Generation5 Mathematical Technologies Inc. 515 Consumers Road, Suite 600, Toronto, Ontario, Canada M2J 4Z2

T. 416.441.6800 F. 416.441.2771 www.generation5.ca

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Except for normal in-house use, you cannot reproduce any part of this document by any means without permission from Generation5 Mathematical Technologies Inc. The information in this document is subject to change without notice and should not be viewed as a commitment by Generation5 Mathematical Technologies Inc. In addition, Generation5 Mathematical Technologies Inc. is not responsible for any errors in this document. Generation5 Mathematical Technologies Inc. files and documentation are subject to all copyrights. Unauthorized use, including copying for other than testing and standard backup procedures, of this product is expressly prohibited. © 2008 by Generation5 Mathematical Technologies Inc. Printed in Canada. All Rights reserved. Based on Computer File(s) licensed from Statistics Canada © Copyright, HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the Minister of Industry, Statistics Canada 2003. Generation 5 – Mathematical Technologies Inc., is an authorized User of selected Statistics Canada Computer File(s) and Distributor of derived Information Products under Licensing Agreement 6118.

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What is Mosaic? Mosaic is a two-tier hierarchical clustering system for customer and market segmentation. Mosaic classifies Postal Codes into one of 20 Groups and one of 150 Types (sub-groups). In addition to the standard system, Mosaic is available in three industry-specific versions. This means that the variables in each data set are selected for maximum relevance to a given industry. The three versions are: Financial, Insurance, and Retail. Applications Mosaic is a useful tool for marketing managers, marketing analysts, and business analysts regardless of industry. Sample applications include:

New Market Analysis – Quickly examine prospective markets at the Postal Code level to maximize the return on investment from direct mail. Simply match the postal code level profiles, indicative of various behavioural, demographic or expenditure propensities, with the profiles of your target.

Customer Analysis – Link the Postal Codes in your customer records to the Postal Codes in Mosaic to build a 360-degree view of your best customers. In this way you can add additional detail to your customer records, and understand what else they spend their money on or do with their time – beyond your products and services.

CRM - Quick, comprehensive Postal Code level profiles are an efficient way to enhance your CRM strategy. Use hundreds of pieces of Mosaic information to build a holistic view of your customers. This will lead to better understanding of your customers, which means you’ll be better equipped to market to them.

Data Sources Variables in Generation5’s Daytime Population file are estimated based on several public and proprietary sources of data, including:

Statistics Canada*, 2006 DAs Boundary File Statistics Canada*, 2006 Census GeoSuite Generation5, 2006 Super Census Generation5, 2006 Family Expenditures TransUnion Canada Enhanced Aggregate Postal Data

*No confidential information about an individual, family, household, organization or business has been obtained from Statistics Canada.

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Details

Vintage: Update Frequency: Formats:

2007 Annual DBF, CSV, MDB, G5 Portfolio, .shp, .tab

Methodology The Mosaic system is constructed at the Postal Code level. Generation 5 first builds the variables that comprise Mosaic at the Postal Code level from the various data sources and then classified the Postal Codes into Groups and Types. Each version of Mosaic comprises between 170 and 230 descriptive variables covering demographic, expenditure and lifestyle characteristics. For a complete list of variables refer to Appendix A. Mosaic is constructed using a complex set of proprietary mathematical algorithms, and in particular an automated clustering technology developed with the support of the National Research Council Canada (NRC). Generation 5’s clustering technology is an advanced automated clustering system for mixed-type (real and discrete valued) variables. The clustering algorithm automatically selects the optimal number of clusters based on a variety of validity measures. Availability Generation 5’s Mosaic clustering system is available each year. It is available as a Standalone Consumer data file, or as part of the G5 Portfolio micro marketing system

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. Compatibility Generation 5’s Mosaic clustering system is a flat file, compatible with any commercially available data management or spreadsheet application. About Generation 5 Generation5 builds effective consumer marketing solutions for some of North America's largest organizations and most recognized brands. Generation5’s suite of products and services include enterprise-wide analytical projects for F500 customers, data mining software development, data production and Automated Analytical Outsource Services for organizations seeking fast solutions to recurring challenges.

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Generation5 solutions are ideal for companies seeking an effective, measurable competitive advantage in consumer marketing. Generation5 software, analytics and databases are developed in its Research and Development Laboratory by a team of scientists, Ph.D-level experts in artificial intelligence, mathematics, operational research, software engineering and statistics. The recently launched Generation5 consulting practice helps customers plan, deploy and measure initiatives, ensuring maximum return from their investment in marketing analytics.

For more information, contact Generation5: 1-866-389-GEN5

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Appendix A: Complete List of Variables For each residential Postal Code, the following values are provided:

1. The Mosaic Group code 2. The Mosaic Type code 3. The Household count 4. The Population count