gfk corporate presentation march 2009

7/31/2019 GFK Corporate Presentation March 2009

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No future w ithout a pastGfK. Growth from Knowledge


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March 2009GfK. Growth from KnowledgeGfK Group

Key fact s about t he market research industr y2

1 GfK at a glance

The next years: 5 Star I n i t iat ive3

GfK shares and shareholder str ucture4

Sectors5

Agenda


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GfK at a glance1


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Mission Statement

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

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

As a knowledge provider, we aim to be at the top in all the globalmarkets in which we operate in the interest of our clients, ouremployees, our company, our shareholders and the generalpublic.


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A strong heritage in market research

1925Founded as Institut frWirtschaftsbeobachtung

der deutschen Fertigware

1934Founded asGfK-Nrnberg e.V. (theGfK Association)

1984Operations hived off into alimited company;

GfK-Nrnberg e.V. toretain status as a non-profit organization

1990Re-structured asprivately held Inc.corporation (stockcorporation)

Focus oninternationalization

September 1999GfK shares start tradingon the Frankfurt stock

exchangeGlobally active puremarket research player

May 2005Acquisition ofNOP WorldGrowth from Knowledgehas a new dimension

February 2009Change toa European

joint stock companySocietas Europaea (SE)Represents internationalcorporate culture


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GfK Group: key features (I)

Sales

EUR 1,220 million (prior year +5.0%)

Organic growth: 5.5%

Employees

December 31, 2008: 9,692 full-time staff82% of which outside Germany

Services

Comprehensive information services on consumer goods,healthcare, media and services markets

Research know-how

Marketing consultancy

Network155 companies cover 114 countries


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GfK Group: key features (II)

Core business

Pure market research, delivering information services to majorglobal players in the services, media, consumer goods andhealthcare industries

Market position

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

USP

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


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Professor Dr.Klaus L.Wbbenhorst

Management Board

Christian Wellervon Ahlefeld

PetraHeinlein

COO

Dr. GrardHermetCOO

Wilhelm R.WesselsCOO

Debra A.Pruent

COOCEO

CFO

28 year career17 years GfK






SectorRetail andTechnology

SectorCustomResearch

All regionsexcept NorthAmerica

North America


ConsumerTracking,HealthCare


SectorMedia


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1) Figures before 2001 are provided according to HGB,figures for 2001 to 2004 are provided according to US GAAP,figures since 2005 are provided according to IFRS

GfK development 1991-2008

Sales in EUR million1)

TotalGermany

Employees

TotalGermany

126 140192

236 254270 290

160

244

506

669

937

11121162

1991 1996 2001 2004 2005 2006 2007 2008

1220

316

1300 13731443 1502

1587 16281714

23292773

4750

5539

75157903

9070

1991 1996 2001 2004 2005 2006 2007

9692

2008

1746


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GfK Groups worldwide coverage: more than 110 countries

AlbaniaAlgeriaArgentinaAustralia

AustriaAzerbaijanBahrainBangladeshBarbadosBelgiumBelizeBoliviaBosnia-HerzegovinaBotswanaBrazil

BulgariaCambodiaCanadaChile

ChinaColombiaCosta RicaCroatia

CyprusCzech RepublicDenmarkDominican RepublicEcuadorEgyptEl SalvadorEstoniaFinlandFranceGermany

GreeceGuatemalaHondurasHong Kong

HungaryIndiaIndonesiaIran

IrelandIsraelItalyIvory CoastJamaicaJapanJordanKazakhstanKenyaKoreaKuwait

KyrgyzstanLatviaLebanonLibya

LithuaniaMacedoniaMalaysiaMalta

MexicoMontenegroMoroccoMozambiqueNetherlandsNew ZealandNicaraguaNigeriaNorwayOmanPakistan

PanamaParaguayPeruPhilippines

PolandPortugalPuerto RicoQatar

RomaniaRussiaSaudi-ArabiaSenegalSerbiaSingaporeSlovakiaSloveniaSouth AfricaSpainSudan

SwedenSwitzerlandSyriaTadzhikistan

TaiwanTanzaniaThailandTrinidad and Tobago

TunisiaTurkeyTurkmenistanUgandaUkraineUnited Arab EmiratesUnited KingdomUruguayUSAUzbekistanVenezuela

VietnamYemen


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Sales by region 2008

3%

26%

40%

7%

18%

6%

Germany

Western Europe/Middle East/Africa

Central and Eastern Europe

North America

Latin America

Asia and Pacific


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Market research indust ry2


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Market research industry: growth market

1) Exchange rate: EUR 1 = USD 1.372, USD 1 = EUR 0.729 (IMF)Source: Esomar 2008 (data as of 2007, next publication September 2009 )

Total volumeUSD 28.2 billion(EUR 20.6 billion)1)

33.631.0

4.7

14.4

5.4

2.5

Growth in %(local currency)

Sharein %

North AmericaUSA

Asia and the Pacific

Japan

China

Europe

UK

Germany

France

Latin America

Middle East/Africa

45.6

9.8

9.4

9.4

1.7

+6.2+6.0

+6.5

+8.4

+5.8

+15.1

+5.6

+2.3

+5.1

+4.1

+23.8

Total 100 +6.5


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Top 6 players in market research

1) Conversion based on average exchange rate 01-12 20081 Euro = 0.8026 GBP = 1.4695 USD

Sales 2008 in EUR million1)

1. The Nielsen Company, USA 3,410.7

3. IMS Health, USA 1,585.2

2. Kantar Group & Taylor Nelson Sofres, GB 1,593.1

4. GfK Group, Germany 1,220.4

6. Synovate, GB 645.6

5. Ipsos, France 979.3

Company


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The next years: 5 Star I n it iat ive3


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5 Star Initiative: overview

Fact-based

Consultancy

Top 3 Global

Reach

Full

Service

Excellent

Financials


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Star 1: Fact-based Consultancy

With the first initiative, Fact-based Consultancy, we aim to consistentlyexpand our service offering to produce high quality, information-basedongoing advisory services for the top-level management of our clients. Inaddition to providing precise and up-to-date information, we intend tofurther strengthen our position as the essential partner for our clientsmarket decisions.

> Innovationleadership

>Focus oncustomer

relationship

>Competencethrough added

value andconsultancy


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Star 2: TOP 3

With the Top 3 initiative, we have set ourselves the ambitious target ofbecoming the number 3 in the market research industry. In order to achievethis aim, we will work intensively to occupy at least the number 3 spot in theindustry for the sectors and in the key countries.

> Top 3 inkey countries

Target achieved in10 out of the 20biggest marketresearch countries

> Top 3 for the individualsectors

Aim achieved in 1 out of3 sectors

> Top 3 globalplayer

Currentlynumber 4


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Star 3: Global Reach

Our third aim under the Global Reach initiative is to further expandour network from the present level of 114 countries and to establish a

presence in other countries, which are important both economicallyand in terms of market research, and where we do not yet have ourown subsidiaries.


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Star 5: Excellent Financials

The fifth initiative, Excellent Financials, defines our medium-term financialexpectations. We are working to drive our sales quickly up to the EUR 1.5 billionmark and in the next few years will generate a margin of between 13% and15%. We have set specific targets for reducing our indebtedness. This alsoapplies to the tax ratio for the Group.

Net indebtedness/EBITDA ~ 2

~ 2.5

>Sales EUR1,500 million

EUR 1,220million

Margin13-15%

13.0%

Tax ratio ofapprox. 30%

27.4%2008:


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Key indicators for GfK shares

Unit

High EUR

Low EUR

Closing price EUR

Average daily volume traded No.

2007

Dividend1)

EURTotal dividend1) EUR m

Earnings per share EUR

Free cash flow per share EUR

Stock market capitalization as of Dec. 31 EUR m

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

Ranking in SDAX

by sales

by market capitalization

Index weighting by market capitalization

39.58

25.29

27.50

48,128

0.4516.1

2.33

3.56

986.2

35,863,031

26

13

2.5in %

1) For 2008: Proposal to the Annual General Meeting on May 20, 2009

No. of no-par shares (weighted) No. 35,682,085

31.27

13.00

22.02

31,668

2008

0.46

16.5

2.04

2.64

791.6

35,947,363

30

5

3.4

35.884.308


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Shareholder structure of GfK SE

Breakdown of free float by country ( % )Shareholder st ructure (% )

GfK-Nrnberg e.V.

57.0

Free Float1)

43.0

USA

25.9

UK7.4

France7.6

Others2.8

Germany56.3

1) including Management and Supervisory Board of GfK SE (1.1%)as at February 26, 2009

M h 2009GfK G th f K l dGfK G


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GfK share price performance: March 2008 to March 20091)

M A M J J A S O N D J F M10

12

14

16

18

20

22

24

26

28

30

32

10

12

14

16

18

20

22

24

26

28

30

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GfK DAX SDAX Dow Jones Euro Stoxx Media

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

M h 2009GfK G o th f om Kno ledgeGfK G o p


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GfK-Nrnberg e.V. (the GfK Association): revised Articles of

Association establish a new structure

New Articles of Association and new personnel determined

election of Peter Zhlsdorff as the new President of the GfK Association

Professor Hubert Weiler elected Vice-President

the new Articles of Association strengthen checks and balances within the Associationscorporate governance

the GfK Association will in future be represented externally by two of the five members ofthe Executive Board

resolutions of the General Assembly passed by simple majority of the vote. A 75% majorityvote is necessary in order to pass resolutions on amendments to the Articles of Association

a new Members Council is supporting the Executive Board of the Association, with regardto the Associations role as majority shareholder of GfK SE

following the Annual General Meeting, the managerial bodies of GfK-Nrnberg e.V.

(the GfK Association) and GfK SE will be separate in terms of personnel

March 2009GfK Growth from KnowledgeGfK Group


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Sectors5



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3 sectors provide knowledge from 3 sources

Custom Research

Specific target groups,e.g. consumers,doctors etc.

Tailor-made surveysand continuous datacollection in

Custom ResearchConsumer TrackingHealthCare

~43%

EUR 783 million

7.2%

Retail and Technology

Retail

Retail informationthrough continuousdata collection

100%

EUR 304 million

27.2%

Media

Media

Tailor-made surveysand continuous datacollection regarding

media consumption

~95%

EUR 130 million

18.3%

Data

source

Services

Share of

continuousresearch

Sales1)

Margin1)

1) Preliminary figures for 2008



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Custom Research

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

laboratories

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

PresenceIn more than 90 countries across the globe

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



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Example 1: usage of web 2.0 applications in Germany

55.2 million Internetusers in Germany

Source: GfK Online Research, March 2009 & internetworldstats.com

*at least weekly usage

Retail/online shopping portals

67%*

43% Opinion forums

Weblogs 18%*

Consumer portals 32%*

i.e. Facebook, Myspace

i.e. Ciao.de, dooyoo.de

i.e. Ebay, Amazon,

40% Online communities *



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gp

Example 2: household expenditures for FMCG

Growth rates 2007 to 2008 in %

Source: Europanel based on 4-weekly/monthly trends in hundreds of FMCG categories in each country

2.2%2.7%

4.0% 4.2% 4.3%5.0%

5.6%6.4% 6.8%

7.6%

17.0%

France

Netherlands

Portugal

Austria

Germany

Italy

Spain

Sweden

Poland

UK

Belgium



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Example 3: the German veterinary market over the past 10 years

Development of the market as a whole in EUR m

+2.6%

+7.8%

+4.7%

-3.5%

+5.5%

+5.3%

+10.2%

+10.3%

+5.5%

Absolute increase from the 1st to the 10th period: +59%

Absolut e: 738.0

Absolut e: 463.8

400

450

500

550

600

650

700

750

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: GfK HealthCare, Germany



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Retail and Technology

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

sports equipment and entertainment

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

PresenceIn more than 80 countries

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



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+USD 54 billion additional revenue 2007-2008

Example: sales growth for technical consumer equipment

+24.1+20.6

+10.4

+2.4

-0.7+1.5 +0.5

+0.4 +0.3-0.1 -0.9 -2.3 -5.4 -7.3

LCD TV

MOBILE&SMARTPHONES LAPTOP

GPS(PND ONLY)

DIGITALCAMERA

GAMECONSOLES

PLASMATV MONITORS

DVDTOTAL CAMCODER PRINTER

MP3/MP4PORTABLEDESKTOP OTHER TV

USD bil lion

Source: GfK Retail and Technology



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Media

MarketsTV, radio, newspapers, magazines, billboards, online

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

PresenceIn more than 30 countries across Europe and North America

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



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207

Austria

Germany

Viewing time in minutes

148

207Ukraine1)

250Romania1)

181The Netherlands

Example: Average TV viewing time of different countries 2008

Viewers age 3 upwards, Monday-Sunday, 03:00-03:00 oclock

Source: GfK companies; TV panels of different countries1) Viewers age 4 upwards


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No future w ithout a pastGfK. Growth from Knowledge

gfk corporate presentation march 2009

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