The Annual Report on the Most Valuable and Strongest Finnish Brands May 2020 Contents

Finland 25

2020The annual report on the most valuable and strongest Finnish brands May 2020 Contents.

About Brand Finance 4 Get in Touch 4 Brandirectory.com 6 Brand Finance Group 6 Foreword 8 Executive Summary 10 Brand Finance Finland 25 (EUR m) 13 Brand Finance Nordic 50 (EUR m) 16 Sector Reputation Analysis 18 COVID-19 Global Impact Analysis 20 Definitions 24 Brand Valuation Methodology 26 Market Research Methodology 27 Stakeholder Equity Measures 27 Consulting Services 28 Brand Evaluation Services 29 Communications Services 30 Brand Finance Network 32

Brand Finance Finland 25 May 2020 3 About Brand Finance.

Brand Finance is the world's leading independent brand valuation consultancy. Request your own We bridge the gap between marketing and finance Brand Value Report Brand Finance was set up in 1996 with the aim of 'bridging the gap between marketing and finance'. For more than 20 A Brand Value Report provides a years, we have helped companies and organisations of all types to connect their brands to the bottom line. complete breakdown of the assumptions, data sources, and calculations used We quantify the financial value of brands We put 5,000 of the world’s biggest brands to the test to arrive at your brand’s value. every year. Ranking brands across all sectors and countries, we publish nearly 100 reports annually. Each report includes expert recommendations for growing brand We offer a unique combination of expertise Insight Our teams have experience across a wide range of value to drive business performance disciplines from marketing and market research, to and offers a cost-effective way to brand strategy and visual identity, to tax and accounting. gaining a better understanding of rt your position against competitors. Strategy o We pride ourselves on technical credibility ep Brand Finance is a chartered accountancy firm regulated R by the Institute of Chartered Accountants in England and e u Wales, and the first brand valuation consultancy to join l the International Valuation Standards Council. a V

Benchmarking Our experts helped craft the internationally recognised d standards on Brand Valuation – ISO 10668 and Brand n

Evaluation – ISO 20671. Our methodology has been a r

certified by global independent auditors – Austrian B

Standards – as compliant with both, and received

Brand Valuation the official approval of the Marketing Accountability f

Summary

Standards Board. Brand o

Strength Tracking s

Education t

ﬁ

e Get in Touch. hat’ Royalty Rates B W s in a For business enquiries, please contact: B Richard Haigh ra Managing Director linkedin.com/company/brand-finance n Cost of +44 7725 314400 d Communication [email protected] V Capital Analysis a For media enquiries, please contact: l Florina Cormack-Loyd twitter.com/brandfinance u Senior Communications Manager e +44 7939 118932 Understanding [email protected] R Customer facebook.com/brandfinance e Research Findings For all other enquiries, please contact: p [email protected] +44 (0)207 389 9400 o

For more information, please visit our website: instagram.com/brand.finance t www.brandfinance.com ? Competitor

4 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/[email protected] Benchmarking Brand Finance Finland 25 May 2020 5 Brandirectory.com

Brandirectory is the world’s largest database of current Customer insight and historical brand values, providing easy access to all Brand Finance rankings, reports, whitepapers, and consumer research published since 2007. drives our valuations + Browse thousands of published brand values Our brand valuations are underpinned by extensive market + Track brand value, strength, and rating across publications and over time research across a wide range of sectors, countries and brands. + Use interactive charts to compare brand values Our research integrates all key brand measures, linking them across countries, sectors, and global rankings to commercial outcomes. + Purchase and instantly unlock premium data, complete brand rankings, and research Available for purchase separately or as part of a Brand Value Report. Visit brandirectory.com to find out more.

Brand Finance Group. Over 1,500 brands researched each year and covered Brand Dialogue 29 countries 10 sectors Brand Dialogue is a public relations agency developing communications strategies to create dialogue that More than 50,000 respondents surveyed annually drives brand value. Brand Dialogue has over 25 years of experience in delivering campaigns driven Key metrics across all industries and brands by research, measurement, and strategic thinking for a variety of clients, with a strong background in geographic branding, including supporting nation B2B and B2C results brands and brands with a geographical indication (GI). Brand Dialogue manages communications activities We are now in our 4th consecutive year conducting the study across Brand Finance Group's companies and network.

Brand Exchange Brand Exchange is a contemporary and exclusive members' club and events space nestled in the heart of the City of London. It was launched in 2015 to provide members with a private space to network and socialise. The club has since held several prestigious events and welcomed many key figures in the marketing and finance sectors as speakers. The membership brings together senior professionals from the world's strongest and most valuable brands.

VI360 VI360 is a brand identity management consultancy working for clients of all sizes on brand compliance, brand transition, and brand identity management. VI360 provide straightforward and practical brand management that results in tangible benefits for your business.

6 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/[email protected] Brand Finance Finland 25 May 2020 7 Foreword. It’s All in the

What is the purpose of a strong brand: to attract customers, to build loyalty, to Name: Finlandia motivate staff? All true, but for a commercial brand at least, the first answer must always be ‘to make money’. Named Finland’s Huge investments are made in the design, launch, and ongoing promotion of brands. Given their potential financial value, this makes sense. Unfortunately, most organisations fail to go beyond that, missing huge opportunities to effectively make use of what are often their most important assets. Monitoring of brand performance Strongest Brand should be the next step, but is often sporadic. Where it does take place, it frequently lacks financial rigour and is heavily reliant on qualitative measures, poorly understood by non-marketers. But Finnish David Haigh As a result, marketing teams struggle to communicate the value of their work and CEO, Brand Finance boards then underestimate the significance of their brands to the business. Sceptical finance teams, unconvinced by what they perceive as marketing mumbo jumbo, Brands Could may fail to agree necessary investments. What marketing spend there is, can end up poorly directed as marketers are left to operate with insufficient financial guidance or accountability. The end result can be a slow but steady downward spiral of poor communication, wasted resources, and a negative impact on the bottom line. Lose 11% of

Brand Finance bridges the gap between marketing and finance. Our teams have experience across a wide range of disciplines from market research and visual Brand Value identity, to tax and accounting. We understand the importance of design, advertising, and marketing, but we also believe that the ultimate and overriding purpose of brands is to make money. That is why we connect brands to the bottom line. from COVID-19 By valuing brands, we provide a mutually intelligible language for marketing and finance teams. Marketers then have the ability to communicate the significance of what they do, and boards can use the information to chart a course that maximises Top 25 most valuable Finnish brands stand to lose profits. Without knowing the precise, financial value of an asset, how can you + know if you are maximising your returns? If you are intending to license a brand, up to 11% of brand value following devasting how can you know you are getting a fair price? If you are intending to sell, how do COVID-19 pandemic you know what the right time is? How do you decide which brands to discontinue, whether to rebrand and how to arrange your brand architecture? Brand Finance has conducted thousands of brand and branded business valuations to help answer + Nokia retains title of nation’s most valuable brand these questions. for 5th consecutive year, brand value €8.9 billion Brand Finance’s research revealed the compelling link between strong brands and stock market performance. It was found that investing in highly-branded companies + Kesko is nation’s fastest growing brand, up 49% would lead to a return almost double that of the average for the S&P 500 as a whole. + In contrast, Stora Enso is Finland’s fastest falling Acknowledging and managing a company’s intangible assets taps into the hidden value that lies within it. The following report is a first step to understanding more about brand, down 22% and dropping 6 spots in ranking brands, how to value them and how to use that information to benefit the business. + Finlandia is nation’s strongest brand, Brand The team and I look forward to continuing the conversation with you. Strength Index (BSI) score 81.6 out of 100

8 Brand Finance Finland 25 May 2020 Brand Finance Finland 25 May 2020 9 Executive Summary.

Executive Summary.

in cutting-edge 5G technology are expected to Top 10 Most Valuable Brands continue to pay off in coming years, putting Nokia in a prime position to compete with its peers. The 0 1 brand has cited supply chain issues in China and 1 G other parts of Asia - as a reason for a dip in sales 2020: € 8,943m +5.6% in Q1 2020. However, the brand also witnessed a 2019: € 8,469m massive increase in network capacity demands. 0 2 Kesko is fastest growing at home & 2 m across region 2020: € 2,168m +37.7% 2019: € 1,574m Following an impressive 49% brand value increase to €1.2 billion and simultaneously jumping two places in 0 3 the ranking to 5th spot, Kesko is the fastest growing 3 z As the COVID-19 pandemic wreaks havoc on the The telecoms industry is one of brand in Finland and the fastest growing brand in the 2020: € 1,470m +15.2% global and national economy, Finland’s top 25 most the few sectors in the economy Nordic region. 2019: € 1,276m valuable brands could lose up to 11% of brand value cumulatively, a drop of €2.7 billion compared to the that should see limited impact The Helsinki-headquartered trader – specialising 3 NEW st G original valuation date of 1 January 2020. as a result of COVID-19. In fact, in groceries, building & technical, and car trade 4 – has celebrated record results over the previous 2020: € 1,217m NEW Looking beyond Finland, the value of the 500 telecoms brands have the year, with net sales up 3%. This boost in brand 2019: – most valuable brands in the world, ranked in the opportunity to embrace the value is testament to the brand’s continued focus Brand Finance Global 500 2020 league table, could on its growth strategy, to align all divisions of the 2 7 D fall by an estimated €1 trillion as a result of the working from home revolution, business, and the successful implementation of its 5 Coronavirus outbreak. customer centric approach. 2020: € 1,213m +49.2% which has led to extraordinary 2019: € 813m Brand Finance has assessed the impact of COVID-19 demand for remote working based on the effect of the outbreak on enterprise resources and connectivity. No 1 4 o value, compared to what it was on 1st January 2020. 6 Based on this impact on enterprise value, Brand doubt Finland’s leading brand 2020: € 1,160m +31.4% Finance estimated the likely impact on brand value Nokia will be hoping to embrace Brand Value over Time 2019: € 883m for each sector. The industries have been classified this shift. into three categories – limited impact (minimal 2 9 H brand value loss or potential brand value growth), 7 moderate impact (up to 10% brand value loss), and Savio D'Souza 2020: € 753m -1.8% 2019: € 767m heavy impact (up to 20% brand value loss) – based Director, Brand Finance on the level of brand value loss observed for each sector in the first quarter of 2020. 8 3 NEW m 2020: € 744m Nokia rings in again as Finland’s NEW most valuable brand 2019: – EUR bn In a newly expanded ranking that showcases Finland’s 1 8 L top 25 most valuable brands, Nokia has claimed 9 2020: € 727m the title of Finland’s most valuable brand for the 5th -8.6% 2019: € 796m consecutive year. The telecoms giant is also the 4th most valuable brand in the entire Nordic region. 10 3 NEW D Despite only recording a marginal 6% increase in Nokia Kone Neste 2020: € 701m brand value to €8.9 billion, the brand’s investment ● ● ● NEW

S-Market Supercell 2019: – © Brand Finance Plc 2020 © Brand Finance Plc 2020 ● ●

10 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 11 Executive Summary. Executive Summary. Brand Finance Finland 25 (EUR m).

Brand Value Change 2019-2020 (%) Kesko has already been negotiating the changing car trade market, which has slowed as a result of growing Kesko +49.2% environmental concerns and uncertainty around car taxation. With pressure increasing from the COVID-19 pandemic, Kesko has already had to issue a profit

Kone +37.7% warning. Despite demand for food remaining high, this is unlikely to offset the drop in demand for its other core businesses. Valio +31.4% Stora Enso drops 6 positions

In contrast, manufacturer Stora Enso is the fastest Neste +15.2% falling brand in the ranking, its brand value decreasing 22% to €665 million, and dropping 6 positions from 5th to 11th. Stora Enso’s profits have slumped continually -1.8% Elisa over the previous few years as the brand faces a multitude of issues, from significantly lower prices and lower paper volumes to Brexit uncertainty. -8.6% Fortum A three-week labour strike at the beginning of the year was predicted to damage Stora Enso’s profits

-19.7% Yit by up to €11 million a week. This, combined with the unprecedented uncertainty surrounding COVID-19, which has already resulted in thousands of temporary Top 25 most valuable Finnish brands layoffs, marks a difficult journey ahead for the pulp and 2020 Brand 2019 2020 2019 -22.0% Stora Enso paper manufacturer. 2020 2019 Brand Value Brand Brand Brand Rank Rank Brand Sector Value Change Value Rating Rating © Brand Finance Plc 2020 1 1 0 Nokia Technology € 8,943 +5.6% € 8,469 AA+ AA+ 2 2 0 Kone Engineering & Construction € 2,168 +37.7% € 1,574 AA+ AA- 0 Brand Value by Sector 3 3 Neste Oil & Gas € 1,470 +15.2% € 1,276 AA AA 4 - 3 Supercell Technology € 1,217 - - AA - 5 7 2 Kesko Retail € 1,213 +49.2% € 813 A A 6 4 1 Valio Food € 1,160 +31.4% € 883 AA A+ 7 9 2 Elisa Telecoms € 753 -1.8% € 767 AA AA Brand 8 - 3 Upm Materials € 744 - - A - Value % of Number of 9 8 1 Fortum Utilities € 727 -8.6% € 796 A+ AA- Sector (EUR bn) total Brands 10 - 3 S-Market Retail € 701 - - AA- - 11 5 1 Stora Enso Materials Tech 10.2 40.1% 2 ● 12 - 3 Fazer Food Engineering & ● 3.8 15.0% 5 13 - 3 Tieto IT Services Construction 14 - 3 Huhtamaki Packaging ● Retail 2.6 10.2% 4 15 - 3 Wartsila Engineering & Construction 16 - 3 Dna Telecoms Food 1.7 6.7% 2 ● 17 - 3 Konecranes Engineering & Construction ● Oil & Gas 1.5 5.9% 1 18 - 3 Sanoma Media ● Materials 1.4 5.5% 2 19 - 3 Metso Engineering & Construction 20 - 3 Prisma Retail ● Other 4.3 16.9% 9 21 10 1 Yit Engineering & Construction Total 25.4 100.0% 25 22 - 3 Op Bank Banks 23 - 3 Finlandia Spirits 24 - 3 Nokian Renkaat Tyres 3

12 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 13 Executive Summary. Executive Summary.

Top 10 Strongest Brands Ones to watch: Neste and Supercell

3 F Oil & gas brand Neste (up 15% to €1.5 billion) is a 1 key brand to watch in this year’s ranking. The brand rd 2020: 81.6 AAA- NEW is firmly established as the 3 most valuable brand 2019: – in Finland and its 10% brand value growth marks a solid performance that is likely to continue in the 2 5 m future. Strategic expansion into renewable products 2 - including renewable aviation and renewable 2020: 77.4 AA+ +10.5 polymers and chemicals - is expected to bolster the 2019: 66.9 AA- brand’s burgeoning reputation for sustainability.

1 1 G The highest new entrant into the ranking in 4th 3 position is mobile gaming brand Supercell, with a 2020: 74.6 AA+ -0.2 brand value of €1.2 billion. Chinese internet giant 2019: 74.8 AA+ Tencent acquired majority control over the Clash of Clans and Clash Royale maker last year. At its peak 3 NEW H in 2018, Clash of Clans was bringing in a staggering 4 US$1.5 million a day. 2020: 74.4 AA NEW 2019: – Cheers to Finlandia as nation’s strongest 3 NEW I 5 In addition to measuring overall brand value, Brand 2020: 72.6 AA NEW Finance also evaluates the relative strength of brands, 2019: – based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate 1 4 H reputation. Alongside revenue forecasts, brand 6 strength is a crucial driver of brand value. According 2020: 71.9 AA +1.2 to these criteria, Finlandia (brand value €340 2019: 70.7 AA million) is Finland’s strongest brand with a Brand Strength Index (BSI) score of 81.6 out of 100 and a 7 1 3 z corresponding AAA- brand strength rating. 2020: 71.6 AA -0.2 As one of the world’s top ten selling vodka brands, 2019: 71.8 AA Finlandia, has cemented its position as a leader in key markets – most notably Poland, where 8 3 NEW D the brand accounts for 50% of all vodka sales. Finlandia has celebrated strong CSR scores, 2020: 70.8 AA NEW 2019: – a result of parent company Brown–Forman’s continued commitment to and support of the United Nations Global Compact and the Sustainable 9 3 NEW G Development Goals. 2020: 70.0 AA NEW 2019: – Brand Finance has calculated that spirits brands could potentially lose up to 10% of their brand value, however, following the coronavirus pandemic, as 1 10 8 o brands suffer with bar and pub closures as well as travel restrictions, which are significantly impacting 2020: 69.8 AA +9.8 2019: 60.0 A+ airport sales. © Brand Finance Plc 2020

14 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 15 Brand Finance Nordic 50 (EUR m). Brand Finance Nordic 50 (EUR m).

Brand Finance Nordic 50 2020: Top 10 Most Valuable Brands Top 50 most valuable Nordic brands 2020 Brand 2019 2020 2019 Standout Sweden 2020 2019 Brand Value Brand Brand Brand Rank Rank Brand Country Sector Value Change Value Rating Rating 1 0 1 D � Swedish brands dominate the Brand Finance Nordic 1 1 0 IKEA Sweden Retail € 17,606 -5.0% € 18,541 AAA- AAA- 50 2020 ranking, claiming one in two positions, with 2020: € 17,606m -5.0% 2 3 2 Volvo Sweden Automobiles € 15,272 +26.1% € 12,110 AA AA+ a combined brand value of €89.2 billion, equating to 2019: € 18,541m 3 2 1 H&M Sweden Apparel € 12,515 -8.5% € 13,671 AA+ AAA- 58% of the total brand value. Ikea (down 9% to €17.6 4 4 0 Nokia Finland Tech € 8,943 +5.6% € 8,469 AA+ AA+ billion), Volvo (up 20% to €15.3 billion) and H&M 2 3 f � 5 5 0 Equinor Norway Oil & Gas € 8,569 +7.6% € 7,961 AAA- AAA- (down 13% to €12.5 billion) have retained the top 2 6 6 0 Lego Denmark Toys € 5,920 +1.7% € 5,819 AAA+ AAA 7 7 0 Telenor Norway Telecoms € 5,659 +14.5% € 4,943 AAA- AA 3 positions in the ranking. Six brands from Finland 2020: € 15,272m +26.1% 0 feature, compared with 25 from Sweden, 14 from 2019: € 12,110m 8 8 Nordea Sweden Banking € 4,251 -12.4% € 4,855 AA AA+ 9 9 0 Telia Company Sweden Telecoms € 4,068 +0.0% € 4,068 AAA- AAA- Denmark and 5 from Norway. 10 - 3 Spotify Sweden Media € 3,633 - - A+ 1 2 � 3 3 d 11 - Maersk Denmark Logistics Brand Finance has calculated that Nordic brands 12 11 1 Arla Denmark Food 2020: € 12,515m could stand to lose up 13% of their brand values, -8.5% 13 12 1 Svenska Handelsbanken Sweden Banking 2019: € 13,671m however, as a result of the COVID-19 pandemic, 14 10 1 Swedbank Sweden Banking equating to €19.3 billion. 15 17 2 Ericsson Sweden Tech 0 1 4 4 G � 16 13 DNB Norway Banking 17 15 1 SEB Sweden Banking 2020: € 8,943m +5.6% 18 22 2 Scania Sweden Automobiles Brand Value by Country 2019: € 8,469m 19 14 1 Danske Bank Denmark Banking 20 25 2 Kone Finland Engineering & Construction 0 5 � 21 19 1 Securitas Sweden Commercial Services 5 z 22 20 1 Skanska Sweden Engineering & Construction 23 18 1 Absolut Sweden Spirits 2020: € 8,569m +7.6% 2019: € 7,961m 24 21 1 Vestas Denmark Engineering & Construction 25 28 2 DSV Denmark Logistics 26 30 2 Vattenfall Sweden Utilities 0 6 � 1 6 K 27 16 Pandora Denmark Apparel 28 23 1 Sandvik Sweden Engineering & Construction 2020: € 5,920m +1.7% 29 24 1 Atlas Copco Sweden Engineering & Construction 2019: € 5,819m 30 27 1 Novo Nordisk Denmark Pharma 31 26 1 ISS Denmark Commercial Services 1 7 0 7 H � 32 29 Neste Finland Oil & Gas 33 34 2 Danfoss Denmark Engineering & Construction 2020: € 5,659m +14.5% 34 31 1 Carlsberg Denmark Beers 2019: € 4,943m 35 40 2 Ørsted Denmark Utilities 36 47 2 If Sweden Insurance 0 8 � 37 - 3 Supercell Finland Media 8 g 38 48 2 Kesko Finland Retail 39 - 3 Aker BP Norway Oil & Gas 2020: € 4,251m -12.4% 2019: € 4,855m 40 33 1 Essity Sweden Household Products Brand 41 44 2 Valio Finland Food Value % of Number of 42 32 1 SKF Sweden Engineering & Construction 0 9 Country (EUR ) total Brands 9 H � 43 37 1 Tele2 Sweden Telecoms 44 42 1 Nykredit Denmark Banking 2020: € 4,068m ● Sweden 89.2 58.3% 25 +0.0% 45 43 1 NCC Sweden Engineering & Construction 2019: € 4,068m ● Denmark 28.8 18.8% 14 46 41 1 Electrolux Sweden Tech 47 39 1 ICA Sweden Retail Norway 18.7 12.3% 5 ● 3 1 10 x � 48 45 Peab Sweden Engineering & Construction ● Finland 16.2 10.6% 6 49 36 1 Yara Norway Chemicals 2020: € 3,633m 50 - 3 Tuborg Denmark Beers Total 152.9 100.0% 50 NEW 2019: – © Brand Finance Plc 2020

16 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 17 Sector Reputation Analysis.

Sector Reputation Analysis.

Benchmarking against the best Sectors Ranked by Reputation Top Sectors per Metric Tech halo shining less brightly

Every brand owner will want to compare brand Consumers continue to hold the tech sector in equity against immediate competitors and peers. 1 Metric Top Sector high regard, even though reputation scores have But broader benchmarking against brands across f Auto 6.9/10 fallen slightly. In part, any decline may be because a range of categories provides a more rounded issues in the public spotlight are finally impacting assessment of brand strength. the reputation of some industry giants. Reputation scores for Facebook (6.3) and Uber (5.7) are all This perspective is also important as brand 2 Reputation lower by 0.5 points, and Huawei (6.2) is under the categories converge, with new technologies enabling Tech /10 global spotlight. G 6.8 AUTO disruption and brands seeking tactical entry into neighbouring categories, like a trusted supermarket Nevertheless, brands such as YouTube (7.8), offering financial services. 3= Google (7.7), and Netflix (7.4) continue to enjoy Quality strong reputations and buzz – most brands would Brand reputation is relatively straightforward to Apparel /10 love to be in their position. d 6.6 compare across sectors. This year’s global sector AUTO rankings from our B2C research are similar to the Retail & Restaurants previous wave, but there is some movement with = potential implications for future brand strategy. 3 Supermarkets and casual dining brands have Recommendation /10 moderately positive reputations overall, but these C Restaurants 6.6 (NPS) Reputation dips slightly overall two are category leaders in terms of delivering value RESTAURANTS for money. Consumers are well aware that brands On a like-for-like basis, reputation scores are lower this = in these categories are out to make a profit – but year, but only by a very small margin as the average 5 unlike for instance banks, the consumer verdict is brand score fell from 6.6 to 6.4 out of 10. Categories b Airlines 6.6/10 that brands such as McDonalds (39% ‘great value’) where a poor reputation is the default position, such as Loyalty and Tim Hortons (38%) charge a fair price, though utilities, telecoms, and banks, have failed to convince Starbucks (15%) is a notable exception. customers that they are consumer champions – and = TECH the global average score reflects overall feelings 5 Banks still in the red towards brands: acceptance and appreciation, but D Retail 6.5/10 rarely love and devotion. Banking brands continue to struggle to earn the Innovation respect of consumers and are seen as offering poor

Autos lead the way value for money. However, ratings have generally 7 TECH stabilised – the key challenge is to show growth. Car brands continue to enjoy strong reputations. t Insurance 6.4/10 The sector also ranks first on other indicators, such The broader set of scores in our research shows as recommendation and word-of-mouth sentiment Website/App glimmers of opportunity. Banks fare reasonably well on – people like talking about cars and top brands 8 customer service, caring about the community, and for such as Audi (reputation score 7.5/10) and BMW TECH website/app quality. For national and regional banks (7.7) remain sought after. At the top of the car brand L Utilities 6.3/10 especially, a community-centred positioning in an age pinnacle is where you can see true brand desire, and where in many places globalisation is being rejected, meanwhile there are few instances of brands with may be worth considering. a really poor reputation – most cars nowadays are 9= Value for money well-designed and equipped. g Banks 6.1/10 RETAIL Importantly, the category enjoys a good reputation for being innovative – allowing century-old brands to be OVERALL well-positioned to withstand the enormous disruption in = 10 STAKEHOLDER mobility expected in the coming decade. Telecoms 6.0/10 EQUITY H TECH

18 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 19 COVID-19 Global Global Impact Companies likely to ImpactAnalysis. Analysis. lose up to ¤1tn in Brand Value as Direct Impact of COVID-19 Outbreak, Effects to be Felt Well into Next Year.

+ Worst hit industries: aviation, oil & gas, tourism & leisure, restaurants, retail

+ Brand Finance has measured levels of business impact categorised by: limited impact, moderate and worst hit

+ International aviation, airlines and airports to be worst affected by Coronavirus outbreak, with measures of social distancing, closure of borders, advice against travel

+ Home delivery apps, online video conferencing platforms, digital media see surge in demand from remote working revolution

20 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 21 Executive Summary. Executive Summary.

Brand Value at Risk Up to ¤1 trillion estimated brand Work from home revolution value loss from COVID-19 globally Brands offering in-home or remote working solutions Household Products s The brand value of the world’s biggest companies have observed an immediate uptick in demand, as L Utilities is set to drop by an estimated ¤1tn as a result of the multiple Zoom online video conferencing platform H Telecoms Coronavirus outbreak, with the aviation sector being prompted huge demand for workable solutions Limited Impact o Food the most affected. The 2003 SARS outbreak, which infected about 8,000 people and killed 774, cost the Food delivery apps Deliveroo and UberEats, now -0% Pharma A global economy an estimated ¤50 billion. As of 6th May offering contact-free delivery options whereby a food l Cosmetics & Personal Care 2020, there have been 3.7 million cases and 258,000 delivery is conveniently left on your doorstep so as not to B Real Estate deaths of COVID-19 confirmed worldwide. Global encourage contact between customer and delivery driver, E Soft Drinks spread has been rapid, with nearly all countries now have also seen a huge surge in demand for their services. having reported at least one case. G Tech Media and film industry feel effects q Healthcare Brand Finance has assessed the impact of COVID-19 on n Exchanges brands based on the effect of the outbreak on enterprise f Automobiles value, compared to what it was on 1st January 2020. The Film production and promotion schedules have been likely impact on brand value was estimated per sector. affected by the outbreak, with Disney pushing back the i Car Rental Services The industries have been classified into three categories release of its remake of Mulan as well as The New w Logistics – limited impact (minimal brand value loss or potential Mutants, part of the X-Men franchise. The effects of social Moderate Impact J Tobacco brand value growth), moderate impact (up to 10% brand distancing have meant more viewers watching TV, -10% y Mining, Iron & Steel value loss), and heavy impact (up to 20% brand value however Netflix has had to suspend production on all loss) – based on the level of brand value loss observed scripted series and films in the US and Canada. As k Commercial Services for each sector in the first quarter of 2020. massive televised sports events and festivals such as F Spirits Glastonbury being cancelled, TV executives will be feeling x Media the strain of providing fresh and watchable content. m Engineering & Construction The COVID-19 pandemic is now G Electronics a major global health threat and e Auto Components its impact on global markets is However it is not all doom and b Airlines very real. Worldwide, brands gloom. Some brands will fare j Chemicals across every sector need to C Restaurants better under COVID-19: h Beers brace themselves for the Amazon, Netflix, WhatsApp, I Tyres Coronavirus to massively affect Skype, BBC and BUPA are all t Insurance their business activities, supply booming. u IT Services chain and revenues in a way David Haigh, High Impact g Banks that eclipses the 2003 SARS CEO, Brand Finance -20% v Leisure & Tourism a Aerospace & Defence outbreak. The effects will be felt d Apparel well into 2021. r Hotels David Haigh, z Oil & Gas CEO, Brand Finance c Airports D Retail i Gambling © Brand Finance Plc 2020

22 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 23 Definitions.

Definitions.

Brand Value Brand Strength

+ Enterprise Value Brand Strength is the efficacy of a brand’s Each brand is assigned a Brand Strength Index The value of the entire enterprise, made performance on intangible measures, relative (BSI) score out of 100, which feeds into the brand up of multiple branded businesses. to its competitors. value calculation. Based on the score, each brand [Sampo Group] Enterp is assigned a corresponding rating up to AAA+ in a rise Where a company has a purely mono- Va branded architecture, the ‘enterprise value’ In order to determine the strength of a brand, we look format similar to a credit rating. lue is the same as ‘branded business value’. at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. Analysing the three brand strength measures helps Br ande + Branded Business Value inform managers of a brand’s potential for future success. d B u The value of a single branded business sin e operating under the subject brand. ss V B a [If] A brand should be viewed in the context rand lu Marketing Widely recognised factors deployed by marketers to create brand loyalty C e of the business in which it operates. on Investment and market share. tr Brand Finance always conducts a branded ib u business valuation as part of any brand t io valuation. We evaluate the full brand value n chain in order to understand the links between marketing investment, brand- Stakeholder Perceptions of the brand among different stakeholder groups, tracking data, and stakeholder behaviour. Equity with customers being the most important.

+ Brand Contribution Brand The overall uplift in shareholder value Value that the business derives from owning Business Quantitative market and financial measures representing the success

the brand rather than operating Brand Strength Index Performance of the brand in achieving price and volume premium. [If] a generic brand.

The brand values contained in our league tables are those of the potentially transferable brand assets only, making ‘brand contribution’ a wider concept. Marketing Investment • A brand that has high Marketing Investment but low Stakeholder Equity may be An assessment of overall ‘brand contribution’ on a path to growth. This high investment is likely to lead to future performance in to a business provides additional insights to help optimise performance. Stakeholder Equity which would in turn lead to better Business Performance in the future. • However, high Marketing Investment over an extended period with little improvement in Stakeholder Equity would imply that the brand is unable to shape customers’ + Brand Value Investment preference. The value of the trade mark and associated marketing IP within the branded business. Stakeholder Equity [If] Equity • The same is true for Stakeholder Equity. If a company has high Stakeholder Equity, Brand Finance helped to craft the it is likely that Business Performance will improve in the future. internationally recognised standard on • However, if the brand’s poor Business Performance persists, it would suggest that Brand Valuation – ISO 10668. It defines the brand is inefficient compared to its competitors in transferring stakeholder sentiment brand as a marketing-related intangible Performance to a volume or price premium. asset including, but not limited to, names, terms, signs, symbols, logos, and designs, Business Performance intended to identify goods, services • Finally, if a brand has a strong Business Performance but scores poorly on Stakeholder or entities, creating distinctive images Equity, it would imply that, in the future, the brand’s ability to drive value will diminish. and associations in the minds of stakeholders, • However, if it is able to sustain these higher outputs, it shows that the brand thereby generating economic benefits. is particularly efficient at creating value from sentiment compared to its competitors.

24 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 25 Brand Valuation Methodology. Market Research Methodology.

Brand Finance calculates the values of the Brand Finance conducted original market research in 10 sectors across 29 markets with a sample brands in its league tables using the Royalty size of over 50,000 adults, representative of each country’s internet population aged 18+. Relief approach – a brand valuation method Surveys were conducted online during autumn 2019. compliant with the industry standards set in Brand Strength ISO 10668. Index (BSI) Brand strength This involves estimating the likely future revenues that Auto Retail are attributable to a brand by calculating a royalty rate expressed as a BSI score out of 100. that would be charged for its use, to arrive at a ‘brand Tech Insurance value’ understood as a net economic benefit that a licensor would achieve by licensing the brand in the Apparel Utilities open market. Restaurants Banking The steps in this process are as follows: Brand Airlines Telecoms 1 Calculate brand strength using a balanced scorecard Royalty Rate of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand BSI score applied strength is expressed as a Brand Strength Index (BSI) to an appropriate score on a scale of 0 to 100. sector royalty range. 2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, in extractive Stakeholder Equity Measures. industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive Key Metrics Brand converison funnel database. Brand Revenues + Reputation + Emotional Fit The brand conversion funnel is a way of summarising 3 Calculate royalty rate. The BSI score is applied to the Royalty rate applied + Innovation + Recommendation the likely strength of a brand to convert to purchase. royalty range to arrive at a royalty rate. For example, if to forecast revenues + Value for Money + Quality etc. the royalty range in a sector is 0-5% and a brand has to derive brand value. a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector Awareness will be 4%. Knowledge that your brand exists 4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable Familiarity to a brand. Brand Value Depth of knowledge of the brand 5 Determine forecast revenues using a function of Post-tax brand historic revenues, equity analyst forecasts, and revenues discounted economic growth rates. to a net present value Consideration (NPV) which equals 6 Apply the royalty rate to the forecast revenues to Narrowing down market to candidate brand set the brand value. derive brand revenues. 7 Brand revenues are discounted post-tax to a net Preference present value which equals the brand value. Category users’ brand preference

Disclaimer Loyalty Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions produced in this study are based only on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available Intention to repeat purchase information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the report are not to be construed as providing investment or business advice. Brand Finance does not intend the report to be relied upon for any reason and excludes all liability to any body, government or organisation.

26 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 27 Consulting Services. Brand Evaluation Services.

How are brands perceived 1. Valuation: What are my intangible 2. Analytics: How can I improve in my category? assets worth? marketing effectiveness? Valuations may be conducted for technical Analytical services help to uncover drivers Brand Finance tracks brand fame and perceptions purposes and to set a baseline against of demand and insights. Identifying the across 30 markets in 10 consumer categories. Clear, which potential strategic brand factors which drive consumer behaviour insightful signals of brand performance, with data scenarios can be evaluated. allows an understanding of how brands mining options for those who want to dig deeper – all at N 2. create bottom-line impact. an accessible price. + Branded Business Valuation IO AN T A + Trademark Valuation A L Market Research Analytics + U Y + Intangible Asset Valuation L T Return on Marketing Investment + What if I need more depth A I V C + Brand Contribution Brand Audits + or coverage of a more . S 1 Brand & Brand Scorecard Tracking + specialised sector?

Business Our bespoke brand scorecards help with market

N planning and can be designed to track multiple brands

Value 3

4. Transactions: O 3. Strategy: How can

S over time, against competitors, between market

Is it a good deal? C I increase the value of

R segments and against budgets. Our 30-country

Can I leverage my T my branded business? database of brand KPIs enables us to benchmark N E

G A

Y T

. 4 intangible assets? Strategic marketing services enable performance appropriately. Transaction services help buyers, brands to be leveraged to grow sellers, and owners of branded businesses businesses. Scenario modelling will Do I have the right brand get a better deal by leveraging the value of identify the best opportunities, ensuring architecture or strategy in place? their intangibles. resources are allocated to those activities which have the most impact on brand and business value. Research is conducted in addition to strategic + M&A Due Diligence analysis to provide a robust understanding + Franchising & Licensing Brand Governance + + Tax & Transfer Pricing Brand Architecture & Portfolio Management + of the current positioning. The effectiveness + Expert Witness Brand Transition + of alternative architectures is tested Brand Positioning & Extension + through drivers analysis, to determine which option(s) will stimulate the most favourable customer behaviour and financial results. How can I improve return on marketing investment?

MARKETING FINANCE TAX LEGAL Using sophisticated analytics, we have a proven track record of developing comprehensive brand scorecard We help marketers to We provide financiers and We help brand owners We help clients to enforce and brand investment frameworks to improve return on connect their brands to auditors with an and fiscal authorities to and exploit their marketing investment. business performance by independent assessment understand the intellectual property rights evaluating the return on on all forms of brand and implications of different by providing independent What about the social dimension? investment (ROI) of intangible asset tax, transfer pricing, and expert advice in- and Does my brand get talked about? brand-based decisions valuations. brand ownership outside of the courtroom. and strategies. arrangements. Social interactions have a proven commercial impact on brands. We measure actual brand conversation and advocacy, both real-world word of mouth and online buzz and sentiment, by combining traditional survey measures with best-in-class social listening.

28 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 29 Communications Services.

How we can help communicate your brand’s performance in brand value rankings

Brand Accolade – create a digital endorsement stamp for use in marketing materials, communications, annual reports, social media and website. Value-Based Communications Advertising use subject to terms and conditions. With strategic planning and creative thinking, we develop communications plans to create dialogue with stakeholders that drives brand value. Our approach is integrated, employing tailored solutions for our clients across PR, marketing and social media.

SERVICES • Research and Insights • Integrated Communications Planning • Project Management and Campaign Execution • Content and Channel Strategy TOP 25 MOST VALUABLE STRONGEST • Communications Workshops Finnish Finnish Finnish BRAND BRAND BRAND For more information, contact [email protected] or visit www.brand-dialogue.co.uk

Video Endorsement – record video with Brand Finance CEO or Director Brand Dialogue is a member of the Brand Finance plc group of companies speaking about the performance of your brand, for use in both internal and external communications.

Bespoke Events – organise an award ceremony or celebratory event, coordinate event opportunities and spearhead communications to make the most of them.

Digital Infographics – design infographics visualising your brand’s performance for use across social media platforms. BECOME A MEMBER TODAY

Trophies & Certificates – provide a trophy and/or hand-written certificate A CONTEMPORARY AND EXCLUSIVE personally signed by Brand Finance CEO to recognise your brand’s performance. MEMBERS' CLUB IN THE HEART OF THE CITY OF LONDON Sponsored Content – publish contributed articles, advertorials, and interviews with your brand leader in the relevant Brand Finance report CHARACTERFUL SPACE MEMBERS' EVENTS DISCOUNTED offered to the press. for with ROOM HIRE MEETINGS FOCUS ON MARKETING & & for PRIVATE EVENTS BRANDING Media Support – provide editorial support in reviewing or copywriting MEMBERS your press release, pitching your content to top journalists, and monitoring 3 Birchin Lane, London, EC3V 9B +44 (0)207 389 9410 [email protected] media coverage. Brand Exchange is a member of the Brand Finance plc group of companies

30 Brand Finance Finland 25 May 2020 brandfinance.com brandirectory.com/ Brand Finance Finland 25 May 2020 31 Brand Finance Network.

For further information on our services and valuation experience, please contact your local representative:

Market Contact Email Telephone Africa Jeremy Sampson j.sampson@brandfi nance.com +27 82 885 7300 Asia Pacifi c Samir Dixit s.dixit@brandfi nance.com +65 906 98 651 Australia Mark Crowe m.crowe@brandfi nance.com +61 282 498 320 Canada Charles Scarlett-Smith c.scarlett-smith@brandfi nance.com +1 514 991 5101 Caribbean Nigel Cooper n.cooper@brandfi nance.com +1 876 825 6598 China Scott Chen s.chen@brandfi nance.com +86 186 0118 8821 France Bertrand Chovet b.chovet@brandfi nance.com +33 6 86 63 46 44 Germany Holger Muehlbauer h.muehlbauer@brandfi nance.com +49 151 54 749 834 India Ajimon Francis a.francis@brandfi nance.com +91 989 208 5951 Indonesia Jimmy Halim j.halim@brandfi nance.com +62 215 3678 064 Ireland Simon Haigh s.haigh@brandfi nance.com +353 087 669 5881 Italy Massimo Pizzo m.pizzo@brandfi nance.com +39 02 303 125 105 Japan Jun Tanaka j.tanaka@brandfi nance.com +81 90 7116 1881 Mexico & LatAm Laurence Newell l.newell@brandfi nance.com +52 55 9197 1925 Middle East Andrew Campbell a.campbell@brandfi nance.com +971 508 113 341 Nigeria Tunde Odumeru t.odumeru@brandfi nance.com +234 012 911 988 Romania Mihai Bogdan m.bogdan@brandfi nance.com +40 728 702 705 Spain Teresa de Lemus t.delemus@brandfi nance.com +34 654 481 043 Sri Lanka Ruchi Gunewardene r.gunewardene@brandfi nance.com +94 11 770 9991 Turkey Muhterem Ilgüner m.ilguner@brandfi nance.com +90 216 352 67 29 UK Richard Haigh rd.haigh@brandfi nance.com +44 207 389 9400 USA Laurence Newell l.newell@brandfi nance.com +214 803 3424 Vietnam Lai Tien Manh m.lai@brandfi nance.com +84 90 259 82 28

32 Brand Finance Finland 25 May 2020 brandfinance.com Contact us.

The World’s Leading Independent Brand Valuation Consultancy T: +44 (0)20 7389 9400 E: [email protected] www.brandfinance.com