1. 1 Back-to-School Study (ILCU) Findings from iReach Consumer Omnibus Research (June 2011)

2. 2 AGENDA (Back-to-School Study) Study Background (Methodology) Consumer Demographic Profile Back-to-School Expenditures Voluntary Contributions / School Fees Shopping for Better Value for School Items Back-to-School Allowance

3. 3 STUDY BACKGROUND (Methodology) Back-to-School Study Consumer Research Project conducted by iReach Market Research on behalf of The Irish League of Credit Unions Online Survey Online Survey Software iReach utilises leading market research solution for all aspects of survey project management: sampling, design, data collection and tabulation iReach Online Consumer Panel iReach uses proprietary panel across consumer groups, built on a nationally representative model Fieldwork undertaken between 23/06/11 - 29/06/11 Consumer Research Study conducted nationwide Sample Size=1,000 respondents (Confidence Level of 95% and a Confidence Interval of 4%) Consumer Panel Key Elements of the Study 1. Back-to-School Expenditures 2. Voluntary Contributions / School Fees Study conducted as part of the iReach Consumer Omnibus Survey 3. Shopping for Value for Money 4. Back to School Allowance

4. 4 Research Highlights A typical Irish family spends approximately €400 on each child when getting them ready back to school in September Back-to-school expenditures for a second-level student (€470) is almost 50% higher than for a primary-level pupil (€320) School uniforms incl. shoes (€229) and schoolbooks (€182) are the biggest school related expenses for Irish parents Parents of a secondary school child pay almost twice as much for schoolbooks (€238) than for a primary school child (€125) With high book prices, it’s no surprise that 88% of parents would like to see a move to laptops in the classroom Over half (54%) of parents are forced to use other sources than monthly income to finance back-to-school expenses and almost two-thirds (65%) admitted that back-to-school costs will adversely impact their holiday plans and bills management With this in mind, 69% of parents feel that schools should be more proactive in keeping costs down for school going children Eight in ten parents (81%) who are entitled for back-to-school allowance admitted that this is allowance is insufficient Moreover, 76% of parents are requested to make school voluntary contribution that amounts to €130 on average per child When it comes to cutting back-to-school related costs: Six in ten (61%) who shop online for back-to-school items for their school age children do so to save money Four in ten parents (38%) feel pressured to buy branded school items over generic ones for their children Dunnes Stores (28%), followed by Marks & Spencer (24%) is most popular for value-for-money school clothing

5. 5 iReach Consumer Survey Consumer Demographic Profile

6. 6 RESPONDENT PROFILE 1. Gender Status 2. Age Status 3. Education Status Young Adults: 40%Mid-Age: 48%Mature: 12%

7. 7 Parenthood (28% of all respondents) PARENT PROFILE Primary School Children (54% of parents / 15% of respondents) Secondary School Children (46% of parents / 13% of respondents) Age Groups 5-8 year old52% 9-12 year old48% Age Groups 13-15 year old56% 16-18 year old44%

8. 8 1.0 Credit Unions - Back-to-School Expenditures -

9. 9 1.1 Back-to-School Spends Q: How much do you spend on average per child in getting them ready to go back to school? (n=280) <€100<€200<€300<€400<€500<€600<€700<€800<€900<€1k>€1k All Parents3%21%25%14%12%8%4% 3%4%2% Primary School4%30% 12%9%6%1%5%0%2%1% Secondary School1%12%20%16%14%9% 3%7%6%3% AVERAGE SPEND PER CHILD All Parents€400 Primary School€320 Secondary School€470 Detailed Breakdown: A typical Irish family spends approximately €400 on each child when getting them ready to go back to school in September Back-to-school expenses for second-level students (€470) are almost 50% higher than for primary-level pupils (€320) Irish parents spend €320 on back-to-school expenses for a child in primary school. The parents spend €470 on back-to-school expenses for a child in secondary school.

10. 10 1.3 Average Spend on School Related Costs Parents of a secondary school child pay almost twice as much for schoolbooks (€238) than for a primary school child (€125) Costs for school uniforms including shoes are also higher for a secondary school child (€281) compared to a primary school child (€177) Extracurricular activities are equally expensive with both primary school (€145) and secondary school children (€152) Costs outlined below are on an annual basis School Item: Primary School (Average Spend) Secondary School (Average Spend) 1. School Uniform (incl. shoes)€177€281 2. Schoolbooks€125€238 3. Extracurricular Activities€145€152 4. Transport Costs€81€138 5. School Trips€62€148 6. Gym gear€61€79 7. Art supplies€35€54 Overall Costs:€686€1090 Q: On average, how much do you spend on the following for your school aged child(ren)? (n=280)

11. 11 1.4 Preferred Method of Back-to-School Financing Monthly income is the most common way to source back-to-school expenses (46% of parents); Yet, 54% of Irish parents are forced to locate finances for back-to-school expenditures from elsewhere: Credit cards (16%), savings (13%), back-to-school allowance (12%) and credit unions (8%) are a popular source Parents of a secondary level child are forced to dig deeper into their savings (15%) or use credit card (20%) or credit union (8%) Back-to-School FinancingAll ParentsPrimary SchoolSecondary School 1. Monthly income46% 45% 2. Credit card17% 20% 3. Savings13%11%15% 4. Back to school allowance12%15%10% 5. Credit union7%6%8% 6. Loan1% 7. Money lender1%0%1% 8. Other (combination)3%4%0% Q: Which method of payment do you use to pay for your child’s back to school? (n=280)

12. 12 1.5 School Tech Requirements 9 in 10 parents express a preference for laptops or e-book readers to become part of in-class educational experience of their children Laptop use is highly desired by Irish parents in both primary (87%) and secondary school environments (89%) Q: Would you like to see a move to use laptops / e-book readers more in the classroom if more costs effective? (n=280) School Tech Requirements:Yes, needed: All Parents88% Primary School87% Secondary School89%

13. 13 2.0 Credit Unions - School Voluntary Contributions and Fees -

14. 14 2.1 Voluntary Contribution / School Fees Voluntary Contribution: Three-quarters of parents are requested to make school voluntary contributions that amount to €130 on average per child While primary schools are more likely to request voluntary contributions (80%) than secondary schools (72%), secondary school-based child parents are obliged to pay higher contributions (€158) than parents of a primary school child (€102) School Fees: 9% of Irish parents send their child(ren) to a fee paying school (5% primary school and 13% secondary school children). While school fees average at €1,750 in primary schools, they are almost 3x higher in secondary schools (€4,750) Q: Does your school ask for “voluntary” contribution (n=280)? How much is this voluntary contribution per annum? (n=213) Q: Do your children go to a fee paying school (n=280)? Q: How much are the school fees per child per annum? (n=25) Voluntary Contribution (State School) Those who pay: Average contribution: School Fees (Private School) Those who pay: Average fees: Average Parent76% €130 9% €3,250 Primary School Parent80% €102 5% €1,750 Secondary School Parent72% €158 13% €4,750

15. 15 3.0 Credit Unions - Shopping for Better Value -

16. 16 3.1 Shopping Online for Back-to-School Items Over one third of Irish parents shop online for back-to-school items for their school-age children: Saving money (61%) and convenience (34%) are the primary reasons behind these purchases Q: Do you shop online for back to school needs? (n=280) Q: Why do you shop online for back to school needs? (n=98) Reason for Shopping Online: 1. Save money61% 2. More convenient35% 3. Save time4%

17. 17 3.2 Buying Branded School Supplies Four in ten parents feel pressured to buy branded school items over generic ones for their children Q: Do you feel pressured to buy branded clothes, stationary and other items as opposed to generic or own brand items? (n=280) Pressure over Buying Branded School Supplies Feel PressuredDon’t Feel Pressured All Parents38%62% Primary School40%60% Secondary School37%63%

18. 18 3.3 Best Value School Clothing Retailer Dunnes Stores is the most popular store with Irish parents (28%) shopping for school clothing to get the best value Marks & Spencer is the second (24%) and Penney’s is the third most popular place (19%) for the best value school clothing Primary school child parents are twice as more likely to shop in Tesco (19%) than secondary school child parents (10%) Q: Where do you think offers the best value in school clothing? (n=280) Best Value School Clothing RetailerAll ParentsPrimary SchoolSecondary School 1. Dunnes28%30%27% 2. Marks & Spencer24%23%26% 3. Penney's19% 4. Tesco15%19%10% 5. Local shop7%5%9% 6. School clothes shop7%4%9%

19. 19 4.0 Credit Unions - Back-to-School Allowance -

20. 20 4.1 Back-to-School Allowance One-fifth of the parents of school-age children are entitled for back-to-school allowance However, over three-quarters (81%) of these admitted that back-to-school allowance they receive from Welfare is still insufficient in covering their back-to-school expenses Q: Are you eligible for the Back to School allowance? (n=280) Q: Is it sufficient in covering your costs? Back to School Allowance Eligible for Allowance: Sufficient in Covering Costs: All Parents21% 19% Primary School26% 24% Secondary School18% 14%

21. 21 5.0 Credit Unions - School Support and Cost Implications -

22. 22 5.1 School Support to Parents Over two-thirds of parents (69%) believe that Irish schools do not support parents in keeping costs down for their school going children: These negative attitudes are more pronounced amongst those parents who have secondary school children (71%) Q: Do you feel Irish schools support parents in keeping costs down for school going children? (n=280) School Helps Me Keep Costs Down:Disagree: All Parents69% Primary School65% Secondary School71%

23. 23 5.2 Implications of Back-to-School Costs Q: Are you sacrificing any of the following to pay for your child / children to return to school? (n=280) Knock-on Effect:All Parents:Primary SchoolSecondary School 1. Family Holiday37%36%42% 2. Summer Camps12%14%8% 3. Pay Domestic Bills7%8%4% 4. Paying credit cards7%5%9% 5. Combination of the above:2%3%2% No Adverse Implications:35%34%35% Almost two-thirds of all parents admitted that back-to-school expenses will negatively impact their family plans or bills: 49% of all parents will have to sacrifice their family holiday or children summer camps this year Back-to-school expenses will also have an adverse impact on 7% of domestic bill payments Additional 7% of all parents will be forced to use credit cards to meet all back-to-school expenses for their children 65% 66%65%

24. 24 Thank you.