Investor Day 2012: Europe, Middle East & Africa

2. REGION OVERVIEW
EMEA
David Johnston
President & CEO EMEA

3. TOUGH MACRO ENVIRONMENT IN EUROPE
GDP Growth Bond Prices Consumer Confidence
1.2 8 0
United Kingdom
1.0
7 -5
0.8
6
0.6 -10
0.4 5
-15
0.2
%
%
%
4
0.0 Q3 Q4 2010
Q1
Q2 Q3 Q4 2011
Q1
Q2 Q3 Q4 2012
Q1
Q2 -20
-0.2 3
-0.4 -25
2
-0.6
1 -30
-0.8 United Kingdom Italy Spain
United Kingdom Italy Spain
-1.0 0 Q3 Q4 2010 Q2 Q3 Q4 2011 Q2 Q3 Q4 2012 Q2
-35 Q3 Q4 2010 Q2 Q3 Q4 2011 Q2 Q3 Q4 2012 Q2

4. LOYALTY CURRENCIES AND CUSTOMER ANALYTICS
REMAIN RESILIENT
Jun Jun Jun
Nectar UK partners YTD vs YAGO
YTD vs YAGO YTD vs YAGO
using points aggressively Bonus Points Bonus Points Bonus Points
+ 44% Jun + 9% Jun + 84% Jun
Nectar Italy - billings Q2 YTD 2012
growth despite recession +9%
ISS Jun YTD UK Self Serve International
thriving in a growth industry Gross billings clients relationships
+ 18% 110 to 122 3 to 4

5. HELPING OUR CLIENTS BUILD STRONGER CUSTOMER
RELATIONSHIPS

6. IMPROVING FINANCIAL PERFORMANCE
Gross Billings AEBITDA Growth AEBITDA Margin %
YoY% Growth AE Margin %
7.4%
120%
21.5%
19.4%
5.2%
15.4%
13.0% 55.9%
12.3% 3.8% 3.9%
5.1% 2010 2011 H1 2012
-19%
2011 Q2 Q3 Q4 2012 Q2
2011 Q12011 Q22011 Q32011 Q42012 Q12012 Q2 2010 2011 H1 2011 H1 2012
AEBITDA YoY% Growth
YOY% Growth
Q1 Q1
Adjusted for the impact of the VAT ruling, changes in the breakage rate, Italy launch costs and restructuring costs
GB growth, AE% calculated in GBP; AE growth measured in Can$

7. DELIVERING ON OUR STRATEGIC PLAN
STRENGTHEN
DRIVE BUILD
CUSTOMER
RELATIONSHIPS INNOVATION MARGINS
Renewals Mobile • VAT mitigated
• Sainsbury’s • Nectar, Sainsbury’s & BP
• Homebase mobile apps • Improving
• HSBC • Location-based offers leverage
Expanding coalition Analytics • Strengthened
partners • Enhanced Self Serve modules commercials
• British Gas • Share of Wallet
• Original Marines • Loyalty Self Serve
• Unicredit CRM
• Campaign Execution Tool
• Offer engine

8. MOMENTUM FROM STRATEGY THROUGH TO
EXECUTION
UK MEA OTHER
COALITION
LOYALTY
LOYALTY
ANALYTICS
PROPRIETARY
LOYALTY

9. NECTAR
Jan-Pieter Lips
MD Nectar

10. GROWTH DRIVERS OF THE NECTAR BUSINESS
MONETISE
INCREASE DRIVE GROW
MEMBERS
NECTAR’S VALUE FOR THE MEMBER
THROUGH
FOOTPRINT PARTNERS BASE
INNOVATION

11. LOYALTY PAYS
100% PARTNER RENEWAL IN THE LAST 18 MONTHS
11

12. SAINSBURY’S RENEWAL IN PARTICULAR SETS NECTAR
UP FOR A PROFITABLE AND SUSTAINABLE FUTURE
• Nectar at the core of Sainsbury’s marketing
JUSTIN KING
• Joint Business Plan to drive value for both parties
CEO Sainsbury’s
“We have signed a new • Contract renewal with improved terms
long-term contract with
Nectar to ensure we
retain this source of • Extended 7 year term
customer insight - a key
competitive advantage”
12

13. BRITISH GAS LAUNCH HAS EXCEEDED
EXPECTATIONS AND DRIVEN GREAT RESULTS
“Our partnership with
Nectar is delivering
some great results.
CUSTOMER 55% of the customers
INCREASE INCREASE that have joined us as a
result of Nectar fall within
+2m +5 our highest value category
and nearly two million of
our Nectar-collectors now
self-serve, incentivised by
points. Brand perceptions
have also benefited.”
WILL ORR,
On-line account Net Promotor Score Marketing and insight director
13

14. ANNOUNCING OUR NEWEST PARTNER …
• Most visited retail website in the UK
• 17m unique monthly visitors
• Retail sales and peer to peer
• ‘Elephant’: top-5 partner
14

15. DRIVING VALUE FOR PARTNERS THROUGH
CONNECTING THE DOTS
BUSINESS CHALLENGE ANALYSIS RESULTS
• Homebase wanted to • First ever view of share of
understand the ‘headroom’ wallet across customer
potential to grow customers’ segments
spend • Targeted DM campaign to
• This would enable more those with highest growth
effective retention and opportunity
spend stretch strategies • New headroom segmentation
for more effective targeting
and use of promotional spend
• Non-top customers with
significant headroom behaving
like top customers
15

16. WE’VE HAD A MAJOR FOCUS ON INNOVATION OF
MEMBER INTERACTION
16

17. AND WE’RE TESTING A DEALS PROPOSITION TO
FURTHER MONETISE OUR MEMBER BASE
17

18. WE’RE MOVING WELL BEYOND THE TRADITIONAL
‘TRANSACTION’ MOMENT INTO ‘INTERACTIONS’
POST-
AWARENESS
PURCHASE
Interactions
PURCHASE RESEARCH
PRE-
PURCHASE
18

19. NECTARS MOMENTUM IS CLEARLY VISIBLE IN
OUR METRICS
18.5m 83% 20.7% 4m
15.5m 75% 16.1% 2.2m
19

20. GROWTH DRIVERS OF THE NECTAR BUSINESS
MONETISE
INCREASE DRIVE GROW
MEMBERS
NECTAR’S VALUE FOR THE MEMBER
THROUGH
FOOTPRINT PARTNERS BASE
INNOVATION
20

21. 21

22. ISS
NEW BUSINESS with Sainsbury’s
Peter Gleason
President ISS

23. SHOPPER MARKETING IS A KEY STRATEGY FOR
DRIVING SALES
• Shopper marketing is about understanding how target consumers behave as shoppers
throughout the total purchase journey
• ISS services currently provide the core of shopper marketing understanding and execution
• The growth of shopper marketing as a whole continues at a fast pace

24. ISS IS WELL POSITIONED TO CAPITALISE ON SHOPPER
MARKETING GROWTH

25. OUR INSIGHT OFFERING AND TARGETED MEDIA
CHANNELS ARE GROWING STRONGLY
Our insight tools and capabilities utilise customer Targeted media channels utilise customer data collected
data collected via loyalty cards to deeply understand via loyalty cards to deliver relevant,
customer purchasing behaviour timely offers to shoppers on a one to one basis
EXAMPLES INCLUDE:- EXAMPLES INCLUDE:-
SELF SERVE INSIGHTS CONSULTANCY COUPON AT TILL DIRECT MAIL MOBILE
The speed and flexibility of our primary insight tool, The targeted nature of these comms enables the
Self Serve, is widely recognised in the market place. evaluation of campaign ROI – we know who was issued
This is complemented by a growth in our offering of with offers and we can accurately track redemption rates
insight advisory and consultancy services Used intelligently, targeted comms facilitate the building of
highly valued relationships between retailer and customer

26. NON-TARGETED MEDIA INCLUDES OVER 20 CHANNELS
IN STORE
Non targeted channels
are more of a mass
communication vehicle
and customer data is
not currently used
AROUND THE STORE
in deployment
Traditional channels
include:
AT HOME

27. THE NEXT GENERATION OF ISS IS UPON US
• We are creating a new business in the UK with
Sainsbury’s that will accelerate the overall growth of ISS
• This new business is a natural development for
our relationship with Sainsbury’s
• The partnership opens up lots of exciting new
opportunities including
– New store targeted media channels
– A streamlined buy in process for CPGs
– Closer alignment with Sainsbury's
strategic plan
• Long term revenue and profit growth is significantly
enhanced by this new partnership

28. COMBINING TARGETED AND NON-TARGETED MEDIA
PRESENTS REAL GROWTH OPPORTUNITIES
Market research Media evaluation
SHOPPER
BEHAVIOUR
RESPONSE
DRIVERS
EVALUATION
ACTIVATION SHOPPER
LOGISITICS SEGMENTATION
SHOPPER
TARGETING
ACTIVATION
STRATEGIES
PROGRAMME
COMMS
CHANNELS
Shopper targeted Store targeted

29. AIMIA, SAINSBURY’S, CPGs AND SHOPPERS ALL
BENEFIT AS A RESULT OF THIS NEW PARTNERSHIP
Stronger relationship Stronger relationship Unique Faster,
with Sainsbury’s and & communications opportunity more relevant
supply of wider range with customers; to drive ROI via environment
of services whilst capitalise on market integrated campaigns
retaining IP growth opportunity

30. WE HAVE GROWN OUR INTERNATIONAL PRESENCE
AND CONTINUE TO BUILD OUR GLOBAL BUSINESS
• ‘Store of the future’ • Customer Self Serve • Coles Express • Fully launched
• Category planning • Embedded Self Serve • Offer Engine • Over 185 Sobeys
into Category • Strategic consulting users
Management • 12 CPG suppliers
• Review of already signed up
commercialisation
opportunities

31. REGION OVERVIEW
EMEA
David Johnston
President & CEO EMEA
20 Sept 2012

32. NECTAR ITALIA DELIVERING RESULTS IN A TOUGH
ENVIRONMENT
ITALY JUN 2012 DELIVERY FOR PARTNERS
• Highest spontaneous awareness in market
GDP growth (0.7)%
• Newly acquired customers driving 1-3%
Y1 sales growth
Bond Yield 5.8 %
Unemployment 10.8 % DELIVERY FOR MEMBERS
• Engagement – 12 cards swiped every second
• Customer Satisfaction 8.2/10
• Over €50m of rewards distributed to members

33. MIDDLE EAST SUCCESSFUL PROGRAMME RELAUNCH
AIR MILES
MIDDLE EAST 2012 Q2
Change YoY
Points issuance
(millions) 13.7%
Gross
Billings +AED 24m

34. PROPRIETARY FOCUSED ON LOYALTY - EUROPE

35. PROPRIETARY FOCUSED ON LOYALTY - MIDDLE EAST
Saudi
Arabia’s
largest
Leisure &
Hospitality
Loyalty
Program
Qatar’s
largest
Telecom
Loyalty
Program

36. MOMENTUM FROM STRATEGY THROUGH TO
EXECUTION
UK MEA OTHER
COALITION
LOYALTY
LOYALTY
ANALYTICS
PROPRIETARY
LOYALTY

37. THANK YOU