Bridging the gap between and finance™

An introduction to Finance The world’s leading brand valuation and strategy consultancy

July 2011 What makes us different? Our proposition

• We are the world’s leading independent brand valuation and strategy consultancy • We advise organisations on how to maximise shareholder through effective • We are specialists with a unique combination of marketing, research, management and finance expertise • We have extensive global experience of brand valuation, analytics, strategy and transactions

Bridging the gap between marketing and finance Valuation I Analytics I Strategy I Transactions

Brand Finance overview 2 Our services

At Brand Finance, we are entirely focussed on quantifying and leveraging intangible asset value. Our services compliment and support each other, resulting in robust valuation methodologies, which are underpinned by an in-depth understanding of revenue drivers and licensing practice.

Valuation Analytics Strategy Transactions We perform valuations for Our analytical services We give marketers the We help private equity financial reporting, tax help clients to better framework to make companies, venture planning, M&A activities, understand the drivers of effective economic capitalists and branded joint ventures, IPOs and business and brand decisions. Our value- businesses to identify and other transactions. We value. Understanding how based marketing service assess the value work closely with value is created, where it enables companies to opportunities through auditors, tax authorities is created and the focus on the best brand and market due and lawyers. relationship between opportunities, allocate diligence and brand brand value and business budgets to activities that licensing. value is a vital input to have the most impact, strategic decision making. measure the results and articulate the return on brand investment.

Financial reporting Brand equity drivers Brand strategy Brand due diligence Tax and transfer Brand architecture Brand licensing Litigation Brand risk analysis Fundraising (ßrandßeta®) Investor relations Budget setting and allocation Brand scorecards Brand value added (BVA®) Marketing mix modelling Marketing ROI

Brand Finance overview 3 Our global footprint With over 20 offices worldwide

Finland

France Russia

U.K. (HQ) Canada Holland

Switzerland Croatia

Dubai USA Portugal Hong Kong Greece India Spain Turkey

Sri Lanka

Singapore

Brazil Australia South Africa

Brand Finance overview 4 Our approach to value-based marketing projects

• Brand Finance’s approach has been designed to allow clients to manage their more intelligently and deliver improved business results • Each step in the process is tailored to the client’s specific needs and the level of sophistication required, from ‘high level’ to ‘highly granular’

Market Research Marketing Mix Optimisation

Brand Equity Measurement

Strategic Brand Dynamic Brand Valuation Valuation Model Discovery

Value Drivers Analysis Brand Scorecard Business Data Continuous feedback

Brand Finance overview 5 What are the benefits of conducting a strategic brand valuation? How brand valuation can enhance shareholder value

• Better understand the value of key customer segments (by geography, product, channel and customer type) • Understand the relationship between brand equity and key value drivers in the business model • Understand the strengths and weaknesses of the brand compared with key competitors • Provide a planning framework for long term strategic marketing investment • Create a framework for marketing mix modelling • Create the framework for better reporting and managing brand performance (brand scorecard or dashboard) • Create a body of information about brand performance for use in investor and banking presentations

Brand Finance overview 6 Brand Strategic Dynamic Brand Equity Marketing Mix Brand Discovery & Brand Valuation Measurement Optimisation Scorecard Value Drivers Valuation Model

• What is legal & • What are key drivers • What is the value of • What is the optimal • Can we connect • Which markets, economic status of of brand equity? my brand and what marketing mix to marketing customers, brands the brand? does it contribute to maximise short term investments, drivers, and channels will • What is the relative business value? ? & health indicators generate the highest • What are the most importance of each to financial KPI’s return and maximise important driver to my • Which segments of • What is the return and shareholder shareholder value? competitive customers (by my business are on my promotional value? pressures in the segment)? generating the most marketing spend? • What value is at risk markets the brand is value? • How can we track if we fail to • How do I perform operating in? performance over adequately support versus my • How should I time and capture the brand? • How is marketing competitors on key allocate my data systematically budget allocated drivers? resources? • What is the impact for improved and how does this on customer Questions • How strong is my • How does brand decision-making and compare with the behaviour and brand relative to its equity link to in-depth competition? financial competitors? business results and understanding of performance of • What data gaps branded business value drivers? improved customer must be addressed? value? perception on key drivers?

• Brand Insight report • Brand Equity Driver • Business and brand • Demand Driver • Brand Dashboard • Strategy selection analysis valuation framework analysis (high level snapshot • Marketing • Portfolio for management) communication • Brand Strength • Brand Valued • Econometric management review analysis Added® modelling • Brand Scorecard (in • Brand architecture (Brandβeta® Index) depth diagnostic tool • Market • Portfolio analysis • Marketing ROI for marketers) • Resource allocation Attractiveness Index • Competitor • Budget setting benchmarking • ‘Value at risk’ •

Services • Resource allocation analysis review matrix • Scenario modelling • Data gap analysis 7 Our clients Blue chip clients

Brand Finance works for a wide range of clients conducting national and international brand valuation and brand strategy assignments. Here is a small selection of the clients we have worked with.

Brand Finance overview 8 Technical recognition

Our work is frequently peer-reviewed by independent audit practices and our approach has been accepted by regulatory bodies worldwide.

Brand Finance overview 9 Technical recognition ISO 10668 global standard for brand valuations

In December 2010, Brand Finance The certification program was developed became one of the very few companies in collaboration with the Austrian in the world to be accredited with the Standards plus Certification, which has ISO 10668 global standard for brand attested that Brand Finance conducts its valuations. brand valuations in accordance with the new standard, which requires three key ISO 10668 is the international norm that phases of work: sets minimum standard requirements for the procedures and methods used to • IP audit and review (legal review) determine the monetary value of brands. • Behavioural analysis (market research David Haigh, CEO Brand Finance, was review) the UK representative on the ISO • Valuation (financial review) working party and chaired drafting meetings over a 2 year period to shape ISO 10668 – ‘Brand valuation – Basic requirements for methods of monetary brand valuation’

Brand Finance overview 10 Global recognition

Global press coverage: Media commentators:

Publications:

Brand Finance overview 11 Global recognition Investor Relations

The results of our studies are used by leading global brands as a performance benchmark – many including the results in annual financial and sustainability reporting to shareholders and other stakeholders.

Brand Finance overview 12 Thought Leadership Global Brand Studies

in association with: Every year Brand Finance produces Our studies illustrate the value of brands Global Brand Studies, which provide an and the financial impact of a brand on its opinion on the point-in-time value of the respective business. Additionally, the strongest and most valuable brands in the studies illustrate how our methodology, world. findings and value-based marketing techniques can be used for decision- Over the years Brand Finance has making and to determine the impact of teamed up with all the major publications brand equity on business performance. to publish the results. Studies include:

• BrandFinance® Global 500

• BrandFinance® Global Intangible Finance Tracker (GIFT™)

• BrandFinance® Nation Brands

• Sector specific studies (e.g. Banking, Telecoms and Insurance)

Brand Finance overview 13 Thought Leadership Brand Finance Forums

Brand Finance is committed to the development of theoretical and practical issues surrounding brands. As part of this process, we organise a series of events and forums around the world where leading practitioners in the area of brand strategy, brand building and brand valuation come together to share their experiences and to better understand the process by which valuable brands are created. The Brand Finance Forum has progressively become one of the definitive events in the area of brand valuation and should not be missed by anyone who is serious about maximising the value of their brands and intangible assets.

Raoul Pinnell, Understanding the role of the brand in Visit www.brandfinanceforum.com Ex-Chairman Shell Brands International, “ the generation of profit is vital to all Switzerland businesses. The Brand Finance Forum helped to create a breakthrough for my company. ” Brand Finance overview 14 The results of our studies are published on Brandirectory - 2011 results -

Brandirectory is an invaluable resource for brand managers, offering detailed Visit www.brandirectory.com brand profiles and comparative analysis across all major commercial sectors.

Brand Finance overview 15 David Haigh Muhterem İlgüner CEO – Brand Finance plc MD – Brand Finance Turkey [email protected] [email protected] +44 (0) 207 389 9400 +90 (0) 212 323 6810 +44 (0) 7855 153 725 +90 (0) 533 265 1365

 Thank you

Brand Finance works for a wide range of clients conducting national and international brand valuation and brand strategy assignments. Brand Finance has a global footprint over 20 offices worldwide. For more information please refer to our website: www.brandfinance.com

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