WHAT IS ‘BRAND’? CLOSE YOUR EYES!

DO NOT THINK OF…

Valuable brands have STRONG RELATIONSHIPS with consumers and are MEANINGFULLY DIFFERENT

THE BRAND RELATIONSHIP Coca-Cola Top 100 brands All brands 30 12 5 BONDING It is better than others 71 40 25 ADVANTAGE It is satisfactory 76 49 32 PERFORMANCE It caters for me 83 58 40 I know about it RELEVANCE 97 73 57 PRESENCE

30% 41% Coca-Cola 30 BONDING 71 ADVANTAGE 76 PERFORMANCE 83 RELEVANCE BONDING ONLY 30% 30 BONDING It is better than others 71 ADVANTAGE ADVANTAGE ONLY 41% It is satisfactory 76 PERFORMANCE It caters for me 83 I know about it RELEVANCE 97 PRESENCE

COCA-COLA 30 52 BONDING ONLY 41 ADVANTAGE ONLY 36 26 11 3 1 CUSTOMERS % VALUE % 30 52 BONDING ONLY 41 ADVANTAGE ONLY 36 26 PERFORMANCE RELEVANCE PRESENCE 11 NO PRESENCE 3 1

BRAND CONTRIBUTION PERCENTAGE Coca-Cola BONDING/ ADVANTAGE These people account for the vast majority of sales because they are more loyal to the brand. 30 BONDING It is better than others 71 ADVANTAGE It is satisfactory 76 PERFORMANCE It caters for me 83 I know about it BRAND CONTRIBUTION PERCENTAGE RELEVANCE 97 PRESENCE

BRAND VALUATION = X Financial Value Brand Contribution Brand Value

BRAND CONTRIBUTION EFFECT X =

BRAND CONTRIBUTION AVERAGE BRANDZ™ value $23bn Interbrand value $28bn Values very similar

BRAND CONTRIBUTION LOWER BRANDZ™ value $13bn Interbrand value $28bn Interbrand fails to take account of lower Brand Contribution

BRAND CONTRIBUTION HIGH BRANDZ™ value $183bn Interbrand value $34bn Interbrand fails to take account of high Brand Contribution

BRAND VALUE BRANDZ™ 4 3 Interbrand $183BN $34BN $16bn $9bn 2006 2012 BRAND CONTRIBUTION 4 BRAND CONTRIBUTION 3 Interbrand $34BN $16bn $9bn 2006 2012

YES, FEWER USA/EUROPE BRANDS AGAIN… YES, NO.1 AGAIN… $183bn +19% YES, TOP % RISER AGAIN… $33bn +74% YES, FEWER USA/EUROPE BRANDS AGAIN… 56 (74 last year and 88 in 2006)

$2.4tr $1.4tr A VERY TOUGH YEAR: Half the brands LOST value (mainly financials not brand contribution) Value of Top 100 only +0.4% ($2.4trillion) $2.4tr $1.4tr 2006 2012

TOP RISERS

STRONG BRANDS PERFORM STRONG BRANDS 37.5% 0.4% S&P 500 APR 06 MAY 12

CATEGORY PICTURE – SHORT TERM (vs ‘11) Also refer to Top Risers: LUXURY Hermes, Rolex, Burberry FAST FOOD Starbucks, Dominos, Tim Hortons APPAREL Ralph Lauren, Hugo Boss, Uniqlo

CATEGORY PICTURE – LONG TERM (vs ‘06) Also refer to Top Risers: FAST FOOD Subway +5,145% TECHNOLOGY Apple +1,145% TELCO AT&T +931%

STRONG BRANDS GROW STRONGER Top 10 $892bn $409bn Bottom 10 $83bn $46bn 2006 2012

BUZZ MEANS MONEY $511bn Value Earned Buzz $112bn 2006 2012

MORE ENGAGEMENT IN FAST GROWING MARKETS Top 100 brands All brands 22 12 5 BONDING It is better than others 59 40 25 ADVANTAGE It is satisfactory 63 49 32 PERFORMANCE It caters for me 77 58 40 I know about it RELEVANCE 91 73 57 PRESENCE

INFRASTRUCTURE IN GROWTH MARKETS DEVELOPED % FAST GROWING % 12 44 FINANCIAL 12 33 COMMUNICATIONS 29 TECHNOLOGY 43 13 OTHER 1

TOP 10 GROWTH BY REGION High Average Low High Average Momentum Also refer to Top Risers: FAST FOOD Subway +5,145% TECHNOLOGY Apple +1,145% TELCO AT&T +931% High Average

NORTH AMERICA Momentum High Average Average High High Average Average Also refer to Top Risers: FAST FOOD Subway +5,145% TECHNOLOGY Apple +1,145% TELCO AT&T +931% Average Average Average Average

LATAM Momentum Average Average High New Average Average New High Also refer to Top Risers: FAST FOOD Subway +5,145% TECHNOLOGY Apple +1,145% TELCO AT&T +931% New High Average Average

CONTINENTAL EUROPE Momentum Low High Average Average High Average Also refer to Top Risers: FAST FOOD Subway +5,145% TECHNOLOGY Apple +1,145% TELCO AT&T +931% Average Average High Average

UK Momentum Average Low High Low Low Low Low Low Average Average Also refer to Top Risers: FAST FOOD Subway +5,145% TECHNOLOGY Apple +1,145% TELCO AT&T +931% Low Low Average Average

ASIA Momentum High High Average High Average High Average Average High Also refer to Top Risers: FAST FOOD Subway +5,145% TECHNOLOGY Apple +1,145% TELCO AT&T +931% Average Average High High