A Category Leader Comeback Egypt Presentation August 2005

Introduction Meeting Objectives

Overall Objective: To re-introduce the original Sensodyne brand in Egypt through a well integrated marketing plan

Meeting Objectives
Introduction: To introduce Evas manufacturing strength and distribution muscle To familiarize audience with Egypt and its toothpaste market dynamics To address the counterfeit issue and agree a joint course of action to protect the GSK/ Eva territory To present Sensodynes relaunch plan and seek input and support regarding various elements To agree next steps and confirm timings

Ultimate Ethical product Distribution

Introduction - Overview

In Egypt, Eva is an established powerful personal care products manufacturer and distributor Eva currently manufactures a wide portfolio (close to 200 SKUs ) across skin, hair and dental care Due to its outstanding quality standards, Eva has been selected as sole manufacturer for Sensodyne as well as a number of local quality- focussed companies In 2003, Glaxo-SmithKline acquired Stafford Miller internationally resulting in a change of management During 2004, the market was flooded with a poor quality counterfeit product manufactured in China, in addition to competitive brands such as Signal Sensitive, Emoform & Deprudent This presentation will provide an overview of the market and proposed relaunch plan instigating a dialogue to agree a mutual action plan to support Sensodynes re-introduction in Egypt

Eva Distribution Network National Representation

Evas Distribution Muscle Spreading across Egypt

Map Source: "The Financial Times World Desk Reference" Dorling Kindersley 2004

Eva Cosmetics Office Distribution Depot

Eva Cosmetics Labs Covering Egypt Nationally

Evas Distribution Network consists of: An extending number of offices A total of 8 offices at national level A powerful & modern distribution fleet 40 Vehicles 322 dedicated employees working to grow and establish brands A powerful sales operation consisting of 155 employees (sector managers, supervisors, sales reps & merchandisers) Pharmacy coverage equivalent to the universe shown in AC Nielsens database 23,000 pharmacies in total Evas manufacturing facilities: Pharmaceutical standards used in the manufacturing of consumer products In house R&D department

Eva Cosmetics Labs are committed to consumer health, satisfaction & safety

Profile of Egypt

Egypt Demographics - Basic Economic Indicators

Egypt/ Profile: Basic Economic Indicators Egypt: Developing Economy

Strengths
Oil and gas revenues Well-developed tourist infrastructure Remittances from Egyptians working throughout the region
Egypt - Map

Egypts Scorecard World GNP Ranking: 37 Per Capita GNP: US$ 1,530 GDP: $99.6 bn Economic Growth: 4.5% p.a. Inflation Rate: 7.2% Unemployment Rate: 12.0%
Source: "The Financial Times World Desk Reference" Dorling Kindersley 2004

Suez Canal tolls. Agricultural produce, especially cotton. Light industry and manufacturing. Planned gas pipeline to Lebanon..

Weaknesses
Tourism hit by "war on terrorism." Dependence on imported technology High birthrate Rural poverty

Egypt Demographics - Population Split Urban vs.. Rural

Demographic Profile of Egyptian Population Uneven distribution of Population

Population Distribution
Urban 42% Rural 58%

In spite of the even split between urban and rural dwellers, 93% of the population is concentrated in settlements along the River Nile Cairo and Alex alone claim more than one third of the total population, leading to crowding and continuous need for improvements in infrastructure Rural dwellers often leave home to seek employment in urban areas

Egypt - Population split Urban vs.. Rural (%)

Population (2001) Population (%) Urban 29,193In an attempt to alleviate population pressure on 42% traditional cities, the government has initiated Rural 39,455 the Toshki project, aimed at creating a second 58% valley parallel to the Nile Valley 68,648 Egypt - Population split by Region (000s)
and corresponding percentages Source: CAPMAS 2004 population census

Egypt Demographics - Population Split by Region

Demographic Profile of Egyptian Population Population concentrated along the Nile

U/E 28%

Other 2%

Cairo 21% Alex 5%

The Delta valley is the area most dense in population. Largely rural it has through the efforts of multinationals only recently become adequately covered Greater Cairo and Alexandria represent the major city centres of Egypt. Government authorities, universities and commerce was traditionally located Upper Egypt (which represents 70% of Egypts territory) is under-populated and suffers from poor road infrastructure

Delta 44%

Egypt - Population split by Region (%)

Population (2004) Population (%) Greater Cairo 14,230Sinai and the Red Sea have a21 tourism thriving and resort industry, which was badly hit in July Alexandria 3,75005 by terrorist attacks.Population is involved in 5.5 Delta 31,057 activities directly related to tourism and/or 45 related services U/EPopulation split by Region (000s) 19,360 28 Egypt and corresponding percentages Sinai &Source: CAPMAS 2004 Population Census 244 Red 2 Sea 68,648

Egypt Demographics - Population Split by SEC

Demographic Profile of Egyptian Population Egypt: Predominantly Poor

E Class 33%

A Class B Class 3% 4%

C1 Class 14%

D Class 28%

C2 Class 18%

Egypt is a developing country with a significant middle class (32%) while 61% of the population below the poverty line Upper SECs (A&B) have access to imported products and satellite advertising while C1 SEC downwards have access to local products

Egypt - Population split by SEC (%)

Population programs to subsidise food, education, HH Income/m. health (2004 est.) lodging andincome services for limitedfamilies
Class A : 2,059 (3%)The economic gap between rich and poor 7000 is widening translated into a gradually Class B : 3,432 (4%) 3000 eroding middle class Class C1 : 9,611 (14%) 1500 ClassSource: CAPMAS 2004 Population Census (18%) C2 : 12,357 700 & Ac Nielsen Class D HH income estimates : 19,221 (28%) 500 Class E : 22,654 (33%) 150

The government is undertaking a variety of

Egypt - Population split by SEC (000s)) and corresponding income levels

Egypt Demographics - Population Split by Age

Demographic Profile of Egyptian Population Egypt: Young population

'40-50 10%

50+ 11%

0-5 10%

'5-10 12%

Population is growing at around 2% p.a Birth rate is 26 per thousand 2025 Pop est.: 95.8 Million An even Male/ female split A young population is characteristic of Egypt - children & teenagers (45%) - due to high birth and improved child mortality rates

'30-40 18% '20-30 16% '15-20 11%

'10-15 12%

Egypt - Population split by Age (%)

Population (2001) 0-6 7,879 6-10 8,801 10-15 9,047 15-20 8,051 Egypt - Population split by Age (millions) and corresponding percentages 20-30 10,961 30-40 Source: estimate based on 96 CAPMAS 9,036 population census & projected growth rates 40-50 6,772 50+ 8,100

Population (%) 11 Children are the single largest target group of the population,13 followed by young adults who constitute the second most important 13 target group 12 16 13 10 12

Egypt Geography - Retail Profile

Retail profile of Egypt Retail: Varied in types and concentrated in regions

Haberdasheries are convenience stores Key Acc. 501SQM+ 51 9carrying a small variety of food items as well as 0 19 0 stationery, gift Pharmacies 8,700 2,500 9,500items and personal products 3,100 24,000 The S/M 101-500SQM 287 49 retail environment in Egypt is concentrated 39 17 14 in Cairo/ Alex & the Delta L Retail Outlets41-100SQM Groc. - Split by Region 877 267 203 33 61 Source: Amer/ AC Nielsen Retail Audit M Groc. 21-40 SQM 3,487 1,108 1,181 743 1,340 S Groc. <20SQM 19,500 5,040 12,154 8,216 54,059

TOTAL play a key role in the distribution of Pharmacies toothpaste especially specialized brands such Key Acc. 501SQM+ 79 as Sensodyne. Eva covers 23,000 (95.8% of the Pharmacies 24,000 total universe of pharmacies) International supermarket chains started S/M 101-500SQM 406 operating in Egypt at the end of 1999: Metro was L Groc. 41-100SQM 1441 closely followed by Sainsburys (Now Retail Outlets - Split by Outlet Type exited) and more recently Shop rite, Carrefour, M Groc. 21-40 SQM 7850 Hyper One and soon Spinneys. Key accounts include discounter stores & S Groc. <20SQM 98,968 semi-wholesalers - an CAIRO ALEX having traditionallyimportant channel of Kiosk 13,039 trade DELTA UPPER alternative offered the RURAL to the expensive supermarkets Haberdashery 13,210

The Toothpaste Market in Egypt

The Toothpaste Market in Egypt Market Shares (Vol. & Val.)

Toothpaste Market Volume & Value Shares
55 .9 53 .1

Unilever dominates the toothpaste market

60 50 40

The toothpaste market is worth LE 82.8M Signal Toothpaste is the clear market leader covering generic benefits as well as specific dental care needs (e.g. whitening, sensitive teeth) Close Up is second followed closely by Colgate in 3rd position The top 3 brands represent close to 90% of the market volume With Signal and Close-Up, Unilever dominates the toothpaste market The sensitive teeth segment represents less than 2% of the market share in volume shares but due to the high premium pricing represents more than 5% of the market value
4. 5

18 .3

20 10 0 Signal T

18 .6

3 0.

8 0.

1. 2

Volume Signal S Close-Up

Value

*Egypt Toothpaste Market Shares Volume & Value(%)

Colgate

18 .2

MAT J/F 04 MAT J/F 04 Volume 1000 Value LE100000 Toothpaste 1,459 828 *Note: Data is shown in slide represents Signal 815 440 market status for the year ending 2003 (MAT J/F 04). Retail audit subscription will Signal 4 7 *Egypt Toothpaste Volume & Value MAT J/F 2004 be resumed shortly Sensitive Source: AC Nielsen Retail Audit Close Up 271 151 Colgate 267 145

17 .5

30

Sensodyne

The Toothpaste Market in Egypt Signal Sensitive vs.. Sensodyne

Toothpaste Market Volume & Value Shares
4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
3 0.
1. 2 4. 5

Sensitive Teeth: a small premium sub-segment

Sensodyne continued to be the market leader of the Sensitive teeth segment especially in value terms There is a wide price share gap between Signal Sensitive and Sensodyne. Signal Sensitive large pack in particular offers excellent VFM Signal Sensitive media spend was LE 2.7MM Q1 05 (local TV & MBC2) Sensodyne is at a significant premium to Signal Sensitive on a per ml basis

8 0.

Volume Signal S

Value

*Egypt Sensodyne vs. Signal Sensitive shares (Vol & Val %)

Sensodyne

Toothpaste Signal Sensitive *Egypt Sensodyne vs. Signal Sensitive shares (Vol & Val %) Sensodyne 17
Source: AC Nielsen Retail Audit

MAT J/F 04 Volume 1000 1,459 4

MAT J/F 04 Value LE100000 828 Sensodyne 75ml O/M/F/BG: LE 16.50 Sensodyne BS/TC7 75ml: LE 18.00
Signal Sensitive 100ml: LE 15.00

Sensodyne O/ M/ F/ BG 50ml: LE12.00 Sensodyne BS/ TC 50ml: LE 13.25 Signal Sensitive 50ml: LE 8.00

37

Sensodyne Historical Sales & Sales breakdown by SKU

Sensodyne Historical Sales & Pack split
90000 80000 70000 60000 50000 40000 30000 20000 10000 0

Small Pack size, O/M/F fastest selling

Original 50 Original 75 Mint 50 Mint 75 F 50 F 75 B aking Soda 50 B aking Soda 75 B arby 50 Tartar Control 50 Tartar Control 75 B lue Gel 50 B lue Gel 75

Original, Mint and Sensodyne F 50ml are traditionally the highest selling SKUs

Starting 2003, brand sales showed a 25% decline followed by a very poor sales performance in 2004

2002
Original 50 Original 75 Mint 50 Mint 75 F 50 F 75 Baking Soda 50 Baking Soda 75 Barby 50 Tartar Control 50 Tartar Control 75 Blue Gel 50 Blue Gel 75

2003 2002
76784 24712 80774 29422 76273 26963 38378 16107 7598 14748 9671 29646 14495

2004 2003 59836 21319 56352 25861 37490 19621 25759 13814 9096 16144 5827 24912 11117

2004 5896 16619 2541 1200 8655 17972 38154 671 7748 13584 1266 528 2666

2004 witnessed the complete withdrawal of Sensodyne from the Egyptian market with figures shown reflecting 5-6 months of sales

Sensodynes historical monthly sales do not show seasonality

Sensodyne Sales Volumes 2002-2004 (# Packs Sold)

Short Term Plans - Counterfeit Attack Plan

Counterfeit Status in Cairo & Alex

Updated Counterfeit Status 2-3 months worth of sales still in the market

16000 14000 12000 10000 8000 6000 4000 2000 0 No. of Units Cairo Alex Delta U/E

The trade has been alerted and there are strong indicators of a positive response not to purchase or stock counterfeit Sensodyne Updated volumes of counterfeit product found in the 50 top Sensodyne selling outlets each in Cairo, Alex, the Delta and U/E are equivalent to 2-3 months worth of sales taking Sensodynes 2003 sales levels as a benchmark Wholesalers (e.g. Moski downtown) have been traced as major traders in Counterfeit Sensodyne A recent trade check showed decreased stock volumes of counterfeit Sensodyne with the Moski wholesalers

Counterfeit Stock take in 50 top selling outlets by region Aug 2005 (# Packs)

Counterfeit Sensodyne (Units) Cairo 14683 Alex 2517 Sharkeyya 250 Tanta Mansoura Port Said Asyut Luxor 84 1834 2984 555 234

Counterfeit Stock take in 50 top selling outlets by branch Aug 2005 (# Packs)

Counterfeit Attack Plan Strategic Approach

Anti- Counterfeit Approach An integrated Marketing Relaunch Plan

Source

Shortly before the launch, press and PR will be used to announce the cooperation of GSK & Eva in re-introducing Sensodyne in Egypt The press & PR campaign will fulfill 2 main roles: 1- Identify Eva as the manufacturer of original Sensodyne in Egypt to the consumer

Sensodyne Counterfeit Attack Plan

2- Discourage the trade from stocking counterfeit Sensodyne GSK: Wholesale Trade Legal Action taken via the MOH & MOS against traders stocking the counterfeit product will discourage counterfeit stocking Controlling the influx of counterfeits at source will help clean up the market in preparation for the re-introduction of Original Sensodyne

Trade

PR

Medium Term Plans - Relaunch Plan

Sensodyne Relaunch Plan Strategic Approach

Relaunch Strategy An integrated Marketing Relaunch Plan

To re-introduce Sensodyne strongly into the Egyptian Market, the relaunch plan will use a three pronged approach
Dentist Pharmacist

Communication arm targeted to the dentist whose confidence in the brand needs to be restored via ethical detailing Communication and incentives aimed at the pharmacist to recommend Sensodyne as the solution for sensitive teeth Communication aimed at the consumer to refresh existing/ create increased awareness to generate trial for the original Sensodyne The marketing plan should be integrated with appropriate phasing to generate the overall effect of re-establishing the brand as market leader of the sensitive teeth segment

Sensodyne Marketing Relaunch Strategy

Consumer

Sensodyne Relaunch Plan Dentists

Relaunch Strategy - Dentists Sensodynes Dentists Relaunch Program

A plan of detailing visits to opinion leading dentists will be conducted to announce the reintroduction of original Sensodyne to the Egyptian market
Dentist Pharmacist

Dentist Ethical Detailing

Targeted marketing materials will be developed for the dentist such as prescription pads, branded yearly calendars, branded pens as well as product samples To re-establish Sensodyne, a participation in upcoming dental conferences will be initiated (1st upcoming conference: Nov 2005) A rotation of visits for each dentist will be used to continuously sustain a top of mind position

Consumer

GSK: Ethical detailing material containing medical updates in the field of sensitive teeth will be used a leave-behind for the dentists

Sensodyne Relaunch Plan Pharmacists

Relaunch Strategy Sensodynes pharmacists relaunch plan

POS material (Posters,& danglers) designed specifically for the Pharmacies will be used & distributed along with the relaunch sales volumes
Dentist Pharmacist

Pharmacists Retail Program

Branded stands will be given to key pharmacies based on size of relaunch order for increased in-store visibility For small size pharmacies with limited floor space, shelf counter stands will be used to attract consumer attention upon entering the pharmacy An initial one shot trade loading promotion will prepare the trade for the onset of the consumer pull to be generated through TV advertising

Consumer

GSK: Key visuals taken from existing ad campaigns can be used for the production of POS material

Sensodyne Relaunch Plan Consumers

Relaunch Strategy Sensodynes Consumer relaunch plan

To re-introduce Sensodyne strongly into the Egyptian Market, 3 bursts (annually) of TV advertising will be used to announce the return of original Sensodyne
Dentist Pharmacist

Sensodyne Marketing Relaunch Strategy

FM Radio will also be used as it is becoming a highly effective and well targeted AB SEC medium

Shelf visibility in key accounts with eye level positioning & POS material will complement the integrated plan

Consumer

GSK: If available, new ATL TV & Radio content will help generate increased interest, memorability and trial

Sensodyne Integrated Marketing Plan

Month Activity
A (&20% of B) Class Dentist Program/ Coverage
Repeat Visits Materials Giveaway Kit (Pads, Pens, Calendars) Medical Updates (Issue No.1) Medical Updates (Issue No.2+) + Pads 200 200 200 200 200 200 200 200 100 100 100 2000 2000 200 1000 2000 1000 200 1000 2000 1000 200 1000 2000 500 1000 500 1000 500 1000 500 1000 500 1000 500 1000 500 1000 100 100 100 1000 100 100 100 1000 100 100 100 1000 100 100 100 1000 100 100 100 1000 100 100 100 1000 100 100 100 1000 1600 1600 800 13,000 600 6500 13000 200 200 200 200 100N 100 N 100 N 100 N 100N 100 N 100N 100 N 1600

10

11

12

Total

100R

100 R

100 R

100R

100R

100 R

100R

100R

800

Pharmacies Program/ Coverage

Floor Stands Counter Top Units POS (Posters/ Danglers

Consumer Program
TV Advertising Radio Advertising Key Acc Visibility 60 20 80

: Launch

Next Steps

Lets now discuss what our next steps should be in terms of:

Short term plans & Actions Medium term plans & Actions Long term plans & Actions

Q3/ 2005 Q4- Q1/ 2006 > Q2 2006