1. OUTLOOK OF POLISH RETAIL SECTOR April 20 th 2016, World Food Breakfast

2. DIFFERENCES BETWEEN POLAND AND OTHER EU COUNTRIES April 20th 2015, World Food Breakfast PolandEU countries The largest number of shops per 1000 persons (2,5) 0,5 per 1000 persons 54 % retail is modern trade75-80 % retail is modern trade Poles go to shop 46 times/ month (average behavior is to shop in 7 brands) Dutch go to shop less than 20 times/month 40 % population live in rural areas, 49 % in small and medium cities, 11 % in big cities majority of population live in big cities and towns 4 major retailers have 33 % shares in the domestic market In France and England 4 major retailers have 68-72 % shares in the domestic market 50 % of consumers buy fruits and vagatables in markets and bazaars Food e-commerce - 0,2 % of retail 33 % consumers buy fresh fruits and vegetables in markets and bazaars Food e-commerce 5-8 %

3. MARKET IS DEVIDED INTO 2 CHANNELS: TRADITIONAL WITH 46% MARKET SHARE AND MODERN 54 % April 20th 2016, World Food Breakfast

4. POLISH FMCG MARKET IS WORTH 230-25O BILLION PLN RETAIL SALE IS GROWING 3 % PER YEAR April 20th 2016, World Food Breakfast

5. DISCOUNT STORES: MARKET SHARE - 24 %, HYPERMARKETS: 13 % April 20th 2015, World FoodBreakfast

6. SUPERMARKETS: MARKET SHARE 17 % April 20th 2015, World Food Breakfast

8. April 20th 2016, World Food Breakfast

9. MAIN CONSUMERS’ BEHAVIORS: POLISH CUSTOMERS ARE „LOYAL” ONLY TO PROMOTIONS, NOT TO THE SHOP BRAND (IN 2014 THEY VISITED 7,1 STORE PER MONTH COMPARED TO 5,7 IN 2013) CONSUMERS CHOOSE STORES IN THEIR NEIGHBOURHOOD – MODERN CONVENIENCE ECONOMICAL PATRIOTISM VS INTERNATIONAL CUISINE EXPENDITURE FOR ECOLOGICAL FOOD IS 4 EURO/YEAR VS. 44 EURO IN GERMANY (WHOLE MARKET IS WORTH 0,8 BLN PLN) SHARES OF ECOLOGICAL FOOD ON THE MARKET: 0,2 % IN POLAND, 2-6% IN WESTERN EUROPE HEALTH AND ORGANIC AND LOCAL FOOD START TO BE POPULAR POLAND HAS NOT DEVELOPED AN „EATING OUT” CULTURE April 20th 2016, World Food Breakfast

10. MAIN TRENDS IN CONSUMER MARKET: CONSUMERS ARE GETTING RICHER BUT THEY COOK HOME (THIS YEAR 17 MLD PLN FROM 500+ PROGRAM WILL GO TO THE MARKET) INCOME IN POLAND IS STILL SMALL (26 PROC. OF AVERAGE INCOME IN ENGLAND, 32 PROC. IN GERMANY) IN POLAND 17,2 - 25 PROC. OF BUDGET GOES TO FOOD AND DRINKS VS 10,2 PROC. IN GERMANY ECONOMICAL PATRIOTISM VS INTERNATIONAL CUSINE HEALTH AND ORGANIC AND LOCAL FOOD START TO BE POPULAR - SPECIALIZATION E-COMMERCE AND CONVENIENCE – NEARBY AND CARRY EVERYTHING April 20th 2015, World Food Breakfast

11. MAIN TRENDS IN RETAIL SECTOR: BIG PROMOTIONAL ACTIVITY 3 TOP CHAINS (BIEDRONKA, LIDL, CARREFOUR) SPENT 29 MLN PLN DURING THE WEEK BEFORE EASTER VS. 17,5 MLN PLN A YEAR BEFORE LEVEL OF PROMOTIONAL SALES – 30 % DEFLATION UNIFICATION OF FORMATS AND PRICES (MIX OF ALL ELEMENTS IN ONE BRAND) EMPHASIS ON FRESH PRODUCTS: OWN BAKERIES, BUTCHERS DEVELOPMENT IS HARDER (150 NEW SHOPS VS 350 YEAR BEFORE) STRONG PRESSURE ON SUPPLIERS AND PRODUCERS April 20th 2015, World Food Breakfast

12. QUESTIONS? CONTACT: EDYTA.KOCHLEWSKA@DLAHANDLU.PL EDYTA.KOCHLEWSKA@DLAHANDLU.PL April 20th 2015, World Food Breakfast