1. RQ2002 Australia The RQ 2002 Australia Annual Report Top Lines from Harris Interactive Australia

2. RQ2002 Australia Research shows that corporate reputations are built on stakeholder perceptions about companies on 20 attributes that we classify into 6 key dimensions. A company’s Reputation Quotient (RQ) is the resulting percentage score obtained from summing stakeholder ratings on these 20 attributes. All attributes are given equal weight in defining the RQ. Although research indicates that a company’s reputation can be influenced by all 20 attributes, in most cases some of these attributes are more important than others in explaining how respondents rate the company overall. Using the multivariate techniques, factor analysis and regression analysis, we are able to identify the attributes that work together in the thinking of the community about company reputation (through factor analysis), and how strongly these groupings of attributes affect overall ratings of companies (through regression analysis). Reputation Quotient sm (RQ) Reputation Quotient sm (RQ) Workplace Environment Financial Performance Emotional Appeal Vision & Leadership Social Responsibility Good feeling about the company Admire and respect the company Trust the company a great deal Stands behind products/services Offers high quality products/services Develops innovative products/services Offers products/services that are good value Has excellent leadership Has a clear vision for the future Recognizes/takes advantage of market opportunities Pays workers fairly* Looks like a good company to work for Looks like it would have good employees Record of profitability Looks like a low risk investment A company with strong prospects for future growth Tends to out-perform its competitors Supports good causes Environmentally responsible Maintains high standards in the way it treats people Products & Services The Reputation Quotient (RQ) The Six Key Dimensions of Reputation *This attribute replaced the previous attribute (“Well managed company”) to give a more consistent and meaningful definition of the Workplace Environment dimension. Comparisons of item and dimension values showed little overall change due to the change of item..

3. RQ2002 Australia Nominations Phase IN 20 MOST “PROMINENT” COMPANIES ALL 3 YEARS AMPHolden Optus BHPIBM Qantas CBAMcDonald’s Telstra Coca-ColaMicrosoft Westpac Coles Myer GroupNAB Woolworths NRMA COMPANIES TO DROP OUT IN 2001 ANZ Ford Toyota NEW COMPANIES INCLUDED IN 2001 AAMI Bendigo Bank Dick Smith Foods Methodology –Respondents were asked which company has the “best” reputation in Australia, and which has the “worst” reputation. –The 20 most “prominent” companies, with highest number of nominations (“Best” + “Worst”) are then rated using the RQ instrument. COMPANIES TO DROP OUT IN 2002 Bendigo Bank David Jones Dick Smith Foods NEW COMPANIES INCLUDED IN 2002 Harvey Norman Sony Virgin/Virgin Blue ON THE EDGE IN 2002 (IN NEXT 10 NOMINATIONS) ANZBody ShopToyota Apple ComputersDavid Jones Suncorp Bendigo Bank Dick Smith Foods Wesfarmers Ford

4. RQ2002 Australia 11.Telstra72.0 12.Coles Myer Group70.9 13.AAMI68.0 14.BHP67.9 15.AMP65.3 16.Optus65.2 17.CBA65.1 18.NRMA64.7 19.NAB62.4 20.Westpac59.7 11.David Jones70.0 12.BHP70.0 13.AAMI*69.9 14.NRMA68.3 15.AMP67.7 16.Telstra66.5 17.Optus66.5 18.NAB63.8 19.CBA62.4 20.Westpac61.9 Reputation Rank in the Annual RQ Australia RQ Australia 2000RQ Australia 2001RQ Australia 2002 1.Microsoft78.3 2.Coca Cola77.1 3.IBM75.7 4.Coles Myer 75.4 5.David Jones75.3 6.Qantas74.4 7.NRMA73.6 8.Woolworths73.5 9.Toyota72.3 10.GMH/Holden71.9 11.McDonalds71.8 12.Optus71.3 13.Ford69.2 14.BHP68.3 15.AMP66.1 16.CBA64.6 17.Telstra64.5 18.NAB63.8 19.ANZ63.8 20.Westpac57.9 1.Microsoft79.6 2.Dick Smith Foods*79.0 3.Holden77.5 4.McDonalds75.7 5.Coca Cola75.5 6.IBM75.4 7.Woolworths75.1 8.Coles Myer74.1 9.Bendigo Bank*73.8 10.Qantas73.0 Others Rated in 2001 (Ranked between a/b): 3/4Toyota76.6 10/11NRMA Insurance (NSW Only)71.5 13/14Ford 69.3 20/21ANZ 59.7 9/10Coles Supermarkets73.3 13/14Myer/GBs Dept Stores68.4 1.Sony80.5 2.Harvey Norman77.1 3.Virgin Blue76.9 4.Coca Cola76.4 5.Holden74.9 6.McDonalds74.4 7.Microsoft74.4 8.Woolworths74.2 9.Qantas73.5 10.IBM72.9 Others Rated in 2002 (Ranked between a/b): 4/5David Jones73.7 9/10Coles Supermarkets72.0 12/13NRMA Insurance (NSW Only)68.9 13/14Myer/GBs Dept Stores70.4 19/20ANZ 61.4

5. RQ2002 Australia Stability and Change in Company Reputations The three newly prominent companies were the top 3 on RQ in 2002. While Sony and Harvey Norman had previously been in the next 10 companies on prominence, the reputation surge by the newly established airline Virgin Blue suggests that it is speaking to issues close to the hearts of Australians. The continued decline in RQ score and rank for the Coles Myer Group is not surprising. Public conflict within a Board, especially (as it so often is) combined with a slide in financial performance, appears to be highly damaging to a company’s reputation, as also shown by the slide in RQ score and rank for NRMA. NRMA Insurance and the NRMA motoring association have split between RQ2000 and RQ2001, with the insurance company floating. There was extensive publicity about conflicts within the Boards of both companies, and the previous chairman of both resigned from the Board of NRMA Insurance and was forced to resign as chairman of the motoring association (NRMA) in 2002. The impact on RQ score and rank is very evident. Some who rated “NRMA” were thinking of the insurance company, some of the motoring association, some of both. The RQ data show that the insurance company was somewhat better on overall RQ in 2001 and 2002, than the general, unspecified identity “NRMA”. Although settling the governance issues appeared to benefit the insurance company in the eyes of the general public, it may be that the continued common branding has pulled the insurance company down somewhat in 2002. Another possibility is that general disquiet about insurance companies and their role in the community has adversely affected NRMA Insurance. AAMI entered the Top 20 Nominations in 2001, and scored just below NRMA Insurance (NSW). The heavy advertising by AAMI of the claim to rapid, no hassles processing of claims, and of “value for money” pricing, appear to have born fruit for the company. While both companies slipped in RQ score in 2002, they remain very close in overall RQ, with NRMA Insurance slightly higher. Consistent with its improved market position, Holden (described in RQ2000 as “GMH (General Motors Holden)” considerably improved its RQ score to take third place in 2001. It has slipped slightly in both RQ score and rank in 2002, but remains very strong, being in the Top 5 on RQ. Telstra has shown a marked improvement in RQ (4.5 points) and rank (up from 16 to 11). Optus declined in 2001 to be fractionally below Telstra, and in 2002 it has not regained lost ground. The banks remained at the bottom of the RQ in all annual RQ Australia measurements. AMP and NRMA are now their nearest neighbors. It appears that the change of CEO at AMP and the decisive action being taken by him to deal with the major financial issues faced by the company has not yet restored its overall public reputation.