Mexico 50 2017 The annual report on the most valuable Mexican brands June 2017

Foreword. Contents

steady downward spiral of poor communication, Foreword 2 wasted resources and a negative impact on the bottom line. Definitions 4 Methodology 6 Brand Finance bridges the gap between the marketing and financial worlds. Our teams have Executive Summary 8 experience across a wide range of disciplines from market research and visual identity to tax and Full Table (USDm) 12 accounting. We understand the importance of design, advertising and marketing, but we also Understand Your Brand’s Value 14 believe that the ultimate and overriding purpose of How We Can Help 16 brands is to make money. That is why we connect brands to the bottom line. Contact Details 17

By valuing brands, we provide a mutually intelligible language for marketers and finance teams. David Haigh, CEO, Brand Finance Marketers then have the ability to communicate the significance of what they do and boards can use What is the purpose of a strong brand; to attract the information to chart a course that maximises customers, to build loyalty, to motivate staff? All profits. true, but for a commercial brand at least, the first Without knowing the precise, financial value of an answer must always be ‘to make money’. asset, how can you know if you are maximising your returns? If you are intending to license a brand, how Huge investments are made in the design, launch can you know you are getting a fair price? If you are and ongoing promotion of brands. Given their intending to sell, how do you know what the right potential financial value, this makes sense. time is? How do you decide which brands to Unfortunately, most organisations fail to go beyond discontinue, whether to rebrand and how to arrange that, missing huge opportunities to effectively make your brand architecture? Brand Finance has use of what are often their most important assets. conducted thousands of brand and branded Monitoring of brand performance should be the business valuations to help answer these questions. next step, but is often sporadic. Where it does take place it frequently lacks financial rigour and is Brand Finance’s recently conducted share price heavily reliant on qualitative measures poorly study revealed the compelling link between strong understood by non-marketers. brands and stock market performance. It was found that investing in the most highly branded companies As a result, marketing teams struggle to would lead to a return almost double that of the communicate the value of their work and boards average for the S&P 500 as a whole. then underestimate the significance of their brands Acknowledging and managing a company’s to the business. Skeptical finance teams, intangible assets taps into the hidden value that lies unconvinced by what they perceive as marketing within it. The following report is a first step to mumbo jumbo may fail to agree necessary understanding more about brands, how to value investments. What marketing spend there is can them and how to use that information to benefit the end up poorly directed as marketers are left to business. The team and I look forward to continuing operate with insufficient financial guidance or the conversation with you. accountability. The end result can be a slow but

2. Brand Finance AustraliaGlobalAirlinesMexico 5005030 100 June 30February MarchFebruary 2017 20162016 2015 Brand Finance 50 June 2017 3. Definitions

Effect of a Brand on Stakeholders E.g. Definitions Grupo + Enterprise Value – the value of the Bimbo entire enterprise, made up of Directors Potential Middle ‘Branded‘Branded multiple branded businesses Customers Managers Enterprise’Enterprise’

Existing All Other ‘Branded‘Branded + Branded Business Value – the Customers Employees Business’ E.g. Business’ Tia Rosa value of a single branded business operating under the subject brand ‘Brand’ Contribution’ Influencers + Uplift Production + Brand Contribution– The total e.g. Media Brand E.g. economic benefit derived by a Tia Rosa business from its brand ‘Brand Value’ Trade Sales Channels + Brand Value – the value of the E.g. trade marks (and relating Tia Rosa Strategic marketing IP and ‘goodwill’ Debt Allies & providers attached to it) within the branded Suppliers Investors business

Branded Business Value Brand Contribution Brand Value Brand Strength

A brand should be viewed in the context of the The brand values contained in our league tables In the very broadest sense, a brand is the focus Brand Strength is the part of our analysis most business in which it operates. For this reason are those of the potentially transferable brand for all the expectations and opinions held by directly and easily influenced by those Brand Finance always conducts a Branded asset only, but for marketers and managers customers, staff and other stakeholders about an responsible for marketing and brand Business Valuation as part of any brand valuation. alike. An assessment of overall brand organisation and its products and services. management. In order to determine the strength Where a company has a purely mono-branded contribution to a business provides powerful However, when looking at brands as business of a brand we have developed the Brand architecture, the business value is the same as insights to help optimise performance. assets that can be bought, sold and licensed, a Strength Index (BSI). We analyse marketing the overall company value or ‘enterprise value’. more technical definition is required. investment, brand equity (the goodwill Brand Contribution represents the overall uplift accumulated with customers, staff and other In the more usual situation where a company in shareholder value that the business derives Brand Finance helped to craft the internationally stakeholders) and finally the impact of those on owns multiple brands, business value refers to from owning the brand rather than operating a recognised standard on Brand Valuation, ISO business performance. the value of the assets and revenue stream of the generic brand. 10668. That defines a brand as “a marketing- business line attached to that brand specifically. related intangible asset including, but not limited Following this analysis, each brand is assigned We evaluate the full brand value chain in order to Brands affect a variety of stakeholders, not just to, names, terms, signs, symbols, logos and a BSI score out of 100, which is fed into the understand the links between marketing customers but also staff, strategic partners, designs, or a combination of these, intended to brand value calculation. Based on the score, investment, brand tracking data, stakeholder regulators, investors and more, having a identify goods, services or entities, or a each brand in the league table is assigned a behaviour and business value to maximise the significant impact on financial value beyond combination of these, creating distinctive images rating between AAA+ and D in a format similar returns business owners can obtain from their what can be bought or sold in a transaction. and associations in the minds of stakeholders, to a credit rating. AAA+ brands are exceptionally brands. thereby generating economic benefits/value”. strong and well managed while a failing brand would be assigned a D grade.

4. Brand Finance Mexico 50 June 2017 Brand Finance Mexico 50 June 2017 5. Methodology League Table Valuation Methodology Brand Finance Typical Project Approach Brand Finance calculates the values of the 2 Determine the royalty rate range for the respective brands in its league tables using the ‘Royalty brand sectors. This is done by reviewing comparable Relief approach’. This approach involves licensing agreements sourced from Brand Finance’s estimating the likely future sales that are extensive database of license agreements and other attributable to a brand and calculating a royalty online databases. Brand Equity Stakeholder Brand Inputs Performance rate that would be charged for the use of the 3 Calculate royalty rate. The brand strength score is Value Drivers Behaviour Contribution brand, i.e. what the owner would have to pay for applied to the royalty rate range to arrive at a royalty the use of the brand—assuming it were not rate. For example, if the royalty rate range in a brand’s already owned. sector is 0-5% and a brand has a brand strength score of 80 out of 100, then an appropriate royalty 1 2 3 4 The steps in this process are as follows: rate for the use of this brand in the given sector will Brand Audit Trial & Preference Acquisition & Valuation Modelling be 4%. Retention 1 Calculate brand strength on a scale of 0 to 100 based 4 Determine brand specific revenues estimating a on a number of attributes such as emotional proportion of parent company revenues attributable Audit the impact Run analytics to Link stakeholder Model the impact of behaviour on connection, financial performance and sustainability, to a specific brand. of brand understand how behaviour with core financial performance and among others. This score is known as the Brand key financial isolating the value of the brand 5 Determine forecast brand specific revenues using a management and perceptions link to Strength Index, and is calculated using brand data investment on behaviour value drivers contribution function of historic revenues, equity analyst forecasts from the BrandAsset® Valuator database, the world’s brand equity and economic growth rates. largest database of brands, which measures brand 6 Apply the royalty rate to the forecast revenues to equity, consideration and emotional imagery derive brand revenues. attributes to assess brand personality in a category 7 Brand revenues are discounted post tax to a net agnostic manner. present value which equals the brand value. Brand strength Brand Brand revenues Brand value index ‘Royalty rate’ How We Help to Maximise Value (BSI)

6. Build scale through licensing/franchising/partnerships Brand Strong brand investment 5. Build core business through market expansion

4. Build core business through product development Brand

equity Maximising a strong brand 3. Portfolio management/rebranding Group companies

2. Optimise brand positioning and strength Brand Weak brand performance Forecast revenues 1. Base-case brand and business valuation (using internal data), growth strategy Evaluate ongoing performance formulation, target-setting, scorecard and Brand strength BSI score applied to an Royalty rate applied to Post-tax brand tracker set-up expressed as a BSI appropriate sector forecast revenues to revenues are score out of 100. royalty rate range. derive brand values. discounted to a net Current brand and Target brand and present value (NPV) business value business value which equals the brand value.

6. Brand Finance Mexico 50 June 2017 Brand Finance Mexico 50 June 2017 7.

Executive Summary

Rank 2017: 1 2016: New Rank 2017: 6 2016: 5 BV 2017: $ 2,101m 1 BV 2017: $ 8,477m 6 +25% BV 2016: New BV 2016: $ 1,678m Brand Rating: AAA- Brand Rating: AAA+ Mexico Rank 2017: 2 2016: 1 Rank 2017: 7 2016: 7 BV 2017: $ 3,552m BV 2017: $ 1,915m 2 +16% 7 +24% BV 2016: $ 3,053m BV 2016: $ 1,548m Brand Rating: AAA- Brand Rating: AA+

Rank 2017: 3 2016: 2 Rank 2017: 8 2016: New 3 BV 2017: $ 2,938m +3% 8 BV 2017: $ 1,829m 50 BV 2016: $ 2,844m BV 2016: New Brand Rating: AA+ Brand Rating: A

Rank 2017: 4 2016: 4 Rank 2017: 9 2016: 6 BV 2017: $ 1,690m 4 BV 2017: $ 2,394m +21% 9 +2% BV 2016: $ 1,972m BV 2016: $ 1,650m Brand Rating: AA+ Brand Rating: AA+

Rank 2017: 5 2016: 3 Rank 2017: 10 2016: 12 BV 2017: $ 2,199m BV 2017: $ 1,635m 5 -6% 10 +33% BV 2016: $ 2,335m BV 2016: $ 1,228m Brand Rating: AAA- Brand Rating: AA

OXXO is Mexico’s strongest brand and the only brand appears in the Brand Finance Mexico 50 Pemex must define what their value Year to year, brand values in the Brand Finance one in the country to receive the highest rating of for the first time as the energy reform put an end proposition is, and consumers must ask Mexico 50 league table grew by an average of AAA+. The AAA+ rating is assigned to the to 75 years of state monopoly in the oil and gas themselves why they should prefer Pemex.” 12%. The market’s alcoholic beverages sector is world’s strongest brands and only ten out of the sector and introduced market conditions that one of the strongest in the table. Six of Mexico’s 500 top brands globally can boast this now make Pemex’s performance more After Pemex, the top spots of the Brand Finance most valuable brands belong to the beer category achievement. The nation’s largest convenience comparable with that of similar brands worldwide. Mexico 50 2017 ranking go to industry leaders: – including new entrants, Tecate (US$1.215 billion), chain, opened 1,164 new stores in 2016, bringing Although starting from a significantly safer market telecommunications giant, (2), valued at Modelo (US$608 million), Victoria (US$586 the total to 15,225. With over 300 gas stations position than rivals, Pemex has struggled with US$3.552 billion (+16%), and building materials million), and Carta Blanca (US$491 million). being rebranded as OXXO since last year’s profitability and now faces newfound challenges conglomerate, (3), valued at US$2.938 However, with a brand value of US$2.394 billion, liberalization of the energy market, the brand’s as a brand because of deregulation, as billion (+3%). Corona Extra remains the nation’s most valuable visibility in the public arena has increased even consumers welcome the arrival of global beer brand, defending the fourth position in the further. Moreover, the parent company, Femsa, competitors. Telecommunications is another sector facing a Brand Finance Mexico 50 overall. Notably, all of announced it will continue to invest in the OXXO transformative market dynamic. This year, Iusacell the big Mexican beer brands are now part of the brand, with 50 new gas stations set to open every “As the Mexican oil and gas industry becomes dropped out of the market as a brand, and AT&T brand portfolios of two industry giants, AB InBev year. While being the nation’s strongest, OXXO is more competitive, for the first time in its history, – the most valuable global telecommunications SA NV, which in fact controls 11 of the world’s 25 the 6th most valuable in the Brand Finance Pemex must contend for consumer preference. brand of 2017 according to Brand Finance’s most valuable beer brands, and Heineken NV. At Mexico 50 study, up 25% to a value of US$2.101 Like in other sectors, the brand will come under research – made a formal entrance. Telcel will no the same time, a brand of the country’s probably billion. increasing pressure to perform,” said Brand longer compete only with smaller players, rather it most emblematic alcoholic product, Jose Cuervo Finance Mexico Managing Director, Laurence must now hold its own against a global enters the list ranked 30th, as Mexico’s most Pemex, however, is the most valuable Mexican Newell. “There is a new dynamic which both heavyweight. valuable spirits brand, estimated at US$473 brand, with a value of US$8.477 billion. The sides of the equation need to understand – million.

8. Brand Finance Mexico 50 June 2017 Brand Finance Mexico 50 June 2017 9.

Executive Summary

Brand Value Change 2016-2017 (USDm) Brand Value Change 2016-2017 (%)

Telcel 499 Volaris 100% Telcel 499 Volaris 100% OXXO 423 Nemak 99% OXXO 423 Nemak 99% Corona Extra 422 Maseca 53% Corona Extra 422 Maseca 53% Coca-Cola FEMSA 407 Aeromexico 42% Coca-Cola FEMSA 407 Aeromexico 42% Banamex 368 Tía Rosa 35% CitibanamexBanamex 368 Tía Rosa 35% Nemak 288 Coca-Cola FEMSA 33% Nemak 288 Coca-Cola FEMSA 33% Aeromexico 161 Marinela 28% Aeromexico 161 Marinela 28% Volaris 146 Sigma Alimentos 26% Volaris 146 Sigma Alimentos 26% 116 OXXO 25% Televisa 116 OXXO 25% Gamesa 110 CitibanamexBanamex 24% Gamesa 110 Banamex 24% -35 GrupoMexico -5% -35 GrupoMexico -5% Banorte -35 Tv Azteca -6% Bimbo -35 Tv Azteca -6% Bimbo -42 -7% Bachoco -42 Grupo Elektra -7% Bachoco -46 Chedraui -7% Chedraui -46 Chedraui -7% Chedraui -81 Banorte -9% Tecate -81 Banorte -9% Tecate -123 Tecate -14% Tv Azteca -123 Tecate -14% Tv Azteca -132 Banco Azteca -16% Grupo Elektra -132 Banco Azteca -16% Grupo Elektra -136 Bimbo -17% -136 Bimbo -17% Soriana -208 Soriana -21% -208 Soriana -21% Liverpool -252 Liverpool -29% Banco Azteca -252 Liverpool -29% Banco Azteca -350.000000-214.285714-78.57142957.142857192.857143328.571429464.285714600.000000 -40 -22 -4 14 32 50 68 86 104 122 140 -350.000000-214.285714-78.57142957.142857192.857143328.571429464.285714600.000000 -40 -22 -4 14 32 50 68 86 104 122 140 Bank brands feature prominently in this year’s multinational bakery’s product lines. Another Brand Finance Mexico 50. Citibanamex is valued brand to watch over the coming years in this sector at US$1.915 billion, in a year in which the brand is is Lala (US$725 million). The country’s top dairy undergoing the important transition from Banamex company, which operates production and to Citibanamex. Other bank brands on the list distribution plants nationwide, is looking to fuel include Banorte (US$1.409 billion), organic growth and is moving into new markets, (US$511 million), Banco Azteca (US$328 million), including the US and Central America; it recently and (US$238 million). announced a $30 million dollar investment to build a dairy plant in Guatemala. Mexico’s retail sector is the largest generator of brand value. This year’s list includes 9 retailers, 2017 has been a year of transformation for Mexico’s with brands that total US$7.788 billion dollars in brand landscape, and under these circumstances, value, and include players such as Walmex’s metrics such as brand valuation set a clear baseline Bodega Aurrerá (US$1.829 billion) and La Comer that helps stakeholders understand how their (US$271 million). asset contributes to the business. Going forward, brands must reexamine the virtues of strategy, Separately, ’s brand portfolio positioning, and measurement, to understand continues to spearhead the food industry in terms how to generate value in the long run and what to of brand value. In addition to the corporate brand, do strategically to consolidate and extend that Brand Finance Mexico 50 2017 also ranks 2 of the value.

10. Brand Finance Mexico 50 June 2017 Brand Finance Mexico 50 June 2017 11. Brand Finance Mexico 50 (USDm)

Top 50 most valuable Mexican brands 1 - 50.

Rank Rank Brand name Sector Brand % Brand Brand Brand 2017 2016 value (USDm) change value (USDm) rating rating 2017 2016 2017 2016 1 New PEMEX Oil & Gas 8,477 AAA- 2 1 Telcel Telecoms 3,552 16% 3,053 AAA- AA+ 3 2 Cemex Engineering & Construction 2,938 3% 2,844 AA+ AA 4 4 Corona Extra Beers 2,394 21% 1,972 AA+ AA+ 5 3 Bimbo Food 2,199 -6% 2,335 AAA- AA+ 6 5 OXXO Retail 2,101 25% 1,678 AAA+ AA 7 7 Citibanamex Banks 1,915 24% 1,548 AA+ AAA- 8 New Bodega Aurrera Retail 1,829 A 9 6 Telecoms 1,690 2% 1,650 AA+ AA+ 10 12 Coca-Cola FEMSA Non Alcoholic Drinks 1,635 33% 1,228 AA AA+ 11 9 Televisa 12 8 Banorte 13 New Tecate 14 13 Gamesa 15 10 Soriana 16 11 Liverpool 17 15 Sol 18 New Arca 19 17 Lala 20 16 GrupoMexico 21 18 Chedraui 22 New Modelo 23 New Victoria 24 29 Nemak 25 23 Aeromexico 26 New Sanborns 27 20 Inbursa 28 New Carta Blanca 29 22 izzi 30 New Jose Cuervo 31 25 Mexichem 32 27 Sigma Alimentos 33 31 Tía Rosa 34 New Sabritas 35 30 Marinela 36 26 Condumex 37 21 Banco Azteca 38 28 39 45 Volaris 40 35 Industria Peñoles 41 33 La Comer 42 36 Palacio de Hierro 43 41 Compartamos Banco 44 40 Megacable 45 32 Grupo Elektra 46 39 Herdez 47 38 Bachoco 48 37 Tv Azteca 49 47 Maseca 50 New GNP

12. Brand Finance Mexico 50 June 2017 Brand Finance Mexico 50 June 2017 13. Understand Your Brand’s Value

Drivers of Change Brand Strength Index 2016 An ideal balanced scorecard of fundamental brand related measures Brand Value Dashboard Three key areas impact Brand Value (EURm) Brand Valuation Assumptions Effective BSI Weighting Attributes 18 131 Underlying economic assumptions used in valuation 34 $707m $882m $10,216m 6.25% Product: R&D expenditure, Widely recognised factors deployed by Brand Capital expenditure Strong brand (EUR) (EUR) Marketers to create brand loyalty and Brand [XXX] Brand Value Brand Value (EUR) Brand value (EURm) Investment Enterprise Value AA+ Investment 25% 6.25% Place: Website Ranking 729 729 Inputs market share. We therefore benchmark 78/100 616 616 650 6.25% People: Number of Employees, €650m €729m €9,399m Employee Growth brands against relevant input measures by Brand 25% Equity X 6.25% Promotion: Marketing expenditure sector against each of these factors. % = Historic brand value performance (EURm) Peer Group Comparison (USDm) $650 Brand Performance Forecast revenues $6,265 2015 Brand Strength Business Performance External Changes 2016 5.00% Familiarity 800 729 Weak brand $ $3,031 7.50% Consideration How do stakeholders feel about the brand 650 $2,328 $1,913 $707 700 607 7.50% Preference vs. competitors? Brand Strength Business Outlook Economic Outlook Customer 35% 7.50% Satisfaction 600 [XXX] [XXX]’s brand strength has increased compared to last year. Brands drive higher revenues. An investor would therefore All future returns are subject to risk. If the risk of not 7.50% Recommendation/NPS • Brand equity accounts for 50% to reflect Revenue Long Term Growth Rate Tax Rate Discount Rate 500 pay more for a brand that makes more money. receiving the forecast returns is higher (increasing the Brand the importance of stakeholder As the brand continues its sustainability drive, [XXX] has discount rate), the brand’s market is not growing as quickly Equity 5.00% Employee Score Licensing payments for the use of a After the explicit forecasts, the brand Forecasted royalties are reduced by Earnings in the future are worth less 320 Staff 5% perceptions to behaviour 400 Brand Value by Product Segment been improving across all CSR scores. It now has the [XXX]’s revenue base and the 5 year forecast growth have as expected (lower long term growth rate) or the tax rate in brand are derived from revenue. will continue to grow. However, it is the tax rate to reflect the actual than consumption now. This rate is 275 highest CSR scores it has had in the last four years across fallen this year, resulting in a loss of $177m USD to total the brand’s regions of operation is higher, then the brand’s 300 Increases or decreases in forecasted unlikely that the company will sustain amount that would be received by therefore used to reduce future 213 Environment, Employees and Governance. brand value. value is reduced and vice versa. 50% 2.50% Credit Rating • Brand Equity is important to all 37% Financial 5% revenue increase or decrease the extraordinary returns into the future the brand owner after tax. earnings to their value today. Nutrition 2.50% Analyst Recommendation stakeholder groups with customers being 200 The premium approach is also leading to significant margin However, it is important to note that this has arisen as a final valuation. so forecast industry growth rates are advantages – positively affecting “performance”. result of the company divesting a number of divisions. the most important 100 Performance Materials 1.67% Environment Score applied. 58% External 5% 1.67% Community Score 0 Other Activities 4% 1.67% Governance Score 2011 2012 2013 2014 2015 2016 2016 2015 2016 2015 2016 2015 5 year Compound Annual Growth Rate Long Term Growth Rate Tax Rate Discount Rate Brand 5 Year Forecast 6.25% Revenue (CAGR) 78 76 2.6% 3.4% Discount Rate 9.1% 8.6% Brand Strength Index Strength Growth Quantitative market, market share and 7% Brand 6.25% % Margin financial measures resulting from the Long Term Growth 3.2% 2.6% 2015 2014 2015 2014 2015 2014 2015 2014 Base Year 8,205 9,570 Performance Outputs 25% 6.25% % Forecast Margin Revenue (EURm) strength of the brand. 6.25% % Forecast Revenue Growth Tax 28.9% 30.2% 25% 2.6% 3.4% -0.8% 3.2% 2.6% +0.6% 29% 30% -1.3% 9.1% 8.6% +0.5%

Determining the Royalty Rate Brand Performance Brand Investment In order to apply the Brand Strength Index, a hypothetical royalty rate range needs to be set Competitor Royalty Rates An ideal balanced scorecard of fundamental brand related measures Proven inputs that drive the Brand Equity and financial results Following the OECD guidelines, Brand Finance sets the hypothetical brand royalty rate ranges by reference to three tests: Competitor royalty rates will be different based on different strengths of the brand, having Brand Strength Index Brand Strength Index different operating segments and company-specific long term affordability • Comparable Agreements: A search of comparable licensing agreements for brands in each industry is conducted every year. The margin analyses Brand Investment Brand Performance are then compared against the royalty rates found in these agreements to analyse the importance of brand in the industry and set an appropriate 1.2% average industry royalty rate. 10.0 1.0% 10.0 9.3 • Industry Margins: An analysis of 25% to 40% of margins, generally accepted as rules of thumb for licensing rates for all intangible assets in a 8.9 8.9 8.0 7.7 company. These rates are adjusted to take into account the importance of brand in a given industry. 8.0 8.1 0.8% 0.8% 0.8% 0.8% 6.4 6.0 • Affordability: Thirdly, an analysis of the brand’s specific royalties is conducted. If the brand has been able to sustain extraordinary profits over an 0.7% 6.0 5.3 0.6% extended time it is likely that hypothetical brand owners would be willing to pay closer to the company’s margins than the industry average. In the 0.6% 0.6% 0.6% 5.0 4.0 case of Brand Finance’s League Table models, affordability will be based on the forecast EBIT. 4.0 [XXX]DSM Best in Class Competitor Average 0.5% DSM[XXX] Best in Class Competitor Average 2.0 • Average industry royalty rate ranges can be seen below 2.0 0.0 High 0.0 Effective Effective Weighting 6.25% 6.25% 6.25% 6.25% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Weighting 6.25% 6.25% 6.25% 6.25% DSM BASF Dow Du Pont Akzo Nobel Akzo Nobel Best in Best in Class [XXX] Du Pont Multiple Akzo Nobel Mid Class Akzo Nobel Dow Akzo Nobel Du Pont Product Place People Promotion [XXX] Revenue Margin % Forecast Revenue Growth % Forecast Margin % Low Relative quality of the brand’s investment in Relative quality of a brand’s distribution Relative quality of the human network Relative quality of the brand’s promotions. its products. The measure can include R&D network. It can include the quality of supporting the brand. This may include the Marketing investment, the quality of visual Akzo Nobel – Paints and spend and capital expenditure. logistical infrastructure available to the size of the support network, its likely future identity and the effectiveness of the [XXX] BASF Dow Du Pont Akzo Nobel - Corporate The brand’s ability to drive a The brand’s ability to drive a The brand’s ability to improve Coatings brand, the quality of its online presence, or growth or the investment in workforce brand’s social media is covered by this volume premium. Implied by price premium. Implied by business prospects across the number and quality of its retail outlets. training and human resources. measure. 78 78 80 80 82 82 current and future revenue. current and future margins. various KPIs

A Brand Value Report provides a complete + Internal understanding of brand Royalty Rates Trademark Audit breakdown of the assumptions, data + Brand value tracking sources and calculations used to arrive at + Competitor benchmarking Analysis of competitor royalty rates, industry Analysis of the current level of protection for the your brand’s value. + Historical brand value royalty rate ranges and margin analysis used to brands word marks and trademark iconography Each report includes expert recommendations determine brand specific royalty rate. highlighting areas where the marks are in need for growing brand value to drive business of protection. performance and offers a cost-effective way to Brand Strength Index + Transfer pricing gaining a better understanding of your position + Licensing/ franchising negotiation + Highlight unprotected marks against competitors. A breakdown of how the brand performed on + International licensing + Spot potential infringement various metrics of brand strength, benchmarked + Competitor benchmarking + Trademark registration strategy A full report includes the following sections against competitor brands in a balanced which can also be purchased individually. scorecard framework. For more information regarding our Brand Value Cost of Capital Reports, please contact: + Brand strength tracking Brand Valuation Summary + Brand strength analysis A breakdown of the cost of capital calculation, Alex Haigh + Management KPI’s including risk free rates, brand debt risk Director of League Tables, Brand Finance Overview of the brand valuation including + Competitor benchmarking premiums and the cost of equity through CAPM. executive summary, explanation of changes in [email protected] brand value and historic and peer group + Independent view of cost of capital for internal comparisons. valuations and project appraisal exercises +44 (0)20 7389 9400

14. Brand Finance Mexico 50 June 2017 Brand Finance Mexico 50 June 2017 15. How we can help Contact details

1. Valuation: What are my intangible assets 2. Analytics: How can I improve marketing worth? effectiveness? Contact us Our offices Valuations may be conducted for technical purposes Analytical services help to uncover drivers of demand For brand value report and to set a baseline against which potential strategic and insights. Identifying the factors which drive enquiries, please contact: brand scenarios can be evaluated. consumer behaviour allow an understanding N 2. IO AN of how brands create bottom-line impact. Alex Haigh T A A L Director of League Tables U Y L T Brand Finance A I V C • Branded Business Valuation • Trademark Valuation [email protected] . S • Market Research Analytics • Brand Audits 1 • Intangible Asset Valuation • Brand Contribution Brand & • Brand Scorecard Tracking • Return on Marketing Investment

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Robert Haigh deal? Can I leverage my S the value of my branded business? T

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Y T . 4 owners of branded businesses get a better deal modelling will identify the best opportunities, [email protected] by leveraging the value of their intangibles. ensuring resources are allocated to those activities which have the most impact on brand and business value. For all other enquiries, please contact: • M&A Due Diligence • Franchising & Licensing • Brand Governance • Brand Architecture & Portfolio Management • Tax & Transfer Pricing • Expert Witness • Brand Transition • Brand Positioning & Extension [email protected] +44 (0)207 389 9400 For further information on Brand Finance®’s services and valuation experience, please contact your local representative: Country Contact Email address Australia Mark Crowe [email protected] Brazil Pedro Tavares [email protected] MARKETING FINANCE TAX LEGAL linkedin.com/company/ Canada Bill Ratcliffe [email protected] brand-finance China Minnie Fu [email protected]

We help marketers to connect We provide financiers and We help brand owners and We help clients to enforce and Caribbean Nigel Cooper [email protected] their brands to business auditors with an independent fiscal authorities to understand exploit their intellectual East Africa Jawad Jaffer [email protected] performance by evaluating the assessment on all forms of the implications of different property rights by providing France Victoire Ruault [email protected] return on investment (ROI) of brand and intangible asset tax, transfer pricing and brand independent expert advice in- facebook.com/brandfinance Germany Dr. Holger Mühlbauer h.mü[email protected] brand based decisions and valuations. ownership arrangements. and outside of the courtroom. Greece Ioannis Lionis [email protected] strategies. Holland Marc Cloosterman [email protected] India Ajimon Francis [email protected] + Branded Business Valuation + Branded Business Valuation + Branded Business Valuation + Branded Business Valuation twitter.com/brandfinance Indonesia Jimmy Halim [email protected] + Brand Contribution + Brand Contribution + Brand Contribution + Brand Contribution Italy Massimo Pizzo [email protected] + Trademark Valuation + Trademark Valuation + Trademark Valuation + Trademark Valuation Malaysia Samir Dixit [email protected] + Intangible Asset Valuation + Intangible Asset Valuation + Intangible Asset Valuation + Intangible Asset Valuation Disclaimer + Brand Audit + Brand Audit + Brand Audit + Brand Audit Mexico Laurence Newell [email protected] Brand Finance has produced this study LatAm (exc. Brazil) Laurence Newell [email protected] + Market Research Analytics + Market Research Analytics + Market Research Analytics + Tax & Transfer Pricing with an independent and unbiased + Brand Scorecard Tracking + Brand Scorecard Tracking + Franchising & Licensing + Expert Witness analysis. The values derived and Middle East Andrew Campbell [email protected] opinions produced in this study are Nigeria Babatunde Odumeru [email protected] + Return on Marketing + Return on Marketing + Tax & Transfer Pricing based only on publicly available Investment Investment + Expert Witness information and certain assumptions Portugal Pedro Tavares [email protected] + Brand Transition + Brand Transition that Brand Finance used where such Russia Alexander Eremenko [email protected] data was deficient or unclear . Brand + Brand Governance + Brand Governance Finance accepts no responsibility and Scandinavia Alexander Todoran [email protected] + Brand Architecture & + Brand Architecture & will not be liable in the event that the Singapore Samir Dixit [email protected] Portfolio Management Portfolio Management publicly available information relied upon is subsequently found to be South Africa Jeremy Sampson [email protected] + Brand Positioning & + Brand Positioning & inaccurate. Spain Lorena Jorge ramirez [email protected] Extension Extension Sri Lanka Ruchi Gunewardene [email protected] + Franchising & Licensing + Mergers, Acquisitions and The opinions and financial analysis expressed in the report are not to be Switzerland Victoire Ruault [email protected] Finance Raising Due construed as providing investment or Diligence business advice. Brand Finance does Turkey Muhterem Ilgüner [email protected] not intend the report to be relied upon UK Alex Haigh [email protected] + Franchising & Licensing for any reason and excludes all liability + Tax & Transfer Pricing to any body, government or USA Ken Runkel [email protected] + Expert Witness organisation. Vietnam Lai Tien Manh [email protected]

16. Brand Finance Mexico 50 June 2017 Brand Finance Mexico 50 June 2017 17. Contact us.

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