77% of cyber attacks are due to human failures (e.g., people, processes) rather than technology

Dissonant perceptions of recession risk continue to drive high uncertainty, and the greater pessimism among consumers and firms could prove more relevant for future spending

Quantum computing will likely affect chemicals, pharmaceuticals, automotive, and the financial industry in the near term

Disintermediation trend: Percentage of companies using channel partners hits returns to historic low

Adjusted costs – Q2 2023 (YoY)

Addressing bullying

Marketing budgets as a percent of company revenues weaken to pre Covid levels

Autonomous vehicles and infotainment will become the earliest adopters of domain control units

All brick-and-mortar channels dramatically hit in 2020, leading to a distribution eco-system transformation YoY ’19 – 20E 2020 … … and beyond • Monobrand stores & outlets suffered due to closures • Department stores and specialty stores: survival of the fittest – European department stores also deteriorated due to lack of tourism • Travel retail heavily impacted from world travel freeze • Online to become #1 channel, fueling omnichannel transformation • Outlet weight increase given value-driven purchases and spur from Chinese middle class • Monobrand stores to be reinvented as a g-local touchpoint with a new role of the store – Physical networks disruption (i.e. resized footprint & format) – Integration of digital in the physical • Department and specialty stores losing relevance (and surface) in ecosystems – Winners vs. losers game: sharp opinion, new calendar and updated business model key to thrive • Travel retail expected to recover to historical levels CAGR ‘19 – ‘25F D I S T R I B U T I O N E C O S Y S T E M T R A