1. GS1 DataBar 2010 Program BarCodes & Identification Business Unit August 2007

2. ©2007 GS1 2 GS1 BarCodes & Identification. Save Time. Save Money. Presentation Agenda Introduce GS1 DataBar [formerly called Reduced Space Symbology (RSS)] GS1 Decision on GS1 DataBar GS1 DataBar comparisons to EAN/UPC and EPC Business Case for GS1 Adoption GS1 DataBar 2010 Program

3. ©2007 GS1 3 GS1 BarCodes & Identification. Save Time. Save Money. Introducing the GS1 DataBar Family GS1 DataBar Omnidirectional GS1 DataBar Stacked Omnidirectional GS1 DataBar Expanded GS1 DataBar Expanded Stacked GS1 DataBar Truncated GS1 DataBar Limited GS1 DataBar Stacked POS Symbols

4. ©2007 GS1 4 GS1 BarCodes & Identification. Save Time. Save Money. Make GS1 DataBar a Global, Open Standard GS1 Board and General Assembly agreed: The GS1 DataBar and *GS1 Application Identifiers shall be available in all trade item scanning systems beginning Jan 1, 2010. * GS1 Application Identifiers are the collection of around 100 data elements defined for use by GS1 for use inside bar codes and EPC tags

5. ©2007 GS1 5 GS1 BarCodes & Identification. Save Time. Save Money. Task Force Companies and GS1 DataBar Application Areas CompaniesSmall Products 2010 Fresh Foods 2010 Variable Measure 2010 Retailers: Dorothy Lane Market, Carrefour, Metro, Loblaws, Target, Wal-Mart, and Woolworths CPG Manufacturers: Kraft, Nestle, P&G, RB, and Tyson Kraft & TysonKraft & Tyson for mpXML, NCA, & NPB Healthcare Manufacturers: B.Braun, Baxter, J&J, Metronics, and Pfizer NA Traceability/Authentication at POS and for Global Patient Safety To be Determined by Product Type (e.g., alcoholic beverages, tobacco)

6. ©2007 GS1 6 GS1 BarCodes & Identification. Save Time. Save Money. Who Supported the GS1 DataBar Task Force? Aeon CompanyGS1 JapanNestle B.BraunGS1 USP&G BaxterJ&JPfizer Dorothy Lane MarketKao CorporationReckitt-Benckiser FMIKraftTarget GS1 BrazilLoblawsTyson Foods GS1 France (Carrefour representative) MetronicsWal-Mart GS1 Germany (Metro representative) National Cattlemens Beef Association Woolworths GS1 Global OfficeNational Pork BoardVICS Retailer Healthcare MFGCPG MFGGS1Trade Assoc

7. ©2007 GS1 7 GS1 BarCodes & Identification. Save Time. Save Money. How does GS1 DataBar compare to EAN/UPC? GS1 DataBar, the next-generation bar code, carries over 100 different bar code data elements like serial or lot numbers, expiration dates, & measurements Our first generation bar code (EAN/UPC)… Retailers: EAN/UPC only carries GTIN

8. ©2007 GS1 8 GS1 BarCodes & Identification. Save Time. Save Money. EAN/UPC and GS1 DataBar Point-of-Sale Symbols: Data - Size Comparisons GS1 DataBar Expanded GS1 DataBar Expanded Stacked GTIN + Serial # EAN-13 Symbol Area GS1 DataBar Stacked Omnidirectional GS1 DataBar Omnidirectional GTIN Same Data, Less Space GTIN/Price/Weight GS1 DataBar Expanded GS1 DataBar Expanded Stacked More Data, Same Space Manufacturers: Its too large for many packages

9. ©2007 GS1 9 GS1 BarCodes & Identification. Save Time. Save Money. How does GS1 DataBar compare to EPC? Standards ExistYes – MatureYes - Evolving Support for full GTINYes Support for serializationYes CostRelatively LowStill High Line of Sight RequiredYesNo Maturity of TechnologyHighLow RewriteableNoYes Availability of Technology HighLow - Growing RFID GS1 DataBar

10. ©2007 GS1 10 GS1 BarCodes & Identification. Save Time. Save Money. Benefit Areas Enable category management and control of a number of products not able to support a standard bar code due to size of packaging. Better control of inventories, shrinkage, and product recalls. Better control over products exceeding their expiry dates Enable scanning of fresh food products (i.e. produce) reducing key punch errors, allowing for self check out options, and supplier identification. GS1 DataBar Adoption Business Case Utilizing GS1 DataBar labels generates an annual operating savings at retail of over $2.32 million in produce and $2.33 million in meats for an average 100-store chain. GS1 DataBar accuracy generates an annual reduction in shrink dollars of over $7.3 million for an average 100-store chain. A 100-store chain that upgrades to GS1 DataBar will gain over $4.2 million in savings during the first year. Source: GS1 US Study

11. ©2007 GS1 11 GS1 BarCodes & Identification. Save Time. Save Money. Business Case Application Considerations Meat, produce, deli, bakery Shrink management, category management More data, small symbols Global identification migration Retail pharmacy More data, small symbols Dual inventory reduction Consumer products Small or hard to mark products Replace low performing, truncated symbols Increase consumer communication Coupon Issue (USA) Other (books, periodicals)

12. ©2007 GS1 12 GS1 BarCodes & Identification. Save Time. Save Money. Business Case Macro Considerations Implementation Divergence Avoided Retail Point-of-Sale Systems (all categories) Manufacturer dual inventories for different markets Category management (fresh food) Timing Compromise Needed Now: Early adopters need scanner performance return Later: Late adopters need scanner life cycle return Compromise: 2010 Scanner versus Back Office Systems Application standards changes (new data, new key) will be justified through individual business case and standards WGs (Global-Fresh Foods, US-Coupons) GTIN-8, GTIN-12, & GTIN-13 supported at this stage

13. ©2007 GS1 13 GS1 BarCodes & Identification. Save Time. Save Money. Most scanners shipped for the last 4 years are GS1 DataBar capable Most scanners shipped in the last 7 years are upgradeable for GS1 DataBar 2006 2010 60% 85% GS1 DataBar Capable Scanner Projection Source: GS1 Global Symbology Committee & GS1 Japan Surveys. Estimates +/-5%

14. ©2007 GS1 14 GS1 BarCodes & Identification. Save Time. Save Money. When Will Retailers Be Ready? Retailer Readiness GS1 DataBar Capable Scanners 2007 (%) GS1 DataBar Capable Scanners 2010 (%) Aeon0% Ahold US95%100% Carrefour80%98% Daiei0%1-2% DLM100% FoodstuffsTBD100% Karstadt100% Loblaws80%100% Metro100% Seiyu100% Target88%100% Uny0%67% Wal-Mart100% Wegmans100% Woolworths75%100%

15. ©2007 GS1 15 GS1 BarCodes & Identification. Save Time. Save Money. Next Steps GS1 to support five development areas 1. Marketing, education, and communication 2. Fresh Foods Identification Work Group 3. GS1 MO, Retailer, & Manufacturer implementation 4. Measure scanner readiness for Top 100 retailers 5. Serialized bar code printing research

16. GS1 DataBar 2010 Program Overview by Project September 2006 Updated February 2007 for new name

17. ©2007 GS1 17 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 The Big Picture We Are Here! 39 months until 2010 Planning & Development We begin with… Deployment & Measurement We proceed with… GS1 Board Decision Announced Jan 2007 Jan 2010 Jan 2009 Jan 2008 Jan 2006

18. ©2007 GS1 18 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Homepage http://www.gs1.org/databar

19. ©2007 GS1 19 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Starter Kits http://www.gs1.org/starter_kits

20. ©2007 GS1 20 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Buyers Guides http://www.gs1.org/buyers_guides

21. ©2007 GS1 21 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 Roadmap ProjectNow to Forum 2007 Forum 2007 to GA 2007 GA 2007 to Forum 2008 Forum 2008 to GA 2008 Renaming Starter Kits Fresh Foods ID WG Buyers Guide Scorecard GS1 Inside Serialized Printing WG Global Forum occurs in Feb each year General Assembly (GA) occurs in May each year

22. ©2007 GS1 22 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 Roadmap ProjectNow to Forum 2007 Forum 2007 to GA 2007 GA 2007 to Forum 2008 Forum 2008 to GA 2008 RenamingRecommend then approve Starter KitsCEO, MO, & Retailer Kits Manufacturer Kits Implementation & Tools (TBD) Fresh Foods ID WG Organize & build case Board reviews the case Application Standards Implementation Tools Buyers Guide Scanners & Printers Design Software ScorecardRetailer Test Kit Ready Top 100 Retailer 70% Top 100 Retailer 80% GS1 InsideProject Approval TBD Serialized Printing WG Organize WG Conduct Research Complete Work Problem Statement RSS, Reduced Space Symbology, is a development name for a symbol destined to become a household word. RSS is a term for Web document transfer There is no deliberate GS1 relationship in the name The current name tells ½ the story. Objectives Make name a household word like EAN or UPC Ensure availability of term for GS1 use Help users reach GS1 by building GS1 name recognition Ensure name is not associated with one benefit of the symbol (small size) while ignoring the other (more data) Problem Statement GS1 DataBar Implementation Steps are different for different groups For each group, we need sound advice step-by-step We want advice to be consistent across GS1 MOs and retailers Objectives Address audience specific impact of GS1 DataBar 2010 Industry Executives & GS1 MO Retailers Manufacturers Harmonize MO and retailer approaches to adoption Build momentum for adoption To join this GS1 DataBar 2010 Project, send a mail to: gs1databar@gs1.orggs1databar@gs1.org or GS1 DataBar Program Manager: Greg Rowe – growe@gs1.org Join This Team

23. ©2007 GS1 23 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 Roadmap ProjectNow to Forum 2007 Forum 2007 to GA 2007 GA 2007 to Forum 2008 Forum 2008 to GA 2008 RenamingRecommend then approve Starter KitsCEO, MO, & Retailer Kits Manufacturer Kits Implementation & Tools (TBD) Fresh Foods ID WG Organize & build case Board reviews the case Application Standards Implementation Tools Buyers Guide Scanners & Printers Design Software ScorecardRetailer Test Kit Ready Top 100 Retailer 70% Top 100 Retailer 80% GS1 InsideProject Approval TBD Serialized Printing WG Organize WG Conduct Research Complete Work Objective: We see a world where fresh food product ID: Provides shrink reduction & category management tools used in the center store Allows manufacturers to mark once, ship to all Allows grocers to have compatible systems across borders Allows backward compatibility with PLU for seamless migration Scope Unite regional/national product identification initiatives Present the Board with the business case for global adoption Approve standards and roadmap for deployment To join this GS1 DataBar 2010 Project, send a mail to: gs1databar@gs1.orggs1databar@gs1.org or GS1 DataBar Program Manager: Greg Rowe, growe@gs1.org Join This Team

24. ©2007 GS1 24 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 Roadmap ProjectNow to Forum 2007 Forum 2007 to GA 2007 GA 2007 to Forum 2008 Forum 2008 to GA 2008 RenamingRecommend then approve Starter KitsCEO, MO, & Retailer Kits Manufacturer Kits Implementation & Tools (TBD) Fresh Foods ID WG Organize & build case Board reviews the case Application Standards Implementation Tools Buyers Guide Scanners & Printers Design Software ScorecardRetailer Test Kit Ready Top 100 Retailer 70% Top 100 Retailer 80% GS1 InsideProject Approval TBD Serialized Printing WG Organize WG Conduct Research Complete Work Problem Statement Users do not know what software and hardware works GS1 MOs do not know what to recommend Vendors do not want delayed purchasing decisions Objectives Determine approach to showing what works Publicize the results and speed adoption To join this GS1 DataBar 2010 Project, send a mail to: gs1databar@gs1.orggs1databar@gs1.org or GS1 DataBar Program Manager: Greg Rowe, growe@gs1.org@gs1.org Join This Team

25. ©2007 GS1 25 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 Roadmap ProjectNow to Forum 2007 Forum 2007 to GA 2007 GA 2007 to Forum 2008 Forum 2008 to GA 2008 RenamingRecommend then approve Starter KitsCEO, MO, & Retailer Kits Manufacturer Kits Implementation & Tools (TBD) Fresh Foods ID WG Organize & build case Board reviews the case Application Standards Implementation Tools Buyers Guide Scanners & Printers Design Software ScorecardRetailer Test Kit Ready Top 100 Retailer 70% Top 100 Retailer 80% GS1 InsideProject Approval TBD Serialized Printing WG Organize WG Conduct Research Complete Work Problem Statement GS1 and its users now have a clear direction from the Board Need a way to measure industry readiness Many retailers have GS1 DataBar-ready scanners but do not know it GS1 has no tools to show them how to determine readiness Objectives Assess retailer scanner system readiness 70% of Top 100 retailers scanners ready (May 2007) 80% (May 2008) 90% (May 2010) To join this GS1 DataBar 2010 Project, send a mail to: gs1databar@gs1.orggs1databar@gs1.org or GS1 DataBar Program Manager: Greg Rowe, growe@gs1.org@gs1.org Join This Team

26. ©2007 GS1 26 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 Roadmap ProjectNow to Forum 2007 Forum 2007 to GA 2007 GA 2007 to Forum 2008 Forum 2008 to GA 2008 RenamingRecommend then approve Starter KitsCEO, MO, & Retailer Kits Manufacturer Kits Implementation & Tools (TBD) Fresh Foods ID WG Organize & build case Board reviews the case Application Standards Implementation Tools Buyers Guide Scanners & Printers Design Software ScorecardRetailer Test Kit Ready Top 100 Retailer 70% Top 100 Retailer 80% GS1 InsideProject Approval TBD Serialized Printing WG Organize WG Conduct Research Complete Work Problem Statement Application Identifiers not implemented broadly yet Need mechanism to ensure scanners/readers Process AIs according to GS1 rules Change when the standards change Objectives Test the plausibility of developing reference software for scanning and reading systems to make them compliant and keep them that way

27. ©2007 GS1 27 GS1 BarCodes & Identification. Save Time. Save Money. GS1 DataBar Program 2010 Roadmap ProjectNow to Forum 2007 Forum 2007 to GA 2007 GA 2007 to Forum 2008 Forum 2008 to GA 2008 RenamingRecommend then approve Starter KitsCEO, MO, & Retailer Kits Manufacturer Kits Implementation & Tools (TBD) Fresh Foods ID WG Organize & build case Board reviews the case Application Standards Implementation Tools Buyers Guide Scanners & Printers Design Software ScorecardRetailer Test Kit Ready Top 100 Retailer 70% Top 100 Retailer 80% GS1 InsideProject Approval TBD Serialized Printing WG Organize WG Conduct Research Complete Work Problem Statement Worst case scenario for bar code printing Potential cost increase for marking Need improved solution provider links Objectives Develop a list of industry stakeholders Understand the technology Understand the pros and cons To join this GS1 DataBar 2010 Project, send a mail to: gs1databar@gs1.orggs1databar@gs1.org or GS1 DataBar Program Manager: growe@gs1.org Join This Team

28. ©2007 GS1 28 GS1 BarCodes & Identification. Save Time. Save Money. GS1 Member Organization and Retailer Summary Now - Jan 2008: Appoint a Project Lead Engage each other Share information with leadership Support GS1 DataBar Starter Kit (early adopters) Integrate GS1 DataBar 2010 into HW/SW buying criteria January 2007 - Dec 2007: Assess and report scanner readiness Develop retailer specific GS1 DataBar 2010 project

29. ©2007 GS1 29 GS1 BarCodes & Identification. Save Time. Save Money. Manufacturer Summary Now - December 2007: Engage Serialized Bar Code Printing WG Engage Fresh Foods ID WG (Fresh Food suppliers) Integrate GS1 DataBar 2010 into HW/SW buying criteria Now - 2009 Assess product packaging where panel space for consumer communications is an issue Identify all products where EAN/UPC symbols have been printed below specifications Assess, by market, when design changes are planned and make decisions about using GS1 DataBar

30. ©2007 GS1 30 GS1 BarCodes & Identification. Save Time. Save Money. Contact Details Address Avenue Louise, 326 BE 1050 Brussels, Belgium GS1 BarCode Helpdesk +322 788 7842 Einfo@gs1.org Wwww.gs1.org Greg Rowe GS1 DataBar Program Manager GS1 BarCodes & Identification P+1 (609) 658-2309 (US) F+1 32 2 788 7899 (BE) Egrowe@gs1.org