1. IBM Global CEO Study: The Enterprise of the Future Consumer Products & Retail Industry Perspective October, 2008

2. The Enterprise of the Future is… Global CEO Study 2008 | CP & Retail Perspective | October 2008 1 Hungry for change 2 Innovative beyond customer imagination 3 Globally integrated 4 Disruptive by nature 5 Genuine, not just generous

3. Consumer Products CEOs are generally more cautious about change, but view growth markets, informed customers and CSR positively Global CEO Study 2008 | CP & Retail Perspective | October 2008 Consumer Products (CP) CEO CORE TRAITS 1. Hungry for change: recognize the need for substantial change and are confident in their ability to manage the required degree of change. Outperformers see need for greater change, and are more confident. 2. Innovative beyond customer imagination: view the rise of purchasing power in growth markets as positive. More informed and collaborative customers is also positive, but investment will be limited. 3. Globally integrated: looking to benefit from global integration CP CEOs are deeply changing their capabilities, knowledge and assets, and partnering when entering new markets. 4. Disruptive by nature: plan a more conservative approach to business model innovation – emphasizing differentiating activities, redefining existing markets and a new mix of products/services. 5. Genuine, not just generous: capitalize on increased customer CSR expectations through a combination of environmental initiatives, new products and greater transparency. Higher Lower CP vs. GLOBAL

4. The Enterprise of the Future is… Hungry for Change

9. P&G, uses numerous partnerships to redefine their business model and leverage ideas globally, boosting profits by ~70% Global CEO Study 2008 | CP & Retail Perspective | October 2008 Industry leader in trade customer collaboration and integration “ We created our ‘connect and develop’ innovation model….we collaborate with organizations and individuals around the world, systematically searching for proven technologies, packages, and products that we can improve, scale up, and market, either on our own or in partnership with other companies….” “ From 2000 to 2004, P&G profits jumped by almost 70% and revenues increased by 30%” “ We have more than doubled our innovation success rate and more than doubled the future value potential of the innovations in our pipeline.” Source: Sykes Enterprises Press Release, 30 Jun 03; Business Week, 7 Jul 03; Oster Dow Jones Select, 17 Jun 03; PR Newswire, 17 Jun 03; Fast Company, Sept 03; http://www.ecom-ohio.org , July 2002; Company web sites. Quotes from Harvard Business Review, McKinsey Quarterly, 2004 Annual Report Outsourced bar soap and Vick’s brand mfg. Outsourced CRM technologies, contact support and global fulfillment services “ Connect & Develop Program ” generates new product ideas outside of the company Partnered with Clorox on food-wrap technology to get it to market faster Online techniques reduced new product concept testing from weeks to days Rolled out global e-procurement system for MRO Partners include Schneider and Exel Logistics = Differentiators = Non-differentiators Divest low margin, slow growth products Procurement Manufacture Logistics & Distribution Consumer Marketing Customer Management Product Development Deploying PRISM with AC Nielsen to measure and drive in-store marketing Licensing packaging technologies and ingredients to ConAgra The Enterprise of the Future is… Hungry for Change

10. Unilever is also undertaking major changes to their businesses, go to market approaches and operations Global CEO Study 2008 | CP & Retail Perspective | October 2008 Before After Unilever today announced that it has signed a definitive agreement for the disposal of its Bertolli olive oil and vinegar business with Grupo SOS for a consideration of €630m July 21 st , 2008: The transaction is structured as a worldwide, perpetual licence by Unilever of the Bertolli brand in respect of olive oil and premium vinegar. Unilever will retain the Bertolli brand for all other categories including margarine, pasta sauces, and frozen meals. The Bertolli brand remains a priority for Unilever with strong growth plans based on capturing the growing appetite for Mediterranean food products. Unilever All Categories Retailers Suppliers Unilever Spreads, Sauces, Frozen Retailers Oil, Vinegar Suppliers $ $ $ $ $ $ $ $ $ $ The Enterprise of the Future is… Hungry for Change

12. The Enterprise of the Future is… Innovative Beyond Customer Imagination

20. The Enterprise of the Future is… Globally Integrated

21. Cluster analysis revealed four common approaches towards global integration Global CEO Study 2008 | CP & Retail Perspective | October 2008 Source: IBM Global CEO Study 2008; n (global) = 747 MarketSight Category Name / Analysis Name: GI / Q11- Global Initiative Cluster Global Integration Approach Deeply change mix of capabilities, knowledge and assets Maintain current mix of capabilities, knowledge and assets Global Focus Local Focus The Enterprise of the Future is… Globally Integrated Drive multiple cultures Grow organically Strive for one culture Localize brands/products Do everything in-house Defend your core Partner extensively Globalize brands/products Optimize operations globally Grow through mergers & acquisitions Optimize operations locally Actively enter new markets Extensive Globalizers (n=230), Consumer Products n = 15 Globalizers (n=246), Consumer Products n = 24 Blended Thinkers (n=131), Consumer Products n = 11 Localizers (n=140), Consumer Products n = 9

24. By partnering with local players in growth markets CP companies can quickly gain distribution and access to local knowledge Global CEO Study 2008 | CP & Retail Perspective | October 2008 “ We have invested the time and resources to understand each market, partnered with strong local companies, and developed delicious products that we believe will appeal to the unique tastes of the people in each country ” D Conant, President & CEO, Campbell Soup Company Russia : partnering with leading snack company to access 1,000 sales reps and national distribution network China : leveraging Coca-Cola bottling partner’s 3,000 sales representatives and 524,000+ points of sale The Enterprise of the Future is… Globally Integrated Cautionary tales on entering growth markets abound, such as Groupe Danone’s challenges with partner Zong Qinghou over distribution and manufacturing of Wahaha in China Source: IBM Institute for Business Value, Campbell Soup Company press release, July 9, 2007

25. P&G has proactively innovated their business model in response to capture opportunities in the era of the globally integrated enterprise Global CEO Study 2008 | CP & Retail Perspective | October 2008 Case Study of a globally integrated enterprise: Procter & Gamble P&G merged with Boston-based Gillette to create world's largest consumer products firm P&G outsourced global business services to IBM, including three key regional centers, in Costa Rica, England and the Philippines P&G has outsourced a range of IT services to Hewlett Packard, with that work being carried out in centers around the world, including India, California and Poland Research & development of new products and processes is conducted in-house in a range of centers, including the Philippines and Beijing Strategic alliance with TaiGen Biotechnology to further the development and commercialization of a new antibiotic Partner Expand Shed Retain Centers in Latvia, Romania, Kenya and Saudi Arabia manage regional brands and operations Australia, Russia and Vietnam are three of 60 countries where P&G has outsourced facilities management to Jones Lang LaSalle HQ (Ohio) manages 37 facilities in 21 different US states and 99 facilities in 42 other countries P&G acquired Clairol from New York-based Bristol-Myers Squibb P&G joined the new University of Arkansas Center for Innovation in Healthcare Logistics as affiliate partner Georgia-based Meredian Inc has acquired an extensive intellectual property portfolio from P&G A range of functions, from financial and legal to logistics and brand management, are carried out in countries such as Morocco, South Africa and Nigeria The Enterprise of the Future is… Globally Integrated

27. The Enterprise of the Future is… Disruptive by Nature

32. The Enterprise of the Future is… Genuine, Not Just Generous

33. On a global basis, CEO-focus on environmental issues has doubled although there are strong geographic differences Global CEO Study 2008 | CP & Retail Perspective | October 2008 The Enterprise of the Future is… Genuine, Not Just Generous Americas EMEA Asia Pacific All Respondents’ focus on Environmental Issues “ As the world becomes more ‘green’, we can replace a plastic-based music distribution system with a waste-free music distribution system .” - Chris Gorog, CEO, Napster “ We must double our investment in environmental areas.” - CEO, Industrial Products Co., Sweden “ Environmental issues are driving entry into new market segments as avenues of growth.” - President and CEO, Automotive Company, Australia Source: IBM Global CEO Study 2008; All respondents n (2004) = 403, n (2006) = 760, n (2008) = 1,130 % of all respondents selecting Environmental Issues as a top external factor impacting their organization

35. Indeed many CP company have initiated activity across the full spectrum of CSR activities Global CEO Study 2008 | CP & Retail Perspective | October 2008 Source: IBM Institute for Business Value, CSR Study 2008, n (CP) = 29 Activities recently started Activities are mature The Enterprise of the Future is… Genuine, Not Just Generous CP Companies that have focused their CSR activities in the following areas (Percent Responses) “ The consumer’s concept of quality will no longer be measured by only the physical attributes of a product - it will extend to the process of how the product is made, including product safety, environmental compliance and social responsibility compliance.” V Fung, Chairman, Li & Fung

37. Across a range of issues CP companies are working hand in hand with reputable NGOs to burnish their responsibility credentials Global CEO Study 2008 | CP & Retail Perspective | October 2008 “ The Coca-Cola Company has launched a multi-year partnership with WWF to conserve and protect freshwater resources, including seven of the world’s most important freshwater river basins .” The Enterprise of the Future is… Genuine, Not Just Generous “ The Rainforest Alliance monitors and verifies that Chiquita's farms abide by strong environmental and social standards, which have positive impacts on rural communities and tropical landscapes. .” “ The Sierra Club today announced their partnership with Clorox’s newly-launched line of Green Works cleaners, a breakthrough line of natural cleaning products that are as effective as conventional cleaners but made from plant-based ingredients .” “ Ülker supports the campaign “10 billion Oak trees” organized by TEMA, the Turkish environmental protection foundation, of which Sabri Ülker, Ülker’s Honorary Chairman, is among the founding members.” Source: IBM Institute for Business Value, World Wildlife Fund press release: 06/05/2007, Rainforest Alliance website: http://www.rainforest-alliance.org/news/2000/chiquita.html, Ülker company website: http://www.ulker.com.tr/en/environment.aspx, Sierra Club press release 01/14/2008

39. Are you building your Enterprise of the Future? Global CEO Study 2008 | CP & Retail Perspective | October 2008 Building the Enterprise of the Future Ad hoc and reactive change Project driven change Change portfolio and program Anticipating and proactive change Change becomes the strategy HUNGRY FOR CHANGE Regulatory compliance Strategic philanthropy Values based self-regulation Efficiency through CSR CSR as growth platform GENUINE, NOT JUST GENEROUS Exploring Business Model Innovation Experimenting with BMI Implementing BMI initiatives Multiple BMI strategies Radical and pervasive BMI DISRUPTIVE BY NATURE GLOBALLY INTEGRATED Customer intelligence Customer information transparency Two-way customer interaction Customer collaborative development Expanding customer aspirations INNOVATIVE BEYOND CUSTOMER IMAGINATION