MODERN VS TRADITIONAL TRADE THE EVOLUTION OF THE

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MODERN VS. TRADITIONAL TRADE THE EVOLUTION OF THE ROMANIAN RETAIL MARKET OVER THE LAST

MODERN VS. TRADITIONAL TRADE THE EVOLUTION OF THE ROMANIAN RETAIL MARKET OVER THE LAST YEARS Cristina Banfi ECR Business Development Manager MEMRB South Europe ROMANIA RETAIL FORUM, October 17, 2006 Copyright © MEMRB IRI, 2006. Confidential and proprietary.

Retail Market Universe - Romania, 2006 Main FMCG channels (number of stores) Note: Grocery

Retail Market Universe - Romania, 2006 Main FMCG channels (number of stores) Note: Grocery includes channels as Hyper/Supermarket, Cash&Carry, Discounter and other Grocery outlets Copyright © MEMRB IRI, 2006. Confidential and proprietary. 2

Retail Market Evolution - Romania, 2002 - 2006 %Change number of stores per channel

Retail Market Evolution - Romania, 2002 - 2006 %Change number of stores per channel over time Outlet Universe Modern Trade 2006 vs. 2002 332. 4% Traditional Trade 1. 2% Total Romania - Off Premise 1. 5% Copyright © MEMRB IRI, 2006. Confidential and proprietary. 3

Retail Market Evolution in the Region (number of stores) ROMANIA Channel / Country POLAND

Retail Market Evolution in the Region (number of stores) ROMANIA Channel / Country POLAND BULGARIA 2002 2005 vs. 2002 Total Grocery 50, 444 52, 524 4. 1% 93, 634 99, 650 6. 4% 28, 165 28, 693 1. 9% Total Drugstore Cosmetics 7, 734 8, 153 5. 4% 16, 151 17, 995 11. 4% 13, 998 11, 895 -15. 0% Total Specialised Store 813 1, 432 76. 1% 1, 746 2, 684 53. 7% n/a n/a 15, 004 10, 882 -27. 5% 25, 260 27, 221 7. 8% 7, 953 5, 362 -32. 6% Total Convenience HUNGARY Channel / Country CZECH REPUBLIC SERBIA & MONTENEGRO 2002 2005 vs. 2002 Total Grocery 23, 120 22, 755 -1. 6% 17, 605 16, 142 -8. 3% 30, 011 27, 014 -10. 0% Total Drugstore Cosmetics 3, 190 3, 270 2. 5% 5, 437 5, 374 -1. 2% 4, 112 3, 654 -11. 1% Total Specialised Store n/a n/a 1, 194 1, 326 11. 1% n/a n/a Total Convenience n/a n/a 1, 536 1, 749 13. 9% 10, 748 9, 218 -14. 2% Copyright © MEMRB IRI, 2006. Confidential and proprietary. 4

Grocery Outlets Density Evolution in the Region Outlets density in Romania and other countries

Grocery Outlets Density Evolution in the Region Outlets density in Romania and other countries in the region over time Country Total Grocery 2005 (thousands) Population 2005 (millions) Density 2005 (outlets / 1000 inhabitants) Density 2002 (outlets / 1000 inhabitants) Romania 52. 5 21. 6 2. 4 2. 3 Bulgaria 28. 7 7. 7 3. 6 Serbia & Montenegro 27. 0 8. 5 3. 2 3. 4 Poland 99. 7 38. 2 2. 6 2. 4 Hungary 22. 7 10. 1 2. 2 2. 3 Czech Republic 16. 1 10. 3 1. 6 1. 7 Copyright © MEMRB IRI, 2006. Confidential and proprietary. 5

Expansion of Modern Retail Chains in All Romanian Regions* 16 20 7 2 4

Expansion of Modern Retail Chains in All Romanian Regions* 16 20 7 2 4 7 13 11 17 23 3 16 27 25 3 13 2 11 5 * as of October 2006 Copyright © MEMRB IRI, 2006. Confidential and proprietary. 6

Modern Trade Channels – Romania, 2006 vs. 2005 Number of stores per channel Bucharest

Modern Trade Channels – Romania, 2006 vs. 2005 Number of stores per channel Bucharest vs. the rest of the country Copyright © MEMRB IRI, 2006. Confidential and proprietary. 7

Modern Trade Channels Evolution – Romania Number of stores over time Channels value share

Modern Trade Channels Evolution – Romania Number of stores over time Channels value share over time * estimation based on retailers expansion plans Copyright © MEMRB IRI, 2006. Confidential and proprietary. 8

SUMMARY Modern Trade is developing fast and it is expected to count for more

SUMMARY Modern Trade is developing fast and it is expected to count for more than 40% of total value sales in the FMCG market in 2007. Discounters have the most aggressive expansion plans covering all regions of the country. Hypermarkets are also very dynamic (4 times more outlets in 2007 compared to 2005) and will become the leading modern trade channel in 2007. Copyright © MEMRB IRI, 2006. Confidential and proprietary. 9