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

2. 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

3. How did we get here?

4. 2008 …

5. 2009 …

6. 2010 …

8. 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

9. 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?

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

11. 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 2010 529 Global respondents

12. 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 2010 529 Global respondents

13. 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 2009. Meanwhile, govt regulation and new competitors have increased (Top 5) Source: C-Suite Sentiment Survey 2010 529 Global respondents

14. 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 2010 529 Global respondents

15. 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 2010 529 Global respondents

16. 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 2010 529 Global respondents

17. 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

18. BE surveys across the globe

19. 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 Finance @ Google would not be eligible!). BE:E sample are responsible for 2/3 or Europe’s workforce!) BE Survey suite 2010

20. BE strongly supported across the globe adding weight to the survey

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

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

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

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

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

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

27. €10.3 trillion Combined Global expenditure budgets Source: BE:Asia, Europe and US

28. In Europe budgets have been affected 2009 Vs 2008 Source: BE:Europe 2009 & 2010 only data 2010 Vs 2009 8% 38%

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

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

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

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

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

34. 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

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

36. 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%

37. BE:Europe - media results

38. 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?

39. 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

40. 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

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

42. % Net Readership of All International Titles- BE respondents are increasingly reliant on International media Base: 2010: 8,245 2009: 11,222

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

44. 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)

45. 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 / email alerts: 20% Listen to music on their mobile: 17% A digital week in the life of the Business Elite

46. 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

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

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

49. FT newspaper combined with FT.com delivers even more of Europe's business elite audience Source: BE: Europe 2010 +12% (survey on survey)

50. Most Important Business Read Please note that this was an open-ended question Source: BE: Europe 2010 +16% (survey on survey)

51. 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

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

53. 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 2009. 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

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