Boardcast Carrefour 180207

Zero Risk – High Yield Proposal BoardCast proposal for indoor digital communication at Carrefour Belgium 19-02-07

About BoardCast ? •

BoardCast is a Belgian privately held & funded media company active in the field of Digital Poster Advertising

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Providing total solutions in digital signage : Hardware, Software, Media Sales, Content Management and -creation

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Management & shareholders have over 25 years of combined experience in : Media planning & sales, Marketing, Advertising & Technology. •

Media :

- OMD (Omnicom Media Buying & Planning) - Roularta

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Advertising :

- BBDO (Omnicom leading agency) - Leo Burnett - Saatchi & Saatchi

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Marketing :

- McDonalds - Daimler Chrysler

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Digital media :

- Atmosphere BBDO - Yucom / Tiscali - Digimap

6 strong reasons to choose BoardCast •

We guarantee technical viability of our solution: tried & tested in real life hypermarket situation

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We guarantee high quality content animation, Flash animations created by experienced communication professionals (no static “slide show”, no TV spots unsuitable for POS)

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The economic viabilty of our business model is tested and validated in the Belgian Advertising Market (our Makro network model is approved by Media Planners, Agencies and Advertisers)

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We invest heavily in hardware/software/installation: no financial risk on your side

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We offer atractive returns for our valued location partners.

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We offer a totally integrated solution : •

we take care of installation / maintenance of the network, using high quality industry- grade hardware, guaranteeing 24/7 uptime

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non intrusive installation procedure: we only need electrical power, no network/video cables needed, no interference with Carrefour LAN network. Screens can be easily moved in case of changed store layout

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we take care of flexible content creation / management: no burden on your staff + allowing content to be updated with very short leadtime, adaptable per individual screen

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we take care of selling screen space to advertisers: up-and-running sales team, experienced in selling media space to FMCG/consumer durables advertisers (referenced Carrefour suppliers only)

Reason 1 : Technical Viability Technical solution tried and tested in real hypermarkets

BoardCast Top Technology •

High definition TFT / LCD displays

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High contrast, high brightness screens

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Industrial quality metal housing

BoardCast Top Technology •

High definition, high contrast industrial TFT screens

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One solid light metal self-contained unit

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Industrial single-board Pentium PC (dual core)

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Failsafe Watchdog card controls screen & PC

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Siemens GPRS / EDGE router integrated

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Remotely controlled over Mobistar Edge network

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One wire only : 220 volt ac 

Tried & Tested Technology •

Evaluated, tried & tested by Makro (Metro Group)

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25 screens in the field at 6 MAKRO and 3 METRO outlets

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Each screen is intelligent and can receive individual content

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Network installation (GPRS) experience in large indoor surfaces

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Hardware installation experience in hypermarkets

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Our solution is guaranteed to work

Reason 2 : High Quality Content Best in class content, adapted for POS environments

BoardCast Animated Posters It’s an eye-catching poster with added animation... ...It • • •

is not a recycled video commercial without sound.

We operate screens in POS environments (Hyper- and Supermarkets) These are high traffic indoor environments where people are not actively seeking to spend time on media (as opposed to a shopping mall audience) It’s not about easing the waiting time, it’s about delivering the last possible message before the sales decision is made.

BoardCast Animated Posters make the most of the few seconds that can be claimed from a passing audience, just before their sales decision is made.

Animated posters vs video Video • slower pace, demands longer attention span from audience • requires horizontal screen orientation, less easy to install in passing audience’s view range (because screens have to be positioned higher (fixated to the ceiling) Flash animation • is very suitable to quickly catch the attention of a passing audience; gets a message across in a few seconds time • dynamic content feed is possible eg. different price tags in different shops (impossible with video) • allows interaction with audience (Bluetooth, SMS, Webcam, changing content when approaching the screen using proximity sensor,...)

3D animations Activate your clients

Dynamic possibilities : The clock is always ticking and shows the exact right time It connects to our server and shows the server time

Integrated with other communication material that you are using Based upon print, we create animations

The price field can be database driven. This means that we can use the same animation in all stores AND change the price field per store if wanted.

Reason 3 : Economically Viable Business plan approved by Belgian Advertising Market

Belgian Media Centers, Agencies and Advertisers approve our POS digital communication approach : •

use of short, flash animated messages in vertical (poster) orientation >< instead of video/TV commercial, unsuitable for POS audience

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use of intelligent screens (PC integrated) • individually controllable • possibility of interaction: possibility to change the message when someone passes by (using a proximity sensor)

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content: focus on product advertising + location owner messages

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tariff / ratecard at which screenspace is offered to advertisers

Presented to & approved by :

FMCG advertisers

Media centers

Brand activation agencies

BoardCast Activate • • •

MAKRO-METRO

26 screens reach 310.000 clients / week Healthy Turnover in first weeks of activity Breakeven by end 2007 5 4

1

5 3

1 3

3

1

One of our first paying customers : Masterfoods @ Makro

Reason 4 : We Invest Heavily No Financial Risk for Carrefour

We Invest where it counts for Carrefour •

Your primary concern is your 9 largest hypermarkets • They suffer the most from declining turnover • They face the reality of aging infrastructure • They account for 40-45% of total hypermarket turnover

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They need and deserve our extra support

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BoardCast agrees to focus all our investments in phase I on these important hypermarkets

We Invest Heavily : •

80 screens in Phase I

We visited all 9 of your biggest Carrefour hypermarkets to determine the number of screens needed : • Auderghem :

9

• Kuringen :

9

• Bierges :

8

• Herstal :

8

• Mont St Jean :

10

• Foyennes :

7

• Oostakker :

7

• Mons :

14

• Schoten :

8

The right in-store placings for both parties • •

Carrefour seeks to better inform and service it’s customers Carrefour is also interested in reach at the end of the shopping cycle

• •

BoardCast is interested in selling media space to advertisers * BoardCast is interested in reach at the start of the shopping experience

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Carefully selected placings can fulfill the needs of both parties involved. We will show you a few examples of those locations on the next slides.

* Carrefour Referenced Products Only

Example Bierges : 4 screens in entrance hall, close to cash registers

Example Bierges : Screen & Content are also visible form the cash register

Example Mons : Screens at each pillar at the cash registers (7)

Example Mons : Both sides of the pillars. We also attract the shopping mall clients

Example Mons : Clients get a good view of the screens standing at the cash register

Mobile Screens • 1 mobile screen per Hypermarket • Just needs power, network independent • Can be placed wherever needed •

At service point : At wine aisle : At fresh fish stand : At Maxi Tech :

no plastic bags for environment 10 bottles + 2 free fish promotion service guarantee electronics

We continue to Invest heavily... •

We don’t stop investing after Phase I (2007)

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We are not after quick return on investment and will continue to re-invest important parts of our revenue in expanding the Carrefour network • When we sell 1/3 of available space : • When we sell 2/3 of available space : • When we sell 3/3 of available space :

25 extra screens 50 extra screens 75 extra screens

An attractive and powerful network •

We estimate the optimal total network size in your existing Carrefour hypermarkets at 250 screens

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An average of 5 screens per hypermarket

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We expect to have a full network of 250 screens in 2009

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In return we ask for 5 years of exclusivity (starting from the last major investment round)

Reason 5 : Attractive returns RO(n)I : Return On (no) Investment for Carrefour

We invest - you share in the return •

Two attractive returns for you :

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Free advertising space, content creation & content management and

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Revenue sharing of network profits

Proposal for Carrefour :

1. Free ad space

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Business Model = 4 x 7” flash posters in 30” loop

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You get 25% of all advertising space on average (1 poster / loop) *

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Free advertising content creation (1 ad per week)

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Free advertising content production (1 ad per week)

* can vary per screen, 25% on average on total network.

1 screen = only 4 animations in loop

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1 loop = 28-40 sec

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1 animation = 7-10 sec

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Sold per animation / week

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Your ad on every screen, 1 in 4 animations

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3 animations sold, 1 reserved for Carrefour

Carrefour

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animation 1 animation 2 animation 3

Activ8 network : business model

25% of ad space •

1 poster per 30 sec loop

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Everybody sees your ads (100% OTS)

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Better inform your customers

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Better service your customers

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Increase visit frequency at your hypermarkets

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Promote your own brand products

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Increase turnover per ticket

Proposal for Carrefour :

Revenue Share

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But you also share in our income on sold advertising space

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Carrefour gets 20% of our net income *

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5% of income in year one (installation & introduction)

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10% of income in year two (establishing & growing)

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20% of income in year three or as from the moment we sell 3 campaigns per week on the network (fully booked) (established & stable)

At full sales (3 posters per week) this amounts to : • •

Your return with a 80 poster network : Your return with a 250 poster network :

> 180.000 € > 500.000 €

* % of net income on space sold / no up-front lease or rent for positions

Return in Cash...or in extra screens •

If extra screens are more important to you than financial return, the revenue share can be converted to Carrefour Only Screens • Screens with 100% Exclusive Carrefour Content (no advertisers) • Placed in the store where you want them to be • Installed, Monitored and Operated by BoardCast

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Your revenue becomes a strong in-store customer network in no time • Return of full sales (3 animations / week) on 80 screen network amounts to 30 extra screens • Return of full sales (3 animations / week) on 250 screen network amounts to 85 extra screens

Reason 6 : Total Integrated Solution We take care of the whole proces, sit back & relax

Total Solutions Provider Maintenance & Management

Software - Remoting - Content sheduling

- Switch & Repair - Network - Content

BC Total Solution Hardware

Media Sales - Sales House - “Regie” - Billing

- Screens - Controllers - WiFi / GPRS

Content & Creation - Digital Posters - Flash swf

Total Solutions Provider • we develop, install and maintain the network • we repair and replace the hardware if needed • we sell the advertising space to your suppliers and take care of the whole sales administration process • we create and manage the content on the screens • we constantly monitor the network using our own software solution

Soon in a store near you ! We hope it will also be in one of yours...