GFK Corporate Presentation

1

The GfK Group 2010GfK. Growth from Knowledge

GfK Group GfK. Growth from Knowledge September 2010

1 GfK at a glance

Agenda

Key facts about the market research industry2

1 GfK at a glance

5 Star Initiative: where we are heading3

GfK share and shareholder structure4

Sectors5

2


GfK at a glance1

4


Mission Statement

Companies need to make decisions. Knowledge is the basis for decision-making.

Our business information services provide the essential knowledge that industry, retail, healthcare and service sectors and the media need in order to make their decisions.

As a knowledge provider, we aim to be at the top in all the global markets in which we operate – in the interest of our clients, our employees, our company, our shareholders and the general public.

3

5


A strong heritage in market research

1925Founded as “Institut für Wirtschaftsbeobachtung

1984Operations hived off into a limited company;

September 1999GfK shares start trading on the Frankfurt stock

February 2009 Change to a European

der deutschen Fertigware”

1934Founded asGfK-Nürnberg e.V. (the GfK Association)

GfK-Nürnberg e.V. to retain status as a non-profit organization

1990Re-structured as privately held Inc. corporation (stock

exchangeGlobally active pure market research player

May 2005Acquisition of NOP WorldGrowth from Knowledge

joint stock companySocietas Europaea (SE)Represents internationalcorporate culture

GfK Association) corporation (stock corporation)Focus on internationalization

Growth from Knowledgehas a new dimension

6


GfK Group: key features (I)

Sales2009: 1,164 EUR million (2008: 1,220 EUR million )

Employees2009: 10,058 full-time staff (2008: 9.692)82% of which outside Germany

Services• Comprehensive information services on consumer goods,

healthcare, media and services markets• Research know-how• Marketing consultancy• Marketing consultancy

NetworkMore than 100 countries

4

7


GfK Group: key features (II)

Core businessPure market research, delivering information services to major global players in the services, media, consumer goods and g p y , , ghealthcare industries

Market positionLargest market research company in Germany, 4th largest in Europe and in the world

USPFull service worldwide: more than half of our top 50 clients consult GfK in at least two of our three sectors and in at least five of our six regionsat least two of our three sectors and in at least five of our six regions

8


Management Board

Professor Dr. Klaus L. Wübbenhorst

CEO

PetraHeinlein

COO

Dr. GerhardHausruckinger

COO

Wilhelm R.Wessels

COO

Debra A.Pruent

COO

SectorRetail andTechnology

SectorCustomResearch



SectorMedia

Pamela Knapp

CFO and HumanResourcesDirector

Dr. GérardHermet

COO

SectorRetail andTechnology

29 year career 18 years GfK

23 year careerfrom 11/2009 GfK

18 year careerfrom 09/2010 GfK

26 year career25 years GfK



Technology Research Research ResearchTechnology


5

9


GfK development 1999-2009

Sales in EUR million1 Employees

12209070

9692

1164

10058

164177 192

236 254 270 290381470

506

669

937

11121162

1220

316

366 1345 1443 1502 1587 16281714

3676

4212

4750

5539

75157903

1746

1164

301 1790

1 Up to 2001 figures according to HGB, from 2001 to 2004 figures according to US GAAP, since 2005 figures according to IFRS

TotalGermany TotalGermany

164

1999 2000 2001 2004 2005 2006 2007 2008

1366 1345 1443

1999 2000 2001 2004 2005 2006 2007 20082009 2009

10


GfK Group’s worldwide coverage: more than 100 countries

AlbaniaAlgeriaArgentinaAustraliaAustriaAzerbaijanBahrainBangladeshBelgiumBoliviaBosnia-HerzegovinaBotswanaBrazilBulgariaCambodiaCanadaChileChina

Colombia CroatiaCyprusCzech RepublicDenmarkEcuadorEgyptEstoniaFinlandFranceGeorgiaGermanyGreeceGuatemalaHong KongHungaryIndiaIndonesia

IranIraqIrelandIsraelItalyIvory CoastJapanJordanKazakhstanKenyaKoreaKuwaitKyrgyzstanLatviaLebanonLibyaLithuaniaMacedonia

MalaysiaMexicoMontenegroMoroccoMozambiqueNetherlandsNew ZealandNigeriaNorwayOmanPakistanPanamaParaguayPeruPhilippinesPolandPortugalQatar

RomaniaRussiaSaudi-ArabiaSenegal SerbiaSingaporeSlovakiaSloveniaSouth AfricaSpainSudanSwedenSwitzerlandSyriaTajikistanTaiwanTanzaniaThailand

TunesiaTurkeyTurkmenistanUgandaUkraineUnited Arab Emirates United KingdomUruguayUSAUzbekistanVenezuelaVietnamYemen

6

11


Sales by region 2009

3%

26%

7%

18%

6%

Germany

Western Europe/Middle East/Africa

Central and Eastern Europe

North America

Latin America6%

8%

40%

Latin America

Asia and Pacific

39%


Market research industry2

7

13


Market research industry: breakdown of sales by region

2009: first decline in over 20 years

9,188

1,486

4,480

Sales in 2009 US$ million

North America

Asia and the Pacific

Europe

Latin America

Middle East/Africa

13,299

492

-3.8

1.4

-1.8

-4.8

4 2

Growth in %(local currency)

46

15

5 2

Percentage breakdown of sales by region

Source: Esomar Industry Report 2010

Middle East/Africa 492 -4.2

Total 28,945 -3.732

14


League table of the market research industry

Sales 2009 Organic growthCompany in US$ million in %

1. The Nielsen Company, USA 4,628 1.0

2. The Kantar Group, UK 2,823 -9.5

5. Ipsos Group, France 1,315 -3.8

3. IMS Health, USA 2,190 -2.4

4. GfK Group, Germany 1,622 -6.0

6. Synovate, UK 816 -9.6

7 Symphony IRI Group USA 706 1 2

Source: Figures from honomichl global top 25 industry report 2010

9. Arbitron, USA 385 4.4

7. Symphony IRI Group, USA 706 1.2

8. Westat, USA 502 7.0

10. Intage, Japan 369 0.3

8


5 Star Initiative: where we are heading3

16


5 Star Initiative: overview

Fact-based Consultancy

Top 3 Global Reach

Full Service

Excellent Financials

9

17


Star 1: Fact-based Consultancy

> Innovation leadership

>Focus on customer relationship

>Competence through added value and

With the first initiative, “Fact-based Consultancy”, we aim to consistently expand our service offering to produce high quality, information-based ongoing advisory services for the top-level management of our clients. In addition to providing precise and up-to-date information, we intend to further strengthen our position as the essential partner for our clients’ market decisions.

relationshipvalue and consultancy

18


Star 2: TOP 3

> Top 3 in key countries –

> Top 3 for the individual sectors –

> Top 3 global player –

With the “Top 3” initiative, we have set ourselves the ambitious target of becoming the number 3 in the market research industry. In order to achieve this aim, we will work intensively to occupy at least the number 3 spot in the industry for the sectors and in the key countries.

Target achieved in 11 out of the 20 biggest market research countries

Aim achieved in 2 sectors

Currently number 4

10

19


Star 3: Global Reach

Our third aim under the “Global Reach” initiative is to further expandOur third aim under the Global Reach initiative is to further expand our network from the present level of 100+ countries and to establish a presence in other countries, which are important both economically and in terms of market research, and where we do not yet have our own subsidiaries.

20


Star 4: Full Service

> Use of standard, high quality, multivariate analysis methods

> Information services for the full range of strategic and

>Expertise in all markets and regions relevant to

With our fourth initiative, “Full Service”, we intend to further enhance our position as a company specializing in market research services with a wide range of information, analysis and advisory services for all the market research segments in consumer goods, pharmaceuticals, media and services.

analysis methodsstrategic and operating marketing decisions

regions relevant to market research

11

21


Star 5: Excellent Financials

Net indebtedness/EBITDA ~ 2

Sales 1,500 EUR million

Margin 13-15 %

Tax ratio of approx. 30%

The fifth initiative, “Excellent Financials”, defines our medium-term financial expectations. We are working to drive our sales quickly up to the EUR 1.5 billion mark and in the next few years will generate a margin of between 13% and 15%. We have set specific targets for reducing our indebtedness. This also applies to the tax ratio for the Group.

~ 2.31,164.5 EUR million12.6 % 19.8 %


GfK share and shareholder structure4

12

23


Key indicators for GfK share

Unit

High EUR

Lo EUR

31.27

13 00

2008

24.29

13 67

2009

Low EUR

Closing price EUR

Average daily volume traded No.

Stock market capitalization as of Dec. 31 EUR m

No. of no-par shares as of Dec. 31

Ranking in SDAXby sales

by market capitalization

No. of no-par shares (weighted) No.

13.00

22.02

31,668

791.6

35,947,363

30

5

35,884,308

13.67

24.13

21,745

867.4

35,947,363

19

4

35,884,308

No.

Dividend EUR

Total dividend EUR m

Earnings per share EUR

Free cash flow per share EUR

by market capitalizationIndex weighting by market capitalization in %

0.46

16.5

2.04

2.64

5

3.4

0.30

10.8

1.42

2.38

4

4.4

24


GfK share price performance: September 2009 to September 20101)

32

34

32

34

24

26

28

30

24

26

28

30

1) All values are indexed to the GfK share price, close price, in Euro, Source: Thomson Datastream; September 8, 2010

GfK DAX SDAX Dow Jones Euro Stoxx Media

S O N D J F M A M J J A S20

22

20

22

13

25


GfK SE: shareholder structure

U i dOther

CountriesManagement Board and

S i B d f GfK SE

GfK Association57.0% Free Float

43.0%

USA31 7%

UnitedKingdom 13.4%

France 6.4%

Countries 3.8%

Germany42.0%

(Private Investors)

Supervisory Board of GfK SE1.5%

Free float structure

2010

Private Investors are in Germany only, September 2010

31.7%

Germany 1.2%(Institutional Investors)


Sectors5

14

27


3 sectors: knowledge from 3 sources

Custom Research

Point of Consumers and Physicians

Retail and Technology

Point of sales

Media

Point of MediaData source and Physicians

Tailor-made surveys and continuous data collection

~43%

Retail information through continuous data collection

100%

Tailor-made surveys and continuous data collection regarding media consumption

~95%

source

Services

Share of continuous

709 EUR million

5.6%

326 EUR million

29.4%

126 EUR million

13.1%

research

Sales

Margin

28


Custom Research

MarketsAutomotive, business and technology, financial, media, fast moving consumer goods (FMCG); in the HealthCare segment: drugs, materials and products for dentists and l blaboratories

Marketing solutionsMarket structure, brand/communication, customer satisfaction, pricing, concept/ product tests, market positioning

P

Customer benefitMinimize risks of business decisions and ensure sustained growth in profit potential

PresenceIn more than 90 countries across the globe

15

29


Case study – saving and investing in Eastern Europe

Will the members of your household have a chance to save money in the coming twelve months?

3 9 8 4 7 14 20 4 5 5 5 14 2

55 58 66 58 66 67 61 59 76 78 78 82 75 92

43 38 35 34 30 25 25 21 20 17 16 13 11 6

Aust

ria

Slov

enia

Slov

akia

Esto

nia

Lith

uani

a

Croa

tia

Russ

ia

Rom

ania

Pola

nd

Latv

ia

Bosn

ia

Ukr

aine

Serb

ia

Bulg

aria

YesNo/unsureDon’t know/no answer

30


Retail and Technology

MarketsConsumer electronics, entertainment media, office communications, photographic and optical equipment, domestic appliances, IT and telecommunications, DIY, tourism,

dsports equipment and entertainment

Marketing solutionsProduct and pricing policies, advertising, distribution, sales and logistics

Customer benefitAccess to databases and/or transfer of standardized analysis of information about trends, volume, sales, sales channels and segments in our clients’ markets

PresenceIn more than 80 countries

, , , g

16

31


Turnover Development forTechnical Consumer GoodsGrowth Rates 2009 to previous year in %

Case study: Consumer Electronics in Europe

+1,1

-3,0

+0,6

-22,5

-11,5

-1,3

-3,7

-33,9

-12,6

-2,3

-42,6-1,7

-7,7

-6,8

Source: GfK Temax®, Turnover Development 2009/2008, Local Currency

32


Media

MarketsTV, radio, newspapers, magazines, bill-board, online

Marketing solutionsViewer, reader and listener reach and qualitative studies on consumption, acceptance, preferences and recall of media content

Presence

Customer benefitMedia reach as the basis of pricing in advertising and media planning

PresenceIn more than 30 countries across Europe and North America

17

33


Viewing time in minutes

Case study – Average TV viewing time of different countries 2009

212

Switzerland

Germany

151

212Ukraine

184 The Netherlands

185 Belgium

228

Viewers age 3 upwards (Ukraine and Belgium : viewers age 4 upwards)

Austria 145

The GfK Group 2010GfK. Growth from Knowledge

Documents

GFK Corporate Presentation