GS 1 Data Bar 2010 Program Bar Codes

GS 1 Data. Bar 2010 Program Bar. Codes & Identification Business Unit August 2007

Presentation Agenda • • • 2 Introduce GS 1 Data. Bar™ [formerly called Reduced Space Symbology (RSS)] GS 1 Decision on GS 1 Data. Bar comparisons to EAN/UPC and EPC Business Case for GS 1 Adoption GS 1 Data. Bar 2010 Program GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

Introducing the GS 1 Data. Bar Family POS Symbols GS 1 Data. Bar Truncated GS 1 Data. Bar Omnidirectional GS 1 Data. Bar Limited GS 1 Data. Bar Stacked Omnidirectional GS 1 Data. Bar Expanded 3 GS 1 Data. Bar Expanded Stacked GS 1 Data. Bar Stacked GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

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

Task Force Companies and GS 1 Data. Bar Application Areas Companies Small Products 2010 Fresh Foods 2010 Variable Measure 2010 Retailers: Dorothy Lane Market, Carrefour, Metro, Loblaws, Target, Wal-Mart, and Woolworths 5 CPG Manufacturers: Kraft, Nestle, P&G, RB, and Tyson Kraft & Tyson for mp. XML, NCA, & NPB Healthcare Manufacturers: B. Braun, Baxter, J&J, Metronics, and Pfizer NA NA To be Determined by Product Type Traceability/Authentication at POS (e. g. , alcoholic beverages, tobacco) and for Global Patient Safety GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

Who Supported the GS 1 Data. Bar Task Force? Retailer 6 CPG MFG Healthcare MFG GS 1 Trade Assoc Aeon Company GS 1 Japan Nestle B. Braun GS 1 US P&G Baxter J&J Pfizer Dorothy Lane Market Kao Corporation Reckitt-Benckiser FMI Kraft Target GS 1 Brazil Loblaws Tyson Foods GS 1 France (Carrefour representative) Metronics Wal-Mart GS 1 Germany (Metro representative) National Cattlemen’s Beef Association Woolworths GS 1 Global Office National Pork Board VICS GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

How does GS 1 Data. Bar compare to EAN/UPC? Our first generation bar code (EAN/UPC)… Retailers: “EAN/UPC only carries GTIN” GS 1 Data. Bar, the next-generation bar code, carries over 100 different bar code data elements like serial or lot numbers, expiration dates, & measurements 7 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

EAN/UPC and GS 1 Data. Bar Point-of-Sale Symbols: Data - Size Comparisons Same Data, Less Space GTIN GS 1 Data. Bar Omnidirectional Manufacturers: “It’s too large for many packages” GS 1 Data. Bar Stacked Omnidirectional GTIN/Price/Weight More Data, Same Space GS 1 Data. Bar Expanded EAN-13 Symbol Area GS 1 Data. Bar Expanded Stacked GTIN + Serial # GS 1 Data. Bar Expanded 8 GS 1 Data. Bar Expanded Stacked GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

How does GS 1 Data. Bar compare to EPC? GS 1 Data. Bar Standards Exist Yes – Mature Yes - Evolving Support for full GTIN Yes Support for serialization Yes Relatively Low Still High Line of Sight Required Yes No Maturity of Technology High Low No Yes High Low - Growing Cost Rewriteable Availability of Technology 9 RFID GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Adoption Business Case Utilizing GS 1 Data. Bar 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. GS 1 Data. Bar 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 GS 1 Data. Bar will gain over $4. 2 million in savings during the first year. Benefit Areas Source: GS 1 US Study • 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. 10 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

Business Case Application Considerations • • • 11 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) GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

Business Case Macro Considerations • Implementation Divergence Avoided • • 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 • • 12 Retail Point-of-Sale Systems (all categories) Manufacturer dual inventories for different markets Category management (fresh food) 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 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Capable Scanner Projection Most scanners shipped for the last 4 years are GS 1 Data. Bar capable Most scanners shipped in the last 7 years are upgradeable for GS 1 Data. Bar 85% 60% 2006 2010 Source: GS 1 Global Symbology Committee & GS 1 Japan Surveys. Estimates +/-5% 13 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

When Will Retailers Be Ready? 14 Retailer Readiness GS 1 Data. Bar Capable Scanners 2007 (%) GS 1 Data. Bar Capable Scanners 2010 (%) Aeon 0% 0% Ahold US 95% 100% Carrefour 80% 98% Daiei 0% 1 -2% DLM 100% Foodstuffs TBD 100% Karstadt 100% Loblaws 80% 100% Metro 100% Seiyu 100% Target 88% 100% Uny 0% 67% Wal-Mart 100% Wegmans 100% Woolworths 75% 100% GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

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

GS 1 Data. Bar 2010 Program Overview by Project September 2006 Updated February 2007 for new name

GS 1 Data. Bar Program 2010 The Big Picture GS 1 Board Decision Announced We begin with… Planning & Development Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Deployment & Measurement We proceed with… We Are Here! 39 months until 2010 17 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Homepage http: //www. gs 1. org/databar 18 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Starter Kits http: //www. gs 1. org/starter_kits 19 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Buyers Guides http: //www. gs 1. org/buyers_guides 20 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Program 2010 Roadmap Project Now to Forum 2007 to GA 2007 Forum 2008 to GA 2008 Renaming Starter Kits Fresh Foods ID WG Global Forum occurs in Feb each year General Assembly (GA) occurs in May each year Buyer’s Guide Scorecard GS 1 Inside Serialized Printing WG 21 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Program 2010 Roadmap Project Now to 2007 to a GA To join this GS 1 Data. Bar 2010 Forum Project, send mail 2007 to: to Forum or 2007 GA 2007 Forum 2008 gs 1 databar@gs 1. org Renaming Recommend GS 1 Data. Bar Program Manager: Greg Rowe – growe@gs 1. org then approve Join This Forum 2008 Teto am GA 2008 Starter Kits CEO, MO, & Manufacturer Implementation Retailer Kits & Tools (TBD) • Problem Fresh Foods Statement Organize & Board reviews Application Implementation • Problem Statement • RSS, Reduced Space Symbology, is a development name for. Tools a symbol build case ID WG the case Standards destined to become a household word. • GS 1 Data. Bar Implementation Steps are different for different groups • For RSSeach is. Scanners a term forwe Web document transfer group, sound advice step-by-step Buyer’s & need Design There is no deliberate GS 1 relationship the. MOs nameand retailers • We want advice to be consistent across in GS 1 Guide Printers Software • Objectives The current name tells ½ the story. • Scorecard Retailer Test Topimpact 100 of GS 1 Data. Bar 2010 Top 100 • Address audience specific Kit Ready 70% Retailer 80% • Industry Executives. Retailer & GS 1 MO • Objectives • Make. Retailers name a household word like EAN or. TBD UPC GS 1 • Inside Project TBD Manufacturers • • Ensure availability of term for GS 1 use Approval • Harmonize MO and retailer approaches to adoption Help users reach GS 1 by building GS 1 name recognition Serialized Organize Conduct Complete • Build momentum forassociated adoption Ensure name is not with one benefit of the Work symbol (small size) while ignoring (more data) Printing WG WG the other Research 22 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Program 2010 Roadmap Project Now to Forum 2007 to GA 2007 Forum 2008 to GA 2008 Join Renaming Recommend To join this GS 1 Data. Bar 2010 Project, send a mail to: This then approve gs 1 databar@gs 1. org or Team GS 1 Data. Bar Rowe, growe@gs 1. org Starter Kits Program CEO, Manager: MO, & Greg Manufacturer Implementation Retailer Kits & Tools (TBD) Fresh Foods Organize & Board reviews Application Implementation build case Tools ID WG the case Standards • Objective: We. Scanners see a world fresh food product ID: Buyer’s & where Design • Provides shrink reduction & category Guide Printers Softwaremanagement tools used in the “center store” • Allows manufacturers to mark once, ship to all Scorecard Retailer Test Top 100 • Allows grocers to have compatible systems across borders Kit Ready Retailer 70% • Allows backward compatibility with PLU for seamless migration Top 100 Retailer 80% GS 1 Inside • Scope TBD Project Approval TBD • Unite regional/national product identification initiatives Serialized Conductcase for global Complete Work • Present the. Organize Board with the business adoption Printing WG standards WG Research • Approve and roadmap for deployment 23 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Program 2010 Roadmap Project Renaming Now to Forum 2007 to GA 2007 Forum 2008 to GA 2008 Recommend then approve Join This Starter Kits CEO, MO, & Manufacturer Implementation To join this GS 1 Data. Bar 2010 Project, send a mail to: Team Retailer Kits & Tools (TBD) gs 1 databar@gs 1. org or Fresh Foods Program Organize & Board. Rowe, reviews Application GS 1 Data. Bar Manager: Greg growe@gs 1. org build case ID WG the case Standards Implementation Tools Buyer’s Scanners & Design Guide Printers Software • Problem Statement Scorecard Retailer Test Top 100 • Users Kit do not know what. Retailer software 70% and hardware works Ready Top 100 Retailer 80% • GS 1 MOs do not know what to recommend GS 1 • Inside Project TBD purchasing decisions TBD Vendors do not want delayed TBD • Objectives. Approval • Determine approach to Conduct showing what works Serialized Organize Complete Work • WG Publicize speed adoption Printing WGthe results and. Research 24 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

GS 1 Data. Bar Program 2010 Roadmap Project Now to Forum 2007 • Problem Statement Renaming Forum 2007 to GA 2007 Forum 2008 to GA 2008 Recommend GS 1 and its users now have a clear direction from the Board then approve • • Need a way to measure industry readiness Starter CEO, Manufacturer Implementation • Kits Many retailers have&GS 1 Data. Bar-ready scanners but do not know it • GS 1 has no tools to show them how to determine Retailer Kits & Toolsreadiness (TBD) & Tools (TBD) • Objectives Fresh Foods Organize & Board reviews Application • Assess retailer scanner system readiness case ID WG case ready (May Standards • 70% ofbuild Top 100 retailersthe scanners 2007) • 80% (May 2008) & Buyer’s Scanners • 90% (May 2010) Guide Printers Design Software Scorecard Top 100 Retailer 70% Retailer Test Kit Ready To join this GS 1 Data. Bar GS 1 Inside Project 2010 Project, TBD send a mail to: TBD gs 1 databar@gs 1. org or Approval GS 1 Data. Bar Program Manager: Greg Rowe, growe@gs 1. org Serialized Organize Conduct Complete Work Printing WG WG Research 25 GS 1 Bar. Codes & Identification. Save Time. Save Money. Implementation Tools Top 100 Retailer 80% TBD Join This Team © 2007 GS 1

GS 1 Data. Bar Program 2010 Roadmap Project Now to Forum 2007 Renaming • Problem Statement • • Forum 2007 to GA 2007 Forum 2008 to GA 2008 Recommend then approve Application Identifiers not implemented broadly yet CEO, MO, & Manufacturer Implementation Need mechanism to ensure scanners/readers Retailer Kits & Tools (TBD) • Process AIs according to GS 1 rules Fresh Foods Organize & the standards Board reviews Implementation • Change when change Application Starter Kits ID WG build case Buyer’s Scanners & • Objectives. Printers Guide • the case Standards Tools Design Software Test the plausibility of developing reference software for scanning and reading Scorecardsystems Retailer Top 100 and keep them that way Top 100 to make. Test them compliant Kit Ready Retailer 70% GS 1 Inside Project Approval TBD Serialized Printing WG Organize WG Conduct Research Complete Work 26 Retailer 80% GS 1 Bar. Codes & Identification. Save Time. Save Money. TBD © 2007 GS 1

GS 1 Data. Bar Program 2010 Roadmap Project Now to Forum 2007 Renaming • Problem Statement Forum 2007 to GA 2007 Forum 2008 to GA 2008 Recommend then approve • Worst case scenario for bar code printing Starter CEO, & for Manufacturer Implementation • Kits Potential cost. MO, increase marking Retailer solution Kits & Tools (TBD) • Need improved provider links Fresh Foods Organize & Board reviews • Objectives build case ID WG the case • Develop a list of industry stakeholders Application Standards Implementation Tools • Understand the technology Buyer’s Scanners & Design • Understand the pros and cons Guide Printers Software Scorecard Test Project, Top 100 To join this GS 1 Retailer Data. Bar 2010 send a mail to: Kit Ready Retailer 70% gs 1 databar@gs 1. org or GS 1 Data. Bar GS 1 Inside Program Project. Manager: growe@gs 1. org TBD Approval TBD Serialized Printing WG Complete Work 27 Organize WG Conduct Research GS 1 Bar. Codes & Identification. Save Time. Save Money. Top 100 Retailer 80% Join This TBD Team © 2007 GS 1

GS 1 Member Organization and Retailer Summary • Now - Jan 2008: • Appoint a Project Lead • Engage each other • Share information with leadership • Support GS 1 Data. Bar Starter Kit (early adopters) • Integrate GS 1 Data. Bar 2010 into HW/SW buying criteria • January 2007 - Dec 2007: • Assess and report scanner readiness • Develop retailer specific GS 1 Data. Bar 2010 project 28 GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

Manufacturer Summary • Now - December 2007: • Engage Serialized Bar Code Printing WG • Engage Fresh Foods ID WG (Fresh Food suppliers) • Integrate GS 1 Data. Bar 2010 into HW/SW buying criteria • Now - 2009 • Assess product packaging where panel space for consumer • • 29 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 GS 1 Data. Bar GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1

Contact Details Greg Rowe GS 1 Data. Bar Program Manager GS 1 Bar. Codes & Identification P +1 (609) 658 -2309 (US) F +1 32 2 788 7899 (BE) E growe@gs 1. org 30 Address Avenue Louise, 326 BE 1050 Brussels, Belgium GS 1 Bar. Code Helpdesk +322 788 7842 E info@gs 1. org W www. gs 1. org GS 1 Bar. Codes & Identification. Save Time. Save Money. © 2007 GS 1