Shelf Connected Supply Chain Retail Business Forum Moscow, September 14 th 2012 Slimane ALLAB Vice President Solutions Consulting, EMEA Retail

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Is your Assortment Right for the space you have ? Is your Assortment Right for the consumers in your stores ? Do you link your shelf / store to your supply chain ? Are your promotions effective ? Is every store like any average store ? Are your stores compliant ? How many over and out of stocks ?

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Shelf Connected Supply Chain DistributionConsumer Customer Insights Assortment Strategy Segmented supply chain Replenishment & Allocation (New Products, Promotions) Optimized Inventory Optimized Wastage Handling and Storage Capacity Store Profitable layout management Localized Assortment Localized Space Management Optimized Promotions & Localized prices Production Collaboration Integration of Supply Constraints

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL JDA Response for Shelf Connected Supply Chain Floor & Planograms DC & Store Replenishment Assortments Clustering / Segmentation Multi- Channel Order Fulfill Merchandise and Channel Financial Planning / Budgeting Channel Clustering Assortment Opt Floor Planning Space Planning Floor Fulfilment Demand

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL The Importance of Demand Forecast Demand becomes a transversal synchronization point for various processes, traditionally silo’ed – Assortment – Space – Supply Chain Major retailers create a central / regional demand management function Key processes are – New Item introduction – Promotions IKEA improved forecast accuracy by 10% (in the first 6 months), reduced inventory by 10% and increased order accuracy to suppliers McDonalds increased restaurant level forecast accuracy to 95% and reduced inter-restaurant trans-shipments by 60%.

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Integrated Category Management Avg YOY growth % Trial stores avg. YOY growth % % Difference Cat 14.7%6.1%+30% Cat 21%7.4%+640% Cat 324.8%39.9%+61% Carrefour Belgium achieved 5.2% sales growth by implementing store specific planograms ; these were achieved in 12 weeks rather than 60 weeks manually Boots (£ +7B, stores) achieved Sales increase between £16 & £32M, on- shelf availability above 97% and reduced time to complete range reviews 8 to 2 weeks The Federated Coop saw Merchandisers save over 100 hours per week (18% of time) through the automated communication of planograms, while sales volume increased by 5%

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL AMR Report….Benefits Revenue increases of 10% to 20% –through reallocation of space to higher velocity items, improved assortments tailored to local demographics, and refined assortments that streamline store- stocking practices and improve in-stock position Margin improvements of 5% to 15% –by identifying higher margin items, ensuring their inclusion in the range, and providing the appropriate space allocation Inventory reduction of 5% to 10% –through the identification and removal of inefficient inventory Source: AMR Research, 2007 Space Management: Align Business Challenges and IT Vendors by Mike Griswold Successful space management initiatives have led to the following benefits for progressive retailers:

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Objectives Current ChallengesKey CapabilitiesBusiness Outcomes & Benefits  Multiple forecasts and planning methods make it difficult to standardize the process  Lack of visibility impedes the ability to make the right decisions and negatively impacts performance and productivity  A single centrally driven time- phased forecast of consumer demand at store/item level  All demand, supply, inventory projections calculated  Visibility for all SC partners  Redesign forecasting and replenishment processes to enable time-phased, integrated planning from retail shelf through to vendor production planning  Improved on-shelf availability and freshness resulting in increased sales  Reduced inventory costs  Improved product flow  Improved on-time performance, facilitating faster flow methods StoresDCsVendors Forecast StoresDCsVendors Forecast Calculate Forecast Current StateEnd State Integrated Store and Warehouse Replenishment

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Loblaw at a Glance  613 corporate and 416 franchised stores in every province and territory in Canada.  22 retail banners across the company.  Over 13 million Canadians shop with us every week.  Over $30 billion in annual sales.  As one of Canada’s largest private-sector employers, Loblaw and its franchisees employee over 138,000 fulltime and part-time employees.  Offers Canada’s strongest control brands

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Supply Chain 613 corporate and 416 franchised stores 22 retail banners across the company +13 million Canadians / week ; +$30 billion sales

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Integrated Supply Chain and Category Management Supply Chain Maturity Assortment and Merchandising Maturity Integrated Warehouse and Store Replenishment Supply Chain optimization driven by store POS forecast Automated warehouse and store replenishment Warehouse replenishment based on shipments, stores based on POS Integration to Suppliers and to Shelf Collaboration with suppliers, integration to shelf Optimization of Space and Planograms Cluster based optimization of space Assortment optimization Supply Chain optimization driven by store POS forecast Store level planogram optimization Account for store specific assortment, performance and space constraints Good Advanced Superior

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Integrated Supply Chain and Category Management Supply Chain Maturity Assortment and Merchandising Maturity Integrated Warehouse and Store Replenishment Supply Chain optimization driven by store POS forecast Automated warehouse and store replenishment Warehouse replenishment based on shipments, stores based on POS Integration to Suppliers and to Shelf Collaboration with suppliers, integration to shelf Optimization of Space and Planograms Cluster based optimization of space Assortment planning & optimization Supply Chain optimization driven by store POS forecast Store level planogram optimization Account for store specific assortment, performance and space constraints (*)

Copyright 2012 JDA Software Group, Inc. Integrated Store and DC Replenishment Targeting Improved Collaboration w/ Suppliers Leading retailer in South – Central US, with US 14.9 B, and running over 200 stores. With tremendous growth plans, the company sought a systematic approach to all areas: people, process, technology and metrics. Meijer required streamlined processes to build consumer-driven product assortments, strategic advertising campaigns and an accurate store-level forecasting system. To address these business needs, the retailer deployed JDA® Demand and JDA® Fulfillment ; Portfolio Merchandise Management; JDA® Allocation ; Space Planning ; JDA® Advertising and JDA® Promotions Management. Meijer benefits (within 7 months): Improved forecast accuracy, in-stock levels, and profitability $100M reduction in overall inventory System performance improvements

Copyright 2012 JDA Software Group, Inc. Integrated Store and DC Replenishment Trageting Improved Collaboration w/ Suppliers Largest Canadian distributor and retailer of hardware, renovation and gardening products, RONA operates in two business sectors: distribution and corporate and franchise stores. RONA operates a network of over 800 stores, in addition to serving independent dealers and commercial customers — for a total of nearly 1,500 sales outlets. The distribution sector runs 17 DCs across Canada. On the top of e-commerce channel allowing customer to shop online and RONA selected JDA to support an accurate, shared demand forecast that drives higher customer service levels, as well as improved operational efficiencies such as inventory turns. The company deployed JDA® Demand, Fulfillment and Collaborate solutions supported by other modules such as Enterprise Planning, Floor and Space Planning. Improved comparable inventory turns by 10% Increased promotional item availability to 99% Improved overall in-stock rate in stores to 98% Achieved average fill rates of %

Copyright 2012 JDA Software Group, Inc. Integrated Store and DC Replenishment Targeting Collaboration w/ Suppliers Marks & Spencer plc, United Kingdom’s leading retailer of quality clothing, food and home products, £9.7 billions and over 21 million customers visiting weekly its +1,000 stores in over 40 countries. Marks & Spencer sought a provider of advanced retail supply chain technology to meet its corporate objectives, through the deployment of enhanced allocation and replenishment capabilities. It has licensed multiple solutions across JDA’s best-of-breed, supply chain management solutions, including JDA® Allocation, JDA® Demand, JDA® Fulfillment, JDA® Size Scaling and more, to help manage the efficient flow of non-food merchandise through national and regional distribution centers to its global store network. It will make its supply chain space aware, through the integration to the JDA® Floor and Space Planning solution effectively manage product flow through a multi-tier international supply chain supporting a wide variety of product categories, ranging from high fashion to staple items Improve Merchandising Processes Operational Performance

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL 16 Loblaws is a 22 retail-banner company, $30 billions, with 1029 stores, 40% franchised. Present in every province and territory in Canada:13 million customers shop weekly. The multi-year supply chain transformation program was created to enable the vision of a seamless supply chain that can flow, through one single forecast that incorporates promotions, products from supplier to store shelf to achieve fresher products and better availability. Loblaws, uses JDA® Demand, JDA® Fulfillment, JDA® Promotion Planning and JDA® TMS. It is now complemented with JDA® Space and Floor Planning Benefits for Loblaws : One forecast Manage by exception v.s. Focus on order Largely automated ordering Long term visibility Seasonal visibility Decreased empty miles by 16% Increased cube per load by 16% Decreased deadhead loads Greater acceptance of inbound POs to fleet

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Fortune favours the brave!

Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL