Business Elite 2010 The world’s leading businesspeople Anita Hague & Robert Jolliffe October 2010 The search for the “new normal …”

Today we will look at …. How did we get here? How is the global business person thinking? The Global Business Elite – business lives The Global Business Elite – top-end earners and spenders BE:Europe media results

How did we get here?

2008 …

2009 …

2010 …

Thank God that’s over. Let’s just sit quietly and recover till the world returns to ‘normal’. Phew that was some ride. But … just look at all the opportunities we can seize. The world has changed - this is the new normal. Will eventually be taken over by the companies on the right >>>> New companies to buy New premises to build New staff to hire New products to launch New markets to break 2011 – two choices … CautiousDynamic Government or regulatory approval New markets Strong image in media/ good reputation Current and new staff Private sector Potential customers Access to cash Loans via debt markets Share capital via equity markets

Thank God that’s over. Let’s just sit quietly and recover till the world returns to ‘normal’. Phew that was some ride. But … just look at all the opportunities we can seize. The world has changed - this is the new normal. Will eventually be taken over by the companies on the right >>>> New companies to buy New premises to build New staff to hire New products to launch New markets to break Access to cash Loans via debt markets Share capital via equity markets Government or regulatory approval Strong image in media/ good reputation Current and new staff Private sector New markets Potential customers Business success means communication Strong message in suitable environment CautiousDynamic Stress your credentials - your growth/ innovation/ expansion strategy & your approach to risk management/ control Less money around – why you should get it not your competitors New customers – why should they buy from you? New staff – why should they work for you? Regulators/ Governments – why should they approve your projects?

How is the global business person thinking? FT Global Business Sentiment survey 2010

Q. In the next six months, what changes do you expect in... Greatest optimism for global economy and company results Score for improvement in Global conditions the same as in 2009 Source: C-Suite Sentiment Survey Global respondents

Q. Overall, which 2-3 of the following are the most important goals/priorities for your organization this year? (global) Cutting costs has decreased as a top priority while developing products, expanding into new markets and talent have increased in priority level Source: C-Suite Sentiment Survey Global respondents

Q. Overall, which 2-3 of the following are the biggest external challenges to meeting your goals for the year? (global) Economic conditions (globally and locally) have waned as an external challenge since Meanwhile, govt regulation and new competitors have increased (Top 5) Source: C-Suite Sentiment Survey Global respondents

Q. Over the next 12 months, is your organization increasing or decreasing investment in each of the following areas compared to the past 12 months? Overall investments holding steady in majority of categories (Top 5) Source: C-Suite Sentiment Survey Global respondents

Over half say performance, trust and innovation are key messages to communicated to stakeholders through recovery Q. Which of the following corporate messages will be important for your company to communicate to stakeholders through the recovery? Source: C-Suite Sentiment Survey Global respondents

Large, international and private sector companies provide best opportunities post recession Q. Which market segments do you see as providing the best opportunities for your company as it emerges from the global recession and manages through the recovery? Source: C-Suite Sentiment Survey Global respondents

What is it like to walk in the shoes of a Global Business Elite? To answer this, we can look at the BE range of surveys

BE surveys across the globe

Why you should trust this survey Longest running international survey (since 1973) Multi media (print, TV, web) Large sample (robust sampling of ‘top-end’) Annual (tracking shifts more closely) Covers 26 countries globally (BE:Asia,US & Europe) Unique survey- only one of its type (Most senior person in organisation (VP of Google would not be eligible!). BE:E sample are responsible for 2/3 or Europe’s workforce!) BE Survey suite 2010

BE strongly supported across the globe adding weight to the survey

BE:Europe respondents conduct business internationally Source: BE:Europe 2008 and 2010 only data -8% +23% +10% +15% -4% +4%

Source: BE:USA 2008 and 2009/10 only data …as do BE:US respondents +14% +22% - 4% -5% No change

Source: BE:Asia 2009 and 2010 only data BE:Asia respondents also look further a field No change +14% +9% +7%

They are heavy business air travellers 81% (up 4% yr-on-yr) Source: BE:Asia, Europe and US

They work in the largest companies… Source: BE:Europe 2010 High value flyers: 11+ flights AND business/first

And are the most senior Source: BE:Europe 2010 High value flyers: 11+ flights AND business/first

€10.3 trillion Combined Global expenditure budgets Source: BE:Asia, Europe and US

In Europe budgets have been affected 2009 Vs 2008 Source: BE:Europe 2009 & 2010 only data 2010 Vs % 38%

Source: BE:Europe 2008, 2009 & 2010 only data Budgets are still tightly controlled

The Global Business Elite- a highly desirable market for high-end consumer goods and personal finance companies

Source: BE:Asia, Europe and US €1.05 trillion Combined Global net worth

Source: BE:Asia, Europe and US 2007, 2008, 2009 and 2010 only data Their personal fortunes have been affected Net worth

Source: BE:Europe 2008, 2009 and 2010 only data Some retrieve their wealth quicker

The richest get richer Net worth down 33% >€370,000 <€90,000 Net worth up 22% Source: BE:Europe 2008, 2009 and 2010 only data

Average Income €256,975 Europe +5% ASIA +14% US +3% Source: BE:Asia, Europe and US

Source: BE:Asia, Europe and US 2008 and 2010 only data Luxury is back in fashion! Europe: A watch worth more than 4,500 euros - UP 25% A holiday/second home – UP 14% In Asia: Fine wine/Champagne/Premium liquors – UP 36% A piece of Jewellery >US$5,000 –UP 24% In the US A boat or yacht – UP 22% A health club/spa/sport club membership – UP 26%

BE:Europe - media results

Thank God that’s over. Let’s just sit quietly and recover till the world returns to ‘normal’. Phew that was some ride. But … just look at all the opportunities we can seize. The world has changed - this is the new normal. Will eventually be taken over by the companies on the right >>>> New companies to buy New premises to build New staff to hire New products to launch New markets to break Access to cash Loans via debt markets Share capital via equity markets Government or regulatory approval Strong image in media/ good reputation Current and new staff Private sector New markets Potential customers Business success means communication Strong message in suitable environment CautiousDynamic Stress your credentials - your growth/ innovation/ expansion strategy & your approach to risk management/ control Less money around – why you should get it not your competitors New customers – why should they buy from you? New staff – why should they work for you? Regulators/ Governments – why should they approve your projects?

Thank God that’s over. Let’s just sit quietly and recover till the world returns to ‘normal’. Phew that was some ride. But … just look at all the opportunities we can seize. The world has changed - this is the new normal. Will eventually be taken over by the companies on the right >>>> New companies to buy New premises to build New staff to hire New products to launch New markets to break CautiousDynamic Which companies to target? Where to build / relocate? Who to seek out to hire? Which new products will succeed? Which markets should we target? Business success needs information

Thank God that’s over. Let’s just sit quietly and recover till the world returns to ‘normal’. Phew that was some ride. But … just look at all the opportunities we can seize. The world has changed - this is the new normal. Will eventually be taken over by the companies on the right >>>> New companies to buy New premises to build New staff to hire New products to launch New markets to break Business success needs information … CautiousDynamic But which companies to target? Where to build / relocate? Who to seek out to hire? Which new products will succeed? Which markets should we target? Effective, regularly updated, credible, actionable information

For the Global Business Elite, worlds collide with international media INFORMATION COMMUNICATION International media

% Net Readership of All International Titles- BE respondents are increasingly reliant on International media Base: 2010: 8, : 11,222

Media consumption is increasing Source: BE:Europe 2008, 2009 and 2010; Measurements: AIR print, daily TV and monthly web +4% +5% +11%

Most reliable source of Business news remains newspapers and internet Most reliable source for Business news. Source: BE:Europe Sample (8,245) Universe (453,353)

Source: BE:Europe 2010; Weekly digital usage Access online content via a Blackberry/Mobile phone: 47% Use Wi-Fi networks: 39% Watch a HD TV channel: 39% Use a netbook computer: 35% Stream / watch a video from a website: 29% Visit a social networking site: 26% Use RSS feeds / alerts: 20% Listen to music on their mobile: 17% A digital week in the life of the Business Elite

The FT’s product portfolio is now more diverse than ever, with the launch of howtospendit.com, the iPhone app and the iPad app, to name but a few The FT brand: Going from strength to strength

Source: BE: Europe 2010 BE: Europe 2010 – Print Publications % Coverage Number one +4% (survey on survey)

BE: Europe – International websites monthly reach Source: BE: Europe 2010 BBC.com excludes UK non-commercial sample +10% (survey on survey)

FT newspaper combined with FT.com delivers even more of Europe's business elite audience Source: BE: Europe % (survey on survey)

Most Important Business Read Please note that this was an open-ended question Source: BE: Europe % (survey on survey)

On any one day, 73,116 senior business executives are reading the Financial Times in print or on-line, which equates to… €689 billion Total annual expenditure budget of FT readers and users on an average day– 22% of all available spend (previously 19%) Source: BE: Europe 2010 UP 11% SINCE 2009

And globally, across BE:US, Asia & Europe… €2.3 trillion Total annual expenditure budget of FT readers Source: BE:Asia, Europe and US

And finally, how has the FT performed on BE:Asia and BE:USA? BE:Asia 2010 FT newspaper coverage up 16.5% - biggest increase of any international English speaking title. FT.com daily reach is up 10.5% since FT newspaper and FT.com daily reach combined up 15.7% - biggest increase of any international print & online combination! BE:USA 2010 Strong growth from FT print - up 18%- the biggest increase amongst newspapers! FT is #1 in audience profile position amongst CEO's; largest corporate budgets; international business involvement; high earners, frequent travellers… to name a few! Source: BE: Asia 2010, BE:USA 09/10

Business Elite 2010 The world’s leading businesspeople Anita Hague & Robert Jolliffe October 2010 The search for the “new normal”…