#1Nectar Deep Dive Event Nectar Deep Dive 14 October 2021 12 ● Sainsbury's nectar NEC TAR 360#2The Team ONectar360 2021 2 Mark Given Chief Marketing Officer Operating Board Member with accountability for Marketing, Loyalty (B2C & B2B) and ESG. Amir Rasekh Director of Nectar 360 Leads our Nectar 360 business, with accountability for our client relationships, services provided, and commercial plan. Alex Naisby Head of Loyalty and CRM Leads our Loyalty and CRM division for Sainsbury's, with accountability for the strategic direction and delivery of Nectar programme and data driven campaigns. Alex Jardine Head of Analytics Leads our Analytics teams across Marketing and Nectar 360, with accountability for a broad range of capabilities from Data Science to Commercial Analytics. Alice Hawcroft Digital Director Nectar 360 Leads our digital media propositions across onsite and offsite, with accountability for our social media, digital display and ecommerce media offering on Sainsburys.co.uk & Argos.co.uk Sainsbury's nectar NEC TAR 360#3Welcome O ONectar 360 2021 3 Welcome UK and Global Market Context Nectar B2C Break Nectar360 B2B Break Q&A - Ask the panel Closing comments Mark Given Mark Given Alex Jardine and Alex Naisby Amir Rasekh and Alice Hawcroft Mark Given, Amir Rasekh, Alex Jardine, Alex Naisby Mark Given 13.00 13.05 13.20 13.45 13.55 14.25 14.35 15.20 S Sainsbury's nectar NEC TAR 360#4£ $ Global & UK market context The trends shaping loyalty and retail media ONectar 360 2021 4 What we'll cover today nectar Nectar B2C Driving the Retail strategy, and a winning coalition NEC TAR 360 Nectar360 B2B Who we are and what we do Winning in Data and Digital Q&A Ask the panel Sainsbury's nectar NEC TAR 360#5Nectar is a core part of our strategy ONectar360 2021 5 Food First Better value and innovation Underpinned by buying benefits and lower cost to serve Connected to Customers Brands that Deliver Customer and profit focus • Supporting the core food business Know and serve our customers better, use power of Nectar the Plan for Better ££ Save to Invest Structurally lower operating costs to fuel investment in the core • Cutting complexity and increasing pace of execution Environmental and social sustainability at our core Sainsbury's nectar NEC TAR 360#6Nectar360 Investor Session 2021 £ ©Nectar360 2021 € $ Global & UK market context The trends shaping loyalty and retail media 6 nectar Nectar B2C Driving the Retail strategy, and a winning coalition NEC TAR 360 Nectar360 B2B Who we are and what we do Winning in Data and Digital Q&A Ask the panel Sainsbury's nectar NEC TAR 360#7Channel shifts are disrupting how both retailers and manufacturers go to market ONectar360 2021 UK grocery forecast growth by format 2021-25¹ % CAGR Discount Online Convenience Supermarkets Traditional² Hypermarkets-0.6% 7 0.1% 0% 2.2% 3.7% 4.5% UK grocery 2021 forecast revenues¹ by format £bn Convenience 45 Supermarkets Source: IGD UK channel forecast report; (1) Food and non-food; (2) Sales through food retailers not covered in other formats such as food specialists (e.g. butchers, bakers, greengrocers, organic specialists), CTNS (cigarettes, tobacco, news) and street markets 91 Discount 28 22 16 10 Market Context Online Hypermarkets Traditional² Sainsbury's nectar NEC TAR 360#8Online is disproportionately important for growth - both pre and post pandemic UK online channel share of grocery sales ONectar360 2021 5.8% 2017 6.0% 2018 8 Source: IGD UK channel forecast report 6.1% 2019 10.5% 2020 Online growth contribution as % of overall growth 16% 2017 11% 2018 Source: Europanel consumer insights (powered by GFK and Kantar) 36% 2019 39% 2020 Sainsbury's nectar Market Context NEC TAR 360#9And with this, customers expect greater personalisation The Challenge In a congested digital landscape, brands need to stand out Customer research tells us that: 91% are more likely to spend with brands who provide relevant offers & recommendations¹ Do ONectar360 2021 9 B 86% of UK consumers say it is important for a brand to understand their interests and passions² Source: (1) McKinsey - Future of Personalisation Report 2019; (2) Accenture Interactive - Global Consumer Pulse Survey 2019; (3) Forbes, 50 Stats Showing The Power Of Personalization 263% of consumers expect personalisation as a standard of service offered by brands³ Sainsbury's nectar Market Context NEC TAR 360#10Retailers with an online presence and first party data can become significant digital media players ONectar360 2021 1 Shift to eCommerce 49% increase in eCommerce¹ 20% projected 2021 digital advertising growth² 10 2 Measurement and attribution ogo 45% of marketers expect to increase retail media spending³ £2-4+ Return on advertising spend for brands across categories2 3 Deeper audience insights 20% of brands rank shopper insights as the top opportunity to work with digital media network capabilities4 4 Future death of the 3rd party cookie Source: (1) Adobe digital economy index; (2) e-Marketer US CPGs digital ad spending 2020; (3) The Annual CMO Spend Survey - Gartner 2020; (4) Kantar's State of Ecommerce 2021 Report; (5) Inmar Intelligence: Thought leadership, retail media networks ~12-24 month window to define models that enrich the data foundation 84% of retailers expect to have digital media network capabilities5 Market Context Sainsbury's nectar NEC TAR 360#11The UK digital media network market is large and projected to grow to £4.5bn by 2025 Addressable UK Digital Media Network Market size 2021-251* ONectar360 2021 11 +11% CAGR £3.0bn 14% 2% 84% 2021 Offsite digital media budget Onsite £4.5bn 1% 26% 73% 2025 Offsite offline budget Source: (1) Digital ad Spending in the UK by industry 17-21, emarketer; IAB UK Digital Adspend Study '20; UK Digital Ad Spending 2021, emarketer; UK Digital adspend 2018-2022, emarketer. *Covering both CPG and Consumer Electronics 2021-25 CAGR +1.5%² +3.7%* Total grocery market 2 Online grocery market Source: (2) IGD UK channel forecast report +11%¹ Market Context Digital retail media network Sainsbury's nectar NEC TAR 360#12The most advanced retailers are successfully scaling their digital media network capabilities, especially in the US Retailers are investing significantly in digital media networks ONectar360 2021 12 ROUNDEL BEST BUY O TARGET Media Network criteol. <1> Carrefour LINKS CVS pharmacy- CMG CHESAPEAKE DOLLAR TREE Media Group 2019 criteol. Douglas 2020 2021 Walmart TESCO dunnhumby Kroger wg Walmart Walmart Connect 66 33 Walmart Kroger 66.93 BANK OF AMERICA What we've heard - retailers 5 years from now we expect to be...in top 10 advertising platforms in the US, ahead of... Hearst, Fox and Twitter¹ Kroger Precision Marketing...is projected to grow nearly 30% this year, well beyond the 16% for the rest of the media industry... We see the potential for a multi-billion dollar Digital Media business over the next few years.² What we've heard-analysts³ Advertising is a hidden potential profit stream that could generate $4b in revenue/$2b in EBIT for Walmart by 2025. With the ability to target marketing dollars towards specific customers, we Morgan Stanley believe Walmart's Ad business could prove to be a powerful incremental profit generator. Market Context According to Kroger, 85% of CPGs surveyed noted that they plan to shift more UBS ad dollars to retail networks. 95% say the spend is incremental to existing shopper or trade programs. Source: (1) Walmart investment community meeting 2021; (2) Kroger Investor day 2021; (3) Stock analyst reports, Bank of America, Morgan Stanley and UBS 2021 Sainsbury's nectar NEC TAR 360#13We are well placed to capitalise on this opportunity and deliver strong growth for Sainsbury's in 2021 and beyond ONectar360 2021 13 nectar NEC TAR 3 6 0 ZH Sainsbury's nectar Market Context NEC TAR 360#14ONectar 360 2021 £ $ Global & UK market context The trends shaping loyalty and retail media 15 nectar Nectar B2C Driving the Retail strategy, and a winning coalition NEC TAR 360 Nectar360 B2B Who we are and what we do Winning in Data and Digital Q&A Ask the panel Sainsbury's nectar NEC TAR 360#15The UK's largest coalition loyalty programme Sainsbury's Argos ebay BRITISH AIRWAYS GWR sky ONectar360 2021 EUROSTAR™ K Daily Mail nectar 16 CAFFÈ NERO brakes Viking Vue Esso nectar Hotels Dulux DECORATOR CENTRE DFDS THE WHAT? B ogo is i THE WHY? THE WHO? & 17.5m Nectar customers 29 Nectar scans per second £13 Average customer redemption value nectar Nectar B2C 6-15% incremental spend for coalition partners 43bn Points issued annually Sainsbury's nectar 8.2m Digital Nectar registered NEC TAR 360#16A winning ecosystem for our partners and our customers ONectar360 2021 17 MY TRAVEL SPEND POINTS COLLECTED MY SERVICES SPEND MY REGULAR RETAIL SPEND nectar MY DISCRETIONARY SPEND POINTS REDEEMED MY PERSONAL IMPACT nectar Sainsbury's nectar Nectar B2C Our customers benefit from collecting and redeeming their points across an ecosystem of the UK's leading brands and 100's more through our marketing affiliates programme. NEC TAR 360#17The Economics of Nectar BATTISH nectar Hotels ories (((connect ONectar360 2021 Esso AMERILAIN EXPRESS Sainsbury's 18 Argos Points Issuance Revenue Daily Mail Viking ebay GWR Dulux! DECORATOR CENTRE Partner pays Nectar for each point issued brakes BRITISH ALWAYS nectar Hotels ((((connect Esso LEUROSTAR Sainsbury's Argos Points Redemption Cost ebay 0000² Daily Mail viking CAFFE NERO brakes sky Dulux DECORATOR CENTRE Nectar pays Partner for each point redeemed MARGIN + Access to Nectar currency and brand Marketing channels and CRM Insights and Analytics Strategy and Account Management nectar Sainsbury's nectar Nectar B2C Partners pay Nectar for programme support NEC TAR 360#18Nectar is key to connecting to our customers, knowing and serving them better Age Location Gender Lifestage Loyalty Affluence Basket data Promotions Rewards Segmentation ONectar360 2021 19 WHO WHAT WHY HOW nectar Nectar B2C Market research Customer attitude Personas Sainsbury's nectar Missions Channels Contactability NEC TAR 360#19This deep understanding is powering our digitisation, and our journey to 10m registered app users I ONectar360 2021 10m 9m 8m 7m 6m 5m 4m 3m 2m 1m Om Oct 2019 20 .O 10m Forecast 8.2m Registrations Sept... 2021 Sainsbury's ebay Esso BRITISH AIRWAYS nectar Download the Nectar app today 0:41 Registrations boosted by our biggest Nectar campaign since launch in February 2021 Average Nectar app users collect 3.5 times more points vs non app users. Selected products. Evening Som 4,000 points worth ot least €20.00 Grab a juicy points boost today Tap here Sainsbury's Weekly offers Home ♡ Saved nectar Nectar B2C Juicy points boost Congratulations! +500 Hero's bonus points Make sure you save your Sainsbury's offers to get requior bonus points Sainsbury's nectar Start adving offers NEC TAR 360#20Driving digital engagement with points offers is key to driving sales at a strong ROI ONectar360 2021 21 14:01 1 Sainsbury's +150 points Taste the Difference freshly squeezed orange juice with bits 1L Ends today Terms and Conditions tiste 1 How to get this offer In Store Save this offer, buy it in store and scan your Nectar card at the till. 2 To redeem using SmartShop you must go through the dedicated. SmartShop checkout area. This offer cannot be redeemed using 14:44 Sainsbury's Afternoon Coupon Weekly offers 39 Sainsbury's offers Sainsbury's 21 Home Ends 4 October ♡ Saved Activity Card Incremental Grocery sales ROI x3-5 nectar Sainsbury's nectar Nectar B2C 3x More points collected NEC TAR 360#21Personalisation and gamification drives engagement ONectar360 2021 Fruit & Veg Challenge 12:22 22 Afternoon Natasha 1,741 points worth at least £8.70 Get ready for The great big fruit & veg challenge Join in the fruity fun on 1 June 500k customers engaging 9:41 < The great big fruit & veg challenge You purchased 40 portions and collected 200 points 20/20 ✔ +50 +00 35/35 +100 Did you know? On average you buy x portions a month 5/5 Target 3 7 badges left to unlock Unlock more badges to get extra points 38 40 +00 0/5 +7% YoY increase in sign-ups Year in Review Sainsbury's What did you bring home? Scroll down for your shopping highlights, <Name You were the #00 buyer of 500k customers engaging 수 They just can't get un oeuf London #1+ buyer of eggs was the 누 Smelling sweet The South East High volume of social media shares Collect for Christmas ***** Sainsbury's Morning 3,200 Noctor points, worth £21.16 Collect 300 points and we'll give you another 80 points Count up .* to Christmas Ende 14 December 1.25m customers engaging 50 300 Weekly offers 8 Sainsbury's offers £8.7m points added Sainsbury's nectar nectar Nectar B2C NEC TAR 360#22Nectar Prices initially launched on SmartShop 1 2 3 4 ONectar360 2021 Customer potential sales value score Price sensitivity score Product offer types Personalised pricing 23 ONLY WITH SMARTSHOP müller Corner OLACY CALAM YOGUE Strawberry 143g 75p My Nectar Price 90p Usual Price Muller Corner Strawberry Yogurt 143g Available until 20 May 2021- Multi-use Show details ONLY WITH SMARTSHOP SROCKET LOLLIES REAL ONLY WITH SMARTSHOP MAILL 260 MAIL MAILLE Dijon Originale Indal Mar 215g £1.07 My Nectar Price £1.30 Usual price Maille Dijon Original Mustard 215g Ends in 2 days - Multi-use Show details ONLY WITH SMARTSHOP nectar Nectar B2C MEASURES OF SUCCESS INCREASED LOYALTY INCREASED SHARE OF WALLET DIGITAL ENGAGEMENT Sainsbury's nectar VALUE PERCEPTION DRIVER NEC TAR 360#23Our personalisation engine allows us to deliver truly unique offers High Price Sensitivity Med Potential Value Score kinen foll DUainsbury MARIS PIPER POTATOES by Sainsbury's 2.5kg ONectar360 2021 24 & BACK BACON RASHERS CARROTS 8 10m Offers: 7 Avg Discount: 30% still Scottish mountain water by Sainsbury's 100% GREAT BRITISH POTATOES WALKERS CHEESE & ONION 6 PACK CLOSED CUP WHITE MUSHROOMS by Sar LS WALKERS CHEESE & ONION Low Price Sensitivity High Potential Value Score LOAF FRUIT with Orange Warburtons faste SUMMER EDITION Syberys PEPPERY BABYLEAF SALAD taste IFFERENCE TRICK CUT SCOTTISH SMOKED SALMON WASHERS CLIPPER® New York style Pastrami spices 2 O BEVE BIODEGRADA 80 BAGS OF DECAF TEA O PLANT PIONEERS GROWN DELICIOUS SPICY NO MEAT PIZZA DRIZZLE WITH OLIVE O Offers: 10 Avg Discount: 20% Sainsbury's Taste Difference (D HAND COOKED MATURE CHEDDAR & SPRING ONION poc was crears Chand over agonis BARTA NIVESCOL Nectar B2C RED BERRIES WHOLE MILK YOGURT Little yeos organic SO ORGANIC nectar Sainsbury's nectar Royal gala apples NEC TAR 360#24Increasing visibility of Nectar across all our grocery channels remains a priority Groceries online app Nectar 0 List Smartshop ONectar360 2021 Nectar +10 points for every Sainsbury's Fairtrade Bananas Loose purchased onsibly Sourced ets Basket 25 8 SmartShop £8.70 Checkout estimated 3 items Taste the Difference large Jubilee vine tomatoes €1.75 Taste the Difference large Jubilee C vine tomatoes 1 £1.75 +90 points Sainsbury's Responsibly Sourced 1 Scottish Salmon Fillets x2 240g £3.35 SUC O List Basket Nectar Nectar Sainsbury's Q Search products Û Browse £ offers Hello Delivery or collection? Book a slot Offers and more Favourites Find out how we're responding to COVID-19 Happy Q Nectar Easter: D 12:12 Filter Bakery - Bread HOVIS Soft while MEDIUM Favourites n Home 343 items Q Search +60 ponts Fruit & Vegetable Hovis Soft Medium Sliced White Bread 800g £1.05 13p/100g Sain Banana items 13p 78p/kg ♡ Favourites al 4 Add Sort by +60 points D Trolley More ... Sainsbury's Groceries online web Groceries Favourites Nectar Offers Discover Recipes Trolley Trolley summary SGO Lanson Black Label Brut, Non. Vintage 75cl Empty trolley ✔Allow substitute Taste the Difference large Jubilee vine tomatoes ✔Alow substitute +90 points Delivery Pass Summer Sort by: nectar.com Most recently added 1 + V €32.00 €32.00 unit £3.50 £3.99k For delivery by 4 Oct Our substitute promise If a product is unavailable well choose the best substitute. Remember, all substitutions are My account Search products Order summary Trolley Including savings Delivery cost Trolley total Nectar B2C Logout Sainsbury's nectar nectar Delivery details To: Home, SW1 ABC Change On: Friday 05 Jun, 8pm-9pm Changa Slot reserved until 10:44 today £35.50 £0.00 in checkout Checkout Coupons can be applied in the checkout We accept VISA £35.50 £3.60 NEC TAR 360#25Rollout of Nectar into Argos is showing positive early results Enhanced customer data Connected Customer across Group Retail brands Increased purchase frequency with less loyal customers ONectar360 2021 26 nectar Collect 5x Nectar points when you shop at Argos until 17 November Get 5x points for every £1 you spend at Argos. Start shopping Hi Jess We've got some exciting ne For a limited time, you can collect 5x Nectar p when you shop at Argos until 17 November. Ther want to spend all of those points. It could be could use them to help with any Christ 15:29 7 3x points Pick up even more points at Argos with 3x points every time you shop. Don't miss out! Ends Tue 12 Oct Argos Terms and Conditions How to get this offer 1 Shop in-store or online Present your Nectar card at the till, or follow the steps to link your accounts to shop online 2 3 Points will be added to your account within 30 days Visit website 3.5m Linked Accounts Sales and ROI ahead of forecast Sainsbury's nectar nectar Nectar B2C NEC TAR 360#26We're seeing strong engagement across our largest Nectar partners 6-15% incremental sales for ONectar360 2021 250m* Nectar transactions with non- Sainsbury's Gateway brands partners 27 BRITISH AIRWAYS ebay Source: Nectar Transactional Database, October 2021'. *52 weeks ending 26th Sep 2021 Esso nectar Nectar B2C +7m* customers engage with non- Sainsbury's Gateway brands Sainsbury's nectar 77% of customers who scan with both Esso and eBay engage with 3 or more partners in the programme NEC TAR 360#27We're continually strengthening the Coalition BRITISH AIRWAYS ← Brit nector For 400 Nectar points you receive 250 Avios, and vice versa ✓ Your points are converted instantly ✓ Convert your points both ways ✓ Opt for manual or auto conversion ONectar360 2021 Terms and Conditions 28 nectar ((((connect Unlock more points Up to 30 points per El when shopping with a linked bank using Nectar Connect nectar ((((connect JUST EAT COSTA New Partners Ir ebay ebay - Suve for later S 3x points Got tiple posat eBay when you spend E5 or more, Ends in clays ♡ Soved Partner offers View offer Travel Top Picks UnAX Esso Esso 5p per litre off Swap 300 points at Esso and get 5p off per litre. Save for later Renewals & extensions View offer you 53 nectar Nectar B2C Nectar Donate Connecting you with 20,000 charities Donate your Nectar points here nectar Sainsbury's nectar Morning Daniel 19:22 Coming soon NEC TAR 360#28Nectar Deep Dive Event Break Please return in 10 minutes Thank you Sainsbury's nectar NEC TAR 360#29©Nectar360 2021 £ $ Global & UK market context The trends shaping loyalty and retail media 30 nectar Nectar B2C Driving the Retail strategy, and a winning coalition NEC TAR 360 Nectar360 B2B Who we are and what we do Winning in Data and Digital Q&A Ask the panel Sainsbury's nectar NEC TAR 360#30Nectar360 is a loyalty, insights, and marketing business. Our clients invest in four core services: Loyalty: retained long-term Nectar partnerships ONectar360 2021 Sainsbury's BRITISH AIRWAYS LEVROST EUROSTAR Daily Mail 31 nectar Argos ebay Esso GWR sky CAFFÈ Dulux NERO DECORATOR CENTRE brakes nectar Hotels Viking Vue DFDS Shopper Marketing: advertising in and around store Win Semi-Final or Final Tickets to UEFA EURO 2020 Win Semi-Final or Final Tickets to UEFA EURO 2020: to ope Data and Insights: bespoke analytics and insight products Insights Platform Welcome David My performance HEL Sanders C Digital Media: advertising onsite (sainsburys.co.uk & argos.co.uk) and offsite (the wider web/social platforms) ar offers red www. Sw NEC TAR 360 Nectar B2B Sainsbury's nectar Nectar360 DTP Select which channel: Display & Video 360 YouTube Connected TV NEC TAR 360#31We provide data, insight and marketing services to over 700 FMCG and GM brands Kellogg's Coca-Cola ONectar360 2021 Nestlē DIAGEO 32 Arla PEPSICO U Unilever P&G Sainsbury's Argos Mondelez International nectar HEINEKEN SAMSUNG G amazon Microsoft LEGO PHILIPS hp NEC TAR 360 Nectar B2B HUAWEI Sainsbury's nectar MATTEL NEC TAR 360#32Our Shopper Marketing channels allow brands to engage customers throughout their in-store journey ONectar360 2021 33 FO 8 D E ET IN STORE C AT HOME A AROUND STORE C ID للها 88 Win Semi-Final or Final Tickets to UEFA EURO 2020 4 WIN REN WIN Win nectar Semi-Findor Find Tickets la UEFA EURO 2020 Heir Heind eled expect, for the PRISH UEF Heineke VORES bjpyfanzahy forset Cer'sga Do you bettcheering with a neken beer SVERRE TM 12:2 Book your table now! Quarta-feira, 7 de juha Rever Heikes Sainsbury *** Load to Card Load to Card Partner offers +120 points Buy Diet Color Coca-Cola Zero Supor UEFA EURO 2020ot Soinsbury's to win £200 Arge vouchers Ende in 5 days View offer View Mor NEC TAR 360 Shopper marketing Sainsbury's nectar NEC TAR 360#33Winning in data and insights We help brands understand customers as well as we do ONectar360 2021 Recently launched Sainsbury's Insight Platform In the process of building a version for Argos An intuitive self-serve platform, allowing suppliers to understand customer behaviour Supplier satisfaction level 84%. 34 "This has given us a level of insight we never had of our business with Sainsbury's that is proving invaluable." LUCKY SAINT 0% UNFILTERED LAGER 130ML Sales £10,240 153.05% at yur Admin Sainsbury's Insights Platform Welcome David P Create a Report Last 1 Week NABLAB My performance Sales £526,791 23.33% last year 8 Ask a question until 4th September 2021 Edit groups Sales Tome 5,033,717 3.74% Buyer Speciality Beer Sales £3,359,392 4.94% My Reports yar P CM Beers Wines & Spents Sales £47,593,532 -5.38% 219 "Sainsbury's Insight Platform is without doubt the best insight platform out there" Sainsbury's nectar NEC TAR 360 Data & Insights NEC TAR 360#34ONectar360 2021 35 Sainsbury's Insights Platform powered by nectar Sainsbury's nectar NEC TAR 360 Data & Insights NEC TAR 360#35Winning in digital media We have invested in data and technology to create our Digital Media Network k Sainsbury's mesures Diverpes every ONectar360 2021 Pa siner Offers ST 36 Toide PROPH Great deals on laundry Find often packs and Price locker products ES arle Shop by category Aw 60 00 typu AND TH Food cupboard > the no Logie How ver Pur 10000 Rage New Check b be p CA po Matemat LONG THE way wapka www you portion www. SAINSBURYS.CO.UK (onsite advertising) 424 Up to 1/2 price on select lines CALL U Swimw MODE NASRN abr REARK Me 1258 Fitbit Versa Lite £99.99 Flus get a free Google Next Mini warth €34. agos APSA Tu CLOTHING SALE dava Argos 42% Must end Tuesday C Apps 609 Shop now Just in time for Christmas PRICES LOWERED TECH, TOYS & CLEARANCE SUMMER OF FOOTBALL A your free P OVFA BABY EVENT www33 SAVE 11/2 ARA 0 SAVE 11/3 Prices lowered on 100s of toys Sen d TRENDING TECH | Tech that's on everyone's wishlist ARGOS.CO.UK (onsite advertising) www. & OR Clearance Gifting CHE noctar 3 Like 16:52 Sainsbury's Summer tastes great with Hellmann's. Shop the range at Sainsburys now, and pick up a dollop of Nectar points when you checkout. WWW.SAINSBURYS.CO.UK Don't forget your Nectar points Nectar Sponsored. # Comment SHOP NOW Share HELLMANN'S REAL 14* DIGITAL TRADING (offsite advertising) PLATFORM Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#36We are well placed to accelerate our growth into the growing Digital Media Network market ONectar360 2021 1st PARTY DATA AT THE HEART O POWERED BY CUSTOMER CONTROL & TRUST 37 ENHANCE THE CUSTOMER EXPERIENCE B CONNECTING BRANDS & CUSTOMERS ACROSS ALL DIGITAL CHANNELS OPTIMISATION & MEASUREMENT ogo DELIVERING TRANSPARENCY FOR BRANDS Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#37Our onsite media platform is now live across Sainsburys.co.uk and argos.co.uk What does this mean? S {£} ONectar360 2021 38 • The platform allows suppliers to target and measure their onsite media (advertising) in real-time. 1:1 media is surfaced, based on relevancy. • Cost Per Contact model; suppliers pay when a customer views or clicks on media. • A self-service platform, giving brands complete visibility and control. • Real-time campaign analysis, providing full transparency on investment. NEC TAR 360 DASHBOARD & CLIENT REPORTING Impressions Conversions Citrus Ad Return on advertising spend Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#38ONectar360 2021 39 GJ THE GROCER GOLD AWARDS 2021 WINNER Technology Initiative of the Year NEC TAR 360 Citrus Ad Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#39Let's show you the platform working in real time.... ONectar 360 2021 40#40We have also built an offsite Digital Trading Platform Our Digital Trading Platform is a proprietary offsite advertising offering, which allows brands to engage customers across the wider web and on social platforms, based on Nectar audiences. nectar Nectar customer ONectar360 2021 41 How does it work? ▸ . : B ⠀ ⠀ Customer Data Platform Nectar 360 DTP Select which channel: Display & Video 360 fo ►YouTube Connected TV Campaign Execution Nectar 360 DTP RTD Conversion Tracker Campaign-Nescafe Azera Coffee Ind Measurement Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#41What does this mean in practice? Nectar audience selection Audience 1: Existing Persil customers ONectar360 2021 Audience 2: Nectar customers who have purchased 2+ competitor products in the Laundry aisle in the last 6 months Audience 3: Nectar customers who display similar attributes to current Persil buyers Audience 4: Have not purchased Persil products in the last 3 months 42 D Met Office Campaign execution 11:27 BuzzFeed GET TOUGH ON STAINS *buzzfeed.com ADVERTISEMENT BE KINDER TO OUR PLANET WITH PLANT-BASED STAIN RENOVERS Subject to mailability selected stores only Encludes Centrals are locals Now Playing 10 Fruity Drinks To Keep You Hydrated Persil www. SHOP NOW Available at Sainsbury's Therapist Matches People To How They Got Dumped Get Ready With Me While ! Answer Your Assumptions ! Vivian ebay Your Starbucks faves. Just pick. click and chill. > 6. You'll be able to make your own iced coffees at home in under four minutes with this Breville machine. goodfood CITYA.M. Optimisation Audience 1: 7% Conversion rate Audience 2: 6.9% Conversion rate Audience 3: 4.6% Conversion rate Audience 4: 5% Conversion rate Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#42Our measurement shows strong performance; customers are engaging with greater advertising relevance online 6 million ONectar360 2021 43 Liquid Persil non bio Impressions served to 119 thousand Households with 7.78% Conversion to brand £1.25 Return on advertising spend Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#43In future, we plan to fully integrate our Digital Media Network ONectar360 2021 ㄷ 44 回 Digital Trading Platform Brand awareness O Onsite Media Platform Brand conversion Nectar App Brand loyalty You Tube Connected TV facebook Google Sainsbury's Argos 6- Evening Sally 1,000 fem C Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#44We are well placed to accelerate our growth into the growing Digital Media Network market ONectar360 2021 1st PARTY DATA AT THE HEART O POWERED BY CUSTOMER CONTROL & TRUST 45 ENHANCE THE CUSTOMER EXPERIENCE B CONNECTING BRANDS & CUSTOMERS ACROSS ALL DIGITAL CHANNELS OPTIMISATION & MEASUREMENT ogo DELIVERING TRANSPARENCY FOR BRANDS Sainsbury's nectar NEC TAR 360 Digital Media NEC TAR 360#45Our Digital Media Network is a key driver of our growth Nectar360 billings-5 year plan ONectar360 2021 46 £345m 21% 8% 12% 59% Billings growth 25%+ 21/22 Source: Nectar 360 internal forecasts 30% 10% 10% 50% ... 25/26 Digital Media Data & Insights Shopper Marketing • Loyalty Forecast incremental Nectar360 group profit contribution +£60-70m additional profit by 25/26 21/22 22/23 This chart is not to scale 23/24 24/25 25/26 Sainsbury's nectar NEC TAR 360 NEC TAR 360#46Nectar Deep Dive Event Break Please return in 10 minutes Thank you Sainsbury's nectar NEC TAR 360#47©Nectar360 2021 £ $ Global & UK market context The trends shaping loyalty and retail media 48 nectar Nectar B2C Driving the Retail strategy, and a winning coalition NEC TAR 360 Nectar360 B2B Who we are and what we do Winning in Data and Digital Q&A Ask the panel Sainsbury's nectar NEC TAR 360#48Nectar 360 Investor Session 2021 Q&A ONectar 360 2021 49#49Nectar Deep Dive Event Closing thoughts Mark Given Chief Marketing Officer ● Sainsbury's nectar NEC TAR 360#50Thank you nectar 360.co.uk ONectar 360 2021 NEC TAR 360#51Nectar Deep Dive Event Nectar 360- Glossary of Terms 12 ● NEC TAR 360#52Glossary of Terms Term Nectar first party data Measurement & Attribution Return on advertising spend Shopper insights Third party cookie Digital media network capabilities On-site Off-site ONectar360 2021 53 Definition The firsthand customer data collected when a Nectar customer scans their Nectar card with one of our partner brands, either online or in-store. The data is permissioned, meaning the customer consents to sharing this information with Nectar. The data provides information on customer behaviours which can be used to personalise offers, marketing and advertising delivered to that customer. The end-to-end measurement of an online campaign to show performance in terms of sales generated as a result of running that activity. Calculation used to measure the profitability and effectiveness of a campaign. It takes account of sales generated, less the marketing investment in the campaign, to determine overall campaign success. Customer insight derived from data generated through customers' interactions and spend with brands. Third party cookies are small pieces of code that let companies track particular customers across the internet and deliver personalised advertising. Due to the nature of cookies, it is likely that their usage will reduce and disappear in the fullness of time. Without them, it's even more important to have strong first party data that enables you to uniquely identify your customers. The coming together of digital media assets across technology, channels and data to maximise growth in the digital space. For Nectar 360, this means leveraging our unique Nectar data asset, our owned channels (on-site), our technological expertise, platforms and integrations with non-owned (off-site) channels, and our extensive brand partnerships, to realise new growth and innovation in the digital arena. Sainsbury's owned online sites (sainsburys.co.uk, argos.co.uk). Websites that are outside of the Sainsbury's Group, for example YouTube or Facebook. Sainsbury's nectar NEC TAR 360#53Glossary of Terms cont'd Term Incremental spend for coalition partners Nectar scan Digital Nectar registered Average customer redemption value Nectar's marketing affiliates programme (eShops) SmartShop Linked accounts ONectar360 2021 54 Definition The additional spend generated by customers of coalition brands who are Nectar collectors, and who have been encouraged to spend more with that partner as a result of their ability to collect Nectar points. For example, customers of Brand A, who are also Nectar card customers and who scan their Nectar card when they transact with that brand, typically spend x% more than customers who are not Nectar customers. When a customer digitally scans or physically swipes their Nectar card at point of transaction with a Nectar partner, either online or instore. A customer who has download the Nectar app and linked it to their Nectar card. Average amount that a customer spends in points when they make a redemption with a Nectar partner. Note, a customer may redeem their points for the total value or only part of the value of the transaction. eShops allows customers to collect points on qualifying transactions completed online on the retailer's site, only when accessed exclusively from Nectar.com. Purchases are tracked and points awarded within 90 days. SmartShop allows customers to scan and pack products as they shop and is accessible through handheld devices available in supermarkets or an app on customers' mobile devices. When a customer links their Nectar account with their account on a Nectar partner site, facilitating the sharing of information between Nectar and that partner so that the customer can collect points when they spend with that partner. Sainsbury's nectar NEC TAR 360#54Glossary of Terms cont'd Term [Nectar 360] Shopper Marketing [Nectar 360] Data & Insights [Nectar 360] Digital Media Sainsbury's Insight Platform (SIP) Digital Trading Platform (DTP) On-site media platform (eCommerce) Digital impression Digital conversion Nectar audiences ONectar360 2021 55 Definition The planning, design, execution and measurement of integrated brand campaigns across Sainsbury's media channels in and around store. Deep, 360-degree understanding of the customer to enable improved decision making and the identification of new opportunities for brands using advanced analytics, consultancy, research and market- leading insight tools. Leveraging Nectar data to provide targeted campaigns across sainsburys.co.uk and argos.co.uk, social media and digital display. Includes campaign design, execution and optimisation via both self-serve and managed platforms. Insight platform, enabling suppliers to gain a greater understanding of their consumer, category, brands and SKUs within Sainsbury's and in future, within Argos. Unique digital trading platform allowing brands to target, measure and optimise data-led, relevant campaigns to specific audiences on the wider web and social platforms (off-site), at the right time. Digital self-serve platform across sainsburys.co.uk and argos.co.uk, allowing suppliers to target (based on relevancy using Nectar data) and measure their advertising in real-time. Opportunity for an online user to potentially see an advertisement on their screen, therefore increasing brand awareness and engagement. Occurs when a campaign goal is met, usually resulting in a sale. Group of Nectar customers identified and grouped together based on key personal and/or behaviour characteristics for marketing or insights purposes, to ensure targeting is relevant. Sainsbury's nectar NEC TAR 360