 4:32 Online Web Browsing | 0:32 Mobile App Usage | 0:13 Time Shifted TV Viewing | 0:11 Online Video Streaming | 0:04 Mobile Web Browsing | 0:03 Mobile Video | 0:01 Sources: Nielsen Cross Platform

44. ADVERTISING EFFECTIVENESS 8 Strategic use of spots

45. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 45 :15 SECOND SPOTS ARE 94% AS EFFECTIVE AS :30 SECOND ON BRAND RECALL Source: Nielsen BETV Cross-Sector View of 15s vs, 30s Performance How successful is the Ad at connecting its content to the advertising brand? What is the Ad’s net branding success if we consider BOTH Breakthrough & Brand Linkage? How successful is the Ad at breaking through and being remembered?

46. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 46 Brand Recall Trend – :15 & :30 Flighting SUCCESSFUL BRAND CAMPAIGN ILLUSTRATING AN EFFECTIVE USE OF SPOTS Source: BETV Cross-Sector View of 15s vs, 30s Performance

47. ENTERTAINMENT Leverage demographic shifts and endorsement potential 9

48. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 48 HISPANIC POPULATION IS CURRENTLY 16% OF THE TOTAL US POPULATION Sports personalities N-Score, among Latino consumers 01/01/2012 to 12/31/2012 8 different sports are represented in the Top 11 “Hall of Fame” Source: Nielsen Sports

49. ANALYTICS New methods for findings growth, drilling deeper 10

50. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 50 NEW INSIGHTS NEW SOURCES social media NEW ANALYTICS

51. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 51 Current, emerging and latent demand Most profitable consumers Demand Segments and Need States The right supply for the right market Shared understanding of how to win across the organization NEW ANALYTICS RELATED TO Source: Nielsen Cambridge Group

52. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 52 Small to start, then took off… CURRENT, EMERGING AND LATENT DEMAND What are the key “Forces and Factors” shaping current, emerging and latent demand in your category? What can you learn from analogous categories outside your own that can be applied to your business? What can you learn from other geographic markets beyond your own? Source: Nielsen Cambridge Group

53. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 53

54. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 54 SURVEY QUESTION: WHAT IS THAT A PICTURE OF? Flax Seeds Hemp Seeds Couscous Chia Seeds Quinou seeds

55. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 55

56. Copyright ©2012 The Nielsen Company. Confidential and proprietary. 56

57. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 57 TWO YEARS AGO, CONSUMERS WERE DISCUSSING THE BENEFITS OF CHIA SEEDS A fitness buff on Runnersworld.com asked about others’ experiences with chia seed consumption, causing many to share that the seeds are helpful in lowering blood pressure and are a good source of omega-3s.Runnersworld.com After a board member on Myfitnesspal.com shared information about the nutritional benefits of chia seeds, many others chimed in to say that they were now interested in trying the “superfood” Myfitnesspal.com A number of Twitter users shared their consumption in real-time, A diabetic individual on Diabeticconnect.org shared ideas and recipes for using chia seeds, prompting others to discuss which retailers carry the product in their stores. Trended Buzz for Chia Seeds A B D C A B C D Source: Nielsen NM Incite

58. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 58 NEW SOURCES Role of social media NEW INSIGHTS Leveraging current, emerging or latent demand NEW FINANCIALS Latest 52 wks, chia seed products +298% increase dollar sales! Source: Nielsen SPINS

59. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 59 WHAT DOES 2013 LOOK LIKE? WE ARE IN A NEW STAGE OF BUSINESS EITHER RIDE THE WAVE OR GET CRUSHED BY IT 2013 WILL BE CHARACTERIZED BY A CONSUMER WHO REMAINS IN MAINTENANCE MODE UNCERTAINITY DOMINATES WEAK EARLY, STRONGER LATE 1 2

60. IT’S TIME TO ACT DIFFERENTLY REALIZING GROWTH IN 2013 The way you assess your marketplace How you sell to your consumer Your views of advertising Where you innovate Where your growth will be achieved

61. Copyright ©2013 The Nielsen Company. Confidential and proprietary. 61 Q & A THANK YOU FOR ATTENDING If you have follow-up questions or want more information, please contact your Nielsen Professional Services rep If you are not a current Nielsen client, please contact us Phone:800-553-3727 Email:CPGSolutions@nielsen.com OR, if you have any questions regarding the content of this webinar, you can also contact: James Russo, email:James.Russo@nielsen.com