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1 2 Brand Finance plc 2012 Brand Finance plc 2012

Brands are the most valuable assets in business today.

They drive demand, motivate staff, secure business

partners and reassure nancial markets.

Leading edge organisations recognise the need

to understand brand equity and brand value

when making strategic decisions.

David Haigh, CEO, Brand Finance plc

Foreword

Since it was rst released in 2007 the BrandFinanceGlobal 500 has been the most comprehensive table ofpublished brand values in the world. The report isreleased annually and incorporates data from listedcompanies globally. Each brand has been accorded abrand rating: a benchmarking study of the strength,risk and future potential of the brand relative to itscompetitor set as well as a brand value: a summarymeasure of the nancial strength o f the brand.

This year the BrandFinance Global 500 has seena decrease in the total Enterprise Value witha decline o 0.4% proving that businessesare still eeling the eects o the turbulent economicclimate. Nevertheless despite this, the brand valueso the Global 500 have seen an overall growthin value o 3.3% to US $3,415 billion suggesting thatthe recovery is slowly underway.

At a regional level the on-going European sovereign

debt crisis continued to aect brand valuesin Europe which saw a decline in brand valueby -7% to US $1,080 billion. This was mirroredin the banking industry which saw 16 Europeanbanks appear in the Top 20 allers in thisyears report.

2011 has been the year o Technology brandswhich are the real success stories o theBrandFinance Global 500 having experienced animpressive increase o 81% in brand value. Applehas been ranked as the Worlds Most ValuableBrand or the irst time and achieved the highestever valuation calculated by Brand Financeo US$ 70.6 billion.

The meteoric rise o Apple which we have allwitnessed over the last 12 months is nothingshort o staggering. Apple is the classic Americancorporation that was once the alternative quirkybrand or designers and creatives. Now theirproducts are accepted by major corporations andare used by mainstream industry.

Companies like Apple are built on strong IntellectualProperty and are the engine o growth or a newera in America. Apple is a great example o how

branding and IP management in combination can beused to leverage high proits. As Apple continuesto develop it seems set to dominate the technologyindustry in 2012 and beyond.

The BrandFinance Global 500 report providesa comprehensive perspective on the most valuableglobal brands as o 31st December 2011. The sheerscale o these brand values shows how importantan asset these brands are to their respectiveowners and as a result we irmly believe that brandvaluation analysis can oer marketers and inanciersalike an insight into their marketing activities andshould orm a key component in any decisionmaking process.

David Haigh, CEO Brand Finance plc


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Contents

Foreword ............................................... 001

Executive Summary.............................. 003

Top 20 Most Valuable Global Brands... 007

Brand Stories......................................... 029

Methodology......................................... 045

About Brand Finance............................. 047

Glossary of Terms .................................. 057

Disclaimer.............................................. 058

Contact Details....................................... 060

Appendix:

Top 500 Most Valuable Global Brands..... 063

65 Brand Finance plc 2012 Brand Finance plc 2012


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Brand Finance plc 2012 Brand Finance plc 2012

02GooGle

2011 RANK: 1

$47,463m 7%

RATING: AAA+ 12Verizon

2011 RANK: 12

$27,616m 1%

RATING: AA

03MicrosoFT

2011 RANK: 2

$45,812m 7%

RATING: AAA+ 13HsBc

2011 RANK: 11

$27,597m0%

RATING: AAA

04iBM

2011 RANK: 4

$39,135m8%

RATING: AA+ 14nTT

2011 RANK: n/a

$26,324m -2%

RATING: AAA-

05WalMarT

2011 RANK: 3

$38,319m6%

RATING: AA 15ToyoTa

2011 RANK: 14

$24,461m -6%

RATING: AA

06saMsunG

2011 RANK: 18

$38,197m78%

RATING: AAA- 16Wells FarGo

2011RANK:9

$23,229m-20%

RATING: AA+

07General elecTric

2011 RANK: 7

$33,214m9%

RATING: AA+ 17Bank oF aMerica

2011 RANK: 6

$22,910m-33%

RATING: AA+

08

coca-cola

2011 RANK: 16

$31,082m 20%

RATING: AAA+

18

McDonalDs

2011 RANK: 17

$22,230m 2%

RATING: AAA

09VoDaFone

2011 RANK: 5

$30,044m -2%

RATING: AAA+ 19sHell

2011 RANK: 30

$22,021m 18%

RATING: AAA-

10aMazon.coM

2011 RANK: 32

$28,665m 61%

RATING: AA+ 20inTel

2011 RANK: 27

$21,908m15%

RATING: AA+

01apple

2011 RANK: 8

$70,605m139%

RATING: AAA+ 11aT&T

2011 RANK: 10

$28,379m-2%

RATING: AA+


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2012 2011

Brand Ranking 2 1

Brand Value (US$m) 47,463 44,294

Brand Ratin g AAA+ AAA+

Market Cap (US$m) 155,895 143,016

Domicile United States

Google, a brand seen more as a verb than a noun,

has increased its brand value by 7%. The brand was

not strong enough however to hold o the increase

in Apples brand value and as a result Google has

been knocked o the number one position in the

2012 BrandFinance Global 500 study.

Google is the worlds largest internet search engine

with over a billion unique visitors every month. The

brand generatesthe majorityof its$37.9 billion

revenue through advertising.

Larry Page and Sergy Brin created the Google brand

when they were studying a PHD course at Stanord

University. The brand aim is to systematically

organise a huge amount o inormation and make

it accessible or the entire world to use.

Google keep the site resh by inventing new Google

products such as Google +. The site also retainsusers by providing products that are better than

and more easily accessible than the competition

such as Gmail, Google Maps and Google Translate.

By providing products that continually put the user

irst, the Google brand is able to achieve high levels

o unique visitors as well as retaining the majority

o these users.

2012 2011

Brand Ranking 1 8


Brand Rating AAA+ AAA

Market Cap (US$m) 350,257 244,382


Apple is the brand that puts innovation into the hands

o the consumer and as a result consumers have

aloveaffairwiththebrand.In1976thelateSteve

Jobs, together with his partner Steve Wozniak,

set out to change the world and by the time o his

untimely death he had succeeded. The man behind

the Apple brand was one o lies great pioneers.

The Apple brand is so strong because it runs right

through the very core o the company. The alluring

retail outlets are unique and visually ascinating whilst

the employees are intelligent and approachable.

The products themselves are innovative, stylish and

easy to use and management runs just as eiciently

as any o the Apple products themselves.

It comes as no surprise then that one o the

worlds most admired brands achieved the highest

brand value ever at a staggering $71 billion. The

company also achieved the highest brand ratingpossible, AAA+.

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Up: 7%Rating: AAA+BV: $47,463m

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2012 2011

Brand Ranking 4 4


Brand Ratin g AA+ AA+

Market Cap (US$m) 241,208 189,718


Following a record breaking year or proits and

revenue Big Blue has seen its brand value increase

byasteady8%to$39,135million.

Over the years IBM has gradually shited its

ocus away rom computer hardware and towards

consultancy and inormation services. However, the

company has lost none o its potency as in all o its

areas o operations the brand has become renowned

or its ability to innovate and consistently provide

success or its clients all within the ramework

o a business culture which is atypical o other

corporate behemoths.

The shit away rom components towards

inormation services has also made the brand

ar more resilient to cyclical movements in the

demand or computer hardware so that it is now

seen as not only the bellwether company or the

entire technology industry, but also as the namein IT consulting.

The brand remains as strong as it ever has been and

the company seems conident that 2012 could be

its best yet, so therere certainly no reasons or IBM

to be eeling blue.

2012 2011

Brand Ranking 3 2


Brand Rating AAA+ AAA+

Market Cap (US$m) 165,151 165,725


Microsot has had a airly successul year, achieving

3rd place in the BrandFinance Global 500, though

the success is more a case o holding rm against

increasingly powerul opposition rather than surging

ahead. Brand value has risen by a modest $3 billion

and its AAA+ brand rating has been maintained.

Microsot has been a technology superpower since the

early1990s,whenitwasabletooperateintheabsence

o equally powerul opposition. It has, however,

not capitalised on the increasing pervasiveness

o the internet and communications technology

to the extent it might have however. It has been a late

entrant into the mobile sector, where despite positive

critical reception, its products command minimal

market share. Despite operating some o the earliest

internet-based social networking tools, such as MSN

Messenger, it has seen rst Myspace, then Facebook,

come to dominate this sphere.

Microsots oldest rival is o course Apple, which has

surged to the top o the BrandFinance Global 500 or

the rst time. This turnaround highlights Microsots

ailure to capture the hearts and minds o consumers,

who accept the clear utility o PowerPoint, Outlook,

Word and Excel, but look to rivals or more innovative

products. The one exception is its gaming console, the

Xbox and the Kinnect device. I Microsot can inspire

consumers with all its products as it has with the

hugely successul Xbox and Kinnect, then it may be

able regain its position at the top o the BrandFinance

Global 500.

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k Ft:

Up: 8%Rating: AA+BV: $39,135 m

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2012 2011

Brand Ranking 6 18


Brand Ratin g AAA- AA+

Market Cap (US$m) 199,331 113,327

Domicile South Korea

The brand belonging to the giant South Korean

chaebol (or conglomerate) Samsung Group has

perormed exceedingly well in this years Brand

Finance Global 500 with its brand value increasing

b y 7 8% . F ew p eo pl e r ea li ze t he t ru e e xt en t

o Samsungs business empire which comprises

some o the largest companies in the ields o

technology, shipbuilding, construction, inance,

PR and even amusement parks. A ith o Koreas

exports are generated by Samsung.

Seemingly the only competitor consistently

putting up a ight against Apples inexorable

domination o the smart phone market, Samsung

has had a year o good inancial results peppered

with minor controversy stemming rom its long

running intellectual property battle with the US

technology giant.

Samsung is also a world Olympic partner andwill likely make urther gains this summer as the

brand is put under the worlds spotlight throughout

the London games.

2012 2011

Brand Ranking 5 3


Brand Rating AA AA

Market Cap (US$m) 155,189 154,325


Walmart Stores Inc boasts the title o the worlds

largest public corporation by revenue and serves

both customers and club members up to 200 million

times per week. The multinational retailer is also

the biggest private employer in the world with over

2 million employees and was named the Brand

Finance Best Retail Brand 2012.

Foundedin1962bySamWalton,theWaltonfamily

themselves are still very much involved in the business

and control a 48% stake o the corporation. Today

the company operates in three business segments:

Walmart U.S. and Sams Club in the United States and

Walmart International in 15 countries.

Nevertheless Walmart, like much o the retail

industry, was not immune rom the inancial crisis

and recorded three years o slowing sales growth

and as a result suered a relatively large brand loss

between 2010 and 2011.

Meanwhile the Walmart Foundation has continued

to work extensively or a better quality o living

in the United States especially. In February they

partnered with First Lady Michelle Obama to donate

$9.5milliontoprovidecustomerswithhealthierand

more aordable ood.

The uture o Walmart appears to be online as CEO

RaulVazuqezisquotedassaying.ourgoalistobe

the biggest and most visited retail website and as

rivals Amazon.com climb up theBrandFinance

ranking it seems that the next steps or expansion

will likely be on the internet as the online retail

market continues to lourish.

6.

5.

k Ft:

Up: 78%Rating: AAA-BV: $38,197m

k Ft:

Up: 6%Rating: AABV: $38,319m


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2012 2011

Brand Ranking 8 16



Market Cap (US$m) 83,696 69,508


In terms o awareness there are very ew brands in

the world that can match Coca-Cola. The company

beneits rom a large global ootprint which

is supported by an advertising spend o just under

$3 billion a year, enhanced through sponsorship

o major events such as the ootball World Cup and

the Olympics.

Coca-Cola is the worlds best selling sot drink

by volume. The companys drinks are sold in stores,

restaurants, and vending machines in more than 200

countries. Approximately 74% o the companys

volume sales stem rom outside the USA.

There has been pressure in the carbonated drinks

market recently rom a strong health and well

being movement. Coca-Cola has responded to this

by creating two sub brands which are variations

o the original product but with 0% sugar. These

two healthier alternatives are essentially the sameproduct; one o which, Diet-Coke is targeted

at women and the other, Coke Zero, being targeted

at men. In addition Coke also produces Coke sub

brands in the orm o Vanilla Coke, Coca-Cola with

Lemon and with Lime.

2012 2011

Brand Ranking 7 7


Brand Rating AA+ AA+

Market Cap (US$m) 468,287 475,066


General Electric, one o the worlds most

storied brands and the oldest name on the Dow

Jones Industrial Average, has seen its brand

value increase by a very healthy 14% this year.

The $4.3 billion increase in the brands value has come

on the back o a relatively successul year or the

company which has helped it to build on its gradual

recovery rom the global inancial crisis. As one

o the world Olympic partners the brand will receive

a huge amount o exposure to a global audience this

summer helping to boost its recognition across the

events international audience.

One o the highlights o GEs year has been the

turnaround at GE Capital. The segment had seen

its earnings all dramatically ollowing the crisis,

however it has been revitalised and is once again

one o the companys primary sources o income.

Nonetheless, the brand is seeking to move away

rom its reliance on the sale o inancial productsin order to ocus on the industrial business where

its heritage lies.

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k Ft:

Up: 9%Rating: AA+BV: $33,214m


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2012 2011

Brand Ranking 10 32


Brand Ratin g AA+ AA

Market Cap (US$m) 94,398 64,132


Thee-commercegiant,Amazon.com,hashadayear

o growing revenue and alling proits, the latter item

being widely regarded by analysts as insigniicant

in comparison to the growth o the company.

Amazon.com hasfirmlyestablisheditself as the

worlds number one online retailer and sells more

than three times as much as its nearest rivals. It has

the widest range o products as well as the astest

delivery times and oten charges the lowest price.

Foundedin1994byJeffBezos,andnamedafterthe

river, the company initially only sold books but soon

diversiied into selling various products and today

has separate websites or each individual country

that they operate in. Financial results o 2011 relect

Amazons growth with second quarter revenue

increasingby51%to$9.91billionfromtheperiod

a year earlier, whilst hal year revenue increased

45% rom 2010.

Amazonnowsellsitsownrangeofproductsincluding

t he hugel y successf ul Amazon Ki ndl e e- book

reader. The company recently reached a milestone

by revealing that it now sells more e-books than real

books. Theexpansion ofAmazon.com continued

with the ull acquisition o LoveFilm in 2011 which

boasts an impressive 2 million subscribers and

is now the leading online DVD rental outlet

in Europe.

2012 2011

Brand Ranking 9 5



Market Cap (US$m) 189,232 192,456

Domicile Britain

Despite the small decline in its brand value this

year, the company which made the irst ever mobile

phone call remains the most successul telecoms

brand in the BrandFinance Global 500.

Vodaone is a truly global brand enjoying high

levels awareness across both developed and

emerging markets. The company has been

remarkably successul in avoiding many o the

problems that can emerge when trying to propagate

a oreign brand in iercely competitive new markets

whilst simultaneously trying to compete with the

entrenched incumbents. This is one o the reasons

that the company has been able to establish thriving

partnerships across the globe urther contributing

to the growth o its brand.

In order to stay ahead Vodaone has continued

to be a brand which innovates and actively takes

a position o leadership in its sector. Mobilepayment technology allowing Vodaone customers

to use their smart-phones as mobile wallets is just

one example o the many ways in which the brand

will seek to help its clients this year. Furthermore,

the brands strong position emerging markets will

be o great beneit as the developed world continues

attempting to shake o the legacy o the global

inancial crisis.

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k Ft:

Down: -2%Rating: AAA+BV: $30,044 m


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2012 2011

Brand Ranking 12 12


Brand Ratin g AA AA

Market Cap (US$m) 203,306 381,093


Ver i zon i s a US t elecommuni cat ions company

and one o the components o the Dow Jones

Industrial Average. It has two primary operations,

domestic wireless and ixed line. It provides these

services to consumers, carriers, businesses and

government customers both in the United States

and internationally in 150 countries.

VerizonWirelessbroadeneditsreachinthewireless

communications sector in the US when it completed

itspurchaseofAlltelCorporationin January2009.

Verizonhasrecently startedoperatingitsnew 4G

network. A survey conductedby P.C. magazine

ound that in all 21 cities included in the survey,

Verizons4Gnetworkwasthefastest.Ontheback

ofthissuccessfullaunchVerizonisnowextending

the new 4G network to cover 38 American cities

including Washington, Houston and New York City.

Recently,VerizonhasbeenteamingupwithGoogleAndroid to try to build a successul partnership

to challenge the iPhones dominance o the smart

phone market. This has included an aggressive

and conrontational advertising campaign designed

to highlight alleged shortcomings o the iPhone.

2012 2011

Brand Ranking 11 10



Market Cap (US$m) 235,495 235,987


The$39 billionproposed mergerbetweenAT&T

and T-Mobile USA has now oicially collapsed. The

deal was inally rejected by the US Department

ofJustice (DOJ)and theUStelecommunications

regulator (FCC) after months of pressure from

competitor, Sprint, who argued the deal would

be bad or competition and bad or the consumer.

I this had gone ahead it would have created

a duopoly in the US wireless market with higher

pricesandlowlevelsofinnovation.AT&Tresponded

with a statement,The AT&Tand T-MobileUSA

combination would have oered an interim solution

to the spectrum shortage. In the absence o such

steps, customers will be harmed and needed

investment will be stiled. The deal now leaves

the US telecoms market open or investment with

competitors hoping to capitalise on the opportunity.

Thefailedtakeover bidhascostAT&T$4billion.

DespitethisAT&Tremainstheworldssecondmost

valuable telecoms brand

In addition, its advertising solutions segment

publishes yellow and white pages directories;

and sells directory advertising and internet-based

advertising as well as local search. The company

was ormerly known as SBC Communications Inc.

andchangeditsnametoAT&TInc.inNovember

2 00 5 a s a r es ul t o f m er ge r w it h AT &T C or p.

AT&T I nc. was f ounded i n 1983 and i s based

in Dallas, Texas.

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k Ft:

Up: 1%Rating: AABV: $27,616m

k Ft:

Down: -2%Rating: AA+BV: $28,379 m


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2012 2011

Brand Ranking 14 n/a


Brand Ratin g AAA- AA+

Market Cap (US$m) 73,516 275,617

Domicile Japan

The NTT brand has ollowed the strong brand

perormance o its parent company NTT

Group, which jumped 14 places in the Brand

Finance Global 500 September update in 2011

by increasing its brand value by some $815 million.

The NTT brand has also seen its brand rating

increase rom AA+ to AAA-.

The brand continues to market itsel as an innovative

brand; a strong brand must be true to itsel and

its promises which is exactly what NTT does by

continually bringing new products to the market.

NTT recently released a line-up o 24 new phones

including9Smartphones,whichsignalsthelargest

and most diverse line up o phones in NTT history.

In addition to this innovative brand approach the

company continues to provide an outstanding

service to its customers. Business customers

in Japan voted that they were more satisiedwith NTT than with any other network or the

3rd year running in the J.D Power Asia Paciic

business studies.

2012 2011

Brand Ranking 13 11


Brand Rating AAA AAA

Market Cap (US$m) 122,741 171,163

Domicile Britain

HSBC has retained its status as the worlds strongest

bankingbrand witha valueof US$27,597million.

The brand has recovered well ater it slumped

to third position in last years BrandFinance

Banking 500 study. HSBC has revealed solid results

in the irst hal o 2011, surprising analysts,

and trumping its competitors, especially Bank

o America. Furthermore HSBC has openly declared

their intentions to become the worlds leading

international bank by continued investment in both

China and India, whilst scaling back its operations

inanunstableEurozoneandasluggishUSeconomy.

This change in ocus along with a series o cost

cutting measures will ensure that HSBC is well

prepared or the shit in economic power between

the dierent regions o the world and as a result its

brand value could well grow over the next year.

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k Ft:

Down: -2%Rating: AAA-BV: $26,324 m

k Ft:

No Change: 0%Rating: AAABV: $27,597m


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2012 2011

Brand Ranking 16 9



Market Cap (US$m) 133,473 136,069


The largest consumer lender in the United

States, Wells Fargo, had a mixed year highlighted

by bumper proits and declining revenue.

The bank ailed to capitalise on a number o expansive

opportunities which presented themselves when

it was the dominant orce in American retail banking

only a couple o years ago. Wells Fargos brand,

like those o many other inancial institutions,

has also suered as a result o pandemic anti-

banking sector sentiment and a highly volatile

business environment.

The banks prudent practices held its brand

in good stead in the atermath o the global inancial

crisis, yet it has operated with ill ease in the post-

crisis business climate losing the dominance

that it gained with the help o the crash. Wells

Fargos apprehensive perormance translated into

a declining brand value in this BrandFinanceGlobal 500.

2012 2011

Brand Ranking 15 14


Brand Rating AA AA+

Market Cap (US$m) 209,855 204,864

Domicile Japan

The Toyota Motor Corporation also known

as TMC has been around or 75 years and in 2011

was the worlds largest automobile manuacturer

by production. The Toyota Motor Corporation group

includes Toyota, Lexus, Daihatsu and Hino Motors

along with several non-automotive companies. The

TMC is part o the Toyota Group, one o the largest

conglomerates in the world.

Toyota were scrutinised with the shocking news

that thousands o its cars were being recalled

due to reports that several vehicles experience

unintended acceleration and pedal entrapment.

Toyotas response to this reputational damage was

excellent and should be used by any global brand

that unortunately inds itsel in a similar situation.

The brand responded with complete openness and

communication with their customers and the media.

Toyota engaged with customers through print,

TV, video, social media and blogs. The brandprovided large quantities o inormation through

these mediums.

Once the media coverage began to die down Toyota

responded with an advertising campaign and a new

strapline to reinorce quality and trust, Your Toyota

is My Toyota. This ability to adapt along with the

brands historic reputation or quality and trust

is what makes Toyota one o the worlds most

valuable brands.

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k Ft:

Down: -20%Rating: AA+BV: $23,229m

k Ft:

Down: -6%Rating: AABV: $24,461 m


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2012 2011

Brand Ranking 18 17


Brand Rating AAA AAA

Market Cap (US$m) 102,389 89,595


McDonalds, the worlds biggest restaurant brand,

saw a steady increase in its brand value in 2011.

The historic chain o restaurants, which serves

almost 70 million people in its 33,000 restaurants

every day, saw its brand value grow by a modest

1.5% in the 2012 Brandinance Global 500.

Despite ongoing battles with anti-ast-ood groups

McDonalds has increasingly beneitted rom

tailoring its menu to regional tastes, eectively

selling limited-time products and developing both

budget and premium lines o ood.

Furthermore, whilst the company is concerned

about ever increasing ood commodity prices,

one o the most globally recognisable brands

is likely to see a urther boost in its awareness

when it begins reaping the rewards o its worldwide

Olympic partnership come the summer o 2012.

2012 2011

Brand Ranking 17 n/a


Brand Rating AA+ AAA-

Market Cap (US$m) 50,527 133,551


Bank o America lost a staggering $11,166 million

o brand value over the last year and as a result lost

its status as the worlds strongest banking brand.

However despite this, Bank o America remains

one o Americas most iconic brands with very high

brand awareness.

The subprime bust, o which Bank o America played

a key role, had damaging eects or the brand.

Reputational damage at a bank with such high

awareness has resulted in a all in brand strength.

The brand value o the bank will continue to all

i the economic climate remains unchanged however

when growth returns to the inancial markets

the banks consumer related sources, which are

currently slow due to the poor economic situation,

could help the brand to rebuild its ormer strength.

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k Ft:

Up: 2%Rating: AAABV: $22,230m

k Ft:

Down: -33%Rating: AA+BV: $22,910 m


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2012 2011

Brand Ranking 20 27



Market Cap (US$m) 113,435 92,546


As the market leader Intel may be orgiven or resting

on their laurels, however this is ar rom the case.

In the last year Intel has increased their brand value

rom 27 to 20. Reportedly spending around $1.8bn

a year on advertisement, Intels brand awareness

continues to grow. Their insistence o the use

o their sonic logo in any advertisement eaturing

their product has transormed them rom

an unknown in the 80s to household name today.

Any ingredient brand runs the risk o being subsumed

and ignored in the products they are included in.

Intel has managed to buck this trend and build

a reputation in the minds o consumers and with

onlyAdvanced MicroDevices (AMD)tochallenge

them in the microprocessors industry Intel has

more than 80% market share.

Intel is at the oreront o electronic advancement,

maintaining its brand relevance in a rapidly changingmarket place. 2012 saw Intels brand value increase

thanks to strong sales in all o Intels key areas.

With the advent o cloud computing Intels uture

revenue looks good as they will continue to provide

processors or the majority o 44 million servers.

With cloud computing starting to take o this

number will only increase, securing Intels core

business or years to come.

In 2011, Intel made two major acquisitions o McAee

and Inneon Technologies Wireless Solutions business.

A diversied portolio gives Intel the opportunity or

a brand extension into both the sotware security and

smartphone markets that may lead to urther increases

in the brand value in 2013.

2012 2011

Brand Ranking 19 30


Brand Rating AAA- AAA-

Market Cap (US$m) 238,670 222,664

Domicile Netherlands

Ranked the number one most valuable brand

in the 2011 BrandFinance Netherlands 50, Shell

is a global group o energy and petrochemical

companies engaged worldwide in the principal

aspects o the oil and gas industry. Founded

in1907,andheadquarteredinTheHague,itisrarely

reerred to by its parent company name o Royal

Dutch Shell which is incorporated in England and

Wales and was ranked by Forbes as the ith largest

company in the world.

Shel l oper ates i n over 90 count ri es, pr oduces

around 3.3 million barrels o oil equivalent per day

and employsover 93,000 people.In theUnited

Kingdom alone they employ over 7,000 people and

the Upstream business has been a key player in the

North Sea or over 30 years.

Shell is one o the oldest and most revered oil

companies in the world and have beneittedsomewhat rom the misortune o BP in 2010

ollowing the gul oil disaster and troubled Russian

deals more recently. However Shell has not been

immune rom controversy as in August 2011 the

Shell Petroleum Development Company accepted

liability or two spills in the Ogoniland region

oftheNigerDeltain2008and2009,agreeingtopay

compensation to the Bodo ishing community.

As a company Shell continues to pioneer innovative

new techniques in the industry including a loating

liqueied natural gas acility o the coast o Western

Australia and appears to be lourishing on the

London Stock Exchange where, at the end o 2011,

it was the largest company o the FTSE.

20.

19.

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Up: 18%Rating: AAA-BV: $22,021 m


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Apple has been the runaway success story in thisyears BrandFinance Global 500. The brand valueincrease is the largest seen in any Brand FinanceLeague Table and puts Apples brand at US$ 70.6billion, the highest ever valued by Brand Finance.With this astronomic rise comes more questions thanyou can shake a stick at; how did they do it? Can thisgrowth go on? Is it even sustainable at this size?

Apples brand success is driven by three elements:conidence, competence and customers. It is nota brand that has been created overnight, but throughcareul management o even the most granulardetails o the customer experience. Steve Jobsknew what the world would want beore the world

wanted it. His uncompromising style sculpteda struggling company on the brink o bankruptcyin1997 tothe worldsbiggestcompany.Yearsinthe wilderness without Steve Jobs at the helm sawApple reduced to taking money hand over ist romrival Microsot to keep it rom going into the red.

2012, the year ater Steve Jobs death, will bea tipping point or Apple. It will be the year theyeither become the company that exceeded allprevious limits or the year the magic starts to ade.

During Jobs 13 years as CEO, his insistence onperection in the products and the showmanshipo their release created a brand unlike anyother. Jonathon Ives iconic designs have been

a cornerstone o Apples success. By wrapping anelectronics product in a chic and sophisticated shell,Apple made style just as important as substanceand still keeps competitors trying to keep up.

Mp3 and Smartphone devices were consideredas a choice between an iPhone on the one hand,or something else on the other. The simplicityo Apples oering is what has deined it. Whileother companies released product ranges to caterto anything a consumer might think they want,Apple released one product and told the consumerwhat they want. Steve Jobs gave the man on thestreet a simple proposition - you either want thisproduct or you dont. Taking the choice away romthe consumer, while others were oering a moretailored solution, was a bold and potentially ruinousstance that paid o and transormed the purchaseo an Apple product into a liestyle choice.

It has been 12 years since the iMac waslaunched, 11 since iTunes and 10 since the iPod.Each subsequent product has innovated aheado the market, and kept pace with even the mostambitious expectations. By creating productsthat resonated with the changing desires o theinormation age, Apple made a home or itselin the aspirations o a younger generation that nowten years on have drawn it into the aspirationso the populace as a whole. The numbers speakor themselves, there were more iOS devices soldin2011(156million)thanMacsin28yearsandtheiPad has a 57% share o the tablet market.

The company did not are so well during Jobsirst absence and at the time o his death therewere many concerns o what would happen tothe company. Indeed even beore his death themarket cap would take a nose dive ater any sign ohealth worries or the visionary leader o this global

brand. Nevertheless his legacy does not appearto be something that can be washed away overnight,the share price is most telling and has increasedfrom$378to$515(thats36%)inthefivemonthssince his death.

Tim Cook has a tough job on his hands and 2012is his chance to show his worth as Apples CEO.Samsungs Galaxy S II was the UKs best sellingphonein2011,Amazon.comsKindleFiretook14%o the tablet market since its launch in mid November2011, and Googles Android is the most commonlyused operating system in the smart phone market.The biggest threat these provide is the removalo the belie that Apple products are incomparableto anything else in the market. I Tim Cook allowsit to become a choice between an iPhone anda Galaxy S or instance, it could slam the brakeson Apples expansion.

Apple could carry on growing at the present rate,but it will not. Keeping the aura surrounding thebrand will be increasingly diicult. This is notto say the brand will ade to the bottom o the marketshould the belie be lost. It will continue to remaina market leader or many years to come. However,the release o the iPhone 4S rather than iPhone 5made many people question how long Apple cankeep up the tradition o ground breaking innovation.That being said the iPhone 4S was the astest sellingiPhone to date. The reputation gained rom yearso innovation gave Apple some slack, but shouldthe iPhone 5 not oer the consumer somethingperceived as revolutionary, the electronics giantwill become just one o the crowd o increasinglycompetitive alternatives.


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As Amazon lo oks se t to challenge long term rivals,Walmart, for the title of the BrandFinance MostValuable Retail Brand 2012 it seems appropriate tostart paying attention to the online website which

has developed into a powerful and impressive brand.

Amazon.com hasfirmlyestablisheditself as theworlds number one online retailer and sells morethan three times as much as its nearest rivals. It hasthe widest range o products as well as the astestdelivery times and oten charges the lowest price.Foundedin1994byJeffBezos,andnamedaftertheriver, the company initially only sold books but soondiversiied into selling various products and todayhas separate websites or each individual countrythat they operate in. Financial results o 2011 relectAmazons growth with second quarter revenueincreasingby51%to$9.91billionfromtheperioda year earlier, whilst hal year revenue increased45% rom 2010. Such large growth in revenue beatorecasters estimates and had a positive eecton the companys brand value.

One o the biggest surprises to many may be thesubstantialincreaseinthebrandvalueofAmazon,62% y/y to $28.4B. It was a long time coming.Whatyoumayormaynotknow,isthatAmazonhasquietly been leveraging its network, technologiesand a loyal online customer base to diversiyitsel into an online shopping mall. Consumerscan quickly compare prices and products, look at

product reviews and see what is recommendedwithout ever having to leave their house, deal withcrowds, navigate traic, or suer through lousyweather. These variables are starting to sound likegreat intangibles, arent they?

Another way to put it is that the market has inallyc au gh t u p t o A ma zo n a nd t he c om pa ny w as ready. Amazon hasspentyearsdeveloping itsdiverse warehousing network, negotiating volumediscounts rom suppliers, and up-selling purchaseswith shipping discounts to consumers.

All in time or the US online retail market to hitnearly $60 billion in annual revenues with doubledigit growth. The growth rate or retail sales in 2011is double that o overall retail sales in the US.

Another contributing factor to Amazons growthis its diversiication to oreign markets with nearly

50% o sales coming rom outside the US andcontinued consumer demand to oer the samediverse range o products in oreign markets asofferedintheUS.JustoneexampleisAmazonsexpansion into India as astoundingly Indias growingmiddle class rivals the US in population.

Lastly, Amazonalsofiguredoutwhattodo with i ts well r ecogni zed name and l arge cust omerbase: it diversiied into consumer products witht he Ki ndl e Fi re, Amazon s versi on of a t abl et.The Kindle has already sold more than 5 million unitssince its launch making it much more successulthan RIMs Playbook. This is incredible consideringthatAmazonhasnotmanufacturedanythingotherthan an eReader to date in any notable quantities.

Amazon still struggles with profitability however

it is by ar the largest online retailer in the world.It is quite possible, that with good management,Amazonispoisedtogrowprofitablyinthecomingyears and emerge as the Most Valuable Retail Brandin the near uture.


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After arriving separate ly as immigrants fromEngland, William Procter, a candle maker and

James Gamble a s oap maker met two sisters fromCincinnati Ohio. They married soon after and theirwives father convinced them to start a businessmaking soap and candles, which they did in 183 7.The business prospered and in 1859 sales reached$1 million. At the outbreak of the American CivilWar in 1861 P&G won the very lucrative contractsto supply the Union army with soap and candles..

This not only dramatically increased the companyssalesbut introducedP&Gsproducts tohundredso thousands o soldiers who, when they returnedhome ater the war, purchased the products theyhad become accustomed to during the war years.In 1887 they introduced the irst share scheme oremployees because they reasoned i the employeeswere shareholders they would not go on strike,which proved to be the case

I n 2 01 1 P &G s s al es t ot al le d a n a st ou nd in gUS$82.6 billion. The company has grown bothorganically and by acquisition in the last 175 years.It has evolved rom a soap and candle companyto a beauty and consumer products company, whichincludes everything rom baby nappies to laundryproducts, to batteries, to pet products. It exitedthe human ood business in 2012 when it sold itsamous snack brand Pringles to Kelloggs.

P&Gisfamousforanumberofmajorinnovationsthatbecame essential or the successul managementof compani es. I n 1924 P&G became t he f i rstcompany to carry out data based market research

wit h consumer s; P&G was t he f ir st companyto sponsor a radio drama which brought the gave

birth the concept o soap opera. For many yearsP&G had i s own f i lm pr oduct i on company t hat produced the TV Soaps that they also sponsored.

P&GintroducedCrest,thefirstfluoridetoothpastein1955.In1985the companyacquiredtheOlaybeauty luid brand, which was created in SouthAfricain1949andhasbuiltitintothemostvaluablebeauty brand in the world. The company continued toexpand as it acquired the predominantly masculinebrand, Gillette in 2005 and launched advertisingcampaigns with the likes o Roger Federer and TigerWoods.MeanwhileP&Ghas seengreat successacross much o the board with 24 o their brandsboasting annual sales in excess o $1 billion.

TodayP&Gownssomeofthemostfamousbrandsin the world, Olays cosmetics, Clairol and Aussiehair products as well as ragrances rom Gucci andDolce&Gabbana.EvenhouseholdbrandssuchasDuracell, Fairy liquid and Bounty kitchen towels areowned by the giant parent company.

Over 175 years the company has proven itseladept at spotting new product trends, inventingnew products where it saw a gap in the market andnever being araid to alter its product lines by sellingbrandsorexiting productcategoriesentirely.P&G

is also exceptional in that it has one o the mostdiverse boards o a Fortune 500 company as iveo the eleven person board are women and all othem have been ranked on Fortunes annual MostPowerul Women list.


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In this years BrandFinance Telecoms 2012, Vodafoneranked as the Most Valuable Telecoms Brand and

cemented itself for yet another year as a truly globalbrand in the telecom sector with advertising andsponsorship driving its position. However Vodafonehas not fared as well as it did last year in this yearsBrandFinance Global 500. In growth terms it is oneof the poorest performers amongst the worlds top tenmost valuable global brands, with a signicant fall inbrand value. Despite this it remains the leader of theTelecoms industry and the United Kingdoms MostValuable Brand.

LaunchedintheUKon1stJanuary1985byChrisGentand Gerry Whent, Vodaone grew rapidly on the backo some daring acquisitions. When it couldnt take overthe leading network provider in a country it boughta minority stake, some o which it still holds-includingits45percent(recentlyvaluedat58 billion) stakeinVerizonWirelessinthe UnitedStates.Withastaffo over 85,000 people and serving around 371 millionsubscribers, there can be no doubt that Vodaoneisnow awell establishedplayerin dozensof mobilemarkets and operating networks in over 30 countries.In the last ten years in particular, Vodaone has beenexpanding into developing markets, exemplied by itsbuy-out o its Indian partner Essar last year.

Vodaones Indian operations provide a useul

illustration o both the opportunities and dicultiesacing the communications giant. Foreign expansionhas provided important new revenue streams, providingaccess to billions o consumers who are accessingmobile communication or the rst time and millionso the worlds new rich. These emerging marketshave become so important that they are increasinglysupporting established, European operations insaturated markets with low margins. Brand values orVodaone in the these areas have allen, while, despitethe overall drop shown in this years BrandFinanceGlobal 500, brand values in new markets are rising.

The second issue brought to light by Vodaone Indiais the trouble the company has had in relation to tax.In April 2007 the company acquired 67% o Hutchison

Essar Telecom or $11.2 billion through a complex,Cayman Islands transaction leading to a $2.5 billion dollartax dispute with the Indian income tax department.In January this year the Indian Supreme Court ruled

in Vodaones avour, declaring that Indias income taxdepartment had no jurisdiction over the deal. However,despite Vodaones success in this case, it has acedrepeated accusation at home o tax avoidance.

Vodaone wants to be a key player in the move to dataand under new Chie Executive Vittorio Colao is in theprocess o simpliying the structure o its minorityholdings and non-controlled businesses-includingselling o minority interests. It is also undergoinga cultural transormation rom a process andcompliance oriented organisation towards one thatis more customer ocused and eective.

Overseeing these changes is Group Chie CommercialOcer, Morten Lundal, who spoke to the BrandFinanceJournal and stated that Vodaone is well aware o howmuch it owes to the successul acquisitions o the past,Vodaone is the sum o its acquisitions. We would notbe where we are today i we had kept local namesbecause, or customers, employees and partners, thebrand acts as a sort o glue, or as a common languageor who we are and what makes us who we are.

As displayed by the results o the Global 500,Vodaones stronghold on the Telecoms market mightnot always be secure. This is a dicult time to be inthe industry as xed and mobile services are colliding,data is rapidly overtaking voice as the core service andthe battle between Apple, Blackberry, Samsung andNokia is truly brutal. Nevertheless Vodaone remainsa brand that has always been able to adapt to themarket, putting its own stamp on any acquisitions andit as the Telecoms industry booms it is paramount thatVodaone continues to grow and fourish.


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Economic uncerta inty and criticism of the professio nseemed to be recurring themes in the Brand FinanceBanking 500, released in February of this year, asthe Top 500 Bank Brands were ranked. Despite thedifcult times experienced by the banking industry,HSBC came out on top as the Most Valuable BankingBrand with a value of U S $2 7.5 billion. Howeverone of the most fascinating stories that emergedfrom the Banking 500 was the nancial s ituationon the other side of the Atlantic as two Titansof the industry, Wells Fargo and Bank of Americacompeted for the coveted position of Americas MostValuable Bank Brand.

UltimatelythisyearbelongedtoWellsFargo&Coas the San Francisco based bank, ounded in 1852by Henry Wells and William Fargo, claimed thetitle o the Most Valuable Bank Brand in the UnitedStates. This was the irst time the bank, previouslyrated 4th in the 2011 ranking, had secured this titleand in doing so knocked rivals Bank o Americadown to 2nd place in the US and 3rd internationally.

Whilst the banks are two o the US biggest homeloan providers, they have both been aectedby and responded dierently to the inancialcrisis that has enguled the banking sector.Bank o America lost a staggering $US 11.1 billiono brand value in one year which, when combinedwith a net loss o $8.8 billion in the second quartero 2011, portrays a gloomy picture or what wasonce the worlds strongest banking brand.

Bank o America seems set to suer greaterhardships ater announcing that an additional 30,000jobs will be cut in a desperate bid to save $5 billion.

Evidently the subprime allout had a dramatic aecton the bank as Bloomberg recently stated thatCEO Brian Moynihan is considering selling all othe banks oice buildings aside rom the principleoices in New York and Charlotte, North Carolina.

Nevertheless Moynihan is evidently aware o theneed or change and responded to the currentsituation by unveiling a cost-cutting schemein September 2011 dubbed Project New BACwhich divided the company into two parts and set alimit or annual expenses. The bank has also takensteps to improve their branding by holding a majorreview o their advertising accounts. It remainsto be seen whether Bank o America have doneenough to preserve their reputation or i the costcutting measures are too little too late.

W hi ls t W el ls F ar go & C o h as c er ta in ly h ad amixedyear,thebanksbrandvaluedropped19%to $23 billion in 2011, it has not suered as much aslong time rivals, Bank o America. Both banks havebeen heavily targeted by campaigns such as OccupyWall Street and Wells Fargo, especially, has beenthe victim o online movements which resultedin activists posting the details o senior bankersonline and encouraging people to bombard themwith criticism.

HoweverWellsFargo&Coappearstohavelearntrom their mistakes o the past and 2011 saw thebank take a prudent stance when conducting theirbusiness. Continuing their plans to expand withmore than 270,000 employees, Wells Fargo servesone in three households in America. Consideringthe disastrous year Bank o America had, it seemedno surprise that Wells Fargo should emerge as thevictorious bank.

CMO Jamie Moldasky said o Wells Fargos newstatus as Most Valuable Bank Brand in America thatwe are very pleased with these rankings as theyshow the trust people have in Wells Fargos abilityto meet their inancial needs and work togetherwith them now and over time. Both in the UnitedStates and worldwide, the Wells Fargo brandrepresents stability, our relationship ocus, and thecommitment to our customers success.

As economic uncertainty continues to grip thebanking industry on both sides o the Atlantic,only time will tell i Wells Fargo can maintain theirvictory against Bank o America as the two titanso US banking continue to compete against oneanother. Prudent business and cost cutting across

both banks might help these industry leadersto avoid their mistakes o the past ew years.An early Roman Orphic hymn reminded the immortalTitans o their roots, O Mighty Titans, who romheaven and earth derive your noble and illustriousbirth, and the same advice could well be passedon to the modern day titans o American banking.Wells Fargo and Bank o America should remembertheir duties to their mere mortal customers andocus on a conservative, prudent and stable uturerather than dream o Olympian heights.


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Facebooks initial public offering (IPO) valuationis estimated at an impressive $75-100 million whilstthe website has an even more impressive 845 millionmonthly active users. With more users than thepopulation of Europ e and a valuatio n highe r tha nthe Gross Domestic Product of Luxembourg, howis it that Brand Finance valued Facebooks brandat under $10 billion or less than 10% of thecompanys value?

Basically, the answer is that Facebook has notearned a higher brand valuation. A brand doesntbecome valuable just because it has users equal tothe population o a continent. It becomes valuablebecause it can drive revenue. The act that 250million photos are uploaded to Facebook per daydoesnt mean that the Facebook brand is capableo increasing revenues and sustaining its businessmodel into the uture.

Facebook reported revenues o $3.7 billion or theyear ended December 31, 2011, up rom just under$2 billion the prior year, or growth o 88%. In orderto justiy its IPO valuation, the company would needto grow 40% or the next ive years and achievean operating margin o 35%, according to AswathDamodaran, a Finance Proessor at the Stern Schoolo Business at New York University and market

commentato r. M r. Damodaran think this valuationrequires a strong advertising sales business modeland he is actually more positive about Facebook thanhe was about the Groupon and Linkedin valuationsbecause Facebook is urther along in developinga business model that works and delivers proits.(Facebook had a net income o $1 billion in 2011,arobustandveryrespectable33%netmargin.)

While some analysts and investment bankers mightbelieve in Facebooks ability to grow and to make

proitable revenues, it is unclear whether or not thecompany can build a dependable and extendablebrand. For example:

Willusers increasinglyengagewith competingproducts or will they remain loyal to Facebook?

WillFacebookfailtointroducenewandimproved

products or i they introduce new products orservices, will they be avourably received?

WillFacebookbeabletosuccessfullybalance

its eorts to provide a compelling user experiencewith the decisions they make with respect to the

frequency,prominenceandsizeofadsandothercommercial content that they display?

WillusersentimentchangeifFacebookchanges

the quality or useulness o its products related toprivacy and sharing, saety, and security?

Th t g d ...

Our brand valuation assigns a relatively high AAA-rating to the Facebook brand which accounts or thebrands high awareness and strong metrics arounduser emotion. However with less than $4 billion

in revenue, its diicult to estimate how much othe users dollars can be captured rom user brandloyalty and awareness. I Facebook can manage tokeep its users engaged and get them to crack theirwallets or additional Facebook-branded productsand services, the brand value will not only increasebut also increase as a percentage o business value.In the meantime, we have taken a conservativewait-and-see approach to the Facebook brand value.


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You are driving late at night on a strange roadin a foreign place. Thirsty, and running low on fuel

you feel a little stressed and ins ecure. As you r ounda bend you see ahead a familiar icon, the red andyellow Shell logo. Instantly you relax. You feelrelieved that you will shortly get fuel and a drinkin a safe, clean environment. Even before youpull onto the forecourt the Shell brand has doneits work; not only attracting you in, but also givingyou condence and reassurance.

This happens every night, all over the world.With over 42,000 branded retail sites in more than

80 countries around the world, Shell is secondonly to 7-eleven in number o global branded retaillocations,havingmorethan Subway(over34,000)or McDonal ds ( over 33,000) . This huge gl obalpresence is one o the reasons that Shell retainsits place as the highest valued brand in the oil&gassector.


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Shell is undoubtedly one o the worlds great brands,with high awareness around the world linkedto a symbol with no more obvious relationshipto its sector than Apple has to electronics.Yet in Shells case there is a link between the iconand the history o the company, a brand historythat goes back over 150 years to when the originalMarcus Samuel started importing sea shells whichwere ashionable in Victorian London. That import/export business was continued by his son, MarcusSamuel junior, who started importing oil, and beganusing the trademark Shell or kerosene backi n 1891. He buil t t he worl ds f ir st oi l t ankerin1892,namedtheMurexafter atype ofshell,and then renamed his company the Shell TransportandTradingCompanyin1897.Ascallopshellimagewas usedfrom 1904, with the current stylisedformbeingdesignedbyRaymondLoewyin1971,beore Apple or Google were ounded.

Shell has long been a company admired or itsproessionalism and organisation, with its Anglo-Dutch heritage making it a truly internationalcompanysincethemergerin1907.Inthecenturysince then the economic strength o the company

has come more rom its upstream explorationand production activity than rom its downstreammarketing. At dierent times in its history Shellhas ound its ortunes driven by oil rom dierentoil provinces, with Nigeria, Brunei, Oman andthe North Sea all having taken major roles in thepast. Today Shells reserves are widely spreadacross the world, also including the USA, Canada,Brazil, Australia, Kazakhstan, Russia and China.

This diverse spread gives, perhaps some securityin the uncertain world o oil supply and demand.In 2010 the upstream segment accounted or over80% o Shells Earnings but even here Shellsbrand reputation is important, ensuring access andacceptability with the sovereign owners o mineralrights, and enabling Shell to attract top talent.

It is not easy maintaining a strong brand in the oiland gas industry, when the basic actions neededto sustain the delivery o energy exploration andproduction are seen by some as intrusive, and soprone to protests, such as the recent protest at theNational Gallery in London about Shells plannedexploration in the Arctic. As a leading industry brandShell is inevitably going to be a target or protesters,but the strong delivery o earnings or investors, andquality products and service or customers meansthat the Shell brand today is as strong and valuableas it has ever been.


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Explanation o

the Methodology


The methodology employed in this BrandFinanceGlobal 500 listing uses a discounted cash ow (DCF)technique to discount estimated future royalties, atan appropriate discount rate, to arrive at a netpresent value (NPV) of the trademark and associatedintellectual property: the brand value.

The steps in this process are:

1. Obtain brand-specic nancial and revenue data.

2. Model the market to identify market demandand the position of individual brands in thecontext of all other market competitors. Threeforecast periods were used: H is to ri ca l f in an ci al r es ul ts u p t o 2 01 1.

Where 2011 results are not available orecastusing Institutional Brokers Estimate System

(IBES)consensusforecastsareused. Afive-yearforecastperiod(2012-1016),based

on three data sources (IBES, historic growth a nd G DP g ro wt h) . Perpetuitygrowth,basedonacombinationof growthexpectations(GDPandIBES).

3. Establish the royalty rate for each brand.This is done by: Calculat ing br and st rengt h on a scal e of

0 to 100, according to a number o attributessuch as inancial, brand equity, market shareand proitability, among others.

UsebrandstrengthtodeterminerandetaIndex score.

A pp ly ra nd e ta Index score to the royaltyrate range to determine the royalty rate orthe brand. The royalty rate is determined

by a combination o the sector o operations,historic royalties paid in that sector andproitability o the company.

4. Calculate future royalty income stream.

5. Calculate the discount rate specific to eachbrand, taking account of its size, geographicalpresence, reputation, gearing and brand rating(see opposite).

6. Discount future royalty stream (explicitforecast and perpetuity periods) to a net presentvalue i.e.: the brand value.

Royalty Relief Approach

Brand Finance uses the royalty relie methodologythat determines the value o the brand in relationto the royalty rate that would be payable or its usewere it owned by a third party. The royalty rate isapplied to uture revenue to determine an earningsstream that is attributable to the brand. The brandearnings stream is then discounted back to a netpresent value.

The royalty relief approach is used for threereasons: it is avoured by tax authorities andthe courts because it calculates brand values byreerence to documented third-party transactions;it can be done based on publicly available inancialinormation and it is compliant to the requirementunder the International Valuation StandardsCommittee(IVSC)todetermineFair MarketValueo brands.

Brand Ratings

These are calculated using Brand Financesrandeta analysis, which benchmarks thestrength, risk and uture potential o a brand relativeto its competitors on a scale ranging rom AAA to D.It is conceptually similar to a credit rating.

The data used to calculate the ratings comes romvarious sources including Bloomberg, annual reportsand Brand Finance research.

Brand Ratings Definitions

AAA Extremely strong

AA Very strongA Strong

BBB-B Average

CCC-C Weak

DDD-D FailingNote: The AAA to A ratings can be altered byincludingaplus(+)orminus(-)signtoshowtheirmore detailed positioning.

Valuation Date

All brand values in the report are or the endo the year, 31st December 2011.


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Brand Finance is an independent global businessfocused on a dvising strongly branded or ganisationson how to maximize value through the effective

management of their brand s and inta ngible assets.

Sinceitwasfoundedin1996,BrandFinancehasperormed thousands o branded business, brandand intangible asset valuations worth trillionso dollars.

Brand Finances services support a varietyof business needs:

Techni cal valuati ons f or account i ng, t ax andlegal purposes

Valuationsinsupportofcommercialtransactions(acquisitions, divestitures, licensing and joint

ventures) involving different formso intellectual property

Valuationsaspartofawidermandateto delivervalue-based marketing strategy and tracking,thereby bridging the gap between marketingand inance.

Our clients include international brand owners, taxauthorities, IP lawyers and investment banks. Ourwork is requently peer-reviewed by the big ouraudit practices and our reports have also been

accepted by various regulatory bodies, including theUK Takeover Panel.

Brand Finance is headquartered in London and hasa network o international oices in Amsterdam,Bangalore, Barcelona, Cape Town, Colombo, Dubai,Geneva, Helsinki, Hong Kong, Istanbul, Lisbon,Madrid, Moscow, New York, Paris, Sao Paulo,Sydney, Singapore, Toronto and Zagreb.

www.brandfinance.com

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50 Brand Finance plc 2012

Valuation

We perorm valuationsor inancial reporting, taxplanning,M&Aactivities,

joint ventures, IPOsand other transactions.We work closely with

auditors, tax authoritiesand lawyers.

Financial reporting

Tax and transer pricing

Litigation

Investor relations

Analytics

Our analytical serviceshelp clients to betterunderstand the drivers

o business and brandvalue. Understandinghow value is created,

where it is created andthe relationship between

brand value and businessvalue is a vital input tostrategic decision making.

Brand equity drivers

Brand strength analysis

Brand risk analysis

(randeta)

Brand scorecards

Marketing mix modelling

Marketing ROI

Strategy

We give marketers theramework to makeeective economic

decisions. Our value-based marketing serviceenables companies

to ocus on the bestopportunities, allocate

budgets to activities thathave the most impact,measure the results and

articulate the return onbrand investment.

Brand strategy

Brand architecture

Brand extension

Budget setting andallocation

Brand value added (BVA)

Transactions

We help private equitycompanies, venturecapitalists and branded

businesses to identiyand assess the valueopportunities through

brand and market duediligence and brand

licensing.

Brand due diligence

Brand licensing

Fundraising

About

Brand Finance

49

Brand Finance is an independent global businessfocused on a dvising strongly branded or ganisationson how to maximize value through the effectivemanagement of their brand s and inta ngible assets.

At Brand Finance, we are entirely ocussed on

quantiying and leveraging intangible asset value.Our services compliment and support each other,resulting in robust valuation methodologies, whichare underpinned by an in-depth understandingo revenue drivers and licensing practice.

Brand Finance plc 2012


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Our

Services

Valuation

We conduct valuation and analytics assignmentsor branded enterprises and branded businesses.We value brands, intangible assets and intellectualproperty in many jurisdictions or accounting, tax,corporate inance and marketing purposes. Weact on behal o intellectual property owners, taxauthorities and work closely with lawyers, privateequity irms, and investment banks.

Our work is requently peer-reviewed by independentaudit practices and our approach has been acceptedby regulatory bodies worldwide.

Reasons for Brand Valuation FinancialReporting:

Accounting standards in most developed marketsallow or capitalisation o purchased intangibleassets. The initial valuations and subsequentimpairment reviews generally require the opinion oan independent valuation expert.

Tax Planning: The growing importance o intangibleassets has signiicant tax planning implications.Brand Finance works or both iscal authorities andbrand owners on transer pricing and capital gainstax issues.

Dispute Resolution:We have helped clients protectthe commercial value o their brands through a rangeo licensing and trademark disputes that have beensettled both in and out o court. We also providelitigation support work or various legal irms andIP companies.

Marketing & Brand Management: There is anincreasing demand rom investors and analysts orinormation on brand value and brand perormance.Brand Finance advises clients on both the externaldisclosures and required brand metrics. Ourvaluation services have assisted many companiesto understand and improve the value o theirintangible assets.

Commercial Transactions: We help clients todetermine the value o their intangible assets andenterprise value or mergers and acquisitions,negotiations, ranchise and licensing and dealstructuring to ensure that they make inormeddecisions.

AnalyticsOur analytical services help clients to betterunderstand the drivers o business and brandvalue. Understanding how value is created, whereit is created and the relationship between brandvalue and business value is a vital input to strategicdecision making. By urthering knowledge o thisrelationship, Brand Finance is able to help clientsleverage brand value and ultimately maximise

shareholder value.

Some of our key analytical services include:

Brand Dashboards and Scorecards: We helpcompanies improve brand perormancemanagement and reporting by integrating marketresearch, investment, market and inancial metricsinto a single insightul model to track perormanceover time and against competitors and to uncoverthe most important drivers o overall brand andbusiness value.

Competitor Benchmarking: We conducta benchmarking study o the strength, risk and uturepotential o a clients brand relative to its competitorset. This helps understanding the strengths andweaknesses o the client brand compared with keycompetitor brands.

Value Drivers Analysis: We help businessesunderstand the relationship between brand attributesand key value drivers in the business model. Thisis achieved by creating a ramework or measuringbrand equity and connecting it to value drivingbehaviour in each stakeholder group. Resourcescan then be allocated and prioritised based on the

overall impact on inancial value.

Demand Forecasting: We provide clients witha market demand orecasting ramework or longterm strategic planning.

Marketing Mix Modelling: We help improve theeiciency o brand campaign planning and targetingby isolating and quantiying the impact o dierentmarketing activities. The model guides the mix andcombination o uture marketing activities

Marketing ROI:We help clients improve decision-making by providing insights which assist withbudget optimisation, resource allocation, brandperormance and evaluation o marketing activities.

51

Budget Determination: We help clients identiywhich products or services and brands createor destroy the most value. Clients can use thisto allocate resources and budgets across theirmarketing activities to yield the best returns.

Communications Strategy: We help companiesdevelop eective results-oriented communicationstrategies. All communication strategies are drivenby market research with the aim o meeting clients

key objectives including building goodwill acrosscustomer base; generating sales; creating andreinorcing brand and proessional corporate image;inorming and creating positive perceptions andassisting in the introduction o new productsto market.

TransactionsOur transaction support services help companiesevaluate and mitigate risks, extract maximumvalue in mergers and acquisitions as well as privateequity investments. We also assist private equitycompanies, venture capitalists, brand ownersand businesses identiy and assess the value oopportunities through brand due diligence and brandstrategy option, including licensing.

Some of our key Transaction SupportServices include:

Brand and Market Due Diligence:We help clientsby valuing branded businesses, brands and otherintangible assets or purchase or sale providingreassurance to the investment and managementteams. In addition, we assist in securing inanceagainst brands by using a mixture o inancial, legal,

marketing and commercial due diligence.

Brand Licensing and Franchising: We helpmaximise earnings and provide greater brandpresence and knowledge by identiying the bestopportunities or licensing and ranchising, bothinternally and externally. We also provide adviceon best practice in licensing agreements.

Purchasing & Sales: We provide clients with anunderstanding o the inancial potential o theirintellectual property to help inorm negotiation orates and terms to strike the best deals. Our role alsoincludes the identiication o potential purchasersand execution o the sales process.

Combined with brand valuation results, our analyticalservice creates the ramework or better corporatereporting and brand perormance management.

Strategy

W e c on du ct m ar ke t s tu di es , m ar ke t s iz in g, easibility studies, brand audits and brand portolioevaluation. Combining market intelligence, brandanalytics, market research and inancial assessment,

we provide greater depth and insights into ourclients strategies.

Some of our key Brand Strategy AdvisoryServices include:

Brand Strategy Evaluation: We help clientsmake disciplined choices about how to maximiseeconomic value, by providing a ramework oroptimal resource allocation and strategy selection.This helps identiy the value optimising allocationo marketing investment, provides a strategicoverview o the risks and returns associated witheach market segment

Strategic Optimisation: We help brandedbusinesses increase their value. Using brandvaluation techniques, we help clients determinethe inancial impact o dierent strategicbrand options such as licensing, joint ventures,investment, divestment, brand architecturechanges, entering or exiting new segmentsor markets and other transactions.

Brand Architecture and Portfolio review:We helpcompanies evaluate dierent branding architecturescenarios. Using sensitivity analysis, this identiies

potential addition or loss o economic value underalternative brand architecture options and enablesinormed decision making.

Market Entry and New Product Development:We work together with companies to developsuccessul market entry and new productstrategies.

Naming and Visual Identity Management:We work together with clients to help developresearch-based naming strategies that are alignedwith the overall business objectives o the company.In addition, we help manage the entire visual identityprocess to help ensure that new and rereshedbrand identities are implemented eicientlyand eectively.



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54

Brand Finance

Forums

53

Brand Finance is committed to the developmentof theoretical and practical issues surroundingbrands.

As part o this process, we organise a series oevents and orums around the world where leadingpractitioners in the area o brand strategy, brandbuilding and brand valuation come together to sharetheir experiences and to better understand theprocess by which valuable brands are created.

The Brand Finance Forum has progressively becomeone o the deinitive events in the area o brandvaluation and should not be missed by anyone whois serious about maximising the value o their brandsand intangible assets.

To find out more visitwww.brandfinanceforum.com

Understanding therole of the brand

in the generation

of profit is vital

to all businesses.

The Brand Finance

Forum helped to create

a breakthrough for

my company.Ex-Chairman,

ShellBrandsInternational,Switzerland

Brandirectory is an online encyclopedia ofbrands where financial results, visual identities,trademark histories and the latest marketingnews are compiled and shared.

Brand league tables

Brand valuatio n reports

Brand profiles

Brand compari son too l

It is an invaluable resource or brand managers,oering detailed brand proiles and comparativeanalysis across all major commercial sectors. Ourleague tables are the most comprehensive table opublished brand values in the world.

To nd out more visit www.brandirectory.com



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The BrandFinance Journal is the ofcial journalof the Brand Finance Institute and printed by BrandFinance plc in London.

Launched in 2011, the BrandFinance Journalis edited and written by a team o journalists,marketers, valuation analysts and branding experts.Discussing the latest issues in the brand valuationindustry, the Journal provides a comprehensivelook at how brands are used by major corporationsas well as urther insight into the reports and leaguetables o Brand Finance.

Issue 2, launched this March, eatures exclusiveinterviews with John Hayes, CMO o AmericanExpress, Chris Clark, Marketing Chie o HSBC,and John Murphy, the ather o brand valuation.

This quarters issue also contains exclusive eaturesrom Brand Finance Hong Kong on branding in Chinaand a branding study on Apple and BlackBerry romBrand Finance Canada.

For subscription enquiries contactjournal@brandfinance. com

5655

BdFJ


Th Bd F ittt

The Brand Finance Institute is theeducation and training divisiono Brand Finance plc in whichtechnical and practical issuessurrounding brands and brandmeasurement are explored.TheBFIorganizeseventsaroundthe world eaturing leading edgethinkers in the area o brandstrategy, brand measurementand brand valuation, whocome together to share theirexperiences and to betterunderstand the process by whichvaluable brands are created.


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Glossary

o Terms Disc laimer

BrandA brand is a trademark and associated IntellectualProperty

randeta

Brand Finances proprietary method or adjustingaweightedaveragecostofcapital(WACC)toarriveat a speciic discount rate or each brand (basedonitsBrandRating)

Branded businessThe whole business trading under particular brands,the associated goodwill and all the other tangible andintangible elements at work within the business

Brand ratingA summary opinion, similar to a credit rating, on a brandbased on its strength as measured by Brand Financesrandeta analysis

Brand valueThe net present value o the estimated uture cashfows attributable to the brand (see ExplanationofMethodologyformoredetail)

Compound Annual Growth Rate (CAGR)The year-over-year growth rate o an investment overa specied period o time

Discounted cash flow (DCF)A method o evaluating an asset value by estimatinguture cash fows and taking into consideration thetime value o money and risk attributed to the uturecash fows

Discount rateThe interest rate used in discounting uture cash fows

Disclosed IntangiblesThis represents the value o acquired intangible assets

as reported in a groups nancial statements

Enterprise valueThe combined market value o the equity and debt oa business less cash and cash equivalents

Fair market value (FMV)The price at which a business or assets would changehands between a willing buyer and a willing seller,neither o whom are under compulsion to buy or selland both having reasonable knowledge o all relevantacts at the time

Global Intangible Finance Tracker (GIFT)The Brand Finance Global Intangible Finance Trackeris the most extensive report ever compiled intointangible assets and covers over 5,000 companiesin 25 countries

Holding companyA company controlling management and operationsin another company or group o other companies

Institutional Brokers Estimate System (IBES)A system that gathers and compiles the dierentestimates made by stock analysts on the uture earningsor most o the major publicly traded companies

Intangible assetAn identiable non-monetary asset without physicalsubstance

Net present value (NPV)The present value o an assets net cash fows (minusanyinitialinvestment)

Market Capitalisation (Market Cap)Current price per share multiplied by the numbero shares in issue

Perpetuity GrowthIs the stable growth rate assumed to be eectivein perpetuity ollowing the last explicit orecast period

Royalty RateThe rate at which usage-based payments are madebyoneparty(thelicensee)to another(thelicensor)or ongoing use o the licensors asset, sometimes anintellectual property right

Royalty Relief MethodPlease see methodology section

Tangible Net AssetsCalculated as the total assets o a company, minusany intangible assets such as goodwill, patentsand trademarks, less all liabilities and the par valueo preerred stock

Tangible ValueThe air market value o the monetary and physicalassets o a business

Undisclosed Intangible ValueThis represents the value o the intangible assetswhich are not separately reported in a groups nancialstatements(e.g.Goodwill,patents)

Weighted average cost of capital (WACC)An average representing the expected return on all oa companys securities. Each source o capital, such asstocks, bonds, and other debt, is assigned a requiredrate o return, and then these required rates o returnare weighted in proportion to the share each source ocapital contributes to the companys capital structure

Brand Finance has produced this study with anindependent and unbiased analysis. The valuesderived and opinions produced in this study arebased only on publicly available information andcertain assumptions that Brand Finance used wheresuch data was decient or unclear. No independentverication or audit of such materials wasundertaken. Brand Finance accepts no responsibilityand will not be liable in the event that the publicly

available information relied upon is subsequentlyfound to be ina ccurate.

The BrandFinance Global 500 brand valuationsollow IVSC guidance but will only comply with ISO10668 Monetary Brand Valuation Standard whenaccompanied by detailed Legal and Behavioralanalysis.

The conclusions expressed are the opinions oBrand Finance and are not intended to be warrantiesor guarantees that a particular value or projectioncan be achieved in any transaction. The opinionsexpressed in the report are not to be construed asproviding investment advice. Brand Finance doesnot intend the report to be relied upon or technicalreasons and excludes all liability to any organisation.


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59 60 Brand Finance plc 2012

Contact Details

Brand Finance plc is the leading brand valuationand strategy rm, helping companies to managetheir brands more intelligently for improvedbusiness results.

For urther enquiries relating to this report,please contact:

David Haigh

CEO

[email protected]

Professor Malcolm McDonald

Chairman UK

[email protected]

Richard Yoxon

Managing Director

[email protected]

For urther inormation on Brand Finances servicesand valuation experience, please contact yourlocal representative:

Name of

contactEmail address

Australia Tim Heberden [email protected]

Brazil Gilson Nunes [email protected]

Canada Edgar Baum [email protected]

Croatia Borut Zemljic [email protected]

DubaiGautam SenGupta

[email protected]

East Arica Jawad Jaer [email protected]

France Richard Yoxon [email protected]

HollandMarc

[email protected]

Hong Kong Rupert Purser [email protected]

India Unni Krishnan [email protected]

K orea Mat t Hannagan m.hannagan@brand inance .com

Portugal Joo Baluarte [email protected]

RussiaAlexander

[email protected]

Singapore Samir Dixit [email protected]

South Arica OliverSchmitz [email protected]

Spain Pedro Tavares p.tavar es@brand inance. com

Sri LankaRuchiGunewardene

[email protected]

Switzerland Ewan Currie [email protected]

TurkeyMuhterem

[email protected]

United

KingdomRichard Yoxon [email protected]

USA

(NewYork)Bill Barker [email protected]

USA(Chicago)

Elise Neils [email protected]

For all other countries, please email:

[email protected]+44(0)2073899400

www.brandfinance.comwww.brandirectory.comwww.brandinanceorums.com

Brand Finance plc 2012


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6261

Appendix



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Rank2012

Rank2011

Brand Industry DomicileBrandValue2012

BrandRating2012

EnterpriseValue2012

BrandValue /

EnterpriseValue

2012 (%)

BrandValue2011

EnterpriseValue2011

BrandValue /

EnterpriseValue

2011 (%)

BrandRating2011

1 8 Apple Technology United States 70,605 AAA+ 350,257 20% 29,543 244,382 12% AAA

2 1 Google Technology United States 47,463 AAA+ 155,895 30% 44,294 143,016 31% AAA+

3 2 Microsot Technology United States 45,812 AAA+ 165,151 28% 42,805 165,725 26% AAA+

4 4 IBM Technology United States 39,135 AA+ 241,208 16% 36,157 189,718 19% AA+

5 3 Walmart Retail United States 38,319 AA 155,189 25% 36,220 154,325 23% AA

6 18 SamsungMiscellaneousManuacture

South Korea 38,197 AAA- 199,331 19% 21, 511 113 ,327 19% AA+

7 7GeneralElectric

MiscellaneousManuacture

United State

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