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FMCG MONITORAn integrated view of Indonesia FMCG market

FULL YEAR

2015

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EXECUTIVE

SUMMARY

Compared to November 2015, ID inflation in December 2015 decreased from 4.89% to 3.35%.The average rate for USD 1 is Rp 13,960-at end of December 2015

With 15% value growth, 10% volume (L) and 1.4 penetration points growth, dish wash comes up as the hottest category of 2015

1 2Compared to previous years’ growth, FMCG growth in 2015 is dropping quite steep. Economic slowdown impacting consumers behavior, as well as FMCG categories.

Throughout 2015, all trade channels are impacted by the economic slow down since people also less frequent to shop.

4 5During difficult economy time in 2015, consumers tend to behave differently compared to previous years. Find out more in this section.3

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- 3.35%

Compared to November 2015, ID inflation in December 2015 decreased from 4.89% to 3.35%.

+ 4.79%

Indonesia full year 2015 GDP growth 4.79%, slightly above expectations of a 4.75 percent (Trading Economics), but still the slowest growth since 2009. Fortunately, Q4 GDP growth hit 5.04%.

+10%

Exchange RateVs Year Ago

CPI

GDP

Rupiah exchange rate to USD is weakened 1% in December 2015 compared to a month ago, In this months vs. year ago, the exchange rate is weakened by 10%. The average rate for USD 1 is Rp 13,960- at end of December 2015

Total National Indonesia FMCG value slightly increased by 1% in Early January 2016 (52 week ending 3 Jan 2016) vs. Year Ago+1%

Source : Kantar Worldpanel Indonesia | Household Panel

Source : BPS and Bank Indonesia

1KEYINDICATOR

FMCG TREND

MACRO TREND

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14.8 14.7

0.7

7.7

4.1

-1.9

6.6

10.18

2.64

-3.0

7.0

17.0

27.0

37.0

Full Year 2013 Full Year 2014 Full Year 2015

Value Change

Volume Change (Unit)

Price per Unit Change

FMCG – FULL YEAR – YEARLY CHANGE (%)

% Change vs Year Ago

Source : Kantar Worldpanel Indonesia – Total National Indonesia - Household Panel – Total FMCG

1.45

-3.54

-8.12

12.0

16.9

7.6

5.05 6.11

4.79

-10.00

0.00

10.00

20.00

Full Year 2013 Full Year 2014 Full Year 2015

No of Shopping Trips

Spend per Shopping Trip

Units Bought per Shopping Trip

% Change vs Year Ago

Compared to previous years’ growth, FMCG growth in 2015 is dropping quite steep. Economic slowdown impacting consumers behavior, causing FMCG categories to also feel the effect. Consumers were mostly hold their spending and decrease their shopping consumption.

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FMCG SEGMENTS TRENDS – VALUE AND VOLUME CHANGE (%)

Source : Kantar Worldpanel Total National Indonesia – Household Panel – Total FMCG

Throughout the year, most segments growth are slower, some even showed negative growth both in value and volume. Foods and Dairy are the segments that were impacted the most by the economic slowdown.

Foods Personal CareDairy Home CareBeverages

14.4% 17.8%

10.5%17.6% 14.2%

-0.4%-2.4%

1.3%5.3%

2.0%

2.9%

6.0%3.2%

10.0%

3.2%

-4.9%-2.3% -3.1%

7.0%

2.5%

52 week ending 28 Dec 2014 vs Year Ago

52 week ending 3 Jan 2016 vs Year Ago

Value(IDR)

Volume (units)

FOODS DAIRY BEVERAGES HOME CARE PERSONAL CARE

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HOT CATEGORIES

+10% +1.4 pts

PENETRATIONINCREASE

+15%

3NATIONAL | Full Year 2015

TOTAL VOLUME INCREASE (L)

With 15% value growth, 10% volume (L) and 1.4 penetration points growth, dish wash comes up as the hottest category of 2015 -showing that even in difficult economy time, consumers still spare their pockets for necessity category like dish wash.Dish Wash

National Indonesia | 52 week ending 3 Jan 2016 vs. Year Ago

TOTAL VALUE INCREASE (IDR)

Image source: Wikipedia.org. Used under creative license.

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RETAILER SNAPSHOT

Source : Kantar Worldpanel Indonesia – Household Panel – Total FMCG

Value Change %52 week ending 3 Jan 2016

vs. Year Ago

Total Modern Trade -2%

Minimarket +1%

Traditional Trade +1%

NATIONAL INDONESIA4Value Change % (vs Year Ago)

7.5 7.4

11.9 12

79.7 80.2

52 week ending28 Dec 2014

52 week ending3 Jan 2016

Total Traditional Trade

Minimarket

Hypermarket+Supermarket

Others MT

Value Share %

Throughout 2015, all trade channels are impactedby the economic slow down since people also lessfrequent to shop. Traditional trade as the biggest isstill growing slightly, however compared to lastyear, the progress is slower.

Modern trade is the one that more impacted to thesituation as this channel experienced negativegrowth.

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DO YOU5KNOW?

During difficult economy time in 2015, consumers tend to behave differently compared to previous years. Find out more below.

Icons downloaded from flaticon.comUsed under attribution license.

National Indonesia | 52 week ending 3 Jan 2016

AVERAGE SPEND PER TRIPVALUE SHOPPING FREQUENCY

Rp

FMCG still experiencedpositive 1% growth in2015 compared to a yearago. Unfortunately thegrowth is much sloweras an impact from theeconomic slowdown.

+1% value growth 348 times in a year.

+1%

Difficult economic timeforces consumers tohold their spending: theydecided to decreaseshopping trip, mostly toavoid impulse buying.

Consumers spend 8% moreper shopping trip compared tolast year, as a result fromtheir less shopping frequency– although inflation also playsa part on this.

-8%

IDR 15,056 per trip.

+8%

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Kantar Worldpanel is the world leader in consumer knowledge and insights based on continuous consumer panels.Its High Definition Inspiration™ approach combines market monitoring, advanced analytics and tailored marketresearch solutions to deliver both the big picture and the fine detail that inspire successful actions by its clients.Kantar Worldpanel’s expertise about what people buy or use – and why – has become the market currency for brandowners, retailers, market analysts and government organizations globally.

In Indonesia, Kantar Worldpanel – high definition inspiration™ tracks household purchase of over 70 different FMCGcategories across food and non food from its sample of 7,000 households across urban and rural Indonesia on aweekly basis; representing around 50 million households.

For further information, please visit us at www.kantarworldpanel.com/id

CONTACT US Kantar Worldpanel IndonesiaBlok M Plaza 8th Floor | Jl. Bulungan No 76, 12130 | Jakarta Selatan

fanny.murhayati@kantarworldpanel.comdwiki.pradipto@kantarworldpanel.comwww.kantarworldpanel.com/id

Kantar Worldpanel Indonesia @KWP_ID

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