report introduction

Copyright © 2006 Information Resources, Inc. Confidential and proprietary.

August 2006 CONFIDENTIAL

An IRI Report for the VA

covering data up to Quarter 2, 2006


Report Introduction1. The data contained in the report present estimates of the size of the Gift Voucher

Market.

2. The data have been generated through a “pooling operation”, whereby members of the VA forwarded to IRI data on their individual businesses, which were then aggregated and analysed.

3. The market described is a “defined Market”, reflecting input from the following 28 companies – Boots, Capital Incentives, Debenhams, DSG Business Services, Exhilaration, Experience More, The Gift Voucher Shop, Grass Roots, Halfords, House of Fraser, John Lewis Direct, Kingfisher, Lakeside Shopping Centre, Love2reward, Maritz, Marks & Spencer, Marriott Incentives, Next, Red Letter Days plc, Sainsbury, Tesco, Theatre Tokens, Thomson (Corporate Sales only), Thomas Cook, Thresher Group, Virgin Incentives, Whitbread and WH Smith.The VA and Information Resources aim to continue to recruit further members in the future in order to make the measurement as comprehensive as possible.

4. The data included covers the period Quarter 3, 2003 - Quarter 2, 2006

5. Any queries or comments should be forwarded to Simon Thickett of IRI, Eagle House, The Ring, Bracknell, Berkshire, RG12 1HS

Telephone: 01344 746000 Fax: 01344 746001


Executive Summary

Latest Quarter Results The Voucher Association has enjoyed a successful

quarter in Q2 06 with total sales of £215,060,000 54.3% of these sales were Store sales

YOY Results Year on Year growth of the Total Market was +5.0%

for Q2 06 This growth was driven by Corporate sales (+12.7%)


Value Sales each Quarter, starting quarter 3, 2003. Bars are in £000s.

Total Category Size

11

7,8

88

42

9,2

19

10

8,4

16

11

1,1

46

12

5,9

13

42

9,4

84

11

3,3

21

11

7,5

56

12

4,8

70

44

0,0

73

12

1,7

82

11

6,7

02

89

,20

7

17

0,0

86

77

,56

7

79

,31

3

94

,25

2

18

3,1

21

84

,46

2

87

,25

9

18

6,4

06

10

4,7

39

98

,35

8

20

7,0

96

59

9,3

05

18

5,9

83

19

0,4

59

22

0,1

65

61

2,6

05

19

7,7

83

20

4,8

14

21

8,9

14

62

6,4

79

22

6,5

21

21

5,0

60

94

,04

4

Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

Store

Corp

Total


Value Sales in the latest year, starting in the year beginning quarter 3, 2003.

Total Category Size7

66

,66

9

78

6,2

74

80

3,4

27

41

6,1

74

44

9,0

94

48

3,5

48

1,1

82

,84

3

1,2

35

,36

8

1,2

86

,97

5

Q3 2003 to Q2 2004 Q3 2004 to Q2 2005 Q3 2005 to Q2 2006

Store

Corp

Total


Year On Year Growth of Total Market, by CategoryQuarter This Year Vs Quarter Last Year

19.4

12.5

5.5

8.96.8

0.1

4.55.8

-0.8

2.5

7.5

-0.7

22.6

-3.4 -4.1-2.1

5.77.7

8.910.0

-0.2

1.8

24.0

12.7

20.7

7.5

1.3

4.0

6.3

2.2

7.5

-0.6

2.3

14.5

5.06.3

Q32003/Q3

2002

Q42003/Q4

2002

Q12004/Q1

2003

Q22004/Q2

2003

Q32004/Q3

2003

Q42004/Q4

2003

Q12005/Q1

2004

Q22005/Q2

2004

Q32005/Q3

2004

Q42005/Q4

2004

Q12006/Q1

2005

Q22006/Q2

2005

Store

Corp

Total

Year on Year percent change, based on Market Sales data


Contribution of each quarter to total year sales. Based on latest rolling full year of data

Category Seasonality: Quarter 3, 2005 - Quarter 2, 2006

Q4 200554.8%

Q2 200614.5% Q3 2005

15.5%

Q1 200615.2%

Q4 200538.5%

Q2 200620.3% Q3 2005

19.4%

Q1 200621.7%

B 2 C B 2 B


Total Market 207,096 599,305 185,983 190,459 220,165 612,605 197,783 204,814 218,914 626,479 226,521 215,060

Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

Category Segmentation Share Trends of Total Market

56.9

71.6

58.3 58.4 57.2

70.1

57.3 57.4 57.0

70.2

53.8 54.3

43.1

28.4

41.7 41.6 42.8

29.9

42.7 42.6 43.0

29.8

46.2 45.7

Store Corp

Store & Corporate contribution to total sales each quarter. Value sale shown in the table is in £000s


Detailed Market BreakdownWhere the Market is broken down into the segmentation shown below, it is deemed to be representative of only the businesses that are listed below

- Boots

- Capital Incentives

- Debenhams

- DSG Business Services

- Experience More

- Halfords

- House of Fraser

- Marriott Incentives

- Red Letter Days plc

- Sainsburys

- The High Street Voucher

- WH Smith

- Next

- Exhilaration

This information is only available to the companies listed above

Telephone: 01344 746000 Fax: 01344 746001

Total Market

B2B B2C

Reward/Incentive

Flexible Benefits

Legislative

Savings (incl Xmas Club)

Affinity Groups

E-commerce

E-commerce

OTC

Insurance Replacement

Savings (inc. Xmas club)


Store 67,746 284,316 64,861 62,849 71,824 291,954 73,293 70,509 72,360 298,466 77,790 67,079

Q3 2003

Q4 2003

Q1 2004

Q2 2004

Q3 2004

Q4 2004

Q1 2005

Q2 2005

Q3 2005

Q4 2005

Q1 2006

Q2 2006

Market Size, Split by Category B 2 CThis data is only available to members submitting this breakdown

3.2

43.8

0.0 0.1 2.0

45.1

0.1 0.1 0.3

45.6

0.0 0.01.62

0.96

2.26 2.272.86

1.68

3.27 3.57 3.34

1.57

2.83 3.51

95.2

55.2

97.7 97.7 95.1

53.2

96.7 96.3 96.3

52.8

97.2 96.5

OTC

E-commerce

Savings (Incl XmasClub)

Quarterly Value Sales, £000s. Market is defined as only the companies who submit the Breakdown.


Corp 43,897 96,794 42,340 41,515 59,809 96,078 46,429 48,738 53,378 96,527 59,603 55,571

Q3 2003

Q4 2003

Q1 2004

Q2 2004

Q3 2004

Q4 2004

Q1 2005

Q2 2005

Q3 2005

Q4 2005

Q1 2006

Q2 2006

Market Size, Split by Category B 2 BThis data is only available to members submitting this breakdown

63.168.5

62.2 61.568.7 70.6

65.6 66.6 63.668.8 67.5 66.3

9.16.4

12.1 12.0

9.7 6.713.2 11.9

12.98.3 10.7 13.30.6

0.4 0.6 0.5

0.3 0.2 0.3 0.30.2 0.1 0.2 0.2

13.18

1.37 1.22

2.269.3

0.67 0.63 3.910.71

0.58 0.84

1.9

2.9 5.3

5.5

5.1

6.5 6.8 4.9

3.9

7.7 7.9

0.0

0.0

0.0 0.0

0.0

0.5

0.4 0.4 0.4

0.4

0.3 0.323.2

9.7

20.9 19.613.5

7.713.3 13.4 14.0

7.813.1 11.3

3.01.1

InsuranceReplacement

E-commerce

Affinity Groups

Savings (Incl XmasClub)

Legislative

Flexible Benefits

Reward/Incentive

Quarterly Value Sales, £000s. Market is defined as only the companies who submit the Breakdown.

report introduction

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