Report Introduction

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

November 2006 CONFIDENTIAL

An IRI Report for the VA

covering data up to Quarter 3, 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 33 companies – Asda Business Rewards, Boots, Capital Incentives, Comet Business Services, Debenhams, DSG Business Services, Exhilaration, Experience More, The Gift Voucher Shop, Grass Roots, Halfords, HMV UK Ltd, House of Fraser, John Lewis Direct, Kingfisher, Lakeside Shopping Centre, Love2reward, Maritz, Marks & Spencer, Marriott Incentives, Next, Red Letter Days plc, Sainsbury, Sodexho Pass, Tesco, Theatre Tokens, Thomson (Corporate Sales only), Thomas Cook, Thresher Group, Treatme.net, 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 4, 2003 - Quarter 3, 20065. 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 Q3 06 with total sales of £303,554,000 51.0% of these sales were Store sales

YOY Results Year on Year growth of the Total Market was +11.1%

for Q3 06 This growth was driven by Corporate sales (+18.9%)


Value Sales each Quarter, starting quarter 4, 2003. Bars are in £000s.

Total Category Size

42

9,2

19

10

8,4

16

11

1,1

46

12

5,9

13

46

6,2

80

13

7,8

15

14

2,3

43

14

8,1

37

47

7,4

75

14

8,0

52

14

0,5

42

15

4,8

52

17

0,0

86

77

,56

7

79

,31

3

94

,25

2

22

3,7

67

12

2,4

31

11

9,7

21

12

5,0

42

14

4,0

16

13

7,7

28

14

8,7

02

59

9,3

05

18

5,9

83

19

0,4

59

22

0,1

65

69

0,0

47

26

0,2

46

26

2,0

64

27

3,1

79

70

8,0

20

29

2,0

69

27

8,2

69

30

3,5

54

23

0,5

45

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

Store

Corp

Total


Value Sales in the latest year, starting in the year beginning quarter 4, 2003.

Total Category Size7

74

,69

3

89

4,5

75

92

0,9

21

42

1,2

18 5

90

,96

1

66

0,9

91

1,1

95

,91

2

1,4

85

,53

6

1,5

81

,91

2

Q4 2003 to Q3 2004 Q4 2004 to Q3 2005 Q4 2005 to Q3 2006

Store

Corp

Total


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

12.5

5.58.9

6.88.6

27.1 28.1

17.7

2.4

7.4

-1.3

4.5

-3.4 -4.1-2.1

5.7

31.6

57.8

50.9

32.7

3.0

17.615.0

18.9

7.5

1.34.0

6.3

15.1

39.9

24.1

2.6

12.2

6.2

11.1

37.6

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

Q32006/Q3

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 4, 2005 - Quarter 3, 2006

Q1 200616.1%

Q3 200616.8%

Q4 200551.8%

Q2 200615.3%

Q1 200621.8%

Q3 200622.5%

Q4 200534.9%

Q2 200620.8%

B 2 C B 2 B


Total Market 599,305 185,983 190,459 220,165 690,047 260,246 262,064 273,179 708,020 292,069 278,269 303,554

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

Category Segmentation Share Trends of Total Market

71.6

58.3 58.4 57.267.6

53.0 54.3 54.2

67.4

50.7 50.5 51.0

28.4

41.7 41.6 42.832.4

47.0 45.7 45.8

32.6

49.3 49.5 49.0

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 284,316 64,861 62,849 71,824 291,954 73,293 70,509 72,360 298,466 77,790 67,079 71,352

Q4 2003

Q1 2004

Q2 2004

Q3 2004

Q4 2004

Q1 2005

Q2 2005

Q3 2005

Q4 2005

Q1 2006

Q2 2006

Q3 2006

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

43.8

0.0 0.1 2.0

45.1

0.1 0.1 0.3

45.6

0.0 0.0 0.0

0.96

2.26 2.272.86

1.68

3.27 3.57 3.34

1.57

2.83 3.51 3.76

55.2

97.7 97.7 95.1

53.2

96.7 96.3 96.3

52.8

97.2 96.5 96.2

OTC

E-commerce

Savings (Incl XmasClub)

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


Corp 96,794 42,340 41,515 59,809 96,078 46,429 48,738 52,491 95,351 58,463 54,602 58,113

Q4 2003

Q1 2004

Q2 2004

Q3 2004

Q4 2004

Q1 2005

Q2 2005

Q3 2005

Q4 2005

Q1 2006

Q2 2006

Q3 2006

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

68.562.2 61.5

68.7 70.665.6 66.6 64.7

69.6 68.8 67.4 68.4

6.412.1 12.0

9.7 6.713.2 11.9

11.57.1 9.0 11.7 9.8

0.4 0.6 0.5

0.3 0.2 0.3 0.30.2 0.1 0.2 0.2 0.2

1.37 1.22

2.269.3

0.67 0.63 3.9710.84

0.59 0.72 3.222.9 5.3

5.5

5.1

6.5 6.8 5.0

4.0

7.9 8.0 6.0

0.0

0.0 0.0

0.0

0.5

0.4 0.4 0.4

0.4

0.30.3 0.2

9.7

20.9 19.613.5

7.713.3 13.4 14.3

7.913.3 11.6 12.1

13.2

1.9

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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