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CataloniaindependencecrisisanditsimpactonCatalancompanies’reputa2on

EnriqueJohnson,ManagingDirectorYerayCarretero,AdvisoryDirector

Madrid,November8th2017

@RI_Spain_Latam#reputa2onstudy

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TheStudy

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Whywedidit?ThisstudyaimstodeterminewhatisthelevelofimpactonCatalonia-basedcompanies’reputa=onsduetotheindependencecrisisandwhatisthelevelofassocia=onwithCataloniaforthesecompanies.

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Field work •  24, 25, 26, 27, 28, 29 Y 30 of October

Companies’ selected •  41 companies

Stakeholders

•  General Audience Spain •  The sample distribution is equivalent regarding gender and age.

Work field methodology •  CAWI •  Each company was evaluated by a minimum of 100 individuals

Number of interviewers •  1.150

Number of rating

•  4.100

Error Margin •  (±) 2,89% p=q=0,5 with a level of trust of 95,5 %.

RepTrak®studymethodology

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Compañía

Abertis

Acciona

ACER

ACS

Aldi

BancodeSabadell

BarcelonaFootballClub

Bayer

Caixabank

CasaTarradellas

DAMM

Danone

Desigual

Endesa

Compañía

FCC

Ferrero

Freixenet

GallinaBlanca

Gamesa

GasNaturalFenosa

Grifols

GrupoBimbo

GrupoPlaneta

Lidl

Mango

MediaMarkt

Novartis

Nutrexpa

Compañía

PandaSecurity

Panrico

PepsiCo

Pirelli

Roca

Roche

Sanofi

SEAT

Torres

Tous

Unilever

GrupoVolkswagen

VuelingAirlines

Listofcompaniesthatwereincludedinthestudy

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Spain´sPointofViewAnapproxima=on

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Companies’associa2onwiththeCataloniaregionisnotclear

41.5%

34.1%

24.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Baja Media Alta

Todaslasempresas

Low Average High

Allthecompanies

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Wefindthesamesitua2onforthosecompaniesthataregenuinelyfromCatalonia

11.8%

29.4%

58.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Baja Media AltaEmpresascatalanas

Low Average HighCatalan’sCompanies

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Currentsitua2onoftheCatalancompaniesintheindependencecrises

*Fuente:estudioRepTrak®Pulse2017 Nota:Empresasconunaaltaiden>ficaciónconCataluña

66.4

70.9

65.966.2

69.6

63.8

Baja Media AltaEn

ero*

Octub

re

Enero*

Octub

re

Enero*

Octub

re

-1,3

-2,0-0,2

Low Average High

Octob

er

Octob

er

Octob

er

Janu

ary

Janu

ary

Janu

ary

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Millennialsarethemostcri2caloftheCatalan’scompanies

January’17 October’17

18to34years

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Companies’changeofcorporateaddressbringsbroadsupportacrossSpain

10.9%

11.6%

77.5%

PercepciónenEspaña(sinCataluña)sobreelcambiodedomiciliofiscalosocialdeempresascatalanas

Muyendesacuerdo Neutral Totalmentedeacuerdo

Percep2oninSpain(withoutCatalonia)regardingthecompanies’changeofcorporateaddresstooutsideCatalonia

AgreeNeutralDisagree

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Isitaffec2ngthecompanies’business?

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Thereisastrongcorrela=onbetweenreputa=onandsuppor=vebehaviors

R² = 0,8656

30

40

50

60

70

80

90

35 45 55 65 75 85

The loss of 5 points on reputation Pulse decreases the purchase intention by…

Compraría

España RepTrak® Pulse Score

5.4%

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ThecompaniesthathavemovedtheircorporateaddressoutsideCataloniahaveincreasedtheirappealasaplacetoinvest.

*Fuente:estudioRepTrak®Pulse2017

Octob

er

Janu

ary

PlacetoInvest

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ThecompaniesthathavekepttheircorporateaddressinCataloniadecreasedtheirpurchaseinten2onandtrustworthiness.

*Fuente:estudioRepTrak®Pulse2017

64.3

66.8

60.9

63.6

Confiaría Compraríasusproductos

-3,4-3,2

Enero*

Octub

re

Enero*

Octub

re

WillbuyitsproductsTrustworthy

Janu

ary

Octob

er

Janu

ary

Octob

er

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Currently,23%ofSpaniards(withoutCatalonia)affirmthattheyhavestoppedbuyingproductsfromCataloniaandanother21%woulddoitinthenearfuture.

23.2%

55.9%

20.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Sí No Noaunquequizáslohagaenelfuturo

Intencióndecompra:Ustedhadejadodecomprarproductoscatalanes...?

44,1%

PurchaseInten2on:DidyoustopbuyingCatalanproducts….?

Yes No No,butImaydointhefuture

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…andinthefuture?

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Inthecaseofeffec2veindependence,49%oftheSpaniards(withoutCatalonia)willstopbuyingCatalanproducts.

35.5%

15.4%

49.1%

DejaríadecomprarproductosyservicioscatalanessiCataluñaseindependizadeEspaña

Muyendesacuerdo Neutral Totalmentedeacuerdo

WillstopbuyingCatalan`sproductsincaseofeffec2veindependency

AgreeNeutralDisagree

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That49%hasavalueof….

*Fuente:AnálisisdelComerciodeCataluña2015

€20Billion*

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25%ofSpaniards(withoutCatalonia)willnotbuyCatalan’sproductseveniftheyhaveabelerquality.

25.2%

18.9%

55.9%

Siunproductooservicioesmejorlocompraréindependientementedesuprocedencia

Muyendesacuerdo Neutral Totalmentedeacuerdo

Ifaproductorserviceisbeler,Iwouldbuynotmalerwhereitcamefrom

AgreeNeutralDisagree

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65%oftherespondentsinSpain(withoutCatalonia)considerthatthecompanieswithheadquartersinCataloniashouldmovetootherregionsincaseofeffec2veindependency

17.2%

17.2%

65.6%

LasempresasdeberíansalirdeCataluñaeinstalarseenotraszonasdeEspaña

Muyendesacuerdo Neutral Totalmentedeacuerdo

CompaniesshouldleaveCataloniaandmovetootherSpanishregions

AgreeNeutralDisagree

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19%oftherespondentsinCataloniathinkthatthecompaniesthathavealreadylemtheregionshouldnotcomebackeveniftheindependencenevercomestoaterm.

31.2%

33.4%

35.4%

Muyendesacuerdo Neutral Totalmentedeacuerdo

18.9%

33.9%

47.2%

Muyendesacuerdo Neutral Totalmentedeacuerdo

SiCataluñanoseindependizalassedesydomiciliossocialesdeberíanvolveraCataluña

IfindependenceofCatalonianevercomestoaterm,companiesthathavelem,shouldgobackto

theregion

AgreeNeutralDisagree AgreeNeutralDisagree

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Catalonia’spointofview

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Thereisaclearpolariza2onregardingthecompaniesthathavemovedtheircorporateaddressoutsideCatalonia.

47.8%

13.9%

38.3%

PercepciónenCataluñasobreelcambiodedomiciliofiscalosocialdeempresascatalanas

Muyendesacuerdo Neutral Totalmentedeacuerdo

Percep2oninCataloniaregardingthecompanies’changeoffiscaladdresstooutsideCatalonia

AgreeNeutralDisagree

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Thereputa2onsofCatalan’scompaniesthathavemovedtheircorporateaddressoutsideCataloniaarepunishedbytheCatalans.

*Fuente:estudioRepTrak®Pulse2017Octob

er

Janu

ary

Companiesthathavemoveditsfiscaladdress

26*Source:RepTrak®Pulse2017

56.157.3

46.548.3

Confiaría Compraríasusproductos

-9,6 -9,0

Enero*

Octub

re

Enero*

Octub

re

ThecompaniesthathavemovedtheircorporateaddressoutsideCataloniadecreaseinlevelsoftrustworthinessandpurchaseinten2on.

WillbuyitsproductsTrustworthy

Janu

ary

Octob

er

Octob

er

Janu

ary

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ConclusionsMainfindings

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•  Fromana2onalpointofview,thereisstrongsupportforthecompaniesthathavemovedcorporateaddress.Inthesecases,allofthemmanagetomaintaintheirlevelofreputa=on.

•  InCatalonia,thereisastrongpolariza2oninthisques2on,andinthecaseswherethecompanieshaveledtheregion,theyareheavilypunishedintermsofreputa2on.

•  Thepurchaseinten=onofCatalans'productsiscurrentlyaffectedbytheindependencecrises.Incasethatindependencebecomeseffec=ve,theimpactcouldbesevere,withlossesof50%ofcommercialtradewiththerestofSpain.

•  Thepercep=onofCataloniaasaplacetodobusinesshasalsobeenaffectedbytheindependencecrises.

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LearningsWhatcanbedone

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•  Companieshavetomakedecisionsbasedonbusinessreasonskeepingasideinvolvementinanysocialorpoli2calmovement.Thosedecisionsshouldbecorrectlyexplained,withhonestyandtransparency,alwaysthinkingaboutthecompanybusinessplan.

•  Anopenandtransparentcommunica2onisalwaysgoodinpolarizedopinioncontextsuchtheoneinCatalonia.

•  Thecurrentsitua=onshouldbetreatedasareputa=onalriskintheshort,mediumandlongtermthatneedsanac2onplanwithclearobjec2vesandac2vi2esthatcontributetothebusinessplan.

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•  Havingawellestablishedcompanyreputa2onisagoodstar2ngpointwhenfacingasitua2onliketheindependencecrisesinCatalonia.Agoodreputa=onmanagementstrategyshouldthinkfirstaboutthebusinessplanandthesuppor=vebehaviorthatisneededtoachievethatplan.Withthissetup,theyneedtodefinewhatmessages,towhichaudienceandthroughwhatchannelsshouldthecompanycommunicatetogetthedesirableresults.

•  Thereputa=onofacompanyanditsproductsorservicesplayaroleinthemanagementofthistypeofsitua=on.Agoodreputa2onhelpstominimizetheimpactacrisiswillhaveonchangingsuppor2vebehaviorstowardsthatcompanyoritsproductsandservices.

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