1. Susana Correia Head of Research New distribution trends and Private Brands in Angola Luanda,March 12,2014 CONSUMER BUYING PATTERNS AND MODERN DISTRIBUTION

2. MAIN GOAL New distribution trends and Private Brands in Angola Luanda,March 12,2014 CHARACTERIZATION OF CONSUMER

3. AGENDA New distribution trends and Private Brands in Angola Luanda,March 12,2014 #2 CONSUMER CONNECTION TO

4. Consumer Buying pattern #1

5. A GROWING ECONOMY New distribution trends and Private Brands in Angola Luanda,March 12,2014 +8,2 % GDP Africa Economic Outlook, projections 2013 +5,5 % GDP per capita Africa Economic Outlook, projections 2013 +8,7 % INFLATION IN 2013 Africa Economic Outlook -4,8 pp THEN IN 2011 Africa Economic Outlook

6. FAVOURABLE SOCIAL INDICATORS New distribution trends and Private Brands in Angola Luanda,March 12,2014 +2,7 % POPULATION UN Population, 2012 46 % POPULATION YOUNGER THEN 14 UN Population, 2012 60,2 % URBAN POPULATION Average Salary +10 % AVERAGE SALARY Lei 02/2000 de 11 de Fevereiro, salário Mínimo nacional, 2012

7. GROWING AND OPTIMISTICAL CONSUMPTION New distribution trends and Private Brands in Angola Luanda,March 12,2014 +3,1 % PRIVATE CONSUMPTION Africa Economic Outlook, 2013 +40 % PRIVATE CONSUMPTION BETWEEN 2010-2012 Euromonitor Africa Consumer Spending 71 % VERY OPTIMISTIC REGARDING THE NEAR FUTURE (NEXT 2 YEARS) McKinsey, 2012 30 % ABOVE AVERAGE TRUST INDICATOR McKinsey, 2012

8. Fast Moving Consumer goods Average spending 38.000 Akz* At least one purchase every 3 days New distribution trends and Private Brands in Angola Luanda,March 12,2014 (Food, drinks, Detergents and Higyene)

9. % Frequency (multiple) New distribution trends and Private Brands in Angola Luanda,March 12,2014

10. % Frequency (multiple) New distribution trends and Private Brands in Angola Luanda,March 12,2014

12. EACH CONSUMER GROUP SHOWS DIFFERENT % Frequency New distribution trends and Private Brands in Angola Luanda,March 12,2014

13. % Frequency New distribution trends and Private Brands in Angola Luanda,March 12,2014

14. % Frequency (multiple) New distribution trends and Private Brands in Angola Luanda,March 12,2014

15. TO OTHERS, QUALITY AND CHOICE ARE % Frequency (multiple) New distribution trends and Private Brands in Angola Luanda,March 12,2014

16. % Frequency New distribution trends and Private Brands in Angola Luanda,March 12,2014

17. Consumer connection to modern distribution #2

18. New distribution trends and Private Brands in Angola Luanda,March 12,2014 There was a "containers logistics”

19. New distribution trends and Private Brands in Angola Luanda,March 12,2014 Cash & CarryStreet traderSupermarketHipermarket MarketMinimarket CantinasWarehouse TODAY THE MARKET IS DIFFERENT, MORE DIVERSE IN ITS OFFERS AND THERE IS NO SHORTAGE OF PRODUCTS

20. New distribution trends and Private Brands in Angola Luanda,March 12,2014

21. IT OFFERS MUCH MORE THAN LOW New distribution trends and Private Brands in Angola Luanda,March 12,2014 Higyene Price Quality Fresh Diversity Comfort Organization Communication

22. New distribution trends and Private Brands in Angola Luanda,March 12,2014 % Frequency

23. New distribution trends and Private Brands in Angola Luanda,March 12,2014 % Frequency

24. New distribution trends and Private Brands in Angola Luanda,March 12,2014 EXPANSION IS NOW VITAL TO GROWTH There are more shops: To meet the demand of new consumers To accommodate urban expansion That invest in better communication New formats Closer to consumer Better adapted to the new neighbourhoods

25. New distribution trends and Private Brands in Angola Luanda,March 12,2014 NEW BRANDS HAVE NOW COME TO THE MARKET

26. New distribution trends and Private Brands in Angola Luanda,March 12,2014 SHORT TERM CONSEQUENCES: INTENSE COMPETITION

27. New distribution trends and Private Brands in Angola Luanda,March 12,2014 A BETTER INFORMED CONSUMER, MORE DEMANDING Participating “I have a voice and I’m going to use it” It’s important to listen to consumers and interact with them Need to define your audience and meet their specific needs Personalized “Make it relevant to me” Provide a good buying experience to consumer Tailor your message and make it specific and personal

28. Consumer loyalty will be... a strategic challenge for the growth of distribution

29. New distribution trends and Private Brands in Angola Luanda,March 12,2014 NEW DISTRIBUTION ALREADY ENCOURAGES CONSUMER LOYALTY

30. STILL WITH LITTLE RELEVANCE TO CONSUMERS % of affirmative answers – Top 2 boxes New distribution trends and Private Brands in Angola Luanda,March 12,2014

31. CONCLUSION FMCG shopping mainly occurs in 3 kinds of shops, between “formal” and “informal” markets, and proximity is an important factor Price is very relevant or everybody at buying time Modern distribution makes a difference for their strong communication strategy and by promising “better prices” Big groups try to meet the market’s expectations by improving their shops and points of sale, in order to attract consumers.

32. Competitive advantage is achieved by Knowing the consumer In order to make a difference and beat the competition

33. Thank you Susana Correia Head of Research