© 2009 ICTS Newfield Global BV

Enhancing profitability through a fundamental reduction of Losses and Out of StocksCredentials presentation

Madrid , June 2009

© 2009 ICTS Newfield Global BV

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 last21 years. As an international niche player, we are the sole Loss Prevention organization able to deliverpowerful high-value solutions to leading companies in almost every geography thru more than 180experienced 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 gainedexperience 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 consultingservices

…Credentials

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© 2009 ICTS Newfield Global BV

Selected references of ICTS Newfield in Loss Prevention and Risk Reduction for the last 10 years

World Bank

2

…Credentials

ICTS Newfield Global has operated in Europe since 1986

© 2009 ICTS Newfield Global BV

Client Example : Carrefour España

Client Benefits:

Pilots savings of 14% in perishables and 16% in the rest of sectors

PoS tools implemented in 30 Hypermarkets

Identified savings of € 47 million in stock losses

Loss reduction targeted in a 32% along a 3,5 years period Best European practice implemented trough a BPO (Business Process

Outsourcing) program

Project’s main objectives

Project’s main activities

ICTS Newfield has achieved sustainable results in all Loss Reduction programs performed for our clients

Major Change Management initiative focused in all related processes ( from supply to PoS)

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

…Credenctials

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…generating sustainable results

© 2009 ICTS Newfield Global BV

ICTS Newfield has achieved sustainable results in all Loss Reduction programs performed for our clients

…Credentials

Project’s main objectives Client example : Makro

Client benefits ( € ):

Profits increased by nearly € 5 Mils during the project life

Sustainable reduction of losses by 24%

Increase EBITDA to targeted levels Reduction of operational losses, both known and unknown, with

special focus in fresh products Extension of LP processes to the new logistic platforms Development of an integrated Loss Prevention culture

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

Project’s main activities

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…generating sustainable results

© 2009 ICTS Newfield Global BV

ICTS Newfield has achieved sustainable results in all Loss Reduction programs performed for our clients

…Credentials

Project’s main objectives Client Example: FCC Logistics

Client Benefits :

40% reduction of unknown losses

and 10% reduction of breakages

and damages

Increase Company’s operational excellence through a significant and consistent reduction in losses and operational damages

Re-engineer LP processes

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

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…generating sustainable results

© 2009 ICTS Newfield Global BV

ICTS Newfield has achieved sustainable results inall Loss Reduction programs performed for our clients

…Credentials

Project’s main objectives Client example : Carrefour Brasil

Client benefits ( US$):

Profits increased by nearly € 200 Mils during the project life

Reduction of unknown losses by 50% in a three years period

Development of an integrated Loss Prevention culture

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

Project’s main activities

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…generating sustainable results

© 2009 ICTS Newfield Global BV

ICTS is implementing advanced LossPrevention concepts in the industry, including RFID

ICTS Newfield has been supporting a leading European logistics service provider toanalyse and select the areas where new frontier concepts in Loss Prevention will startadding real value to their customer businesses

…Credentials

SH

IPP

ING

DO

CK

S

HRP ReceptionVIDEOCAM

CELLULARS MP3/PHOTO

1. HRP storage

2. HRP shipments

4. Waiting area

RAMDOM VERIFICATION

3. Inventory Take over

PORTABLE READER

PORTABLE READER

HRPHRPRESTRICTED AREARESTRICTED AREA

RFID READER + PRINTER

5. Truck loading

LAPTOPS

Flow of HRP with RFID implemented RFID PROCESS

A

B

D

C

E

RFID TAGGING

READING

PRINTING

READING

Our approach to the initiative is based upon practical andreal-life experience, and is focused in operations whereavailable technology will deliver a quantum leap inshrinkage levels, amongst other relevant operationalefficiencies.

A joint team has assessed several Business Cases forcustomers from retail, telecom, luxury goods and pharmaindustries to develop pilot projects in 2006 for all theseindustries. Most of the pilots deal with High Risk Productslogistics, where ICTS Newfield has recently attainedsignificant experience.

ICTS Newfield has developed a methodology that addresses the 25 key benefits where RFID technology will addvalue to the operations of 3PL's logistic providers, manufacturing and retail industries, mainly by reducing itsloss figures. This RFID calculator also take into account all costs involved in the operation of the newtechnology.

The project also identified changes that needed to be executed in processes, stock control techniques andaccount strategy. As a key deliverable, our team has performed an in-depth reality-check of technology andcosts involved. Major improvements will arise in further down stream integration, when pilot RFID receptioncontrols in selected stores begin to show a full recovery of investments along the entire supply chain: fromsupplier through retailer cashier line

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© 2009 ICTS Newfield Global BV

FORMAT # STORESMAIN

PROYECTBENEFITS ACHIEVEDSALES

(MM€)

1,2CostReduction

30% of cost reduction

3,3 194LossReduction

Reduction of lossesabove 30%

488LossReduction

33% reduction of unknown losses,25% of cost reduction

34LossReduction

24% reduction of losses

540% reduction of unknownLosses and 10% reduction of damages

4,1

1,5

24

Selected references of ICTS Newfield in Loss Prevention and benefits achieved

Hypermarket &Supermarket

Supermarkets

Hipermarket &Supermarket

Cash&Carry

3PL Logistic Operator

93

…Credentials

3500 LossReduction

18Pharmacies 10% of loss reduction

LossReduction

8

In all Loss Reduction projects, targets were achieved and frequently exceeded

© 2009 ICTS Newfield Global BV

FORMAT # STORESMAIN

PROYECTBENEFITS ACHIEVEDSALES

(MM€)

1,2CostReduction

29% of cost reduction

350LossReduction

10% of loss reduction

102LossReduction

50% of loss reduction

238Integrity improvement inThe Purchasing Department

1

2

0,5

Selected references of ICTS Newfield in Loss Prevention and benefits achieved

Supermarkets

Household & Electric appliances

Several

Fashion

93

…Credentials

Integrity

100 LossReduction

2Supermarkets. Hipermarket &DIY

35% of loss reduction

9

In all Loss Reduction projects, targets were achieved and frequently exceeded