Retail Industry 11 Feb'09

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Industry Study Retail Sector 4 February 2009

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Executive Summary Recent events have clearly demonstrated the extent to which the world is interconnected. The crisis which began in the US banking system has spread through the global economy as a whole – and no region has emerged unscathed. Real incomes, credit availability and housing wealth are under downward pressure and likely to remain as it is in CY09. Negative real incomes for last two years indicate that the recent growth was entirely fuelled by credit and housing wealth. Credit and housing will continue to act as a drag on cash flow into the medium term, so spend will need to be fuelled by growth in real income, which seems somewhat distant.

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IGD estimates the global grocery retail market in 2007 to be worth $5,088 billion with the largest markets by value in the US, China and Japan. Over the next five years it is predicted that India will overtake Japan to be in the top three markets. The global Retail scenario: The US$ 9 trillion Retail industry is one of the world’s largest industries and still growing.

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Overview The global retail industry is a significant contributor to the overall economic activity globally that contributes about 27% to world’s Gross Domestic Product The industry is highly fragmented as major eight players composed only about 8% share of the global market The global retail industry is dominated by US based companies including Wal-Mart, Home Depot, Kroger, Target Corp. and Costco that comes under top ten global players Wal-Mart is the global leader in the industry with FY08 revenue of $398.4MMThe global retail industry is estimated to grow at a CAGR of 5.5% till 2009 However, industry is facing challenging outlook for 2009 as they are dealing with liquidity issues, reduced consumer spending and weak credit market conditions Most of the industry players are focusing on emerging markets including BRIC nations Market Share of Global Major Players* CAGR +5.5% *Company’ sales are taken on LTM data, whereas market size is estimated for 2008 Global Retail Industry Sales Growth

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Overview – Grocery Retail According to IGD estimates, the global grocery retail market in 2007 was estimated at $5,088 billion, with the largest markets being the US, China and Japan Over the next five years it is predicted that India will overtake Japan to be in the top three markets Global Grocery Retail Industry contributes around 40% of the total retail industry (CY07) Top Grocery Retail markets ($bn)

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Industry Performance based on Region/Country Sales Growth and Profitability by Region/Country The emerging markets in Africa, Middle East, Asia Pacific and Latin America showed impressive growth rate that was well above industry average of top 250 companies The 2007 revenue growth rate of 14.0% in the Asia Pacific region was supported by strong efforts made by domestic retailers, primarily in China, Korea, and Taiwan, to compete with the foreign competition Latin American retailers witnessed highest net profit margin in 2007, due to strong performance of ‘Falabella’ and ‘Liverpool’ European retailers faced modest growth rate over 2002-07 period, led by slow growth in France and Germany The German retailers faced negative impact over their sales and profitability, due to a three percent increase in Value Added Tax (VAT) that came in to effect on Jan 1, 2007 American retail industry faced negative impact of economic recession impeding consumer spending, that resulted in lower sales growth as compared to their overall growth in 2002-07 period Regional Performance in Global Retail Industry

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Industry Timeline 1990’s Overview -They may be general stores catering to a limited geographical range. Decline -In highly industrialized regions, these type of outlets have decreased in number in favor of franchise operations. The evolution of retail industry clearly paves a path for a new phase. Online retailing, relatively untapped, though at a very nascent stage is the market which will have an explosive growth. But hypermarkets and discount stores will continue to grow!!! Upcoming 1860 onwards 1930’s 1950’s Introduction of Mom and Pop Store Online Retailing Supermarkets Discount stores Hypermarkets Overview -A supermarket is "a large self-service grocery store where merchandise are arranged in open mass display”. Facts -Supermarkets as a concept began in the U.S. Traditional supermarkets in many countries face intense competition from discount retailers Overview -A discount store is a type of department store which sell products at prices lower than those asked by traditional retail outlets. It offers a wide assortment of goods. Development - Many of the major discounters are now opening "supercenters", which add a full-service grocery store to the traditional format. Overview -A hypermarket is a superstore which combines a supermarket and a department store which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. Pioneering -The format was pioneered by Carrefour, France. Overview - Online shopping is the process consumers go through to purchase products or services over the Internet. Trends -Online shopping is convenient and has become extremely routine and predictable, which is one of its great appeals to the consumer.

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Key trends “Even as companies continue to struggle, the important take-away is that the Web is continuing to grow. It's taking wallet share away from the rest of the retail world” Sucharita Mulpuru, Analyst, Forrester Growth in online retailing The retail industry is experiencing a shift towards online retailing from normal retailing as consumers are turning towards internet for convenient shopping at reasonable prices Facilitation in price-checking, best bargains deals, cost-saving elements as well as convenience of being able to shop from home, all these factors have attracted consumers towards online retailing, resulting in increased share of online retailing in overall retail revenues (7% in 2009 as compared to 6% in 2009) The online retail sales is expected to grow in 2009, however, recession is expected to slower down the growth rate The US online retail sales is expected to rise by 11% y-o-y in 2009, as compared to 13% y-o-y in previous year, to reach a market size of $156bn Focus on improving customer experience As the recession is hurting the growth and profitability of companies globally, most of the retailers are focusing on enhancing customers’ experience. They are focusing more on offering an enjoyable, informative, entertaining, and easy experience to its customers, depending on their interests and preferences Company’s like Wal-Mart, Apple’s istore, and Best Buy are enhancing their in-store customer experience through cutting-edge fixtures, kiosks, merchandise, and technology Adoption of environment friendly practices As the recession

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Total Retailers - % present in American Retailers - % present in EMEA Retailers - % present in Asia Pacific Retailers - % present in Size of International Retail Footprint.. %age of International Retailers from different regions Two-thirds of Asian retailers were present in 10 or fewer markets (and 40% were in 5 or fewer countries), compared with less than half of those domiciled in EMEA or the America Only 13% of European retailers had a presence in over 30 markets, compared with 19 % of the retailers from the America Nevertheless, the fact that over 10% of the sample from each of the three regions were active in over 30 markets indicates that nationality is not necessarily a barrier to establishing a truly global presence. Source: CB Richard Ellis, ARC Research, Industry Data

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Size of International Footprint... By type of retailer Luxury retailers are the most ‘international’ amongst all the categories, nearly 90% had a presence in more than 10 markets. This was markedly ahead of the grocery, food and drink retailers, of which only 60% had a presence in more than 10 markets, and clothing, footwear and accessories retailers of which 54% were in more than 10 markets By contrast, only 5% of department store retailers in the survey had a presence in more than 10 markets. Understandably department store retailers face many challenges when entering new markets Department stores are also very reflective of the culture of the country in which they operate, meaning that their ‘brand’ often does not travel well Source: CB Richard Ellis, ARC Research, Industry Data

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USA The retail industry is the 2nd largest industry in the US with $4,478bn in sales in CY08; Food retail contributes around 23% of the total US retail market Wal-Mart is the biggest retailer with a market share of around 9% of the total US retail sales (14% market share in Food retail market) The majority of the revenue in the retail industry is generated by companies that run retail chains Around 90% of the total retail stores in the US are single-store businesses, which contribute substantially less than half of all retail sales E-commerce currently represents approximately 2.7% ($120.9bn) of the total retail industry revenues, a number that has steadily grown in past years. With the successful emergence of eBay and Amazon, the online retailing provides an huge untapped opportunity for the industry leaders to reach the customers and increase revenues The online retail market in the US is expected to reach $316bn by 2010 Retail Stores Breakup (Volume) Online retailing is a big opportunity USA – Retail Industry Segmentation The 2009 outlook for retailers is a challenging one as many find themselves confronted by liquidity issues, reduced consumer spending and weak credit market conditions US Retail Industry Size ($ trillion) *Figures are taken for CY07

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United Kingdom UK retail industry size of GBP 278bn in 2008 larger than the combined economies of Denmark and Portugal; GBP 127bn contributed by food stores The retail sector generates almost 8% of the Gross Domestic Product of the UK Sales over the internet account for less than 4% of total retail sales UK – Retail Industry Segmentation UK Retail Industry Size (£ bn) Source: British Retail Consortium, Industry Data, ARC Analysis

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Europe Retail industry is still fragmented in Europe, with the top 350 companies controlling about 50% of the revenues. Each of the top 350 retailers have sales of more than EUR 200MM Carrefour of France is the largest retailer in Europe having about 1.9% market share UK market leader Tesco is the second biggest retailer in Europe, while Wal-Mart through its subsidiary ASDA is the 12th largest retailer of Europe and trying hard to stand still since its entry in Europe in 1997 Eastern European countries are expected to report good growth, including Estonia, Latvia and Lithuania, Czech Republic and Poland Latvia is expected to witness about 82% increase in retail sales over the period CY08-17 Also, Czech republic will see a growth rate of 45%, followed by Poland (44%) The Eastern European countries are also attracting property investment in retail from overseas investors as almost 100% of the buyers in Hungary, Romania and Slovakia are overseas investors International Vs Domestic Retailers Leading Western European countries – Grocery Retail(€ bn) *Market size is given for CY07 The retail industry in Central and Eastern Europe is expected to grow in coming years as economic growth continues in these region

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India India – Retail Industry Segmentation Indian Retail Industry Size ($ bn) Source: British Retail Consortium, Industry Data, ARC Analysis The Indian retail market has been ranked 2nd after Vietnam as the most attractive emerging market for investment in the retail sector. The total retail market size in India in 2008 is estimated at $353bn, which is expected to touch $427bn by 2010, $637bn by 2015 and $860bn by 2018 The retail sector in India is highly fragmented and organised retail, estimated at 7% of the total market, is at a very nascent stage. The estimated share of organised retail in total retail by 2010 is 12%, by 2015 is 18% and by 2018 is around 25% India is one country, but in reality it has 28 very different markets each with its own tastes&shopping habits, understanding this diverse market and the constantly evolving consumer is the biggest challenge. Over 12MM small&medium retail outlets exist in India, the highest in any country. Food retail contributes around 67% ($236bn). This makes India the 6th largest grocery market in the world, growing to $482bn in 2020, and coming in at 4th position after US, China, and Japan Organised Retailing in India (%)

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Asia-Pacific Asia-Pacific retail industry, growing at a rate of 13.9% (CY07), is facing the impact of recession in the US The retail market of Asia is showing modest growth , led by China, Hong Kong, Indonesia, Malaysia, Philippines. On the other hand, few Asian countries, including Taiwan, New Zealand and Japan are witnessing comparatively slow growth rate Japan witnessed 1.5% decline in its retail sales in Q4 Dec ‘08, as compared with same quarter previous year, as consumer demand fell sharply due to economic slowdown Further, rising inflation in most of the Asian countries has reduced the real growth rate in the industry In 2007, the online retail industry in Asia-Pacific reached to $43.2bn The highest %age of internet users engaged in online shopping hailed from South Korea, followed by Japan with 97% Source: AT Kearney’s GRDI, 2008; ASSOCHAM and KPMG

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Emerging Markets Interest in emerging markets is growing fast markets hold the key to retailers’ future growth. According to the Institute of International Finance, foreign direct investment in emerging markets increased from $167 billion in 2006 to $255 billion in 2007 This process is being fuelled by the fast growth of consumer spending and the ‘emerging middle class’ that these countries offer. Key Target Markets for Where retailers see their main growth in turnover over the next 5 years India, Ukraine, Russia and Malaysia are the most sought after markets. A large number of international retailers have opened their first store in India within the 18-20 months or are planning to do so imminently. Foreign ownership rules are gradually being relaxed, and the size of its market relative to its low volume of multiple retailers makes for a compelling opportunity China, Thailand and Malaysia represent a compelling opportunity. 19 out of 20 retailers who first consider these markets later choose to open stores. These nations are seen as relatively stable and uncorrupt but still with sufficient latent consumer demand.

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Retail facing Recession…. Recession impact in retailers Gone into Administration UK Retailers - MFI and Woolworths Bankruptcy Protection US Retailers - Circuit City, Shoe Pavilion, KB Toys, Steve & Barry’s and Mervyns Trimming of the operations Office Depot closed dozens of stores Shutting down/Closing of operations (Bennigan’s Grill and Tavern) Mergers and Acquisitions Big companies taking advantage of distress sales and reduced assets value to build up the market presence CY09 may turn out to be a bumper year for M&A in terms of volume, if not in value Delay in expansion plans Capital expenditures may be reduced 20% to 50% this year compared with last year Retail and consumer goods companies gave been affected head on by the much reduced consumption power Consumers are cutting back on driving, entertainment, eating out, vacations and food as their jobs have been lost and personal credit has tightened Unemployment Retail sector lost 91,300 jobs in Nov’08 in the US – Highest monthly loss since 1956 The credit crunch that began in the US and quickly spread globally has slowed retail growth and added to the financial stress of retailers worldwide. US based retailers in particular are grappling with lower same-store sales in their home markets

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Who is Gaining from Recession….. Consumers spending on non essential items decline in recession while consumers continue spending on essential items such as food. In the current recession environment, the experience of food producers is bearing this out Revenues of Nestle (Switzerland) are still outstripping forecasts, while Danone (France) is faring even better Interestingly, alcohol and tobacco are still on the list of consumers priorities Results of SAB Miller and Imperial Tobacco have indicated that consumers will continue to spend on small sins For many non-essential items, consumers spending is more resilient and less predictable than expected Small and long lasting items like books had been seen as vulnerable to a spending downturn, but surprisingly Amazon (USA) has reported buoyant sales fdf

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Recession and consolidation A credit squeeze triggered by the global crisis has hit both the food and nonfood retail sectors, which may accelerate consolidation inside the fragmented industries Everything is less expensive now, and M&A activities in food retailing is expected Retail giants may buy the smaller chains threatened with bankruptcy The financial crisis should have extinguished M&A activity in CY08; instead, it kept deal making alive, specially in 2H CY08. Also with retail stocks getting clobbered and sales growth projected to hit the skids, the retail landscape was a veritable goldmine of hot prospects, especially for PE firms looking for bargains. However, unlike the multi-million dollar mega deals of the past two years, PE money tended to flow to mid-sized merchants as investors were more cautious in the investment environment.

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Preferred Destinations by Global Retailers The UK is the most highly penetrated global market, attracting 55% of international retailers. European markets generally have a more multinational retail offer than their Asian or American counterparts Spain, France and Germany fought very closely in the global ranking, achieving 2nd, 3rd and 4th positions respectively Indeed, European markets appear to have a more multinational retail offer than their Asian or American counterparts Among the BRIC (Brazil, Russia, India and China) group of countries, only China and Russia are amongst the top 10 rankings. Interestingly, the US was at 11th rank with the presence of 39% of international retailers India found itself at 44th rank with presence of just 15% of the international retailers, primarily due to FDI (foreign direct investment) restrictions in retail and also relatively lower average per-capita income in the country Source: CB Richard Ellis, ARC Research, Industry Data Italian retailers seem to be the most international, on average having a presence in 25 countries outside Italy. This was notably ahead of the next highest country, Spain, whose international retailers were operating in an average of 19 other countries. To some extent, however, this also reflects the historic dominance of luxury goods and clothing by European ‘haute couture’ fashion houses With a population of over 300MM people, and retail sales generating over $4 trillion annually, one would expect America to be a magnet for foreign retailers. However, whilst potentially very lucrative to those who succeed, the US is also one of the most mature, and thus competitive, retail markets in the world. It is far easier for a US domestic retailer, with a strong local or regional presence, to expand its network nationally than it is for a new overseas entrant to adapt its offer to suit the American market

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Emerging Markets Russia - Retail sales growth of 4% in 2009 after a 16% rise in 2007 Wal-Mart, which is increasingly looking overseas to fuel expansion, last year joined the Russian retail lobby group after hiring an executive to head its efforts to explore business opportunities in Russia and neighboring markets. Sources have said Wal-Mart hired 30 Russian office staff and is in acquisition talks with local chains that may need a cash injection to cope with the crisis Global Retailers Eyeing Russian Sector in 2009 Emerging markets are becoming more important for many retailers, with China, and Russia particularly attractive

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Emerging Markets

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Financial Analysis

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CMP: €3.582 Market Cap:€28,163MM EV:€35,796MM PE:13.777 EV/Sales:0.712 EV/EBITDA:9.4 Business Overview Tesco plc is a British-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share with profits exceeding £2 billion. Tesco is among the world's top five largest retailer. Originally specializing in food and drink, it has diversified into areas such as clothing, consumer electronics, financial services, telecoms, health insurance, dental plans, retailing and renting DVDs, CDs, music downloads, Internet services, and software. It has approx 444,127 average employees and around 3,751 stores worldwide. Tesco's share of the UK grocery market in the 12 weeks to 10 August 2008 was 31.6%, up 0.3% on 12 weeks to 13 July 2008. The business' market share has been rising monthly since its recent low of 30.9% in March 2008. Across all categories, over £1 in every £7 (14.3%) of UK retail sales is spent at Tesco. Tesco operates in UK, USA, Ireland, Czech republic, Poland, Hungary, Slovakia, Turkey , China , Thailand, Malaysia, South Korea and Japan. Tesco received two outstanding accolades on 11 April 2008 as it was named Retailer of the Year and E-tailer of the Year at the World Retail Awards in Barcelona. Tesco PLC on 12 August 2008 announced agreement with Tata that it intends to develop a wholesale cash-and-carry business in India, with an initial investment of up to £60m in the first two years. Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) Tesco plc (TSCO:LN) United Kingdom | www.tescoplc.com| All charts for last 2 years and LTM numbers

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Business Overview One of the largest retailer in Australia and 25th largest retailer in the world with more than 3000 stores and 180,000 employees deals in food and everyday needs Considered to be the major investor in ANZ communities in 3 key ways :Economically,Socially and Environmentally Major core values: Retail passion,Integrity,Leadership and Responsibility Core strengths include its world-class supply chain capability, low cost culture and its depth of talent Contributes more than 95% in domestic sales of retail industry Entered into an agreement with Qantas Airways Limited to Create New Loyalty Alliance Cuts interest rate on EVERYDAY MONEY CREDIT CARD in order to provide benefit to customers Becomes first Australian retailer to stop selling inefficient incandescent light bulbs Committed to providing and developing equal opportunities in the workplace Reported a net sales of $m 47,035 and a net profit of $m 1651.5 for the year ended June’08 Looking for business venture with TATA under the Brand name CROMA in India Expansion of range includes continues with our Homebrand, Select, FreefromNaytura and Organics Target for sales to grow in the upper single digits assisted by bolt-on acquisitions ,CODB reduction of 20bps per annum,to open 15–25 new Australian Supermarkets per annum. 3%+ space growth Long Term objective is that EPS growth should outperform EBIT growth Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Woolworths Ltd(WOW:AU ) Australia| www.woolworthslimited.com.au| All charts for last 2 years and LTM numbers CMP:$27.7 Market Cap:$33,942MM EV:$36,204MM PE:20.67 EV/Sales:0.77 EV/EBITDA:11.51

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Business Overview World’s second-largest retailer and the largest in Europe with more focus on Food items Contributes 11% in total sales of retail industry Strives to promote diversity, develop skills and ensure a sense of well being at work Top private employer in France and ninth in the world, with over 500000 employees Operates through a 292 Hypermarkets,595 supermarkets, sales area of 4.1MM sq.m, and has GAV of over €14bn Located in France,Spain,Italy,Europe,Latin America & Asia with over 15000 stores including franchises Aims to expand international footprint by a combination of organic growth, franchising or acquisitions and Brand unification through pooling resources, simplifying our business Aim to figure among the three leading players in each of the markets where it has a presence. Reported a net consolidated sales and net profit of €m41947.8 & €m 751.8 for the H1’08 Shares growth and economic development opportunities with small farm producers hundreds of franchise entrepreneurs and thousands of SMEs. Enter an agreement with Coop Atlantique,SME for expansion in France Received the recognition of best retailer of 2008 in Greece at the 2008 Retail Business Awards ceremony Looking for entering Indian Market with the joint venture with Future group through franchise agreements with local companies or as wholesalers Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) Carrefour S.A (CA:FP) France| www.Groupecarrefour.com| All charts for last 2 years and LTM numbers CMP:€26.79 Market Cap:€18,910MM EV:€30,962MMPE:9.36 EV/Sales:0.36 EV/EBITDA:6.02

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Business Overview Founded in 1898, Casino is one of France’s leading food retailers Strives to promote quality, proximity ,solidarity and respect Focus urban integration, employee training and guidance & insertion and employment. Launched a Nutrition and Balance guide ,signed 2 major agreements in terms of equal opportunities, diversity and fighting against discrimination. Acquired Naturalia, a leading organic product retailer with a 38-store network Consolidated net sales for LTM rose 14.9% to €28710.4 MM Reported a decline of 37.7% in net profit in first-half 2008 in comparison to first-half 2007 International sales surged 63.0% to €4,802MM from €2,946MM in first-half 2007 During the first-half, the Group acquired an additional 12% of Super de raising its total interest to 57% of the Capital and voting rights. It employs more than 200000 people and has more than 10000 outlets worldwide Has international presence in Netherlands,Argentina,Uruguay,Venezuela,Brazil,Colombia, Thailand, Mauritius, Vietnam and Madagascar. Group reported a net loss of €1 MM in first-half 2008 for international associates. Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) Casino Guichard Perrachon S.A(CO:FP) FranceIwww.groupe-casino.fr All charts for last 2 years and LTM numbers CMP:€51.45 Market Cap:€5,223MM EV:£xxxxPE:XXx EV/Sales:XXx EV/EBITDA:XXx

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Business Overview World’s fourth largest retailer and the largest in German & operates retail stores and markets products over the Internet Operates cash and carry stores, supermarkets and hypermarkets, consumer electronics stores, department stores, theme stores, and online sales services Contributes 8% in total sales of retail industry Operates in 32 European countries, Asia & Africa with more than 2200 outlets and workforce of around 300000 Consistent customer orientation, high level of expertise in product range and competitive wholesale prices are key areas of success for the group Main focus towards profitable growth and consistent increase in Enterprise Value Achieved a 2nd place in DAX category at the 2008 Capital Investor Relations Award Launched a "Shape 2012 “comprehensive efficiency & value-enhancing programme with an aim to address customer needs in a better and faster manner & profitable growth in long term Honoured by bestowing the "handicapped-friendly distinction“ for its exemplary dedication to integrating handicapped people into the workplace Reported a sales growth of 7.7% amounted €m 47848 and a net profit of€m 177 in 9M 2008 with an asset base of €m 31312 Sales brand :Metro Cash & Carry, Real, Media Markt and Saturn and Galeria Kaufhof Won the “Fils d’Or” investor relations prize for the second time highly respected prize which honours the best financial communications work among the non-French companies listed in the FTSE urofirst 80 index Extra sales brand was sold to the Rewe Group on 17 January 2008 with effect from 1 July 2008 Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) Metro AG (MEO:GR ) Gremany| www.metrogroup.de All charts for last 2 years and LTM numbers CMP: £28.4 Market Cap:£9,205MM EV:£18,035MM PE:XXx EV/Sales:0.27 EV/EBITDA:5.8

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CMP: $47.12 Market Cap:$184,831MM EV:$228015MM PE:13.777 EV/Sales:0.57 EV/EBITDA:7.59 Business Overview Wal-Mart Stores, Inc. operates retail stores in various formats across the globe. They basically deal in discount stores, supercenters and neighborhood markets. It is the world's largest public corporation by revenue, according to the 2008 Fortune Global 500. It is the largest private employer in the world and the third-largest utility or commercial employer. As of 31 Jan’08 it had around 2.1 million employees. The Company's discount stores and supercenters offer merchandise such as apparel, housewares, small appliances, electronics, and hardware. Their operations comprise of three different business segments: Wal-Mart stores, Sam’s club and International. Wal-mart stores segment is the largest segment of their business, accounting for 64% of their fiscal 2008 net sales. Wal-Mart operates in the United States, Canada, Argentina, Brazil, Mexico, United Kingdom, Puerto Rico, Japan, South America and China. Net sales for the third quarter of fiscal year 2009 were approximately $97.6bn, an increase of 7.5% over the third quarter of fiscal year 2008. Net income for the quarter was $3.033bn, which is 6.6% above the third quarter of fiscal year 2008. Bharti and Wal-Mart Private Limited are joining hands . The joint venture is establishing wholesale cash-and- carry and back-end supply chain management operations in India. The first wholesale cash and-carry facility is targeted to open in 2009. Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) Walmart(WMT:US) USA Iwww.walmart.com All charts for last 2 years and LTM numbers

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CMP: €2.7075 Market Cap:€7,120MM EV:€6,756MM PE:13.537 EV/Sales:0.48 EV/EBITDA:7.53 Business Overview William Morrison Supermarkets plc retails groceries through a chain of supermarkets in England. Approximately half of the Group's stores contain petrol filling stations. Morrison has its own fresh food manufacturing and processing operations. As of Feb’08 it had around 375 stores and approx 118,880 employees. They are one of UK’s largest food retailers- 4th by sales and 2nd by market capitalization. Morrisons stores operate from large superstores with a core focus on groceries and homewares, with fewer electronics, clothing and furnishings than the company's main supermarket rivals. Morrisons superstores were largely concentrated in the English Midlands and the North of England. Morrisons supermarkets are currently split into 6 areas of the UK. Scotland (51), North (72), Midlands (75), South East (63) , South Central (62) and the South West (51). It had a total turnover of 12,969 £m in year ended Feb’08 an increase of about 507 £m from the previous year. It recorded a total turnover of 7,105 £m for its 6 month ended period till Aug’08. Morrisons was awarded the Retailer of the Year by Retail Week in 2008. Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) Morrisons(MRW:LN) UK I www.morrisons.co.uk All charts for last 2 years and LTM numbers

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CMP: $21.53 Market Cap:$36,503MM EV:$46,998MM PE:11.96 EV/Sales:0.63 EV/EBITDA:6.48 Business Overview The Home Depot is an American retailer of home improvement and construction products and services. The Home Depot, Inc. sells building materials and home improvement products. The Company's stores sell plumbing, heating and electrical supplies, lumber, floor and wall coverings, hardware, tools, paint, and lawn and garden products. The Home Depot, Inc. is the world's largest home improvement retailer and the second largest retailer in the United States based on Net Sales for the fiscal year ended February 3, 2008. The Home Depot stores sell a wide assortment of building materials, home improvement and lawn and garden products and provide a number of services. Home depot currently operates in United States, Canada, Mexico and China. As of the end of fiscal 2007 it employed more than 331,000 people and had around 2,268 stores globally. Net sales for the third quarter (3Q08) was $17.8 billion, down 6.2% from 3Q07. It has been ranked No. 5 for Most Environmentally and Socially Responsible Companies (March) Natural Marketing Institute. Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) Home Depot Inc (HD:US ) USA Iwww.homedepot.com All charts for last 2 years and LTM numbers

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CMP: $109.56 Market Cap:$ 88,129MMEV:$87,940MM PE:78.82 EV/Sales:3.69 EV/EBITDA:43.07 Business Overview Operates retail food supermarkets in Florida, South Carolina, Georgia, and Alabama and ranks among top 50 players in world in retail industry and contributes around 7.6% in total sales It sell groceries, dairy, produce, deli, bakery, meat, seafood, housewares, and health and beauty care items and many store department of PUBLIX have pharmacy, photo, and floral departments. It’s the largest and fastest-growing employee-owned supermarket chain in the United States and 10th largest US supermarket chain Appears in Fortune 500 company list with 1,035 stores across US and employs more than 1,43,000 workers Recognized by wRatings Corp. as No. 1 on their list of "Most Competitive Retailers“ in 2008 and Ranked No. 20 on the Reputation Institute's Global Pulse U.S. list of "The Most Respected Companies in the United States" It is one of the top "10 Companies That Treat You Right" in a poll conducted by MSN Money-Zogby Recently opened 14 stores in Florida, 2 stores in Albama,2 stores in Georgia and 1 store in Tennessee Announced an agreement to purchase 49 Florida stores from Albertson’s LLC It retains its position of number one for the consecutive 14th year for customer satisfaction as per American Customer Satisfaction Index (ACSI) Reported a net sales of $17,880,869 and a net profit of $840,743 for 9M Sept’08 Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) PUBLIX SUPER MARKETS, INC.(PUSH:US ) United States| www.publix.com| All charts for last 2 years and LTM numbers

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CMP:€9.41 Market Cap:€11,217MM EV:€10,744MMPE:144.78 EV/Sales:0.38 EV/EBITDA:5.84 Business Overview It’s an international group of quality supermarkets based in the United States and Europe established in 1887 retaining number 1 position in Netherlands Planning to reduce operating costs by EUR 500 million by end 2009 and Divest Tops and retail operations in Poland and Slovakia and majority interest in Schuitema Retails food through supermarkets, hypermarkets, and discount stores in North and South America, Europe, and Asia through subsidiaries and joint ventures Major contribution to sales comes from AHOLD USA division “AHOLD US” comprise of Stop&Shop/Giant-Landover & Giant-Carlisle operating companies “AHOLD EUROPE” comprise of Albert Heijn, Albert/Hypernova and Schuitema Focusing on transforming its individual retail banners into powerful local consumer brands by creating an improved product and service offering, price position and reducing operating costs Its workforce consist of more than 1,50,000 employees and with more than 2,800 stores worldwide Listed on Euronext Amsterdam Its net sales consist of consumer sales, sales to franchise stores and to associated stores Reported net sales of €25.7bn for 2008 which is 3.3% higher than 2007 Relies on cash provided by operating activities as a primary source of liquidity Sold holding in Jerónimo Martins Retail in 2008 Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) KoninklijkeAhold N.V.(AH:NA ) Netherlands| www.ahold.com| All charts for last 2 years and LTM numbers

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CMP: £4.1 Market Cap:£5,723MM EV:£7,648MM PE:24.11 EV/Sales:0.41 EV/EBITDA:7.11 Business Overview Its the UK's longest standing major food retailing chain, having opened its first store in 1869 J Sainsbury plc consists of Sainsbury's – a chain of 509 supermarkets and 276 convenience stores – and Sainsbury's Bank Sainsbury's Bank, a joint venture between J Sainsbury plc and HBOS, aims to make finance easier to understand and manage which offers saving accounts, credit cards, mortgages, insurance products, and consumer loans Consist of more than 785 stores worldwide which covers area of around 16,435 sq.m It opened its new flagship green store in Dartmouth, Devon which will help to reduce the amount of CO2 Announced Scottish environmental programme at Zero Waste conference to stop sending food waste to landfill Won the global industry leader by the Dow Jones Sustainability Index 2008/09 Contribute 14.8% in total Uk retail market sales and attracts 16.5MM customers each week Achieved cost savings target of £440MM in FY08 Focusing on space growth ,development of grocery and non-food ranges, cost savings of £155 million, sales growth etc. Reported a net sales of £9,937MM and net profit of £170MM in H1’08 It becomes largest employer to offer nationally recognized qualifications to entire workforce Revenues and Profit margins Geographical Breakdown (Revenues) For last 2 years only Return on Equity and Capital Employed Market Performance Return Analysis (%) J Sainsbury Plc (LON:SBRY ) United Kingdom| www.j-sainsbury.co.uk| All charts for last 2 years and LTM numbers