1. Changing GTINs §The GS1 GTIN Allocation Rules §The GS1 GTIN Allocation Rules are endorsed by the Global Commerce Initiative and have been developed to ensure unique and consistent identification of products world-wide. Knowing When and Why § Knowing When and Why a product’s GTIN should or should not change is very important. The following slides will help you understand the most common situations. §This information §This information contained here is only a partial extract from a GS1 Web Site. If you need further assistance, please visit this web site listed below or contact the GS1 US Customer Service. A downloadable § A downloadable illustrated PDF booklet is available at: www.ean-int.org/gtinrules / ©2005 Ace Hardware Corporation. All Rights Reserved.

2. GTIN Guidelines When should a new UCC-12 should be used?  Company Growth –Mergers and Acquisitions  New Product  Change in weight, count or volume not sold retail  Sample or trial product ( not sold retail )  Seasonal reasons  Changes in product formulation ©2005 Ace Hardware Corporation. All Rights Reserved.

3. Company Business Growth Mergers and Acquisitions retains $ When one company purchases another company, the purchasing company retains the purchased company’s UCC-12 numbers. The purchasing company should notify the Uniform Code Council of the purchase within one year of the acquisition. $ Product identifiers (UCC-12s) are assets to be managed during mergers and acquisitions. ©2005 Ace Hardware Corporation. All Rights Reserved.

4. Divisional Growth Mergers and Acquisitions - Divisional $ If the purchasing company acquires only part of another company (e.g., a division), it should convert the product UCC-12 numbers to the the purchasing company’s GS1 US company prefix within one year. ©2005 Ace Hardware Corporation. All Rights Reserved.

5. Brand Acquisitions Mergers and Acquisitions – Brands  Brand owner retains control over the GTIN  Each manufacturer will have a unique company prefix.  Assignment of UCC-12s to products needs to be managed, so uniqueness is maintained across the entire company. ©2005 Ace Hardware Corporation. All Rights Reserved.

6. Packaging Changes Reformulated or Repackaged Products do not  Minor formulation changes not impacting the supply chain or consumers when replacing existing product do not need a new UCC-12. must  Any change in formula resulting in a Material Safety Data Sheet (MSDS) change must have a new UCC-12. will require  Any changes impacting consumers expectations, supply chains or legislatively mandated will require a new UCC-12 GTIN ©2005 Ace Hardware Corporation. All Rights Reserved.

7. Product Changes Repackaged Products new ‡ Major change in net weight, content, product mix, count, dimensions, or volume mean a new UCC-12 is assigned.  Major defined as an impacting change greater than 20% does not ‡ A change in graphics on package or type of package itself does not need a new UCC-12. Description new ‡ A descriptive change that impacts the supply chain or consumer expectations generally require a new UCC-12. ©2005 Ace Hardware Corporation. All Rights Reserved.

8. UCC-12 Guideline – Same Products THIS SHOULD BE AVOIDED!  Different UCC-12s should not be assigned to the exact same product. Some retailers insist that they need different UCC-12s to track sales in different departments within their store. THIS SHOULD BE AVOIDED!  New language on a package sold in one market/country (single language label) that requires distinction between non-substitutable trade items at the grouping level would be assigned unique UCC-12s. ©2005 Ace Hardware Corporation. All Rights Reserved.

9. GTIN Guidelines – Special Offers Multi-Pack Consumer Units ☺ Bonus Packs, Buy one/Get one Free  A unique UCC-12 must be assigned to inner packs which are also intended to be sold as consumer units (different number than the individual unit).  The individual item’s UCC-12 symbol must be hidden to avoid confusion at checkout. ©2005 Ace Hardware Corporation. All Rights Reserved.

10. GTIN Guidelines - Example Each should have unique UCC-12 Bonus Pack UCC-12 is Different from “Non Bonus” Items ©2005 Ace Hardware Corporation. All Rights Reserved.

11. GTIN Guidelines - Example Each should have unique UCC-12 Promotion UCC-12 is Different from “Non Promotion” Item ©2005 Ace Hardware Corporation. All Rights Reserved.

12. GTIN Guidelines - Example UCC-12 is Different from “Non Promotion” Item Two Items Bound Together ©2005 Ace Hardware Corporation. All Rights Reserved.

13. GTIN Guidelines - Example not UCC-12 does not change Mail-in with Proof of Purchase ©2005 Ace Hardware Corporation. All Rights Reserved.

14. GTIN Guidelines - Example UCC-12 is different to facilitate reorder and inventory management Seasonal Product (Need Unique UCC-12)Seasonal Product (Need Unique UCC-12) ©2005 Ace Hardware Corporation. All Rights Reserved.

15. GTIN Guidelines - Example not UCC-12 does not change Free Item in Pack ©2005 Ace Hardware Corporation. All Rights Reserved.