CLOSE YOUR EYES! WHAT IS ‘BRAND’?. DO NOT THINK OF…

CLOSE YOUR EYES!

WHAT IS

‘BRAND’?

DO NOT

THINK OF…

Valuable brands haveSTRONG RELATIONSHIPS

with consumersand are

MEANINGFULLY DIFFERENT

It is better

than othersIt is

satisfactory

It caters for me

I know about it

BONDING

ADVANTAGE

PERFORMANCE

RELEVANCE

PRESENCE

Top 100 brands All brandsCoca-Cola

THE BRAND RELATIONSHIP

32

25

5

40

57

49

40

12

58

73

76

30

83

97

71

BONDING ONLY

30%ADVANTAGE ONLY

41%

Coca-Cola

76

30

83

97

71

It is better

than othersIt is

satisfactory

It caters for me

I know about it

BONDING

ADVANTAGE

PERFORMANCE

RELEVANCE

PRESENCE

30BONDING ONLY

ADVANTAGE ONLY

PERFORMANCERELEVANCEPRESENCE

NO PRESENCE

COCA-COLA

41

26

3

52

36

111

CUSTOMERS % VALUE %

BONDING/ ADVANTAGEThese people account for the vast majority of sales because they are

more loyal to the brand.

BRANDCONTRIBUTION PERCENTAGE

Coca-Cola

76

30

83

97

71

It is better

than othersIt is

satisfactory

It caters for me

I know about it

BONDING

ADVANTAGE

PERFORMANCE

RELEVANCE

PRESENCE

BRAND VALUATION

X =

Financial Value Brand Contribution Brand Value

BRAND CONTRIBUTION EFFECT

X=

X

=

Interbrandvalue

$28bn

BRAND CONTRIBUTION AVERAGE

Values very similar

BRANDZ™value

$23bn

Interbrandvalue

$28bn

BRAND CONTRIBUTION LOWER

Interbrand fails to take account of

lower Brand Contribution

BRANDZ™value

$13bn

Interbrandvalue

$34bn

BRAND CONTRIBUTION HIGH

Interbrand fails to take account of

high Brand Contribution

BRANDZ™value

$183bn

BRAND VALUE

2006 2012

Interbrand

BRANDZ™ $183BN

$34BN

$9bn

$16bn

BRAND CONTRIBUTION

3

BRAND CONTRIBUTION

4

$33bn

YES, TOP % RISER AGAIN…

$183bn

YES, NO.1 AGAIN…

56

YES, FEWER USA/EUROPE BRANDS AGAIN…

+74%

+19%

(74 last year and 88 in 2006)

A VERY TOUGH YEAR:

2006 2012

$2.4tr

Half the brands LOST value (mainly financials not brand contribution)Value of Top 100 only +0.3% ($2.4trillion)

$1.4tr

TOP RISERS

Facebook

Hermès

MasterCard

Ralph Lauren

Starbucks

Clinique

Rolex

Visa

HUGO BOSS

The Home Depot

74%

61%

53%

51%

43%

43%

36%

34%

33%

31%

Column1

STRONG BRANDS PERFORM

APR 06 MAY 12

37.5%

0.4%

STRONG BRANDS

S&P 500

CATEGORY PICTURE – SHORT TERM (vs ‘11)

LuxuryFast Food

ApparelOil & Gas

TechnologySoft Drinks

Financial Institutions(ALL)Beer

Personal CareRetailCars

Telecom ProvidersInsurance

15%15%

13%8%

2%1%0%0%

-1%-5%-5%

-7%-7%

-16%

Column1

CATEGORY PICTURE – LONG TERM (vs ‘06)

Fast Food

Technology

Telecom Providers

Soft Drinks

Beer

ALL

Financial Institutions

Apparel

Retail

Luxury

Personal Care

Cars

193%

166%

84%

76%

68%

66%

61%

53%

48%

47%

39%

-24%

Column1

STRONG BRANDS GROW STRONGER

2006 2012

$46bn

$892bn

$83bn

$409bn

Top 10

Bottom 10

BUZZ MEANS MONEY

2006 2012

$511bn

$112bn

Value

Earned Buzz

It is better

than othersIt is

satisfactory

It caters for me

I know about it

BONDING

ADVANTAGE

PERFORMANCE

RELEVANCE

PRESENCE

Top 100 brands All brandsFast Growing

MORE ENGAGEMENT IN FAST GROWING MARKETS

32

25

5

40

57

49

40

12

58

73

63

22

77

91

59

12FINANCIAL

COMMUNICATIONS

OTHER

INFRASTRUCTURE IN GROWTH MARKETS

12

33

43

44

29

13

1

DEVELOPED % FAST GROWING %

TECHNOLOGY

TOP 10 GROWTH BY REGION

North America

Continental Europe

UK

Asia

LatAm

7%

-4%

-10%

-7%

-28%

Column1Momentum

Average

High

Low

Average

High

NORTH AMERICA

Apple

IBM

Google

McDonald's

Microsoft

Coca-Cola

Marlboro

AT&T

Verizon

GE

19%

15%

-3%

17%

-2%

1%

9%

-1%

15%

-9%

Column1

Average

Average

Average

High

High

Momentum

Average

Average

High

Average

Average

CONTINENTAL EUROPE

Deutsche Telecom

Louis Vuitton

SAP

BMW

Hermes

Movistar

Mercedes-Benz

Orange

L'Oreal

H&M

-10%

7%

-1%

10%

61%

-37%

5%

-13%

-12%

4%

Column1

Average

Average

Average

Average

Low

Momentum

High

Average

High

Average

High

UK

Vodafone

HSBC

Tesco

Shell

BP

Standard Chartered

O2

Barclays

Dove

M&S

-1%

-14%

-18%

17%

-17%

-16%

-27%

-32%

-18%

Column1

Average

Low

Low

Low

Average

Momentum

Low

High

Low

Low

Average

ASIA

China Mobile

ICBC

China Construction Bank

Baidu

Toyota

Tencent/QQ

Agricultural Bank of China

NTT DoCoMo

China Life

Samsung

-18%

-7%

-4%

8%

-10%

19%

6%

3%

-25%

16%

Column1

High

Average

High

High

High

Momentum

High

Average

Average

Average

High

LATAM

Petrobras

Telcel

Falabella

Corona

Skol

Sodimac

Natura

Brahma

-21%

-27%

-6%

3%

-28%

18%

Column1

Average

High

Average

Average

Average

Momentum

Average

High

Average