Prepared by Nielsen Vietnam – April 2018

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

3
  Total Vietnam - Value Contribution by Super category in FMCG  Total Vietnam - Value Growth 2017 vs 2016

Total FMCG
6%
19.0 19.7
Beer 10%

20.1
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

19.7 Non-Alc Beverage 7%

Food 7%
16.0 16.3
Milk Base 4%
14.0 13.8
Cigarette 5%
15.9 15.8
Personal Care 3%
6.7 6.5
5.8 5.7 Household Care 4%
2016 2017

Source: Nielsen Retail Audit 4

  Total Vietnam – Growth 2017 vs 2016

Regular Categories Volume Change Price Change Nominal Value Growth

Impulse Categories 21.0

2.5

11.9

7.0 8.0
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

5.0 5.0 18.5

4.2 4.6 1.9
4.0 1.3 -0.7 0.1
2.7 6.9 6.1
3.0 3.7 3.0 4.5
1.5
-3.7

Food Instant Noodles Soy & Oyster Fish Sauce MSG - Bouillon Biscuits Cake Pie Snack
Sauce

Value contribution
29.7 3.5 11.8 18.9 12.2 8.9 14.9
to Food

Source: Nielsen Retail Audit 5

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

6
 Manufacturers are willing to push new products, but less than 15% of them are sizeable

 Value Growth contribution by Existing & New launch

REGULAR IMPULSE

Existing 2016
21.0
New launch 2017
3.5
11.9

2.9 8.0
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

5.0 4.6 17.5

4.2 1.8
2.8 0.1 0.3 9.0
4.1 -0.7 4.4 6.2
2.3 1.1
-1.8

Instant Noodles Soy & Oyster Fish Sauce MSG - Bouillon Biscuits Cake Pie Snack
% New launch
Sauce
contribute 80% sales

7% 6% 6% 13% 13% 8%
19%

#No of New launch

127 16 172 35 981 173 675

Source: Nielsen Retail Audit | New launch is defined at variant level 7

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

New Value/Proposition Sizeable Need Distribution Effort

Source: Breakthrough Innovations – Winning with innovation in Asia Pacific 8

 With clear differentiator and real consumer needs
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

GENERAL PROFILE BREAKTHROUGH PROFILE GENERAL PROFILE BREAKTHROUGH PROFILE

Kokomi Dai Distinctiveness Chocopie Dark Distinctiveness

Instant Noodles Chewy & Non-soggy texture Big Cake Pie 70% more cocoa
Launch: Aug 2017 size Launch: Oct 2017 Premium price
Relevance Relevance
0.8% share after 3 months 2.5% share after 3 months
9
  Distribution build progress – Top successful new launch* vs other new launch in 2017

30

25

20
Successful new launch
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Others
15

10

0
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Source; Nielsen Retail Audit | Top successful new launch are those with > 1 WTD and contribute to total new launch sales at least 10% in Regular categories or 5% in Impulse categories 10
 Copyright © 2017 The Nielsen Company. Confidential and proprietary.

11
 WHAT CONSUMERS THINK HOW CONSUMERS ACT

37% consider 83% actively make

health as their concern, dietary choices to prevent
ranked Top 2 as top bad health conditions
biggest concerns (vs. 79% of global)
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

80% concern about 89% willing to pay

long-term health impact of more for foods that
artificial ingredients promote health benefits
(vs. 75% of global) (vs. 76% of global)

76% want to know 88% read packaging

everything that is going into labels carefully for nutrition
their food content
(vs. 74% of global) (vs. 75% of global)

Source; Nielsen Consumer Confidence Report Q3’17 | Global Ingredient and Dining-out Trends Report Aug’16 | Global Survey We are what we eat Jan’15 12
  Top 15 attributes Vietnamese consumers consider when choosing healthy products

60
Willing to pay premium prize for

• Differentiable Minerals fortified Calcium fortified

55
• Premium attribute Made from vegetables/ fruits Vitamin fortified
All natural
Micronutrient fortified
50 More is more
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

High in fiber
Natural flavors
45 Less is more
High in protein
Low / No cholesterol
GMO free
Back to basic
40

Ingredients sourced No artificial colors

(%)

sustainably/ fair trade • Not differentiable

35 Organic • Important/Expected attribute

Low / No Fat
30
30 35 40 45 50 55 60

Impact on purchase intention (%)

Source: Nielsen Global Health Survey Q3’14.
Question: How willing are you to pay premium for foods that contain health attributes? How important are health attributes in influencing you to purchase more of a particular food/food products? 13
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Calcium fortified
Vitamin fortified
Rice-based noodles biscuits and 100% Baked not fried snack
bouillon
natural milk

Source: Nielsen Consumer Confidence Report Q3’17 | Global Ingredient and Dining-out Trends Report Aug’16 | Global Survey We are what we eat Jan’15 14
 I feel more positively about
I trust health claims on food Health claims are just a way for companies that are transparent
packages manufacturers to charge more about how products were made

57% 60% 83%

63% 58% 73%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Global Vietnam

Source; Global Ingredient and Dining-out Trends Report Aug’16 | Global Survey We are what we eat Jan’15 15
 Clean + Concise + Traceable = Consumer Conviction

From CLEAN & CONCISE LABEL To TRACEABLE SOURCE

74% look for products

Consumer Attraction Index

with simple & recognizable 125

list of ingredients 100
vs.
(vs. 64% of global)

No/Untraceable claim Traceable claim

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Clean label Simple ingredients QRCode to trace

Trusted claim
origin

Source; Nielsen Health Eating Survey, Ingredion Clean / Simple Label Report & Nielsen BASES 16
  Value contribution by price tier

8.3 8.8
16.5 18.2
24.8 23.0
32.5 36.2 36.7 38.3
45.2 48.3
39.8 39.6 15.7
1.8 66.1 66.3 34.9 13.0
1.9 35.4
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

19.7 18.1
31.2
53.9 29.4 27.1 49.8 48.8
0.9
0.8 0.9
1.0 23.8 25.2
47.5 36.6 33.5
2.4 49.6
2.6
30.7 32.2 31.8
23.0 22.0 19.8 18.4
11.8 12.0 12.9 12.4 12.4
4.4 2.0
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017

Instant Noodles Soy & Oyster Sauce Fish Sauce MSG - Bouillon Biscuits Cake Pie Snack

Economy Mass Mainstream Premium

Source; Nielsen Retail Audit | Price tier based on API: Economy (API<80), Mass (80<API<100), Mainstream (100<API<120), Premium (API>120) 17
 Depending on one certain stage of the category, price adjustments have to be taken with caution
 Volume % Impact when SKU’s price change more than 5%

Price Premium New value New value New value New value Price
conscious thirst seeker seeker seeker seeker conscious

40
26
21
20 14 14
5 7 6
1
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

0
0 -1 -3
-20 -9 -7
-12
-17 -19 -23
-40
-35 *
-40 * -38 *
-60
-55 *
* Low base: Less than 1% share
-80
Instant Noodles Soy & Oyster Sauce Fish Sauce MSG - Bouillon Biscuits Cake Pie Snack

Price increase more than 5% Price decrease more than 5% No change in price

Source; Nielsen Retail Audit 18

 For some categories, there is mismatch between what manufacturers offer and what consumers accept

 API range of premium products

260

240
• Most successful/
220 Average API: Indicate at
what API level
200
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

consumers have the

180 most support
• Most common API:
160 Indicate at what API level
manufacturers are
140 mostly pushing into

120
Instant Soy & Oyster Fish Sauce MSG - Biscuits Cake Pie Snack
Noodles Sauce Bouillon

Most successful Average Most common Optimal range

Source; Nielsen Retail Audit | Most successful: Highest share premium variant’s API | Average: Weighted average API of premium variant based on sales value | Most common: Mode of all
premium variants’ API 19
 Create a highly Ensure the Make the Align the
differentiated product lives up package look like Price it right execution with Provide long-
offering to the promise a million bucks the proposition term support
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Resolve consumers' Deliver consumers’ Packaging can Justify premium Influence your Plan for robust and
unmet needs by expectations to significantly elevate pricing based on shelf, discount with multi-year
providing unique drive repeats a brand on how much willing caution and advertising support
benefits perceptions of consumers are resonate
premium willing to pay emotionally

Source; Nielsen Best practices for launching premium products 2016 20

  Vietnam population dynamics 2015 – 2015

% population by % urban population by

Household size & Average wages per month
urbanity city size in people

5.00 4.49 500

23% 23% 4.31
4.13 450
3.96 3.81
4.00 3.76 3.70
3.60 3.60 3.50 3.50 400
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

66% 60% 19% 350

26%
3.00 300
6%
3% 250
10%
2.00 200
150
49%
34% 40% 40% 1.00 100
50
0.00 0

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2015 2025 2015 2025
<300K 300k-500k 500k-1M
Urban Rural
1M-5M 5M-10M 10M+ Average HH size (person) Average wages per month (USD)

Source; United Nations, WUP, 2014 for population data. EIU for household & wage data. 21
  Number of Chained Convenient store & Minimart (stores)  Top 3 important attributes for shopping destination
(index)
3000

2500
Convenient Easy to
Low prices
to get to find what I
2000 need
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

1726 1810 1817

1557 SUPERMARKET 7.7 6.6 5.7
1500 1358 1399 1456
1281 1313 1227 1230 1278 1319
1134
1000 CVS/MM 9.7 9.0 7.8

500 Convenient Efficient

700 699 711 728 731 745 744 774 783 788 795 818 827 823 Easy to find checkout
what I need to get to
0

Convenient Store Minimart

Source: Retailers’ official website. CVS includes Circle K, B’s Mart, Family Mart, Shop & Go, Mini Stop, 7-eleven. MM includes: VinMart+, Coop Food, SatraFoods, Bach Hoa Xanh, Coop Smile, T-
Mart, My Auchan. Nielsen Shopper Trend 2016 - Total Hanoi & Ho Chi Minh (All HM/SM shoppers n=1346) 22
 WHAT IS HAPPENING
More and more people living
in Urban and high density
URBANIZATION cities
Copyright © 2017 The Nielsen Company. Confidential and proprietary.
Increase in single + non-
traditional households (with
HOUSEHOLD more income and less
dependents)
Expansion of CVS/MM and
needs of convenience in
RETAIL shopping occasions
Source: Nielsen APAC – What’s next start now 2018
HOW IT INDICATES
1
• Focus on smaller packtype
• Capture demand for convenience, on-the-
go solutions
• Bridge gaps in consumer needs from
2 existing retail environment via E-commerce
and delivery options
• Create strategies to capture valued single
segment
3 • Explore premium and luxury opportunities
23
 INSTANT NOODLES CUP PRE-MIXED SOY SAUCE BISCUITS (<= 150GM) CAKE PIE (<= 150GM) FROZEN FOOD/SAUSAGE

Value % Share Value % Share Value % Share Value % Share Value % Growth

9%
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

6.7 11.9 12.1 27.2 10.4

23.5 9.3 Frozen Food
4.2

2016 2017 2016 2017 2016 2017 2016 2017

26%
Value % Growth Value % Growth Value % Growth Value % Growth

Sausage
21%
30%
4%
69%

Source: Nielsen Retail Audit | Data for Total Vietnam exclude Frozen Food/Sausage is MT only 24
 Copyright © 2017 The Nielsen Company. Confidential and proprietary.

25
  E-commerce % Contribution to total FMCG Sales – 2016
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Source: Nielsen estimation based on Nielsen Retail Measurement Service, Nielsen Consumer Panel Service, Nielsen Online sales e-book and other leading industry sources 26
  Vietnam FMCG E-commerce foundational elements

INTERNET PENETRATION SMART PHONE PENETRATION

80
Minimum level for significant FMCG E-commerce size*
67
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Minimum level for significant FMCG E-commerce size*

59
52 54 55 55
49 50
44

2017 2018 2019 2020 2017 2018 2019 2020

Source: CIA World Factbook; Nielsen: Cross Platform Insights 2016. *as compared to total 30 developed & developing countries – Nielsen global key drivers for Grocery E-commerce 2018 27
 WHO ARE THEY? HOW THEY ACT?

They stay connected with brands

64% Engage with other viewers on social media while

watching advertising
Have internet access Are willing to spend

53%
Appreciate learning about products through
discretionary income
advertising
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

40 Million people in 2025 (x1.7 vs 2017)

54% Expect a relevant and personalized advertising
experience

99 Billion USD of annual spending in 2025 (x2.0 vs 2017)

They review products online before
making purchase
48% Total consumer spending in 2025 (x1.3 vs 2017)
77% 73% 70%
99 Confidence Index 117 Read product Check Check brand’s
Normal Connected review and promotion reputation
Internet Spenders feedbacks and quality
User
Source: Demand Institutes, Nielsen Omni - Shopper Trend 2017 28
  Categories Vietnamese online shopper purchased in L3M
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

61
49
41 40 38 36 34 31 29 27 24 23

Fashion Cosmetics Personal Books/ IT & Mobile Consumer Home care Grocery Travel Beverage Baby care Event
care Stationary electronics products food products tickets

Source: Nielsen Omni - Shopper Trend 2017 - All respondents Total (n=1005) 29
 BUILD
TRUST
Ensure authentic products are sold on Actively engage with consumers throughout the
online portals. Crackdown on counterfeit whole buying process via online platform,
products. DISRUPT especially during information searching and
FOOD
E-COMMERCE PATH-TO- purchase decision making
PURCHASE
Copyright © 2017 The Nielsen Company. Confidential and proprietary.

LEVERAGE
BRANDING
OPPORTUNITIES

Invest in innovative and

personalized online
marketing experience for
consumers
Source: Nielsen global key drivers for Grocery E-commerce 2018 30
 Knowing what is healthy and how
to win consumer’s trust

Knowing how much is premium

and how to deliver premium
Top 3 fastest growing Innovation is crucial, but Manufacturers can
super categories, but not easy to succeed. embrace E-commerce to
growth is not common Winning formula: build trust, disrupt path-to-
across Regular and Impulse DISTINCTIVENESS + purchase and leverage
ENDURANCE + RELEVANCE branding opportunities
Knowing the need of
‘faster-and-smaller’ products

Copyright © 2017 The Nielsen Company. Confidential and proprietary.

Copyright © 2017 The Nielsen Company. Confidential and proprietary.