ICTS Newfield is one of the leading Consumption, Supply Chain and Retail Consultancy firms in Europe; focused to help customer to increase their results thru the implementation of Best Internationa Practices thru the Chain of Value of the Company

1. Enhancing profitability through a
fundamental reduction of Losses
and Out of Stocks
Credentials presentation
Madrid , June 2009
© 2009 ICTS Newfield Global BV

2. …Credentials
ICTS Newfield is the leading
international firm in Risk and Loss Prevention
 ICTS Newfield has been serving clients world wide in Risk and Loss Prevention and OOS reduction for the last
21 years. As an international niche player, we are the sole Loss Prevention organization able to deliver
powerful high-value solutions to leading companies in almost every geography thru more than 180
experienced consultants in USA, Europe, Latin America and Middle East
 ICTS Newfield provides solutions for reduction of risks to business goals and assets of our clients:
- Loss reduction - Information security
- Stock-outs reduction - Security Strategy re-engineering
- Redefinition of Loss Prevention Strategy - Business ethical practices review
- Implementation of advanced Loss Prevention Tools - Security costs reduction
- Certification in Loss Prevention - Preventive Business Intelligence
- Design of Scrap recovery programs - Outsourcing (BPO) of LP processes
 ICTS Newfield is the firm of reference in loss and OOS reduction for retail companies. We have gained
experience serving leading companies like Ahold, Alliance Healthcare, BodyBell, Carrefour, CBD, Champion,
C&A, Coop, Eroski, K-mart, Líder, Makro, Marionnaud, Marks & Spencer, Sendas, Unide …
 ICTS quotes in Nasdaq since 1996. ICTS Newfield qualified for the ISO 9000 certification for consulting
services
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© 2009 ICTS Newfield Global BV

3. …Credentials
Selected references of ICTS Newfield in Loss
Prevention and Risk Reduction for the last 10 years
World Bank
ICTS Newfield Global has operated in Europe since 1986
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© 2009 ICTS Newfield Global BV

4. …Credenctials
ICTS Newfield has achieved sustainable results in
all Loss Reduction programs performed for our clients
Project’s main objectives
 Client Example : Carrefour España
 Loss reduction targeted in a 32% along a 3,5 years period
 Best European practice implemented trough a BPO (Business Process  Client Benefits:
Outsourcing) program Pilots savings of 14% in perishables
and 16% in the rest of sectors
PoS tools implemented in 30
Project’s main activities
Hypermarkets
 Major Change Management initiative focused in all related processes Identified savings of € 47 million in
( from supply to PoS) stock losses
 Implementation of an advanced Score Card of losses able to identify
loss drivers throughout the organization
 Implementation of a Business Intelligence tool ( LP Watcher) aimed to
detect and correct risk profiles ( inefficiencies and fraud) in the cashier
line
 Development and Implementation of action plans in pilot stores and
DC’s
 Roll-out of the initiative in several waves for the rest of the stores
 Re-engineering and implementation of new processes for High Risk
products (HRP)
 Training of 3.000 employees during the first five months
…generating sustainable results
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© 2009 ICTS Newfield Global BV

5. …Credentials
ICTS Newfield has achieved sustainable results in
all Loss Reduction programs performed for our clients
Project’s main objectives  Client example : Makro
 Increase EBITDA to targeted levels
 Reduction of operational losses, both known and unknown, with  Client benefits ( € ):
special focus in fresh products Profits increased by nearly € 5 Mils
 Extension of LP processes to the new logistic platforms during the project life
 Development of an integrated Loss Prevention culture
Sustainable reduction of losses by
Project’s main activities 24%
 Implementation of 23 “Quick Wins” measures to build success patterns
in the project
 Focus in 50 HRP, with re-engineering of process from logistics through
cashier line
 Implementation of 50 action plans in three waves during an 18 months
period.
 Development of a brand new Loss Prevention department in the client
organization
 Deployment of specific Loss Prevention KPI’s suited to client needs
 Communication Plan to ensure floor-shop personnel commitment to
the success of the initiative ( news letters, communication materials,
motivation plan…
 Training of 2.800 employees for two months
…generating sustainable results
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© 2009 ICTS Newfield Global BV

6. …Credentials
ICTS Newfield has achieved sustainable results in
all Loss Reduction programs performed for our clients
Project’s main objectives
 Client Example: FCC Logistics
 Increase Company’s operational excellence through a significant
and consistent reduction in losses and operational damages  Client Benefits :
40% reduction of unknown losses
 Re-engineer LP processes and 10% reduction of breakages
and damages
Project’s main activities
 New claims management process implemented
 New procedures to manage High Risk Stores traffic were
designed and implemented
 Permanent monitoring tools and procedures were implemented
to control exceptions
 Involvement plan to ensure field participation (awareness
campaigns, incentive plans, etc.)
 New procedures of trucks tagging, SL reviews, segregation of
multi-destination loading control and trucks control
 Introduction of LP KPIs in company’s success indicators
 Training of 500 employees within 2 months
…generating sustainable results
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© 2009 ICTS Newfield Global BV

7. …Credentials
ICTS Newfield has achieved sustainable results in
all Loss Reduction programs performed for our clients
Project’s main objectives  Client example : Carrefour Brasil
 Reduction of unknown losses by 50% in a three years period
 Client benefits ( US$):
 Development of an integrated Loss Prevention culture Profits increased by nearly € 200
Mils during the project life
Project’s main activities
 Redefinition of the Loss Prevention strategy as well as the Security Plan
 HRP circuit redesigned and implemented across functions and processes
 Development of LP tools to monitor performance and deployment of
specific Loss Prevention KPI’s
 Development of a brand new Loss Prevention department in the client
organization
 Communication Plan to ensure floor-shop personnel commitment to
the success of the initiative (news letters, communication materials,
motivation plan…)
 Massive change management initiative across functions and formats
(hyper, super and discount)
 Training of 20.000 employees for four months
…generating sustainable results
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© 2009 ICTS Newfield Global BV

8. …Credentials
ICTS is implementing advanced Loss
Prevention concepts in the industry, including RFID
ICTS Newfield has been supporting a leading European logistics service provider to
analyse and select the areas where new frontier concepts in Loss Prevention will start
adding real value to their customer businesses
 Our approach to the initiative is based upon practical and HR PRINTING
HRP
PR RESTRICTED AREA
ece
real-life experience, and is focused in operations where ptio
n A
RFID READER + PRINTER
VIDEOCAM LAPTOPS
available technology will deliver a quantum leap in RFID TAGGING
1. HRP storage
READING
shrinkage levels, amongst other relevant operational 2. HRP shipments
SHIPPING DOCKS
B
4. Waiting area CELLULARS MP3/PHOTO
efficiencies. 5. Truck
loading
D READING
3. Inventory
 A joint team has assessed several Business Cases for
RAMDOM Take over
VERIFICATION PORTABLE READER
PORTABLE READER
E
customers from retail, telecom, luxury goods and pharma C
industries to develop pilot projects in 2006 for all these
industries. Most of the pilots deal with High Risk Products
logistics, where ICTS Newfield has recently attained
significant experience. Flow of HRP with RFID implemented RFID PROCESS
 ICTS Newfield has developed a methodology that addresses the 25 key benefits where RFID technology will add
value to the operations of 3PL's logistic providers, manufacturing and retail industries, mainly by reducing its
loss figures. This RFID calculator also take into account all costs involved in the operation of the new
technology.
 The project also identified changes that needed to be executed in processes, stock control techniques and
account strategy. As a key deliverable, our team has performed an in-depth reality-check of technology and
costs involved. Major improvements will arise in further down stream integration, when pilot RFID reception
controls in selected stores begin to show a full recovery of investments along the entire supply chain: from
supplier through retailer cashier line
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© 2009 ICTS Newfield Global BV

9. …Credentials
Selected references of ICTS Newfield
in Loss Prevention and benefits achieved
FORMAT SALES MAIN BENEFITS ACHIEVED
# STORES
(MM€) PROYECT
Hypermarket & Loss Reduction of losses
3,3 194
Supermarket Reduction above 30%
Cost
Supermarkets 1,2 93 30% of cost reduction
Reduction
33% reduction of unknown
Hipermarket & Loss
4,1 488 losses,
Supermarket Reduction
25% of cost reduction
Loss
Cash&Carry 1,5 34 24% reduction of losses
Reduction
40% reduction of unknown
Loss
3PL Logistic Operator 24 5 Losses and 10% reduction of
Reduction
damages
Pharmacies 18 3500 Loss 10% of loss reduction
Reduction
In all Loss Reduction projects, targets were achieved and frequently exceeded
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© 2009 ICTS Newfield Global BV

10. …Credentials
Selected references of ICTS Newfield
in Loss Prevention and benefits achieved
FORMAT SALES MAIN BENEFITS ACHIEVED
# STORES
(MM€) PROYECT
Supermarkets.
2 100 Loss 35% of loss reduction
Hipermarket &
DIY Reduction
Cost
Supermarkets 1,2 93 29% of cost reduction
Reduction
Household & Loss 10% of loss reduction
1 350
Electric appliances Reduction
Loss
Several 2 102 50% of loss reduction
Reduction
Integrity improvement in
Fashion 0,5 238 Integrity The Purchasing
Department
In all Loss Reduction projects, targets were achieved and frequently exceeded
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© 2009 ICTS Newfield Global BV