INTRODUCTION TO CANBACK May 2016 MANAGEMENT CONSULTING THROUGH SCIENCE EIU CANBACK Boston, Massachusetts www.canback.com +1-617-399-1300
EIU Canback is an elite management consulting firm anchored in science, predictive analytics, and consumer market knowledge. We serve clients through five practices: Strategy, M&A Due Diligence, Growth, Operations, and Organizational Performance. We operate globally with the world s largest companies as clients. This has taken us to 77 countries since our founding in 2004. We also offer analytic services with the Canback Global Income Distribution Database (C-GIDD) as our flagship product. EIU Canback is a subsidiary of The Economist Group since 2015. 2
Canback is the fastest growing North American management consulting firm over the last decade. The growth is linked to our geographic expansion CANBACK REVENUE GROWTH MANAGEMENT CONSULTING FIRMS' GROWTH Annual growth 00-14 27% annual growth '04-'15 4 27.0% 3 9.1% 2 6.6% 1 5.2% '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 World GDP 5.8% Current (nominal) values 3
Performance Canback is the leader in scientific and quantitative management consulting, and in particular the use of predictive analytics, which bring better results to organizations MANAGEMENT CONSULTING INDUSTRY S-CURVE Scientific and quantitative management consulting A new approach with higher performance Few, if any, breakthroughs since the early 1990s Traditional management consulting 1900 1960 1990 2016 Canback is the best-known firm in management consulting based on science 4
Canback is often cited in the press, research reports, annual reports, and investor presentations by some of the largest companies and organizations in the world Quarterly divisional seminar: Africa (2015) Quarterly divisional seminar: South Africa (2014) Quarterly divisional seminar: Asia-Pacific (2013) Chinese politics: A crisis of faith (2016) Hot spots: Benchmarking Global City Competitiveness (2012) Mapping the Path to Future Prosperity: Emerging Markets Growth Index (2014) E-Trade: Opening the Wallets of 2.8 Billion People (2015) Abuja +12: Shaping the Future of Health in Africa (2013) 2014 New York Analyst Day (2014) Contextualising the Mass Market Banking Opportunity (2011) Consolidated Annual Report (2012) The Shifting Urban Economic Landscape: What Does it Mean for Cities? (2013) The Future of Retailer Brands (2010) Annual Results Presentation (2013) Amfiteatru Economic: Income Distribution Determinants and Inequality (2014) Constructing Official Inequality Poverty Lines for Countries in Transition (2014) 5
We have worked on the ground in 58 countries, helping clients draw reliable, fact-based conclusions through data-driven analyses GLOBAL FOOTPRINT Europe: 7% Global projects: 14% United States: 7% Mid America: 11% Asia: 8% South America: 30% Africa: 24% Core office Satellite office Country projects Consultants work travel 6
Canback works mainly in four consumer-facing sectors where we have distinct competitive advantages based on methods and experience CONSUMER GOODS Capturing exciting but hard to understand opportunities for durable and non-durable goods, such as assessing new category potential in Asia or developing a market entry strategy in Africa RETAIL Predicting trends in retailing to inform strategic decisions, for example choosing store formats in Latin America and forecasting the evolution of modern trade in the Philippines FINANCIAL SERVICES Optimizing credit card, retail banking and consumer finance operations, including creating a pricing strategy for credit cards in Europe and defining optimal mix of ATM and retail branches for bank in sub-saharan Africa INFORMATION & COMMUNICATIONS TECHNOLOGY Assessing future demand in global markets, such as predicting new subscriber growth in Central America and analyzing profitability prospects for a third market entrant in China 7
Canback s focus is management consulting, but we also offer related services. Each service line has predictive analytics based on the scientific method at its core Management consulting 75% Strategy development 40% M&A due diligence 35% Canback Predictive modeling 10% Research 5% Data 10% We pioneered, and are still the world s only provider of GDP and income data at the subdivision and city level: C-GIDD 8
We deliver management consulting and related services that span needs of large corporations CANBACK SERVICE LINES Data 10% Research 5% Predictive Modeling 10% Management Consulting 75% Canback Global Income Distribution Database (C-GIDD) MARKET EXPLORER Country reports Industry reports Market reports General market opportunity assessments Predictive modeling Forecasting Cross-sectional predictions Elasticity analyses Market entry strategy Portfolio strategy Global or local market prioritization Pricing strategy Survey-based research Consumer segmentation SOURCES OF GROWTH Acquisition candidates screening M&A due diligence Distribution optimization Board / leadership interface design Diseconomies of scale minimization Transactional Relational 9
We aim to make our deliverables VRIO. In particular, having the consultant / client interface well organized is of paramount importance. Without this, the consultants work has limited impact (leading to the wretched report on the bookshelf comment) PROJECT CHECKLIST V Valuable Is the project of material value to the client? R Rare Is what we have to offer rare? Do our specialized skills stand out? I Inimitable Can what we do be easily imitated by our competitors at a lower cost? O Organized Is the client organized to receive our findings? Does it have a partnership agreement with us? Will there be workshops? Are there high level audiences for our presentations? Will there be a plan for knowledge transfer? 10
The Canback Global Income Distribution Database (C-GIDD) is used to quantify market size and demand drivers. C-GIDD is the only commercial database of its kind in the world C-GIDD COVERAGE The world's only database with complete subnational data series GDP, household income, size of income brackets, size of socioeconomic classes, population 213 countries, 696 subdivisions and 997 cities EXAMPLES OF C-GIDD USES Quantify number of households at specific income or socioeconomic levels Compare consumer market sizes across geographies in a uniform way Merge with category or sales data to spot new or under-developed opportunities Subnational: 2001-2026 National: 1970-2036 C-GIDD MODULES EXPLANATORY POWER OF C-GIDD Demand variance explained by income above category-specific thresholds Televison sets C-GIDD income distribution data Available as a commercial service at cgidd.com C-GIDD economic, demographic, social and psychographic data Internal to Canback C-GIDD benchmark products and services data Internal to Canback Oil consumption Cellphone subscribers Internet users Personal computers McDonald's restaurants Milk consumption Cash machines (ATMs) Insurance premiums Bank deposits Electricity consumption Airline passengers 0.00 0.50 1.00 R 2 11
Data from C-GIDD have been purchased by companies from a wide range of industry areas since the database launched in 2008. Here we highlight some of our repeat customers 12
We offer customized web portals to our C-GIDD data as well as different types of corporate accounts for our customers ranging from Fortune 500 companies to individuals within corporations CUSTOMIZED WEB PORTALS FOR ENTERPRISES We work closely with enterprises, including some of the world s largest corporations, to create customized web portals with seamless access to C-GIDD/customer data. We provide a dedicated support team to meet their needs. Such customers include: Procter & Gamble C-GIDD includes the traditional variables provided in the public site, plus P&G specific data on consumer profiles and category spending with a 5-year outlook. The site matches P&G s organizational (pg.cgidd.com) Mondelez - C-GIDD site covers the public variables plus food consumption data and demographic data relevant to Mondelez. The site has a 5 year horizon. (mondelez.cgidd.com) CORPORATE ACCOUNT HOLDERS We provide subscription-based C-GIDD access and full support to companies of various sizes to meet their needs on an ongoing basis. Corporate account customers include: INDIVIDUAL CUSTOMERS In addition to providing data to large corporations on a subscription basis, we also work with smaller entities who have occasional data needs. We have over 300 active customers who have purchased C-GIDD in the last 2 years. Such purchases are made by credit card over the web. 13
Canback contact information AMERICAS Boston EIU Canback, Inc. 210 Broadway, Suite 303 Cambridge MA 02139 +1-617-399-1300 Irina Blinova iblinova@canback.com Mexico City Canback Mexico Bosque de Ciruelos 194, PH3 Bosques de las Lomas 11700 Ciudad de México, D.F. +52-55-4164-8500 +52-155-4354-9806 Francisco Maciel Morfin fmaciel@canback.com Chicago EIU Canback USA 500 N. Michigan Ave. Suite 1925 Chicago IL 60611 +1-312-853-3716 or 3823 Tom Andrews thomasandrews@economist.com Maureen Lanigan maureenlanigan@eiu.com Sao Paulo EIU Canback Brazil Av. Brigadeiro Faria Lima, 3144 3º andar Jardim Paulistano São Paulo, 01451-000 +55-11-3845 4767 Marcio Zanetti marciozanetti@eiu.com EUROPE London EIU Canback Europe 20 Cabot Square London E14 4QW +44-20-7576-8181 MIDDLE EAST AND AFRICA Dubai ASIA Beijing Shanghai EIU Canback MENA Aurora Tower, 13th Floor Office 1301A, PO Box 450056 Dubai Media City +971-4433-4202 +971-52-269-8425 EIU Canback China Unit 1711, 17/F, Block 1 Taikang Financial Tower 38 East 3rd Ring Rd. North Chaoyang District 100026 +86-10-8571-2188 EIU Canback China Rm 2508A, 25/F, Rui Jin Bldg 205 Mao Ming South Rd, Shanghai 200020 +86-21-6473-7128 Chris Pearce chrispearce@eiu.com Asif Chaudhary asifchaudhury@eiu.com Paul Yata paulyata@economist.com Alex van Kemenade alexandervankemenade@eiu.com Seumas Graham seumasgraham@economist.com Johannesburg Singapore Tokyo Jakarta EIU Canback SA (Pty) Ltd Inanda Greens Business Park Building 8 54 Wierda Road West Wierda Valley, Sandton, 2196 +27-83-786 2450 EIU Canback Southeast Asia 8 Cross St, #23-01 PWC Bldg. Singapore 048424 +65-6534-5177 EIU Canback Japan Ginza Wall Building UCF 5F 6-13-16 Ginza Chuo-ku, Tokyo 104-0061 +81-3-6338-0002 EIU Canback SE Asia Jl. Tiang Bendera 5 no. 2A DKI Jakarta 11230 +62-812-8743 7578 Arshad Abba arshad_abba@canback.com Vanny Dang vannydang@economist.com Shin Ito sito@canback.com Teddy Purnomo tpurnomo@canback.com 14