The Brand Finance Top 100 Malaysia Brands 2015 November 2015
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Malaysia 100 2015The Brand Finance Top 100 Malaysia Brands 2015 November 2015 Brand Finance Malaysia 100 November 2015 1. Foreword Foreword Over the past two decades, Brand Finance has been values available. Each brand has also been given a ranking of Top Malaysian Brands by Brand Finance and dedicated in helping companies track and measure brand rating, which indicates its strength, risk and hope that the market will benefit from the insights and their investments in their intangible asset portfolio. future potential relative to its competitors. information captured in this report. Certain steps can be undertaken to ensure that an I am therefore very excited to announce the annual economic value driven strategy occurs throughout the organization. 1. Accountability – ensure that all invested funds are Technology has enabled consumers to electively accounted for through returns on investment analysis research brands. Savvy brand owners will need to ensure that quality investments are made to grow brand 2. Credibility – ensure that investments are linked to share and presence. David Haigh organizational objectives Chief Executive Officer We have also observed that a number of brand 3. KPI’s setting – Economic returns based marketing Brand Finance plc valuation consultancies produce brand value league ROI becomes extremely critical to assess the success tables using methods that do not stand up to technical of marketing contribution to the bottom line, in hard scrutiny or to the ISO Standards for Brand Valuation. dollar value terms vs. softer qualitative KPIs currently Brand Finance is dedicated to using brand valuation as Brand Finance rankings are the world’s only published measured. an input for strategic decisions and driving ranking of ISO compliant brand values. We use organizational performance quantitative market data, detailed financial information Valuations are a great tool to evaluate the returns on Alfredo Chandra and expert opinion to provide reliable Brand Strength The transition into an intangible driven economy has investments as it drives the monitoring and tracking of Director, Index Ratings and Brand Values. Our methods are never been as prominent as it is today. Seven of the top the long term performance of your investments. Brand Finance Asia Pacific technically advanced, which conform to ISO Standards ten Most Valuable Global Brands (Apple, Samsung, and are well recognised by our peers, by various Google, Microsoft, Verizon, AT&T and amazon.com) are technical authorities and by academic institutions. in technology related industries, where investment in Brand Finance has seen the evolution of brands in Asia over the last fifteen years. Despite there being a number brand and R&D is important in staying relevant to The brand values show how important an asset these of good quality brands in Asia, there have been few consumers. brands are to their respective owners. As a result, we iconic brands which have risen from the region. The firmly believe that an economic value-based ROI brand years as corporate performance is increasingly driven brands that have been able to compete on the world management approach can offer marketers and by exploitation of ideas, information, expertise and stage have managed to do so by capturing every step financiers critical insight into their marketing activities. services rather than physical products. of the customer experience journey and translating that This becomes even more important in a time when to the brand promise. Malaysian brands are heavily marketing budgets are being heavily scrutinised. Intangibles make up for over 39% of the value of an focused on the domestic market, but are slowly enterprise in Malaysia. Yet, it’s an area of least focus growing their regional presence. The lack of a global amongst the management. While marketers do not presence of Malaysian brands is quite surprising. measure or care much about the intangible assets, the discrepancy between market and book values shows Against the backdrop of slower economic growth in the that investors do. The intangibles are driven by the region, Asian brands will face greater challenges, both brand and equity and not sales. regionally and globally. We expect that marketing budgets will be scrutinized across industries including Samir Dixit Knowing and tracking the value of your brand therefore banking, food & beverage, manufacturing, and retailing. Managing Director, is a critical aspect, to provide tangible, financial These sectors face a conundrum as emerging Brand Finance Asia Pacific evidence of the Brands status as assets and an companies in the technology industry disrupt the indication of the value generated through the traditional counterparts by investing heavily in investment in brand equity. marketing and technology capabilities that focus on We are in the ideas economy. The economy of user experience. Gone are the days where the quantity intangibles. The balance between tangibles and The 2015 ranking report pits the best Malaysian brands of marketing investment drives customer purchase. intangibles has changed dramatically over the past 50 against one another in the most definitive list of brand Brand Finance Malaysia 100 November 2015 2. Brand Finance Malaysia 100 November 2015 3. Contents David’s Foreword 2 Samir’s Foreword 2 Alfredo’s Foreword 3 Introduction 6 Report Card on Intangible Assets 7 Getting a Grip on Intangibles 8 – 11 Malaysia Top 10 Page 12 Report Card on the Top 10 13 – 17 Top 100 Brands Listing 18 – 19 Background on Intangible Asset Value 20 – 23 Trademarks and Other Intangibles 24 – 25 New International Standard on Brand Valuation 26 – 32 Transparency in Brand Valuation 33 Methodology 34 – 35 Glossary of Terms 36 About Brand Finance 37 Contact Details 38 Understand Your Brand Value 39 – 40 Brand Finance Malaysia 100 November 2015 5. Introduction Report Card on Intangible Assets Brand Finance has been researching and tracking the understood intangibles still are by investors and Malaysia’s intangible assets increased by US$12 Malaysia USD$BN % role of intangible assets since 2001 as part of its annual management alike – and how out of date accounting billion in 2014 as compared to the US$8 billion Enterprise Value 471 100 Global Intangible Finance Tracker (GIFT™) with an practice is. decrease in 2013 Net Tangible Assets 287 61 emphasis on helping corporations understand brand Disclosed Intangible Assets (Exc. Goodwill) 37 8 strength and value. Such ignorance leads to poor decision-making By the end of 2014, total enterprise value of Malaysia Disclosed Goodwill 13 3 companies and systematic mis-pricing of stock by increased to US$471 billion. *Undisclosed Value* 133 28 Brand Finance has found that intangible assets play a investors. significant part in enterprise value generation. The Intangible assets value made up 39% of enterprise value, GIFT™ is a study that tracks the performance of Purpose of study decreased 9% compared to 48% in 2013. This result is TOP 10 SECTORS BY ENTERPRISE VALUE SPLIT (VALUE) 2014 (US$ BILLION) intangible assets on a global level. significantly lower than the global average where the To this end, our study aims to examine the performance intangible asset % of enterprise value is 53%. The GIFT™ is the most extensive study on intangible of Malaysia’s intangible assets and brands. Transportation assets, covering 120 national stock markets, more than Spotlight On Sectors Chemicals Oil&Gas Services 58,000 companies, representing 99% of total global For the intangible asset study, the total enterprise value Food market capitalisation. The analysis goes back over a of corporate Malaysia is divided into four components Total Enterprise value of the Top 10 Sectors in Real Estate fourteen-year period from the end of December 2014. shown below. Malaysia is worth US$371 billion. The ten largest Lodging sectors for Malaysia are Banking & DFS, Agriculture Currently, 52% of global market value is vested in Telecommunications, Holding Companies, Agriculture, Holding Companies-… intangible assets. There is just a marginal decrease as Undisclosed Value Disclosed Goodwill Lodging, Real Estate, Food, Oil & Gas Services, Telecommunications compared to last year. However, the management The difference between Goodwill disclosed on Chemicals and Transportation. Banks & DFS paradigm is yet to shift in tandem with large proportion the market and book value balance sheet as a result -50 - 50 100 150 and the importance of intangible assets. Banking & DFS Sector has the highest enterprise of shareholders’ equity, of acquisitions Net Tangible Assets Disclosed Intangibles (ex g/w) Goodwill Undisclosed Value value. The Banking & DFS sector holds the number 1 often referred to as the Copyright Brand Finance plc In this year’s GIFT™ 2015 report , the Enterprise Value of premium book value position for the highest Enterprise Value of US$112 the companies covered has increased by $40.3 trillion billion. Telecommunications sector is number 2 with an Disclosed Intangible Tangible Net Assets since the end of 2001: of that increase, $22.2 trillion has Enterprise Value of US$59 billion, followed by the TOP 10 SECTORS BY ENTERPRISE VALUE SPLIT Assets (% AGE) 2014 (US$ BILLION) been an increase in Net Tangible Assets, $7.7 trillion an Holding Companies sector at number 3 with an increase in disclosed intangible assets (including Intangible assets Tangible net assets is Enterprise Value of US$54 billion. Agriculture sector has disclosed on balance added to investments, goodwill) and