gs1 ireland 2010 annual report

Annual Report 2010Enabling Supply Chain Visibility

Table of Contents

SECTION ONEChairman’s Statement 1Chief Executive Officer’s Statement 2

SECTION TWOGS1 Review 4

SECTION THREEFinancial Statements 24Membership Report 34Minutes of the 29th GS1 Ireland AGM 2010 35

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I am delighted to address you as Chairman following myelection at the 2010 AGM. I would firstly like to paytribute to Aidan Keane our past Chairman who providedgreat leadership of our organisation over the previousfour years. Aidan’s commitment during his term of officewas exceptional, especially in his last year at a time ofdifficult personal circumstances. We wish Aidan, Rozenand the family the very best for the future.

For my part I look forward to assisting GS1 Ireland on itsjourney to provide added value services to our memberswhich will help them to improve their competitiveness.At this time of economic crisis all businesses, in particularSMEs (which make up almost 90% of our totalmembership) are looking for ways to reduce costs andachieve efficiencies in order to survive.

2010 was a year of stability in terms of membershipdespite the economic situation and this enabled us toattain a breakeven performance in terms of our bottomline. This was achieved despite holding our fees at 2008levels and increasing our resources in preparation for thelaunch of DataSync.ie, our datapool service. The servicehas been successfully tested with a couple of retailers anda number of key suppliers and is now preparing for roll-out.

We also embarked on a comprehensive review of ourstrategy which we are now in the process ofimplementing. The review highlighted areas of

opportunity for growth in our core sector of ConsumerPackaged Goods (CPG) as well as in the Public ServiceSector (including healthcare) through eGovernmentinitiatives. The planned launch of our GS1 DataSync.ieservice is the single biggest project over the comingyears. It will provide the foundation pillar supportingproducts and services to migrate to the Digital Universe.We have also embarked on a very intensive campaign toraise awareness of the relevance of standards insupporting the reform of the Public Sector. The adoptionof GS1 standards to drive reform within the Public Sectorhas been successfully deployed in both Denmark andSweden.

We are therefore ready to support the new Governmentin implementing eBusiness messaging based on openglobal standards in order to reduce Public Expenditure inline with the EU budgetary targets. The use of GS1standards greatly enhances the speed and adoption ratein which eBusiness can be deployed from the smallestSME to the largest global corporation or Governmentbody. In a strange way the current economic situationenhances the case for standards adoption.

Tony MinogueChairman GS1 IrelandApril 2011

Tony MinogueChairman GS1 Ireland

The adoption of GS1 standards to drive reformwithin the Public Sector has been successfullydeployed in both Denmark and Sweden

CHAIRMAN’S STATEMENT

2010 was a year of consolidation for GS1 Ireland. We haveentered 2011 on a positive note with a determination tocontinue promoting the case for the implementation ofsolutions based on our standards to help our existingmembers survive the current economic challenges.

In the course of the year our new CRM (CustomerRelations Management) system came online. This hasenabled us to automate some of our processes along withimproving the quality of our membership database. Theintegration of our back office system with our website willalso improve the service to members and new entrants.

We engaged new personnel who have added considerablyto our overall level of skills and experience. Coupled withthe new CRM system, GS1 is better positioned to serve theneeds of our existing and future members. We are nowproviding additional added value services such asverification and advisory services.

Recognition of the value of standardsbased solutionsThere has been a noticeable increase in the level ofacceptance of the need for open standards in order toensure ease of interoperabilty between disparate systems.This is no doubt due to a gradual recognition thatproprietary solutions may work well within the four wallsof any organisation but by the same token they inhibit theeasy interchange of data between the various partiesacross the supply chain. Non standard solutions have

been shown to add cost and confusion and the result isinefficiencies which lead to uncompetitiveness and insome cases business process failures.

This competitiveness issue has been recognised by theEuropean Commission which has called for theimplementation of eCommerce messaging across theMember States both in terms of Business to Government(B2G) and Business to Business (B2B) transactions. TheCommission has articulated a clear vision for the totalelimination of paper based methods by 2020. Such avision will hopefully act as a spur for our own Governmentin their plans to reform the Public Sector. The Irish retailgrocery sector has already demonstrated a very clear ROIon its early adoption of EDI over the past 18 years.

New regulations from the EU, US and Asia requiringproduct traceability and authentication as a deterrentagainst counterfeit products is an additional driver for thedeployment of standards-based solutions. The pendingregulations which will require the serialisation ofmedicines and medical devices at the patient pack levelcan only be delivered by the use of GS1 globally uniquenumbering in conjunction with our standardised datacarriers (barcodes and RFID tags). These regulations aregoing to require significant investment by industry, butthe resulting visibility of products across the supply chainwill more than compensate in terms of reduction of out ofstocks, product wastage, improved patient safety andefficiency gains.

Jim BrackenCEO GS1 Ireland

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CLASS has demonstrated very effectively thatUHF tags can be deployed in a clinical settingand that open standards are the only way todeliver interoperability between supply chainsystems and clinical applications.

CHIEF EXECUTIVE OFFICER’S STATEMENT

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Ireland at the forefront ofauthentication and traceability bestpractice solutionsIt is good to be able to tell you that GS1 Ireland has beenat the forefront in the development of solutions forauthentication, traceability and supply chain visibility.The NCHCD solution for the track & trace of medicationused for the treatment of haemophilia is regardedinternationally as best practice. The solution is beingfurther developed with the roll out of mobile phoneswith an app which enables the patients to carry out vitalpre-use checks on product expiry and recall status. Oncethe treatment is complete the mobile app updates boththe electronic patient record and the warehousemanagement system.

In 2010 GS1 along with Georgia Tech Research Ireland(GTRI) and the Western Vascular Institute (WVI) delivereda successful pilot deployment of EPC/RFID tracking ofendovascular devices at The Galway Clinic. The pilot,entitled CLASS, was carried out in conjunction with threeof the top four global device manufacturers (BostonScientific, Johnson&Johnson/Cordis and Medtronic) anddemonstrated that UHF tags can be deployed within anoperating theatre as well as in the open supply chain.

Proprietary RFID applications in the US have shown animpressive ROI for individual hospitals. However, due tothe lack of interoperability and the unsuitability of thetags for open supply chain use, the possibility of massadoption is nil. Now, CLASS has demonstrated veryeffectively that UHF tags can be deployed in a clinicalsetting and that open standards are the only way to

deliver interoperability between supply chain systemsand clinical applications.

DataSync.ie to enable quality masterdata managementFollowing the decision of the GS1 Ireland Board, greatprogress was made with the piloting of our DataSync.iesolution for enabling more effective management ofmaster data between suppliers and retailers. Studiessuch as the UK Data Crunch Report have highlighted theproblems arising from poor quality master data. TheDataSync.ie initiative by GS1 Ireland is therefore a majorone which will help to improve the competitiveness ofthe retail grocery sector and in time also serve manyother sectors including healthcare. DataSync.ie will ofcourse be the key focus of our activities over the comingmonths.

Business case for GS1 DataBarcontinues to growIn concluding the review of implementations in 2010,after piloting by GS1 Ireland and our sister offices inKorea, Netherlands, Japan, US and Canada the businesscase for using GS1 DataBar on Fresh Produce is beginningto look very attractive. Given the importance of the freshcategory to overall retail margins it seems likely thatincreased adoption of GS1 DataBar could be on the cards.

Jim BrackenCEO GS1 IrelandApril 2011

A history of collaborationThe history of GS1 tells the story of why the retailsupply chain is so important to us - in September 1969,a group of members of the Grocery Manufacturers’ ofAmerica (GMA) Association and the NationalAssociation of Food Chains met to express a need forsome sort of cross industry product code for items onsale in grocery stores.

An ad hoc committee on what was then called aUniform Grocery Product Code was formed in Augustof the following year and agreed to work together tocreate a standard code for identifying products. TheUniform Grocery Product Code Council (UGPCC) wasformed in 1972 to oversee and administrate this code.

The bar code design – today so familiar to peopleacross the globe – was chosen by this Council in 1973,and the very first bar code was scanned at thecheckout of a Marsh’s Supermarket in Troy, Ohio (USA)on 26 June 1974.

More than just bar codesToday, of course, GS1 standards are much more than thebar code and include standards for electronic businessmessaging, data synchronization and RFID-basedidentification and solutions to a range of business issues.

To create these standards, GS1 brings together allstakeholders in the supply chain – manufacturers,distributors, retailers, transporters, customsorganisations, software developers, local andinternational regulatory authorities, and more. Thesecompanies, who may in fact have conflicting businessinterests, work together under our leadership to agreeupon standards that make the supply chain faster, moreeffective, less complex and less costly.

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GS1 REVIEW

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Enabling full visibility of the supply chain is at the coreof GS1’s work. The importance and implications ofachieving full visibility are emphasised through thework undertaken by GS1 and the development ofstandards that not only allow the identification ofobjects but also a far deeper level of knowledgeconcerning the events related to those objects.

What is Visibility?Visibility is a broad concept that relates to knowingwhere things are at any point in time and why they arethere (or where they have been in the past). Visibilitymeans leveraging a range of standards and businessapplications in order to see more event-basedinformation relating to key business processes. It isincreasingly a key capability for businesses to be ableto address the perennial issue of “if you can’t ‘see’something then you can’t measure it, and if you can’tmeasure it, it’s probably costing your business toomuch!”

Many supply chain processes can be transformedthrough deeper, more accurate and rich visibilityinformation. These processes could include improvingoverall supply chain accuracy, velocity andeffectiveness; the management of inventory; producttracking (where is it now) and tracing (where has itbeen); confirming the chain of custody and ownershipof a product as it moves through the supply chain;product authentication that confirms a product isgenuine and not counterfeit; managing productsreturned by customers and confirming that they werelegitimately purchased. There are literally hundreds ofbusiness processes that could be improved andtransformed through the use of visibility information.

Focusing on business valueSupply chain visibility is important as it translatesdirectly into business value. A recent study showedclearly that best-in-class supply chain performers –measured as those companies with the lowest out-of-stocks, lowest landed costs and highest on timeshipment rates – also have the most visibility into theirsupply chains.

In addition to this sort of internal visibility, in today’sworld where supply chains are often complex andglobal, the achievement of full visibility also demandscooperation between multiple players. In order forvisibility data to be shared and understood across thesupply chain, it is necessary to have the standardsagreed to by all parties.

Standards for visibility cover three key areas:

• Identification standards that provide thefoundation for data and interface standards;

• Data standards that define the content andmeaning of visibility data so that one supplychain party can understand data that it receivesfrom another supply chain party;

• Interface standards that define how supplychain parties can interact with each other toexchange visibility data.

GS1 Standards: enabling supply chain visibility

GS1 REVIEW

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There can be no real visibility of objects unless thereis a standard way for all stakeholders in the supplychain to capture and share information. The necessarystandards to enable the achievement of visibility existtoday:

• Identify – The GS1 System includes globallyaccepted unique identification numbers thatprovide a common language to communicateproduct information from company to company.

• Capture – The GS1 System uses approved barcode symbologies and EPC-enabled RFID tags toencode GS1 identification numbers.

• Share – The GS1 System supports multiplestandardised ways to share information.Electronic Data Interchange (EDI), ElectronicProduct Code Information Services (EPCIS) andthe Global Data Synchronisation Network(GDSN).

The GS1 System provides a solid foundation and anintegrated suite of global standards that can enablebusinesses to achieve global supply chain visibility.Visibility means knowing exactly where a given itemor asset is at any point in time, and therefore enablingimprovements to be made to the management andcontrol of those assets. With greater information,organisations can stop making assumptions and startmaking informed decisions based on accurateinformation about the actual conditions.

Real benefitsBusinesses around the world are realising the benefitsthat can be gained from leveraging GS1 standards toachieve greater visibility into the supply chain. Inthese times of intense competition, everyopportunity must be seized to improve effectiveness,reduce cost, and increase the speed and accuracy ofoperations; and this, in order to ultimately serve thecustomer, consumer or patient needs. These benefitsare being achieved within organisations, betweensupply chains parties and across industry sectorsthanks to the GS1 System.

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Automatic Identification & Data Capture

Where supply chains meetconsumersAutomatic identification and data capture, or AIDC, is thecollective name for the variety of technologies andmethods used to identify objects and places, collectinformation about them, and share that informationwithin and between different companies andorganisations.

Thanks to AIDC, shoppers get through the supermarketcheckout line and the clothes shop cashier desk morequickly; the prices consumers pay for their purchases areaccurate and up to date; stores know what products theyneed to re-order; and everyone benefits from havingmore variety on store shelves that are rarely empty.

Bar code symbols and RFID tags are two of the mostfrequently-used carriers of the data which enablesautomatic identification – and of course, the most visiblepart of GS1’s activity. GS1 BarCodes (including GS1DataBar, GS1 DataMatrix, and several others) and GS1EPCglobal RFID tags are used billions of times every day,everywhere in the world, in almost every industry sector.

Linking sectors and technologiesGS1 AIDC connects sectors to sectors and technologiesto technologies. Thanks to our AIDC activity, GS1 allowsdifferent companies to work together more smoothly,and enables technologies from the past to work withtechnologies from the future. GS1 is working harder thanever before to enhance the interoperability betweendifferent technologies, an objective that can be seen inour output across the year, such as a new release of EPCtag data standards, work on a serialisation strategy,efforts on EPC headers and EPC/bar codeinteroperability, and more. We’ve also reached out to anew sector – Aerospace and Defense – where we areconfident our global neutral standards can be helpfuland useful.

From efficiency to safety inhealthcareAfter more than 30 years, AIDC is building a future forsafety in the supply chain on the strong foundation ofsupply chain efficiency. The year 2010 witnessed a majormilestone in the history of AIDC. For the first time, thereis now a global agreement on a standards based way ofidentifying drugs and medical devices in the healthcaresector. These GS1 Healthcare Product IdentificationStandards cover the identification needs of over 90% ofall medical products.

This work in the healthcare sector also resulted in agroundbreaking move in standards for retail pharmaciesand hospitals. Global standards for automaticidentification provide the opportunity to make thehealthcare supply chain more efficient and safer forpatients. With an increased need for smaller twodimensional bar code symbols containing more data, theGS1 Healthcare global user group has stronglyrecommended that stakeholders invest in the camera orimage-based scanners needed to scan these bar codesymbols when replacing existing laser bar code scannersor in new installations. This will facilitate the futureadoption of global standards for automatic identificationin the healthcare supply chain.

Fresh food identificationGS1’s work in the area of safety for fresh foods alsomoved forward this year. Working groups have advancedthe GS1 Fresh Foods Identification strategy, approved in2008, to make possible a wide variety of food safetyapplications. In other fresh foods news, after the successof GS1 DataBar pilots, implementation is now planned inmany regions. The importance of implementing AIDC infresh foods is not to be underestimated: fresh foodsrepresent about 50% of total store sales in grocery, butmost of these sales do not yet use the GS1 Global TradeIdentification Number (GTIN). Once a fresh foodsidentification strategy is deployed in this sector, a varietyof applications such as traceability, categorymanagement and more are possible.

GS1 REVIEW

The GS1 GTC Programme

In order to receive the GTC Award companies mustsuccessfully undergo a stringent audit to verify thattheir traceability system, through theimplementation of GS1 global supply chainstandards, enables them to efficiently and accuratelycomply with relevant legislative and industrytraceability requirements. The GS1 GTC programmeenables any organisation to establish its actualtraceability level and to be benchmarked againstagreed supply chain requirements and bestpractices.

To obtain information on the GS1 Global TraceabilityStandard and the Conformance Programme please logon to www.gs1.org/traceability.

Musgrave awarded Global TraceabilityConformance certificate

The Musgrave Group has become Ireland’s first retailerto claim the GS1 Global Traceability Award whichrecognises that their traceability procedures complywith global best practice, meet all regulatoryrequirements and correctly implement GS1 globalsupply chain standards.

Commenting on Musgrave’s Award, Ray Bowe, Head ofFood Safety & Quality at Musgrave, said: “We areabsolutely delighted to have received such aninternationally acclaimed and accredited award. Itprovides us with a strong independent validation andendorsement of the traceability system we haveinvested in and is further evidence of the highstandards in place at SuperValu, by givingtransparency to consumers of the origin of their freshmeat.”

The Global Traceability Conformance Award was madefor SuperValu’s meat traceability system “Foodtrace”developed in conjunction with Irish company, ValentSystems.

Presenting the GS1 Global Traceability ConformanceAward to Musgraves, Jim Bracken, Chief Executive, GS1Ireland said: “The award demonstrates not onlyMusgrave’s commitment to achieving excellence andbest practice in its supply chain, but also clearlypositions Musgrave as an industry leader in theimplementation of a robust fresh meat traceabilitysystem for all its SuperValu stores.

The importance of best practice traceability systemscannot be overestimated. We only have to see boththe financial and reputational damage that can becaused to a brand, particularly around product recalls.We would therefore urge all those responsible forimplementing traceability in their company’soperations and supply chain to participate in the GS1Global Traceability Programme to ensure theirtraceability levels are independently audited andbenchmarked against agreed supply chain minimumrequirements and best practices for traceability.”

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John O’Callaghan (L) IT Director, Musgrave Retail Partners Ireland andJim Bracken (R) Chief Executive Officer, GS1 Ireland, at thepresentation of the award.

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BENEFITS

Innovative GS1 compliant patient homescanning system launched by NationalHaemophilia Treatment Centre

Patients at the National Centre for HereditaryCoagulation Disorders (NCHCD), based at StJames’ hospital, Dublin are now able to use anew, innovative mobile phone based systemto manage details of their medication andinfusions. The system extends themanagement of bar coded medication intothe patient’s home and is fully compliant withGS1 standards.

The patients involved are supplied with asmartphone preloaded with a user-friendlyapplication (app) which is used to record thedetails of a bleed and treatment. By using thephone to scan the data matrix barcode ontheir ID card the patient logs on to the system.Thereafter they are brought step-by-stepthrough the process of recording the date andtime of their treatment along with details ofthe medication used.

The key features of the app include its abilityto confirm:• the medication is in-date• it is the correct medication for the

identified patient and • that the medicine is not on a recall list.

The app’s functionality incorporates not only amedication verification system but also anelectronic patient diary, recording reasons fortreatment infusion as well as automaticallycapturing the date and time of infusion.

HOSPITAL

• Optimised supply chainmanagement

• Realtime reporting andanalysis

• Stock visibility• Alert system

PATIENT

• In-home treatment solution • Simple interface • Safety checks before

infusing• Right medication• Right time

NCHCD Project Manager, Feargal McGroarty says “studies show that patientoutcomes improve when they activelyparticipate in their own care. This smartphone app successfully demonstrates newways to improve the effectiveness andefficiency of established approaches tomanaging chronic diseases, by helpingpatients record and manage theirmedication in real time. By integratingeveryday technology such as smartphones and bar codes with currentmodels of chronic disease managementwe have been able to improve interactivitybetween patients and health care professionals. More accuratedata collection in real time, leads to improved patient safetywhilst helping control the cost of healthcare delivery.”

Laurence D’Arcy of Crimson Tide, developers of the App,believes that the system is unique in its ability to extend thebenefits of the GS1 system into the hands of the patient. “We have combined an easy to use patient system with thesecurity of GS1 track and trace and the benefits to NCHCD rangefrom better drug management to reporting and patientsatisfaction.”

GS1 REVIEW

Feargal McGroarty,National HaemophiliaSystem ProjectManager

Irish RFID Healthcare Pilot Hailed a Success

Georgia Tech Ireland (GTI), the Western VascularInstitute and GS1 Ireland joined efforts to develop amodel for endovascular-device tracking to includeRFID technology and bar codes from the point ofmanufacture to the operating room.

The pilot at Galway Clinic found that UHF RFID tags onhigh-value implantable endovascular products, suchas catheters and stents, can be successfully used in ahigh-volume clinical setting to improve patient safetyand lower costs by reducing the risk of errors, out-of-stocks and product expiration.

The team intends the project, known as the ClinicalLaboratory Automated Stockroom System (CLASS)Project, to provide a model solution, based on globalstandards, for more effectively managing inventorythroughout the entire medical device supply chain,from manufacture through to point of use.

With support from medical device manufacturersBoston Scientific, Medtronic and Cordis (owned byJohnson & Johnson), the group began thecollaboration in an effort to improve supply chainefficiency and reduce the cost of missing or expireditems used in endovascular procedures. Improvedpatient safety and greater efficiency and visibility inthe supply chain could help address the escalatingcosts for healthcare services as well as meet regulatorydemands, such as the Unique Device Identification(UDI) requirements of the U.S. Food and DrugAdministration.

The project's focus was on using the global EPC RFIDstandards to track and trace medical devices from thepoint of manufacture to the patient. "In order to beefficient and effective in data sharing, a commonlanguage of globally accepted standards is essential,"said Jim Bracken, CEO GS1 Ireland.

The solution trialled by the group included a single,shared database that a variety of stakeholders couldaccess via the Internet using software based onEPCglobal's Electronic Product Code InformationServices (EPCIS) specifications, and the use of GS1standard bar codes and UHF EPC Gen 2 tags.

"With 10 to 20 procedures being performed eachday—many of which are complicated enough due tothe variety of patients—the last thing surgeons needto worry about is whether we have the right productin stock or if the product has passed its expiry date,"says Sherif Sultan, the clinic's consultant vascular andendovascular surgeon.

The research group's ultimate goal is to help membersof the medical technology industry, healthcareproviders and clinicians to implement RFID and barcode based traceability systems and share data fromthose systems to make the supply chain and inventorymanagement more visible. “The CLASS projectdemonstrated that RFID could identify and track themovement of high-value endovascular devices”, saidKevin McGuinness, senior project manager at GeorgiaTech Ireland.

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Global Data Synchronisation

Growth and solidity

The Global Data Synchronisation Network, or GDSN, waslaunched in August 2004 with 74,000 items registered inthe GS1 Global Registry. Since that time, adoption,implementation and growth has increasedexponentially across the world. In fact, in December2010, the GS1 Global Registry surpassed 6.5 millionregistered items! This milestone clearly demonstratessustainable growth of data synchronisation as a result ofincreased adoption and use of the GS1 Global DataSynchronisation Network around the world by tradingpartners across various sectors.

Over 20,000 leading companies and organisationsacross more than 90 countries have already made theGlobal Data Synchronisation Network a cornerstone oftheir success, increasing efficiencies and lowering supplychain costs. More than 20 million messages transitedacross the Network from one GDSN-certified data poolto another in 2010.

Focused on data quality

Data synchronisation programmes cannot function inthe absence of data quality programmes: good qualitydata is a foundation for collaborative commerce andglobal data synchronisation. By improving the quality ofdata, trading partners reduce costs, improveproductivity and accelerate speed to market.

In the Retail and Consumer Packaged Goods sector, forexample, bad data contributes to inefficiencies and lostsales. Without the GDSN, the multitude of differentmethods companies use to share data – spreadsheets,web portals, emails, paper catalogues – add to thecomplexity, redundancy, and promulgation of bad dataand inefficiencies created by ‘work-arounds’ forprocedures which no longer meet business needs. Andworse, they create unnecessary costs.

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UK study shows accurate productdata is the bedrock of efficientsupply chains

A major report released by GS1 UK in 2010 revealedthe sizeable opportunity which Britain’s retail sectorcan realise through improving data practices in thesupply chain.

GS1 UK’s ‘Data Crunch’ report estimated that UKgrocery retailers and suppliers can realise savings of atleast £1 billion over the next five years as datainconsistencies are ironed out across the industry andpass the benefits to consumers through betterinformed choices and improved shopper experience.The report also reveals the existing businessopportunity for retailers and suppliers to address theissue of increased demand for better productinformation from consumers, governments, regulatorsand pressure groups.

In collaboration with the country’s four largestsupermarkets (Tesco, Sainsbury’s, Asda and Morrisons)and four of the largest product suppliers (Nestle,Unilever, Proctor & Gamble and Mars) GS1 UK usedIBM’s analytics capability to assess the ‘Data Crunch’product data, which included more than one millionrecords from the participating retailers and suppliers.

By comparing the product data held by suppliers withthat stored on the supermarkets’ systems, the researchuncovered inconsistencies in what should have beenidentical information in over 80 per cent of cases. Aftercalculating the impact this has in terms of lost or latedeliveries, inaccurate orders, surplus transport costsand duplicated work, GS1 UK found the savingsopportunity for the retail industry was more than £700million and a further £300 million opportunity for newsales.

The estimated opportunity for the industry to realiseover £700 million in savings were found to fall into twomain areas: avoiding shrinkage and eliminatingworkaround processes (such as manual investigationsto cross check the accuracy of the data). The totalsavings from eliminating workarounds and correctionswas estimated at £135 million for retailers and £100million for suppliers. Additionally, the total savingsfrom avoiding shrinkage were placed at £250 millionand £225 million for retailers and suppliersrespectively.

To read more about the GS1 UK Data Crunch Report logon to: www.gs1uk.org/datacrunch.asp

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What are the opportunities for using the mobile phoneto enhance consumers’ shopping experiences? Howcan we benefit from the fact that the mobile phone isalready a part of many consumers shoppingexperience?

Europeans shop for grocery products 3-5 times a week onaverage. That accounts for millions of mobile phone usersin stores every day of the week - mobile phone users whoregularly use their phones while shopping to contactfamily about their purchasing decisions.

With the explosive rise in popularity of the newgeneration of “smartphones” that are fundamentally builtaround having mobile web access, internet usage isincreasingly being integrated into everyday life. Manyanalysts predict that web access on mobile phones willbecome just as pervasive as it currently is on computers.

When smartphones become ubiquitous, mobile internetaccess will of course affect the grocery shoppingexperience. But rather than just letting consumers bringtheir own mobile internet experiences into the store,should retailers take a more active part? And if so, whatcan they do to actively enhance the shopping experience?

Those were the questions GS1 and ECR Sweden had whenentering into the HotShopper trial. Not only did they findvery compelling reasons for retailers to take an active partin the in-store mobile experience, they also witnessedfirst-hand how consumers, by downloading a multitude of

apps (small mobile phone applications) are actively takingpart in transforming the very foundations of the internetitself.

We are witnessing the rise of an internet where everydaymobility is becoming the fundamental focus for appdevelopment. An internet where most, if not all,mainstream usage is focused on what we do differently indifferent locations. This fact will of course haveimplications for, and give rise to opportunities for, retailbusinesses.

HotShopper; A GS1 Sweden, ECR Sweden and EricssonPilot run at ICA Maxi Lindhagen Hypermarket Store inStockholm, Sweden in September 2010.

Mobile phones are becoming part of the shoppingexperience. And smartphones become more wide spread,mobile internet access will change how consumers shopfor groceries.

In order to examine the opportunities GS1 Sweden andECR Sweden in conjunction with Ericsson and ICA MaxiLindhagen Hypermarket ran a live mobile commerce trialin September 2010.

GS1 MobileCompublishes WhitePaper

“Mobile in Retail: Getting your in-storeenvironment ready for mobile”, is a GS1white paper which explores theopportunities for brands and retailers asconsumers begin to use mobile phonesto plan their shopping and while actuallyvisiting stores. It details ways in whichGS1 standards can support this strongemerging market.

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In the pilot, 35 consumers equipped with an Android-basedHotShopper mobile app, scanned Arla dairy products tofind out more information about ingredients and additives,to get inspiration for recipes and receive special offers.

During the trial the participants immediately recognisedthe relevance of the mobile phone app to their dailyshopping. They perceived the information on the phone tobe better than that on the package.

Consumers in the study expressed the following shoppingexperience needs:1. A need for the integration of all information from

packaging and price information, to self-scanning,special offers, loyalty cards and payments.

2. A need for the better integration of grocery shoppinginto everyday life; scanning ads at home, writingshopping lists, in-store shopping convenience andusing recipes in the kitchen.

3. A need to extend the convenience and controlprovided by the Hot-Shopper app beyond groceryshopping.

These three needs open interesting opportunities for brandowners as well as for retailers given that mobile apps are acomparatively cheap way to communicate directly withconsumers. Mobile apps also move the store closer to theconsumer, being present even when the consumer is not inthe physical store. We will see – and have already seen -some industry players moving relatively quickly into mobileapps and extended product information. Cooperationaround the distribution of packaging content wouldimprove cost efficiency and early standardisation wouldimprove the scalability of solutions.

One important focus of the Swedish HotShopper projectwas to enable brand owners, retailers, mobile operators,software developers, service and solution providers andorganisations to work together. The project has clearlyshown that this is possible, and that collaboration givesgood results. In addition, standardisation and the use ofwide-spread and future-proof technologies are often bothcost-efficient and a sustainable way to go. It is now up tothe parties in each industry to move forward withstandardisation and collaboration in relevant areas.

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GS1 REVIEW

Smart phone usage is growing fast. GS1 UK’s consumerresearch conducted by global market research specialist,TNS, shows that 1 in 3 (32%) consumers now have a smartphone. This goes hand in hand with the explosion in appdevelopment and usage. Over three billion mobile appshave been downloaded from the iPhone App Store andthere is an emerging trend in utility apps that help 21stcentury ‘savvy shoppers’ make better informed choicesbefore buying.

The key to making these services credible though is toprovide accurate product information that consumers cantrust. But the mobile-savvy shopper report raises seriousquestions about the ability of the current datainfrastructure to support the growing development of appsthat provide consumers with additional productinformation.

The research examined the quality of product descriptionsand image data available in three third-party, generic apps.375 grocery products were selected at random and scannedusing the three apps. GS1 UK and Cranfield School ofManagement were then able to rate the accuracy of dataavailable to the apps by comparing it to data authorised bythe brand owner.

From a total of 1,125 scans across all three apps, only 9% ofscans returned the correct product description whencompared with the brand owner’s approved data. Astaggering 75% of scans returned absolutely no productinformation at all and 87% of scans returned no image. Butwhen information was returned the story did not get anybetter, with product information being wrong 1 in 5 times.

This lack of accurate and trustworthy product data is havinga significant impact on consumers. 50% of consumersclaimed that they needed an accurate description andimage to feel confident that the product is the right one.And 34% of consumers won’t buy the product at all withoutconfidence in the data.

And it is bad news for app developers too given the lack ofdata available. Over 1 in 4 (27%) respondents claimed that ifthey could not find the products they were looking for theywould stop using the app altogether.

So what can be done about the issue? The report states thatcrowd or multiple sourcing techniques frequently producepoor quality product data and can therefore be identified asthe cause of bad mobile data. Therefore, it is stronglyrecommended that industry accesses product informationfrom a reliable source that can be trusted.

Markets around the world are witnessing the emergence ofa new type of consumer, the 21st century ‘savvy shopper’.They are cross-channel shoppers who use a range ofmethods to access information and buy products.

This new approach to shopping brings with it a growingdemand for more and better product information. Industrytrends show that demand for more product information issignificantly increasing. GS1 UK’s Data Crunch Reportforecasted that this demand would grow by 400% in thenext five years. Consumers now and in the future willexpect more information from product packaging. Ongrocery products many consumers expect to see nutritionalinformation, allergy notifications and whether or not theproduct conforms to certain lifestyle choices. Before theypurchase electrical products, a large number of consumerswant to compare technical specifications, read reviews andcompare prices.

Historically, shoppers have had a tangible product whichthey can take off the shelf and use their primary senses toevaluate. Savvy shopping habits mean the consumer cannow make key buying decisions remote from the physicalproduct. They will therefore be less prone to marketingtechniques such as shelf placement, packaging graphicsand branding, but they will also be accessing core productinformation from numerous sources, not simply from theback of the pack or the brand owner.

Much of this purchasing behaviour existed before thedigital age, but modern technology such as the smartphone, makes this information much more accessible. Thereare a growing number of mobile apps available to smartphone users in the UK.

Many of these enable consumers to search for additionalproduct information which has led to a significant increasein purchases being made using mobile phones. Recent

Mobile-savvy shopper report

The impact of poor third-party app data on shopper behaviour

16

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17

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research found that product sales on mobile devices nowconstitute 5% of all internet sales.*

Smart phone users also tend to be younger consumers whoare more inclined to be savvy shoppers. GS1 UK’s researchfound that the majority of smart phone users were agedbetween 16 and 44. But clearly, in the next decade thisgroup will become older, but continue to use smart phonetechnology and it will become the norm increasing thenumber of savvy shoppers.

Initially, scanning apps were used predominantly for pricecomparison purposes. With a greater demand for smartphones and mobile apps, comes a greater demand forfunctionality beyond just comparing prices. Due to thedemand from consumers for additional information, therehas been an increasing trend towards providing additionalfunctionality such as ingredient and environmental data.

GS1 UK wanted to find out more about the scale of the dataquality issue and the impact of missing or wrong productdata on consumer behaviour. The research findings providean insight into what needs to be addressed for industry toleverage the opportunities presented by the mobile phonephenomenon. GS1 UK has used this comprehensiveresearch to outline concrete recommendations about howretailers, brand owners and app developers can address theissue.

Recommendations for retailers,brand owners and app developersThe research highlights how poor product data in third-party mobile apps can not only erode consumerconfidence, but also affect their purchasing decisions. Afailure to address the issue of poor product data willdamage the credibility of companies who want to interactwith consumers through marketing channels such as theweb and mobile. This will ultimately damage sales andoverall profitability. The longer industry fails to address thisproblem, the worse the problem will get.

Where should the data come from? As the research highlights, where product information isgathered from a variety of different formats from numeroussources, it produces poor quality mobile data which in turnconfuses the consumer. This research has also shown that ifconsumers are confused by the data then it has a significantimpact on their shopping behaviour and the likelihood ofthem buying the product. Therefore, it is stronglyrecommended that industry follow the lead of major UKretailers and accesses product information that has beenauthenticated and comes from a trusted and reliablesource.

The onus is on brand owners and app developers to ensurethat their product information comes from a trusted source.Brand owners who want to take advantage of the growingmobile-savvy shopper market, need to have a process inplace to ensure that their data is kept up-to-date andaccurate, and that it is made available to app developersand retailers. As shown in the research, this will affectconsumer behaviour which will ultimately impact sales.

As an independent industry body, GS1 recommends thatproduct data sourced from, or authenticated by, the brandowner is best practice for mobile apps.

An industry wide solution The issues that have been highlighted by this research haveimplications for all companies involved in consumermarkets. With the trend of mobile usage growing, industryneeds to address the issue of data quality in mobilescanning apps as a priority, before it gets worse. It is highly recommended that an industry initiative toimprove the quality of generic mobile app data should beset up to address the issues raised in the research andleverage the potential of the mobile app market. As a not-for-profit organisation with a strong reputation for bringingcompanies together to address industry-wide issues, GS1 isbest placed to facilitate this type of initiative. Brand owners,app developers and retailers are strongly encouraged totake part in this process.

An extract from the report prepared by GS1 UK in conjunctionwith Cranfield School of Management , January 2011

Source: Channel Advisor

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

75%

10%

10%

5%

20%

26%

41%

13%

18%

24%

43%

15%

9%

28%

43%

13%5%

2%

2000 2007 2008 2009

Direct to website sales

Marketplace (e.g. ebay, Amazon)

Paid Search (e.g. Google Ads)

Comparison Shopping Engines (CSEs) (e.g. Kelkoo or Google products)

Mobile phones

Social (e.g. Facebook)

Smart phone owners by age group

18

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GS1 in Europe Forum

In October 2010 GS1 Ireland was delighted to welcome over200 senior managers from European GS1 offices for the biennialbriefing on supply chain standards in action in Europe today.

Keynote speakers included Senator Feargal Quinn, Ms. PatriciaReilly and Mr. Gerald Santucci from the European Commission,Moshe Rappoport from the IBM Research Centre in Switzerland,as well as representatives from GS1 Standards users includingCoca Cola and Deutsche Bundesbank.

At the Forum Board Meeting Patricia Reilly, a cabinet member inthe office of Máire Geoghegan-Quinn, European Commissionerfor Research, Innovation and Science presented theCommission’s ‘Innovation Union’ initiative to the Board of GS1 inEurope. The ‘Innovation Union’ sets out a strategic approach totransform Europe into an Innovation Economy, using the publicsector to stimulate the private sector and remove bottleneckswhich currently stop ideas reaching the market. Theseobstacles include lack of finance, fragmented research systemsand markets, under-use of public procurement of innovativeproducts and services and slow standard setting.

In early 2011 the Commission plans to make a legislativeproposal to speed up and modernise standard-setting to fosterinnovation and enable greater interoperability between varioustechnology-based systems. Ms Reilly acknowledged thatorganisations such as GS1, which promote the implementationof global supply chain standards, are critical players. TheCommission welcomes the work that GS1 has alreadycompleted and is excited about the possibilities of a number ofpilot projects already underway, which will bring about realinnovation and efficiencies in the way business is conductedacross the supply chain.

“The European Commission clearlyrecognises the value that globalstandards will bring to theeconomy and society in general.GS1 standards enable accurateinformation and visibility ofproducts in the supply chain, andas such, their deployment can playa critical role in increasingcompetitiveness levels in the EU.We look forward to working moreclosely with the EuropeanCommission in its efforts to forgestronger European InnovationPartnerships,” commented Jim Bracken,Chief Executive GS1 Ireland.

GS1 REVIEW

Moshe Rappoport, IBM

Senator Feargal Quinn

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Building strategies for the new decade

The Future Value Chain 2020Report from the Consumer GoodsForum

What do you want to achieve in 2020? Are you focusedon making your business more sustainable, optimising anew shared supply chain, engaging with technology-enabled consumers or helping consumers improve theirhealth and wellbeing?

The aim of the Consumer Goods Forum* Future ValueChain Initiative is to identify the critical trends that willimpact and shape companies over the next 10 years. Inthis their third Future Value Chain Report, publishedfollowing a series of workshops held in Hong Kong, India,Australia, New Zealand, US and with the GS1 in EuropeBoard, twelve trends that will determine shape of ourfuture in terms of society, shopper behaviour, theenvironment and technology were identified. Arisingfrom these trends, four strategic objectives on which theconsumer goods industry needs to focus were agreed.

Our ability to achieve these objectives is essential for thesuccess of the consumer goods industry over the comingdecade. This lies at the heart of the 2020 Future ValueChain project. In the conclusion of the prior “2018 FutureValue Chain” report, it was noted that the differencebetween success and failure in the consumer goodsindustry in the next 10 years would be businesses’ abilityto adapt to rapid and significant change. This is still true.However, it is also clear that success will also requirefocused strategies and effective tactics – for individualcompanies and for the industry as a whole.

This third report provides industry and companies withthe framework – in the form of trends, objectives andtactics – to build strategies and action plans for 2020.

The Trends

1. Increased urbanisationIncreased urbanisation and the rise of megacities willimpact the size of stores, logistics and the supply chain,and distribution infrastructures.

2. Aging populationsAging populations will have economic and politicalconsequences related to the amount of money spent onnecessities like food and drink and the type of deliveryservices, store formats and locations offered to olderconsumers.

3. Increasing spread of wealthIncreasing spread of wealth will lead to a growing middleclass in developing regions, impacting consumption andavailability of food items and providing a source ofgrowth for manufacturers and retailers.

4. Consumer technology adoption Increased impact of consumer technology adoption willbe reflected not only in consumers’ own behavior butalso in their ability to influence the buying behavior ofother consumers as the use of social and digital mediacontinues to spread.

5. Increased consumer demands Increase in consumer service demands will define newservice models, offered via the Internet, that movebeyond selling individual products and will bringdifferent types of “solutions” to consumers and shoppers.

6. Growing importance of health and wellbeingIncreased importance of health and wellbeing will havesignificant ramifications as sales of healthful productsand services are expected to nearly quadruple in thecoming five years.

7. SustainabilityGrowing consumer concern about Sustainability will leadconsumers to look to governments and companies toplay a major role in combating climate change.

8. Shifting of economic power Shifting of economic power to countries like China andIndia will cause trade areas to evolve and a newgeneration of globally competitive companies fromthese developing markets to emerge.

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China will overtake the US tobecome the world’s largesteconomy as early as 2017. And by2012, India will have overtakenJapan to become the world’sthird largest economy.

9. Scarcity of natural resources Scarcity of natural resources like energy, water and foodwill become a growing issue as demand is projected tooutstrip easily available supplies over the next decade,resulting in increasing production costs.

10. Increase in regulatory pressure Increase in regulatory pressure will be seen particularlyfor hot-button areas like the environment, sustainabilityand food safety.

11. Adoption of supply chain technologiesRapid adoption of supply chain technology capabilitieswill enable a more synchronised value chain withgreater visibility and traceability.

12. Impact of next-generation informationtechnologiesImpact of next-generation information technologieslike cloud computing will lead to a new way to deal,jointly, with business and technology in the consumergoods industry.

ChinaUS

India

Japan

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*The Consumer Goods Forum (CGF) is a global, parity-based industry network, driven by its members. Itbrings together the CEOs and senior management ofover 650 retailers, manufacturers, service providersand other stakeholders across 70 countries andreflects the diversity of the industry in geography, size,product category and format. Forum membercompanies have combined sales of EUR 2.1 trillion. The Forum was created in June 2009 by the merger ofCIES - The Food Business Forum, the Global CommerceInitiative (GCI) and the Global CEO Forum. TheConsumer Goods Forum is governed by its Board ofDirectors, which includes 50 manufacturer and retailerCEOs and Chairmen. The Forum provides a unique global platform forknowledge exchange and initiatives around five

strategic priorities – Emerging Trends, Sustainability,Safety & Health, Operational Excellence andKnowledge Sharing & People Development – whichare central to the advancement of today’s consumergoods industry.The Forum’s vision is: “Better lives through betterbusiness”. To fulfill this, its members have given theForum a mandate to develop common positions onkey strategic and operational issues affecting theconsumer goods business, with a strong focus on non-competitive process improvement. The Forum’ssuccess is driven by the active participation of the keyplayers in the sector who together develop and leadthe implementation of best practices along the valuechain.

The ObjectivesWhat industry wants to achieveThe overall impact of these root trends issignificant, and will require afundamental change in the wayconsumer products companies andretailers run their businesses and serveconsumers and shoppers. Things not onlyneed to be done differently, they alsoneed to be done collaboratively. Thestrategic objectives, based on the abovetwelve trends are:

1. Make Our Business More Sustainable2. Optimize a Shared Supply Chain3. Engage with Technology-Enabled

Consumers4. Serve the Health and Wellbeing of

Consumers

The trends link to these objectives. Forexample, trends such as scarcity ofnatural resources and increasedregulatory pressure will be direct changedrivers for the industry’s supply chain inthe coming decade. The rapid adoptionof consumer technology and the increasein consumer service demands will requireindustry and companies to rethink theway they engage with technology-enabled consumers.

These four industry objectives are notonly relevant at the global level; they alsoapply at the regional and country levels,although with some differences in their“accents” and degree of impact.

A Call to Action forIndustry

The 2020 Future Value Chain Reportconcludes with a number of calls toaction for the Consumer Goods industry:

• be ready for 2020 by increasingcollaboration

• support the Consumer Goods Forumprograms

• challenge company strategy andpreparedness for 2020

• use the Future Value Chainframework to develop a strategy andtactical plan that responds toexternal shopper, consumer andsocietal trends.

To access a copy of the Future Value ChainReport log ontowww.futurevaluechain.com

GS1 REVIEW

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

CONTENTS

DIRECTORS AND OTHER INFORMATION

REPORT OF THE DIRECTORS

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

REPORT OF THE INDEPENDENT AUDITORS

ACCOUNTING POLICIES

INCOME AND EXPENDITURE ACCOUNT

BALANCE SHEET

CASH FLOW STATEMENT

NOTES TO THE FINANCIAL STATEMENTS

GS1 (GLOBAL STANDARDS 1 (IRELAND)) LIMITED (A company limited by guarantee and not having a share capital)

24

FINANCIAL STATEMENTS

DIRECTORS AND OTHER INFORMATION

SUPERVISORY BOARD AND ADVISORS

as at 31 December 2006

Board of Directors

Tony Minogue – Chairman

Rory Connaughton

Jim Copeland

Susan Moore-D’Arcy

John Farrelly

Damian Harte

Liam Hartnett

Helen Keelan

Michael Kelly

Daragh Monahan

Eric Morrissey

John O’Callaghan

Marco Pattori

Bob Semple

David Skerritt

Veronica Sullivan

PJ Timmins

Secretary and Registered Office

Jim Bracken

The Nutley Building

Merrion Road

Dublin 4

Registered Number: 404327

Auditors

Mazars

Harcourt Centre

Block 3

Harcourt Road

Dublin 2

Bankers

Bank of Ireland

College Green

Dublin 2

Bank of Ireland

Merrion Road

Dublin 4

Solicitors

Mason, Hayes and Curran

6th Floor South Bank House

Barrow Street

Dublin 4

25


Aidan Keane (resigned 10 December 2010)

Tony Minogue Elaine Attridge (resigned 10 June 2010)

Rory ConnaughtonJim Copeland Susan Moore-Darcy (appointed 16 September 2010)

John Farrelly Damian Harte Liam Hartnett Helen Keelan Michael Kelly

Daragh Monahan Eric Morrissey John O’Callaghan Marco Pattori Johnnie Philips (resigned 11 March 2010)

Bob SempleDavid Skerritt Veronica Sullivan (appointed 10 December 2010)

PJ Timmins Claude Tonna-Barthet (resigned 10 June 2010)

26

REPORT OF THE DIRECTORS

The directors submit their report together with the audited financial statements for the year ended 31 December 2010.

1. PRINCIPAL ACTIVITIESThe mission of the company is to support Irish companies in their efforts to improve supply and demand chainefficiency. The principal activities of the company are the licensing of global company prefixes and global locationnumbers to identify products and locations for the purpose of automatic data capture and for EDI. The GS1 globalstandards cover Bar Coding, eCommerce, Data Synchronisation and EPC/RFID. The company also provides educationand training for its user companies.

2. RESULTS AND REVIEW OF BUSINESSTotal income, inclusive of deposit interest, for the year ended 31 December 2010 was €1,304,352 (2009: €1,283,117).

The number of active user companies was 2,955 (2009: 2,910). The surplus for the year amounted to €506 (2009:€74,803). The reserves on 31 December 2010 were €1,169,844 (2009: €1,169,338). The core membership of thecompany is stable and mature.

3. DIVIDENDSThe company is a not for profit company and clause 6 of the Memorandum and Articles of Association expresslyforbids any form of distribution to the members of the company.

4. EVENTS SINCE THE YEAR ENDThere have been no significant events affecting the company since the year end.

5. RESEARCH AND DEVELOPMENTThe company has been evaluating the value of research and development relevant to the implementation of GS1standards across the existing end users and for the extension of the user base itself. The company is also participatingin a research and development project, CLASS, which is evaluating the implementation of RFID technology fortracing and tracking medical devices.

6. FUTURE DEVELOPMENTSThe directors have a strategy in place to develop within other sectors of the market, such as e- procurement acrossthe public sector including healthcare, DIY hardware and also to provide new services to existing members.

7. DIRECTORSIn accordance with the Articles of Association no directors are required to retire at the next Annual General Meeting.

The names of the persons who were directors at any time during the year ended 31 December 2010 are set outbelow. Unless otherwise stated, they all served as directors for the entire year ended on that date.

8. DIRECTORS AND SECRETARY AND THEIR INTERESTSThe company is limited by guarantee and does not have any share capital. Therefore the directors and secretary whoserved during the year did not have a beneficial interest in the company.


9. TRANSACTIONS INVOLVING DIRECTORSThere were no contracts or arrangements of any significance in relation to the company’s business, or that of relatedcompanies, in which the directors or secretary of the company had any interest, as defined in the Companies Act,1990, at any time during the year ended 31 December 2010.

10. BOOKS AND RECORDSThe directors are responsible for ensuring that proper books and accounting records, as outlined in Section 202 of theCompanies Act 1990, are kept by the company. The directors have appointed appropriate accounting personnel inorder to ensure compliance with those requirements. The books and accounting records of the company aremaintained at The Nutley Building, Merrion Road, Dublin 4.

11. AUDITORSThe auditors, Mazars, Chartered Accountants, have expressed their willingness to be re-appointed in accordance withSection 160(2) of the Companies Act 1963.

On behalf of the Board, Tony Minogue and David Skerritt10 March 2011

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The directors are responsible for preparing the annual report and the financial statements in accordance withapplicable Irish law and Generally Accepted Accounting Practice in Ireland, including the accounting standardsissued by the Accounting Standards Board and published by the Institute of Chartered Accountants in Ireland.

Company law requires the directors to prepare financial statements for each financial year which give a true and fairview of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparingthose financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that thecompany will continue in business.

The directors confirm that they have complied with the above requirements in preparing the financial statements.The directors are responsible for keeping proper books of account which disclose with reasonable accuracy at anytime the financial position of the company and to enable them to ensure that the financial statements comply withthe Companies Acts 1963 to 1983 and 1990 to 2009 as applicable to companies limited by guarantee and nothaving a share capital. They are also responsible for safeguarding the assets of the company and hence for takingreasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information includedon the company’s website. Legislation in the Republic of Ireland governing the preparation and dissemination offinancial statements may differ from legislation in other jurisdictions.

On behalf of the Board, Tony Minogue and David Skerritt10 March 2011

27


To the shareholders of GS1 (GLOBALSTANDARDS 1 (IRELAND)) LIMITED

We have audited the financialstatements of GS1 (Global Standards 1(Ireland)) Limited for the year ended 31December 2010 which comprise theIncome and Expenditure Account,Balance Sheet, Cash Flow Statement andthe related notes. These financialstatements, on pages 9 to 18, have beenprepared under the historical costconvention and the accounting policiesset out on pages 9 and 10.

This report is made solely to thecompany’s members, as a body, inaccordance with Section 193 of theCompanies Act, 1990. Our audit workhas been undertaken so that we mightstate to the company’s members thosematters we are required to state to themin an auditor’s report and for no otherpurpose. To the fullest extent permittedby law, we do not accept or assumeresponsibility to anyone other than thecompany and the company’s membersas a body, for our audit work, for thisreport, or for the opinions we haveformed.

Respective responsibilities of directors and auditors

As described in the Statement ofDirectors’ Responsibilities the company’sdirectors are responsible for preparingthe financial statements in accordancewith applicable law and GenerallyAccepted Accounting Practice in Irelandincluding the accounting standardsissued by the Accounting StandardsBoard and published by the Institute ofChartered Accountants in Ireland.

Our responsibility is to audit thefinancial statements in accordance withrelevant legal and regulatoryrequirements and InternationalStandards on Auditing (UK and Ireland).

We report to you our opinion as towhether the financial statements give atrue and fair view in accordance withGenerally Accepted Accounting Practice

in Ireland and are properly prepared inaccordance with the Companies Acts,1963 to 1983 and 1990 to 2009 asapplicable to companies limited byguarantee and not having a sharecapital. We also report to you whether inour opinion: proper books of accounthave been kept by the company; andwhether the information given in thedirectors’ report is consistent with thefinancial statements. In addition, westate whether we have obtained all theinformation and explanations necessaryfor the purposes of our audit, andwhether the financial statements are inagreement with the books of account.

We also report to you if, in our opinion,any information specified by lawregarding directors’ remuneration anddirectors’ transactions is not disclosedand, where practicable, include suchinformation in our report.

We read the directors’ report andconsider the implications for our reportif we become aware of any apparentmisstatements within it.

Basis of audit opinion

We conducted our audit in accordancewith International Standards onAuditing (UK and Ireland) issued by theAuditing Practices Board. An auditincludes examination, on a test basis, ofevidence relevant to the amounts anddisclosures in the financial statements. Italso includes an assessment of thesignificant estimates and judgmentsmade by the directors in the preparationof the financial statements, and ofwhether the accounting policies areappropriate to the company’scircumstances, consistently applied andadequately disclosed.We planned and performed our audit soas to obtain all the information andexplanations which we considerednecessary in order to provide us withsufficient evidence to give reasonableassurance that the financial statementsare free from material misstatement,whether caused by fraud or otherirregularity or error. In forming our

opinion we also evaluated the overalladequacy of the presentation ofinformation in the financial statements.

Opinion

In our opinion the financial statements:• give a true and fair view, in

accordance with GenerallyAccepted Accounting Practice inIreland, of the state of thecompany’s affairs as at 31December 2010 and of its surplusand cashflow for the year thenended; and

• have been properly prepared inaccordance with the requirementsof the Companies Acts, 1963 to1983 and 1990 to 2009 asapplicable to companies limited byguarantee and not having a sharecapital.

We have obtained all the informationand explanations which we considernecessary for the purposes of our audit.In our opinion proper books of accounthave been kept by the company. Thefinancial statements are in agreementwith the books of account.

In our opinion the information given inthe directors’ report is consistent withthe financial statements.

Mazars Chartered Accountants & Registered Auditors Harcourt Centre Block 3 Harcourt Road Dublin 2

10 March 2011

28


REPORT OF THE INDEPENDENT AUDITORS

The significant accounting policies adopted by the company are as follows:

a) Basis of Financial StatementsThe financial statements have been prepared under the historical cost convention and in accordance with financialreporting standards promulgated in Ireland by the Institute of Chartered Accountants in Ireland.

b) IncomeIncome represents amounts receivable in respect of services provided during the year and is stated exclusive of valueadded taxation.

c) Tangible Assets Tangible fixed assets are stated at cost less accumulated depreciation.Depreciation is calculated in order to write off the cost of tangible fixed assets over their estimated useful lives, using thestraight line method.

Computer, software and office equipment 20% / 50% straight lineFurniture and fixtures 50% straight lineLeasehold improvements 12.5% straight line

d) Foreign Currencies Foreign currencies which arise principally in connection with current assets and current liabilities are translated at the rateof exchange ruling at the balance sheet date.Profits and losses from foreign currency transactions are dealt with in the income and expenditure account.

e) TaxationThe company is exempt from corporation tax on its ordinary activities in accordance with the Taxes Consolidation Act,1997.

f) Pensions Pension costs arising under the defined contribution scheme are charged to the income and expenditure account asincurred.

g) Leased AssetsRentals in respect of operating leases are charged to the income and expenditure account as incurred.

h) Financial Assets Financial assets are stated at cost less provision for any permanent diminution in value.

29


ACCOUNTING POLICIES


INCOME AND EXPENDITURE ACCOUNTYear ended Year ended

31 December 31 December 2010 2009

Notes € €

Income 2 1,280,518 1,254,915

Expenditure <1,297,888 > <1,200,393 >

Operating <deficit>/surplus <17,370 > 54,522

Interest receivable and similar income 5 23,834 28,202

Surplus before taxation 6 6,464 82,724

Taxation 7 <5,958 > <7,921 >

Surplus after taxation 13 506 74,803=== ======

A statement of total recognised gains and losses has not been prepared as there were no gains or losses for the year or the preceding year other than as stated above.

All income is in respect of continuing operations.

BALANCE SHEET31 December 31 December

2010 2009Notes € €

FIXED ASSETSTangible assets 8 187,627 131,905

CURRENT ASSETSDebtors 9 204,946 136,202Bank 632,939 789,931Financial assets 10 600,000 600,000

1,437,885 1,526,133CREDITORSAmounts falling due within one year 11 <455,668 > <488,700 >

NET CURRENT ASSETS 982,217 1,037,433

TOTAL ASSETS LESS CURRENT LIABILITIES 1,169,844 1,169,338======== ========

CAPITAL AND RESERVESRevenue reserves 13 1,169,844 1,169,338

======== ========

CASH FLOW STATEMENTYear ended Year ended

31 December 31 December 2010 2009

Notes € €

Net cash <outflow>/inflow from operating activities 12 <73,330 > 45,430

Returns on investments and servicing of finance 23,834 28,202

Taxation <4,302 > <5,472 >

Capital expenditure and financial investmentPayments to acquire tangible fixed assets <103,194 > <57,744 >

<Decrease>/increase in cash in the year <156,992 > 10,416

Cash at beginning of year 789,931 779,515

Cash at end of year 632,939 789,931======== ========

30

NOTES TO THE FINANCIAL STATEMENTS

1. LEGAL STATUS OF COMPANYGS1 (Global Standards 1 (Ireland)) Limited is a company incorporated under the Companies Act 1963, without share capital, theliability of which is limited by the guarantee of its members, such amount as may be required, but not exceeding €1.00.

2. INCOMEIncome represents the amounts receivable in respect of services provided and is stated exclusive ofvalue added taxation.

3. STAFF COSTS 2010 2009€ €

Wages and salaries 452,129 399,321Employer PRSI 48,350 47,253Pension costs 18,680 25,072

519,159 471,646======= =======

The average number of persons employed by the company in the financial period was 8 (2009: 7).

4. PENSIONThe company operates a defined contribution scheme for its employees, the contributions to which are paid to an independentlyadministered fund. The pension cost for the year represents contributions payable to the fund. The contribution charged to theincome and expenditure account for the year was €18,680 (2009: €25,072).

5. INTEREST RECEIVABLE AND SIMILAR CHARGES 2010 2009€ €

Interest receivable 23,834 28,202======= =======

6. SURPLUS BEFORE TAXATION 2010 2009€ €

Surplus before taxation has been arrived at after charging:Auditors’ remuneration 10,000 10,000Directors’ remuneration - -Depreciation 47,472 32,611

======= =======

7. TAXATION 2010 2009€ €

Corporation tax for the year 5,958 7,050Under provision in respect of prior year - 871

5,958 7,921======= =======

Factors affecting tax charge for yearThe current tax charge for the year is different to the current charge that would result from applying the standard rate of Irishcorporation tax to the surplus before taxation. The differences are explained below:

Surplus before taxation 6,464 82,724Surplus for the year multiplied by the standardrate of corporation tax in Ireland - 12.5% 808 10,340

======= =======

Effects of:The current tax charge for the year is different to the current charge that would result from applying the standard rate of Irishcorporation tax to the surplus before taxation. The differences are explained below:

Non taxable mutual trading income 2,171 <6,815 >Passive income taxable at higher rate 2,979 3,525

Current tax charge for the year 5,958 7,050======= =======

In accordance with the Taxes Consolidation Act, 1997, the company is exempt from corporation tax on its ordinary activities. Thecompany is only liable to corporation tax in respect of its deposit interest income at the rate of 25%.

31


NOTES TO THE FINANCIAL STATEMENTS8. TANGIBLE ASSETS

Leasehold Fixtures Officeimprovements & fittings equipment Computers Total

€ € € € €

Cost

At 31 December 2009 143,570 2,020 24,406 164,882 334,878

Additions - - 429 102,765 103,194

At 31 December 2010 143,570 2,020 24,835 267,647 438,072

Depreciation

At 31 December 2009 70,279 2,020 24,406 106,268 202,973

Charge for year 17,946 - 172 29,354 47,472

At 31 December 2010 88,225 2,020 24,578 135,622 250,445

Net Book Amount

At 31 December 2009 73,291 - - 58,614 131,905

At 31 December 2010 55,345 - 257 132,025 187,627======= ======= ======= ======= =======

9. DEBTORS 2010 2009Amounts falling due within one year € €

Trade debtors 55,721 9,027

Prepayments 97,431 111,383

Amounts owed by related party (Note 14) 38,720 -

Value added tax 12,677 13,739

Corporation tax 397 2,053

204,946 136,202======= =======

10. FINANCIAL ASSETS 2010 2009€ €

Financial investments – at cost

At beginning of year 600,000 600,000

Additions - -

At end of year 600,000 600,000======= =======

Financial assets comprise financial investments with a 100% capital guarantee which is due to mature in 2013. The protectedamount, before tax, is the higher of:- the original amount invested- 80% of the highest value of the protected consensus bond series 2 during the investment

(adjusted for any withdrawal or income taken)- the cash in value of the investment at that stage.The capital protection on the investment with Irish Life Assurances Plc is provided by JP Morgan Chase Bank. The protection asprovided by Irish Life is restricted to the investment returns and capital protection actually received from JP Morgan Chase Bank.

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33

NOTES TO THE FINANCIAL STATEMENTS11. CREDITORS 2010 2009

Amounts falling due within one year € €

Trade creditors and accruals 387,227 421,585

Deferred income 43,410 42,836

Other creditors 4,750 5,671

Paye/Prsi 20,281 18,608

455,668 488,700======= =======

12. NET CASHFLOW FROM OPERATING ACTIVITIES 2010 2009Amounts falling due within one year € €

Operating <deficit>/surplus <17,370 > 54,522

Depreciation 47,472 32,611

Movement in debtors <70,400 > <12,201 >

Movement in creditors <33,032 > <29,502 >

Net cash <outflow>/inflow from operating activities <73,330 > 45,430======= =======

13. REVENUE RESERVES 2010 2009€ €

At beginning of the year 1,169,338 1,094,535

Surplus for the year 506 74,803

At end of year 1,169,844 1,169,338======== ========

14. RELATED PARTY TRANSACTIONS

On 30 September 2010, the company entered into a shared services agreement with Efficient Consumer Response Ireland (ECR),

an unincorporated organisation to identify jointly, existing and new opportunities for cooperation and collaboration including

endorsement of GS1 standards within ECR guidelines for mutual benefit.

Subsequent to the 30 September 2010, the company recharged certain wages and administration costs amounting to €44,355

and the balance outstanding as at 31 December 2010 was €38,720.

There were no other transactions during the year that required disclosure under Financial Reporting Standard 8 – “Related Party

Transactions”.

15. COMMITMENTS

In November 2005, the company took assignment of a 35 year lease with 21 years remaining, with an annual rental commitment

in respect of its premises at The Nutley Building, Merrion Road, Dublin 4. The annual commitment of €94,200 is subject to review

at five year intervals as specified in the lease agreement. The next review date is November 2011.

16. COMPARATIVE AMOUNTS

In order to improve the presentation and disclosure in these financial statements, certain prior year figures and disclosures have

been reclassified under different headings.

17. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the board of directors on 10 March 2011.

34

MEMBERSHIP REPORT

GS1 IRELAND MEMBERS BY SECTOR 2010

NEW MEMBERS 2010 BY SECTOR

35

MINUTES OF THE 29TH GS1 IRELAND AGM 2010

Present:

Aidan Keane (Chairman) BWG FoodsTony Minogue (Vice Chairman) GlanbiaPJ Timmins Clery & Co.David Skerritt Johnson BrothersLiam Hartnett Health ExpressHelen Keelan SirikitRory Connaughton Holfeld Graphics

Also in Attendance:

Mr Jim Bracken, GS1 IrelandMs Catherine Best, Mason Hayes+CurranMs Mairead Divilly, Mazars (by telephone conference)

Proxy Nominations:

Jacob Fruitfield LimitedSAFC Arklow LimitedSuperquinn LimitedCadbury Ireland LimitedBearhug LimitedThai Food Company LimitedSymantec LimitedMFP Sales LimitedCPI LimitedIrish Table Top Group LimitedInterchem (Ireland) LimitedQuality Plastics Limited

Welcome AddressThe Chairman welcomed all to the AGM and formally opened themeeting. It was noted that four proxy forms had been received.The Chairman distributed a copy of the GS1 Ireland Annual Report2008 to each person attending. Before addressing the business ofthe day the Chairman thanked the Board Members, Jim Brackenand the rest of the GS1 Team for their efforts during 2009 and alsoMazars for their services as Auditors.

Ordinary Business

Agenda Item 1: To adopt the minutes of the 2009 AnnualGeneral meetingThere being no matters arising the Minutes were taken as readand proposed by R Connaughton, seconded by David Skerritt, andunanimously approved.

Agenda Item 2: To receive and consider the FinancialStatements and the Report of the Directors and Auditors for the

period ended 31 December 2009 (the “Accounts”)The Accounts were made available to all in advance of themeeting. The Chairman invited any comments and queries on theAccounts. Responding to a question raised by H Keelan, M. Divillyof Mazars Ireland, confirmed that there were no issues in themanagement letter to be brought to the attention of the directorsor members of the Company. There being no further questions,the adoption of the Accounts was proposed by H Keelan,seconded by T Minogue, and unanimously approved.

Agenda Item 3: Appointment and remuneration of the auditors

The re-appointment of Mazars Ireland as auditors to the Companyand the authorisation of the directors to fix the remuneration ofthe auditors was proposed by R Connaughton, seconded by LHartnett, and unanimously approved.

Agenda item 4: To elect the following as members of theSupervisory Board who retire in rotation in accordance with thearticles of association of the Company:

Mr. Aidan KeaneMr. Eric MorrisseyMr. PJ Timmins

The election of Aidan Keane was proposed by H. Keelan,seconded by T. Minogue and unanimously approved.

The election of Eric Morrissey was proposed by H. Keelan,seconded by T. Minogue and unanimously approved.

The election of PJ Timmins was proposed by H. Keelan, secondedby T. Minogue and unanimously approved.

Agenda item 5: To elect the following as members of theSupervisory Board:

Mr. John O’CallaghanMr. Claude Tonna BarthetMr. Marco PattoriMs Elaine AttridgeMr. Timmy Faughnan

The election of John O’Callaghan was proposed by PJ Timmins,seconded by D Skerrit and unanimously approved.

The election of Marco Pattori was proposed by PJ Timmins,seconded by D Skerrit and unanimously approved.

It was noted that Claude Tonna Barthet, Elaine Attridge andTimmy Faughnan had confirmed that they no longer wished to beproposed for election to the Supervisory Board.

MINUTES OF 29TH GS1 GLOBAL STANDARDS 1IRELAND LIMITED AGMHeld 10th June 2010

At GS1 Ireland, The Nutley Building,

Merrion Road, Dublin 4Ireland

36

MINUTES OF THE 29TH GS1 IRELAND AGM 2010

Special Business

Agenda Item 6: To pass the following as a special resolution ofthe Company: “That the definitions set out in Clause 2 and theobjects set out in Clause 3 of the Memorandum of Association ofthe Company presented to the meeting and marked foridentification purposes with the letter “A” be and are adopted asClause 2 and Clause 3 of the Company in substitution for and tothe exclusion of the existing Clause 2 and the existing Clause 3of the Company.”

D Skerritt proposed, H Keelan seconded, and it was unanimouslyresolved that the definitions set out in Clause 2 and the objectsset out in Clause 3 of the Memorandum of Association of theCompany presented to the meeting and marked for identificationpurposes with the letter “A” be and are adopted as Clause 2 andClause 3 of the Company in substitution for and to the exclusionof the existing Clause 2 and the existing Clause 3 of the Company.

Agenda Item 7: To pass the following as a special resolution ofthe Company: “That the Memorandum of Association of theCompany be amended by the insertion of the followingadditional clause, numbered 7: “7. If upon the winding up ordissolution of the Company there remains after the satisfactionof all its debts and liabilities any property whatsoever the sameshall not be paid to or distributed among the members of theCompany but shall be given or transferred to some other bodyor bodies having main objects similar to the main object(s) ofthe Company and which shall prohibit the distribution of its ortheir income and property among its or their members to anextent at least as great as imposed on the Company under or byvirtue of Clause 6 hereof, such institution or institutions to bedetermined by the members of the Company at or before thetime of dissolution.”

R Connaughton proposed, L Hartnett seconded, and it wasunanimously resolved that the Memorandum of Association ofthe Company be amended by the insertion of the followingadditional clause, numbered 7:

“7. If upon the winding up or dissolution of the Company thereremains after the satisfaction of all its debts and liabilities anyproperty whatsoever the same shall not be paid to or distributedamong the members of the Company but shall be given ortransferred to some other body or bodies having main objectssimilar to the main object(s) of the Company and which shallprohibit the distribution of its or their income and propertyamong its or their members to an extent at least as great asimposed on the Company under or by virtue of Clause 6 hereof,such institution or institutions to be determined by the membersof the Company at or before the time of dissolution.”

Agenda Item 8: To pass the following as a special resolution ofthe Company: “That the Articles of Association of the Companyin the printed document presented to the meeting and markedfor identification purposes with the letter “B” be and areadopted as the new Articles of Association of the Company insubstitution for and to the exclusion of the existing Articles ofAssociation.”

PJ Timmins proposed, T Minogue seconded, and it wasunanimously resolved that the Articles of Association of theCompany in the printed document presented to the meeting andmarked for identification purposes with the letter “B” be and areadopted as the new Articles of Association of the Company insubstitution for and to the exclusion of the existing Articles ofAssociation.

Any other business and conclusion

There being no other business the Chairman declared themeeting ended.

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gs1 ireland 2010 annual report

Documents

adoptionof gs1 standards

standards adoption

gs1 datasync

gs1 ireland agm

relevance of standards

openglobal standards

public expenditure

public servicesector