Q3-2013

Prepared by Retailer Service Team

QUATERLY RETAIL UPDATES

MARKET OUTLOOK

FMCG OVERVIEW

RETAIL HIGHLIGHTS

RETAILER INSIDE

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VND 1.932 (‘000 BIL) VND 657 (‘000 BIL)

12.5% 2.5%

VND 441 (‘000 BIL) VND 152 (‘000 BIL)

12.2% 2.9%

Even though, HCM’s domestic consumption of goods in the first 9 months is quite slower than the total nation’s trend, It increases much higher than total nation in short term.

Source: gso.gov.vn

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4.64 4.80

5.05

5.44

4.76 5.00

5.54

Q1/2012Q2/2012Q3/2012Q4/2012Q1/2013Q2/2013Q3/2013Vs. 1H 2012

+4.90%

Vs. 1H 2012

0.02 0.05

6.9 6.61

6.36

6.69 7.5

6.3

0

2

4

6

8

10

12

14

16

18

20J

an

-12

Fe

b-1

2

Ma

r-12

Ap

r-1

2

Ma

y-1

2

Ju

n-1

2

Ju

l-12

Au

g-1

2

Se

p-1

2

Oc

t-1

2

No

v-1

2

De

c-1

2

Jan

-13

Fe

b-1

3

Ma

r-13

Ap

r-1

3

May-1

3

Ju

n-1

3

Ju

l-13

Au

g-1

3

Se

p-1

3

-1

0

1

2

3

4

5

6

7

8

9

10

Monthly CPI

Yearly CPI

+6.73%

Source: gso.gov.vn

Noted that GDP and CPI experience positive movement in Q3, 2013

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RAW MATERIALS

Source: Nielsen Retail Audit - 6 cities (TT + MT)

Average price change Q3.2013 vs. Q3.2012

Source: ACNielsen | Retail Index (<< Viet Nam >> ), data to SEP13

98 97 96 99

94 95

87 88

96 95 97

Q2/11 Q4/11 Q2/12 Q4/12 Q3/13

Vietnam Consumer Confidence Index

The degree of Vietnamese Consumer ‘s optimism on their activities of savings and spending is growing compared with the last quarter.

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6

14

17

16

13

8

9

4

3

2

3

2

2

14

10

10

12

12

8

8

4

5

3

2

2

Increase Utility bills…

The economy

Job security

Health

Increasing food prices

Work/life balance

Increasing fuel prices

Parents' welfare and…

Childrens' education…

Debt

Crime

War

% Biggest concern

Second biggest concern

Increase utility bills, the economy and job security driven factors keep driving people’s worries.

Source: Nielsen Global CCI Report Q3-2013 Base : All respondents n=500

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7

63

62

60

45

44

44

41

37

28

22

20

19

19

14

8

2

Try to save on gas and electricity

Spend less on new clothes

Cut down on out-of-home entertainment

Delay the replacement of major household…

Delay upgrading technology, eg. PC, Mobile etc

Cut out annual vacation

Cut down on telephone expenses

Cut down on take-away meals

Cut down on holidays/short breaks

Use my car less often

Cut down on smoking

Switch to cheaper grocery brands

Cut down on or buy cheaper brands of alcohol

Cut down on at-home entertainment

Look for better deals on home loans,…

I have taken other actions not listed above

%

People tend to cut down on spending less than the last 3 months.

Base : All respondents n=500 Source: Nielsen Global CCI Report Q3-2013

MARKET OUTLOOK

FMCG OVERVIEW

RETAIL HIGHLIGHTS

RETAILER INSIDE

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Fast Moving Consumer Goods market dynamics – Total 6 cities (TT+MT2 part) Enh

8.1% 8.0%

14.6%

8.7%

12.8%

9.9%

6.1% 4.7% 5.8%

6.6% 7.4%

11.2% 12.8%

14.6% 15.5% 14.7% 12.9%

10.0% 7.2%

4.3% 3.0% 3.0% 2.9%

11.3%

15.8% 5.5%

15.6% 9.5%

11.2%

10.2% 15.6%

18.6% 13.9%

15.5%

16.0%

5.9% 5.8% 4.4% 6.5%

12.2% 16.8% 20.4%

14.0%

11.0%

5.4%

-2.6%

19.4%

23.8%

20.1%

24.2%

22.3% 21.1%

16.2%

20.3%

24.4%

20.5%

22.9%

27.2%

18.7% 20.5% 19.9%

21.2%

25.0% 26.8%

27.6%

18.3%

14.0%

8.4%

0.3%

-5%

0%

5%

10%

15%

20%

25%

30%

Unit value change Volume change Nominal growth

Source: Nielsen Regional Growth Reporter Q3-2013

FMCG experiences negative growth rate due to the decline of Volume change.

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FMCG Department Volume % Growth vs YA (Vietnam Total 6 cities Enh)

FMCG Department Volume % Growth vs YA FMCG Department - Volume % Growth vs YA (Vietnam Total 6 cities Enh) | Period Ending SEP13 | Share of Sum(PROD)

Source: ACNielsen | Retail Index (<< Viet Nam >> ), data to SEP13

Cigarette and Personal Care drop a huge share in Volume Growth, which drives total FMCG volume % growth decrease.

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CATEGORIES TRACKED BY NIELSEN

VALUE % CONTRIBUTION - 6 CITIES (TT+MT Partial) Enh

September 2012 September 2013

CATEGORIES TRACKED BY ACNIELSEN - MAT TYMAT LY - Value % Share | Period Ending AUG13 | Share of Sum(PROD)

MAT LY

Value % Chg YA

Volume % Chg YA

Average Price % Chg YA

FMCG Incl Beer

Personal Care

Household Care

Milk Based Product

Food(Excl Milk Base)

Beverage (Inc. Beer)

Cigarette

24.8

22.0

20.6

24.5

18.8

30.619.2

14.1

6.2

4.3

12.7

4.9

17.48.5

9.3

14.9

15.6

10.5

13.3

11.39.9

MAT TY

Value % Chg YA

Volume % Chg YA

Average Price % Chg YA

FMCG Incl Beer

Personal Care

Household Care

Milk Based Product

Food(Excl Milk Base)

Beverage (Inc. Beer)

Cigarette

11.0

15.7

14.8

13.9

4.9

12.95.9

8.9

4.5

10.9

12.2

2.9

9.52.5

2.0

10.7

3.5

1.5

1.9

3.13.4

Source: ACNielsen | Retail Index (<< Viet Nam >> ), data to AUG13

Source: Nielsen Vietnam FMCG Overview September’13

Beverage is driving the growth of total FMCG. Note that Household care enjoyed healthy growth rate while Food experienced the opposite.

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CATEGORIES TRACKED BY NIELSEN

VALUE % CONTRIBUTION - 6 CITIES (TT+MT Partial) Enh

YTD September 12 YTD September 13

Beverage is also driving FMCG growth in short-term CATEGORIES TRACKED BY ACNIELSEN - MAT TY

YTD LY - Value % Share | Period Ending AUG13 | Share of Sum(PROD)

YTD LY

Value % Chg YA

Volume % Chg YA

Average Price % Chg YA

FMCG Incl Beer

Personal Care

Household Care

Milk Based Product

Food(Excl Milk Base) Beverage (Inc. Beer)

Cigarette

25.9

21.1

22.7

26.3

16.9

33.4

19.3

17.6

6.2

7.3

19.4

7.8

20.7

9.3

7.0

14.0

14.4

5.8

8.5

10.5

9.2

YTD TY

Value % Chg YA

Volume % Chg YA

Average Price % Chg YA

FMCG Incl Beer

Personal Care

Household Care

Milk Based Product

Food(Excl Milk Base) Beverage (Inc. Beer) Cigarette

7.5

14.7

12.1

9.2

3.2

8.0

3.8

5.3

3.7

10.1

6.3

1.5

5.6

0.8

2.0

10.5

1.9

2.7

1.7

2.3

3.0

Source: ACNielsen | Retail Index (<< Viet Nam >> ), data to AUG13

Source: Nielsen Vietnam FMCG Overview September’13

MARKET OUTLOOK

FMCG OVERVIEW

RETAIL HIGHLIGHTS

RETAILER INSIDE

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• Convenient stores and mini marts have managed to maintain their blistering peace while in the current economic stagnation supermarkets and hypermarkets are losing steam.

• According to the survey conducted in HCMC, Hanoi, Danang and Can Tho shows that the growth rate of convenience stores and mini marts was 80% year-on-year.

• HCMC now has a total of some 500 convenience stores, including food stores and 24/7 stores. This figure is projected to rise rapidly in the near future since existing retailers all are poised for business expansion.

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• Supermarket chain Saigon Co.op has won the award for excellent in customer service from the Federation of Asia-Pacific Retailers Association.

• This award is meant to honor companies, association, and individuals for outstanding achievements in the retail industry in five categories - most innovative retail concept, green retailer, best marketing campaign, customer service excellence, and best effort in retail employee training.

“Exhibition fair honoring Vietnamese goods: Bring Vietnamese products was organized by the Departments of Industry and Trade and Culture, Tourism and Sports at Phu Tho Indoor Stadium, Ho Chi Minh City from August 30 to September 3, 2013”.

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• On November 1st, 2013 the 4th Ocean Mart store will be open at F.B1, N05, Trung Hoa Nhan Chinh Appartment. To welcome the launch of the 4th Ocean Mart, “Loyalty Membership” is offered for Customer as a special gift.

• Metro has increased sales areas to 8,200m2, bringing the total number of items to more than 25,000 products. On this occasion, in conjunction with Metro Manufactures and suppliers, Metro organized “ The biggest money saving shopping month” with huge discounts from 5-49% which lasted until 25th September.

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&

• In 2nd August, Dong A Bank and Coop mart established co-brand DongABank-CoopMart card with full financial functions of domestic debit card and other utilities.

• DongA Bank provides banking and financial services for the entire Coop Mart supermarkets, such as payment services, bank accounts, budgeting, collection, remittance, payment, ...

Coop Mart issued co-branded card

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• 28/09/2013: Opening the 26th Satrafoods in District 8, HCMC

• 07/2013: Opening 3 Circle K Stores in District 1, HCMC

Source: Nielsen Store Opening Tracking September 13

• 20/08/2013: Opening Supermarket and Trade Center Big C Da Lat

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Q3 2013:

8+ stores opening each month.

81

56

50

25

17

6

Shop&Go

Circle K

B's mart

Hapromart

Ministop

Family Mart

18

12

Guardian

Medicare

86

57

44

23

19

8

7

6

5

5

Vissan

Co.opFood

Focomart

Haprofood

Satrafoods

Select Mart

Citimart B&B

Vinatexmart

New Chợ

C-Express

64

31

25

20

19

19

16

13

5

4

3

1

2

1

1

Coopmart

Vinatemart

BigC

Hapromart

Citimart

Metro

Fivimart

Intimex

Maximart

Lottemart

Satramart

Giant

Hiway

S-Mart

Coopmart Extra Plus Supermarket

Minimart

Convenience Store

Health & Beauty Store

Updated to 31/06/2013 Source: Nielsen Store Opening Tracking June 13

Retailers are racing in opening new stores in Q3 2013. Averagely, 8 stores are opened per month within this quarter

B&B

MARKET OUTLOOK

FMCG OVERVIEW

RETAIL HIGHLIGHTS

RETAILER INSIDE

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“Happy 3rd Birthday”– Discount from 5% to 50% for 1,000 products and give out many gifts.

02/07 – 15/07

“BigC involves your children’s future”– discount from 5% to 50% on over 1,700 products.

07/07 – 22/07

“Happy Moon Festival” – Discount from 5% to 45% on over 1,000 products.

06/09 – 19/09

01/08 – 31/01/14

“Incentive installment with 0% interest in 6 months” – for electronic products cost above 4 million VND with Visa Card of only ANZ, Sacombank or Vietinbank.

13/8 – 02/09

“The Beauty’s photo contest” – win big prizes (VND 50,000,000; 20,000,000; 10,000,000; etc…) 08/10– 04/11

“The surprising beginning of the week”– accumulate 10% in your account for any products (applied for Monday to Wednesday every week)

14/10 – 16/10

PROMOTION ACTIVITIES

“National day”- Discount from 5% to 50% on over

1,5000 products and several valuable gifts .

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“Best selling brand” – special gifts and Voucher 30,000VND for each receipt with value of 400,000VND: Omo, Comfort, Vim, Sunlight, P/S, Pond’s, Clear, Knorr and Lipton. 10/08 –

27/08

18/07 – 04/08

“Proud of Vietnamese product”– Discount 50% on more than 2,000 essential products

28/08 – 24/09

“Happy Women’s day“ – Discount 50% on consumer goods and garments for women and

utensils and a “buy one get one free” deal.

30/09 – 27/10

PROMOTION ACTIVITIES

“Coop Mart offers school year promotion” – Discount up to 47 percent on more than 800 good items with 800,000 notebooks.

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• 21/08 – 22/09: “Fruits in Gold Time” – discount from 20% - 49% for fruit. • 01/09 – 15/09: discount from 10%-50% for 60 products. • 01/09 – 31/09: “Get a lucky number” – for every purchase of more than

500,000VND. • 18/09: : “Happy Moon festival with children” – gifts for poor children. • 27/09: “ Happy Birthday SATRA” - free Satra Bakery per purchase of >=

300,000VND.

• 28/07 – 03/08: Get 1 Jambon Choix 100gr free for each receipt with value of 100,000VND and above.

• 04/08 – 10/08: Get 2 Vissan products free for each receipt with value of 200,000VND and above.

• 11/08 – 31/08: Get many Vissan products free for each receipt with value of 300,000VND and above.

• 05/08 – 05/09: “Go fresh, Go green” – Get 1 eco bag for each receipt with value of 300,000VND and above if payment by Visa.

• 16/08 – 12/09: “Happy Moon Cake Festival – Get cake with cheap price” – Buy ABC Moon Cake, get 30% discount.

• 01/09 – 31/12: Get 1 Gift Voucher with value of 100,000VND for a receipt with value of 100,000VND and above.

… to be updated next quarter