Presentation by Frederico Ferrannini Fick, Head Buyer of NorgesGruppen at Meatco Producer of the Year Awards 2012.

1. NorgesGruppen AS
Norway’s largest grocery enterprise

2. We will improve your everyday life
By:
 Providing good service
 Being competitive
 Providing inspiration
 Ensuring high quality
Our target groups are:
 Customers
 Dealers
 Alliance partners
 Employees
 Suppliers
 Owners
A better everyday life Page 2 / 29.10.2012

3. Deep roots in Norwegian wholesaling and retailing
Significant milestones
1866: Joh Johannson established as a wholesaler
1869: Retailer Oluf Lorentzen established
1907: Retailer Jens Evensen established
1946: Grocery wholesalers create KK customer service body
1994: NorgesGruppen created as Norway’s largest group of
cooperating wholesalers and retailers
2000: NorgesGruppen ASA created as an integrated food
retailer by merging Joh Johannson’s wholesale
operations, retail chains and chain service centres
2004: Merger of all dealer-owned chains in a single service
centre
A better everyday life Page 3 / 29.10.2012

4. NorgesGruppen in brief
 Norway’s largest food retailer
• NOK 58,6 billion/ USD 10 billion in operating revenues in 2011
• 6th largest company in Norway
 Serves the following market segments
• Grocery trade
• Kiosk/convenience trade
• Food Service (HoReCa)
 Wholly-owned and dealer-owned retail grocery and kiosk
operations nationwide
• 2 350 sales outlets and approx. 27 000 employees affiliated to NG
• 37,4 % of the Norwegian Grocery market*
• 45 % of the Norwegian FoodService market*
• 70% of the Norwegian Shipschandler market
 Norway’s largest grocery wholesaler
• 13 regional units
 Property, product development and branded products
* Source: Nielsen Dagligvarerapporten 2012, Servicehandelsrapporten 2011 and Andøy Data (SHH)
A better everyday life Page 4 / 29.10.2012

5. NorgesGruppen’s business areas
NorgesGruppen
Retail Wholesale
 Wholly owned stores  Logistics  Warehousing
 Chain service centers for  Distribution  Marketing/sales
grocery and convenience
trades
Other activities Property
A better everyday life Page 5 / 29.10.2012

6. Norwegian grocery market 2011: NOK 143,7 billion
Total market growth: 3.8 % from 2010 to 2011
NorgesGruppen 37.4 % (+0,5)
COOP Norge 23.4 % (-0,3)
Rema 1000 21.3 (+ 0,4)
ICA Norge 14.1 % (-0,8)
Bunnpris 3.8 % (+ 0,1)
Source: Nielsen Dagligvarerapporten 2012
A better everyday life Page 6 / 29.10.2012

7. Largest food retailer in Norway
 Grocery stores and kiosks
Key facts
 wholly-owned activities and chain members
 Number of outlets:
 Chain concepts tailored to market segments 1,752 grocery stores,
 Hypermarkets including 666 wholly-owned
(as of April 2012)
 Big supermarkets
 Total annual sales:
 Supermarkets
NOK 55.7 billion for
 Discount stores groceries, wholly-owned and
 Corner shops and kiosks dealer-owned.
 Organised in four chain service centres  Dealer-owned stores
account for 38.3 % of total
Kjøpmannshuset Norge AS grocery sales in the chains
(Spar, Joker, Nærbutikken)
 Market share:
Kiwi Norge (Kiwi) Grocery trades: 37.4 %
Meny AS (Meny, Centra, Ultra)
NorgesGruppen Servicehandel AS
(MIX, Deli de Luca, Fresh m.fl.)
 About 100 associated shops/chains come in addition
A better everyday life Page 7 / 29.10.2012

8. Flow of goods and information from producer to end-user
 Norway’s largest wholesaler
• ASKO NORGE AS, parent company for the business area
Key facts
• 13 regional units with one or more terminals  No of customers: 13.000
• ASKO companies are spread nationwide and deliver to  Net sale of goods 2011:
13,200 customers NOK 40.0 billion.
 13 regional units with one
or more terminals
 Customer categories
 Status 2011: 76 % of
• Retailing deliveries
• Catering
 Long-term goal: 100 % of
• Kiosk/convenience trade deliveries
• Offshore
 Challenges
• Increase share of deliveries
• New lines of goods
A better everyday life Page 8 / 29.10.2012

9. Konsernet NorgesGruppen
Concepts
HoReCa / Fastfood
Retail Convenience Industry
Others
Owner
Shareholder
Danmark
Sverige
Delivery
via ASKO
A better everyday life Side 9 / 29.10.2012

10. 2. What can we do to increase sales further? (Unil
Europa Europa
Nord Amerika
84% Nord Amerika 41%
4%
Asia 6% Asia
13 % 41 %
Afrika
0,2 % Afrika
Sør og mellom 4%
Sør og mellom - Amerika
-Amerika 8%
0,2%
Suppliers per continent Rawmaterials per continent
• Reduce the gap between raw materials from Africa and direct
suppliers
• We buy
Peanuts, Cocoa, Sugar, Chillipeppers, Spices, Sunfloweroil, Pal
moil, Onions, Oregano, Beef, Pineapple and more today, but
only 1 direct supplier…
A better everyday life

11. MARKET
Demand+Standards = Assortment
RETAIL INDUSTRY
Import Meat
Shipschandler
FOOD
SERVICE (offshore)
A better everyday life

12. Meat Corporation of Namibia
NorgesGruppen
17 January 2012

13. Focus on quality, environment, food safety
 Proactive management of:
• Quality
• Environmental protection
• Food safety
• Ethical trading
 Rising awareness among consumers
• Increasing quality awareness
• Less tolerance of errors and products with unwanted features
• Trust in and reputation of NG have much greater effect on consumer
choice
 Planned and long-term approach
• Clear objectives in each area
• Proactive systems for in-house and external evaluation and
management of issues
• Quality guarantees
• Emergency response plan for dealing with crises
• Increased strategic commitment to ethical trade and organic
products
A better everyday life Page 13 / 29.10.2012

14. Audit to Meatco and its supply chain - January 201
A better everyday life

15. Meatco Project
 First ever conceptualization and direct import project of chilled meat: Natures Reserve
 Pilot project considering the whole supply chain (Logistics, IT, labelling etc)
 Strict Quality Control
 Strict CSR program
A better everyday life Page 15 / 29.10.2012

16. Meatco Namibia CAN WE REACH THIS TARGET ?
HOW
SAME PRICE
SAME QUALITY
A better everyday life

17. Meatco Project
• Food Service as first focus
• Product Development and value adding
• Investment in Training of Sales Force
• Marketing budget
• Roadshow
A better everyday life Page 17 / 29.10.2012

18. Nordic Cooperation
 With a marketshare of 25%, and an annual turnover of apprx.
EUR 16 billion, United Nordic is one of the biggest purchasing
groups of Scandinavia
 The 4 partners are; Dagrofa (Danmark), Axfood (Sverige), Tuko
Logistics (Finland) og Norgesgruppen (Norge) – All companies
has a 25% share of the company
A better everyday life 18

19. NorgesGruppen’s Annual Report 2011
If you require a copy of NorgesGruppen’s annual report, you can download it at
http://rapport2011.norgesgruppen.no/
A better everyday life Page 19 / 29.10.2012