Denmark 50

2019The annual report on the most valuable and strongest Danish brands September 2019 About Brand Finance. Contents.

Brand Finance is the world’s leading independent About Brand Finance 2 brand valuation consultancy. Get in Touch 2 Brand Finance was set up in 1996 with the aim of ‘bridging Request Your Brand Value Report 4 the gap between marketing and finance’. For more than 20 years, we have helped companies and organisations of Brand Valuation Methodology 5 all types to connect their brands to the bottom line. Foreword 6 We pride ourselves on four key strengths: Brand Value Analysis 8 ++Independence ++Transparency ++Technical Credibility ++Expertise Brand Finance 50 (DKK m) 12

We put thousands of the world’s biggest brands to the Brand Finance Nordic 50 (DKK m) 14 test every year, evaluating which are the strongest and most valuable. Definitions 16

Brand Finance helped craft the internationally Consulting Services 18 recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation Brand Evaluation Services 19 – ISO 20671. Communications Services 20 Get in Touch. Brand Finance Network 22

For business enquiries, please contact: Richard Haigh Managing Director [email protected]

For media enquiries, please contact: Konrad Jagodzinski BrandirectoryGlobal Forum 2019 Communications Director [email protected]

For all other enquiries, please contact: Understanding the Value of [email protected] TheGeographic world's Branding largest +44 (0)207 389 9400 2 April 2019 brand value database. For more information, please visit our website: www.brandfinance.com Join us at the Brand Finance Global Forum, anVisit action-packed to see all day-long Brand event Finance at the Royal Automobilerankings, Club reports, in London, and as wewhitepapers explore how linkedin.com/company/brand-finance geographic branding can impact brand value, attract customers,published and since infl uence 2007. key stakeholders. twitter.com/brandfinance

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2 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 3 Request Your Brand Value Report. Brand Valuation Methodology.

Brand Finance calculates the values of the A Brand Value Report provides a complete Each report includes expert recommendations for growing brands in its league tables using the Royalty breakdown of the assumptions, data sources, and brand value to drive business performance and offers a Relief approach – a brand valuation method calculations used to arrive at your brand’s value. cost-effective way to gaining a better understanding of compliant with the industry standards set in Brand Strength your position against competitors. ISO 10668. Index (BSI) This involves estimating the likely future revenues that Brand strength are attributable to a brand by calculating a royalty rate expressed as a BSI score out of 100. What is a Brand Value Report? What are the benefits of a Brand that would be charged for its use, to arrive at a ‘brand Value Report? value’ understood as a net economic benefit that a licensor would achieve by licensing the brand in the Brand Valuation Summary open market. + Internal understanding of brand + Brand value tracking The steps in this process are as follows: + Competitor benchmarking Insight Brand + Historical brand value 1 Calculate brand strength using a balanced scorecard Royalty Rate of metrics assessing Marketing Investment, BSI score applied to an Brand Strength Index Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) appropriate sector + Brand strength tracking score on a scale of 0 to 100. royalty range. + Brand strength analysis + Management KPIs Strategy 2 Determine royalty range for each industry, reflecting + Competitor benchmarking the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, in extractive Royalty Rates industry, where goods are often commoditised, it is + Transfer pricing lower. This is done by reviewing comparable licensing + Licensing/franchising negotiation agreements sourced from Brand Finance’s extensive + International licensing Benchmarking database. Brand Revenues + Competitor benchmarking 3 Calculate royalty rate. The BSI score is applied to the Royalty rate applied to royalty range to arrive at a royalty rate. For example, if forecast revenues to Cost of Capital the royalty range in a sector is 0-5% and a brand has derive brand value. + Independent view of cost of capital for internal a BSI score of 80 out of 100, then an appropriate valuations and project appraisal exercises royalty rate for the use of this brand in the given sector Education will be 4%. Customer Research 4 Determine brand-specific revenues by estimating a + Utilities + Tech proportion of parent company revenues attributable + Insurance + Auto to a brand. Brand Value + Banks + Hotels Post-tax brand + Telecoms + Beers 5 Determine forecast revenues using a function of revenues discounted to + Airlines + Oil & Gas Communication historic revenues, equity analyst forecasts, and economic growth rates. a net present value (NPV) which equals the brand 6 Apply the royalty rate to the forecast revenues to value. For more information regarding our derive brand revenues. Brand Value Reports, please contact: 7 Brand revenues are discounted post-tax to a net present value which equals the brand value. [email protected] Understanding

Disclaimer 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 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.

4 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 5 Foreword. Rocks

What is the purpose of a strong brand: to attract customers, to build loyalty, to motivate staff? All true, but for a commercial brand at least, the first answer must Boat to Claim always be ‘to make money’.

Huge investments are made in the design, launch, and ongoing promotion of brands. Given their potential financial value, this makes sense. Unfortunately, most Title of Second 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 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. Most Valuable

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, Danish Brand. 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 ++ Long-standing leader Lego remains Denmark’s communication, wasted resources, and a negative impact on the bottom line. most valuable and strongest brand despite brand Brand Finance bridges the gap between marketing and finance. Our teams have value falling 9% experience across a wide range of disciplines from market research and visual 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 ++ Maersk brand value surges 45% to DKK 28.6 brands is to make money. That is why we connect brands to the bottom line. billion, moves up ranking to second most valuable

By valuing brands, we provide a mutually intelligible language for marketing and Danish brand 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 ++ Mixed results for retail brands: Rema 1000 brand 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, how can value up 51%; Coop Danmark drops out of top 10 you know you are getting a fair price? If you are intending to sell, how do you know what the right time is? How do you decide which brands to discontinue, whether to ++ Carlsberg slides into top 10, brand value up 9% to rebrand and how to arrange your brand architecture? Brand Finance has conducted thousands of brand and branded business valuations to help answer these questions. DKK 8.8 billion

Brand Finance’s research revealed the compelling link between strong brands and ++ Swedish brands dominate regional Brand Finance stock market performance. It was found that investing in highly-branded companies would lead to a return almost double that of the average for the S&P 500 as a whole. Nordic 50 ranking, 16 Danish brands make the cut

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 brands, how to value them and how to use that information to benefit the business.

The team and I look forward to continuing the conversation with you.

6 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 7 Executive Summary.

Executive Summary.

simultaneously jumping from 4th to 2nd position, as Top 10 Most Valuable Brands it continues to reap the rewards of seismic changes to its operation. These changes have included the 0 1 integration of Hamburg Süd, creating a single team to 1 share best practices, resources and strengths. While 2019: DKK 43,371m -9.5% the Hamburg Süd brand remains independent of the 2018: DKK 47,920m Maersk brand, the combined team means that Maersk has more ocean shipping capacity than any other 2 4 brand, creating a genuine global leader for Denmark. 2 As a result, the scale of the integrated teams is already 2019: DKK 28,599m +45.2% delivering improved performance for the Maersk 2018: DKK 19,696m brand. In addition, Maersk’s earnings have jumped significantly over the last year, bolstered by the lower 1 2 container handling costs. 3 2019: DKK 21,972m +1.4% Mixed results for retail brands 2018: DKK 21,677m

Rema 1000 (brand value up 51% to DKK 2.1 billion) 1 3 Lego dominates is one of the fastest growing brands in the Denmark 4 50 ranking, with its brand value growing as a result 2019: DKK 18,947m -12.2% Lego remains Denmark’s most valuable brand despite Lego’s brand has been built of its solid forecast revenue growth. In a world where 2018: DKK 21,575m its brand value dropping by 9% to DKK 43.4 billion. over many years, and it is many retail brands are facing significant competitive challenges from online retailing, the low-cost, high- 0 5 The iconic global toy brand has successfully built facing existential challenges efficiency model of the Rema supermarkets may allow 5 adoration and a renowned reputation across several 2019: DKK 16,938m -11.2% from new technologies. Its 2018: DKK 19,078m generations of children worldwide. However, Lego’s brand value has dropped due to a reduction in forecast iconic status is under threat, Brand Value over Time revenue growth, a consequence of the challenges but Lego are working hard to 2 7 increasingly faced from new children’s entertainment 6 2019: DKK 14,368m options, especially in the digital sphere. Lego is leverage its existing brand +30.1% 2018: DKK 11,040m currently attempting to leverage its brand value to strength into new product increase its product range and thus put that brand in a better position to compete with other electronic categories. So far, while its 7 1 6 entertainment brands, for example through the launch core business certainly 2019: DKK 11,636m of its Lego Life mobile app. -21.9% remains threatened, they 2018: DKK 14,897m In addition to measuring overall brand value, Brand appear to be avoiding the risk 2 10 Finance also evaluates the relative strength of brands, of extinction faced by other 8 based on factors such as marketing investment, DKK bn 2019: DKK 10,957m +25.2% familiarity, loyalty, staff satisfaction, and corporate businesses which have seen 2018: DKK 8,749m reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According fundamental challenges to their to these criteria, Lego still claims the title of Denmark’s markets from new technology. 9 1 8 strongest brand despite its brand strength rating 2019: DKK 9,881m -5.5% dropping from the elite AAA+ rating to AAA. David Haigh 2018: DKK 10,454m CEO, Brand Finance Maersk powers ahead 10 2 11 Shipping giant Maersk achieved remarkable ● Lego ● Maersk ● Arla 2019: DKK 8,792m +8.8% brand growth, up 45% to DKK 28.6 billion, while ● ● 2018: DKK 8,078m

8 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 9 Executive Summary. Executive Summary.

them to retain market share amongst its key customer Brand Value Change 2018-2019 (%) Top 10 Strongest Brands groups, namely customers who may be unlikely

to shop online, particularly for low-cost, routine, Steff Houlberg +72.4% 0 1 household groceries and supplies. 1 Rema 1000 +51.4% 2019: 89.0 AAA -1.7 2018: 90.6 AAA+ Meanwhile, Coop Danmark (down 16% to DKK 7.7 Den Grønne Slagter +46.8% billion) has struggled this year, falling out of the top th th +45.2% ten, down from 9 position to 13 . Coop Danmark’s Maersk 2 2 3 supermarkets are facing an extremely competitive Lurpak +38.7% market, with Coop’s brand value dropping due to both 2019: 80.4 AAA- +3.7 a reduction in forecast revenue and also a reduction Rockwool +31.7% 2018: 76.8 AA+

in brand strength. With Danish consumers having Spar Nord Bank +30.7% a variety of choices, especially with new, online, 1 2 alternatives entering the market, Coop is facing +30.1% 3 2019: 79.0 AA+ difficulties to retain its customer loyalty. Tryg +0.2 +29.0% 2018: 78.8 AA+ Cheers to Carlsberg Prince +28.4% -9.5% Lego 0 4 Carlsberg has entered the top 10 after achieving 4 -11.2% a solid 9% brand value growth to DKK 8.8 billion. Pandora 2019: 74.1 AA -2.2 2018: 76.3 AA+ Carlsberg’s leadership has implemented a -11.5% Danepak comprehensive internal strategy called “Funding the Journey” to help build the brand, which focuses on -12.2% Danske Bank 5 2 24 improving efficiency, reducing costs and growing -12.7% Bang & Olufsen revenue. Carlsberg is also focusing on product 2019: 73.7 AA +10.9 2018: 62.8 A+ diversification outside of the traditional, mass- -14.8% Harmonie marketed, alcoholic beers to include a broader range -16.0% Coop Danmark 2 10 -21.6% Fakta 6 Brand Value by Sector 2019: 73.4 AA +4.9 -21.9% ISS 2018: 68.5 AA- -23.9% TDC 7 2 17 of craft beers and non-alcoholic beers in Europe. Brand Value % of 2019: 72.7 AA This re-alignment to improve the public perception +5.4 Sector (DKK bn) total 2018: 67.2 AA- of Carlsberg has included new packaging which will ● Food 50.8 16.1% reduce plastic usage by 76% with commensurate reductions in carbon emissions. 1 6 ● Toys 43.4 13.7% 8 Logistics 41.0 13.0% 2019: 71.6 AA -1.5 ● As well as Carlsberg and Carlsberg-owned Tuborg 2018: 73.1 AA ● Banking 34.9 11.1% (up 6% to DKK 4.9 billion), 11 further food and drink brands are amongst the Denmark 50, with Arla and ● Engineering & Construction 27.8 8.8% 2 Danish Crown portfolios featuring prominently. In 9 13 ● Apparel 21.2 6.7% addition to the Arla brand itself (up 1% to DKK 22.0 2019: 71.2 AA +3.0 ● Other 96.6 30.6% billion) there are a number of other brands owned by 2018: 68.2 AA- the Arla group, including Lurpak (up 39% to DKK 3.8 Total 315.6 100.0% billion) and Harmonie (down 15% to DKK 873 million). 2 Meat producer, Steff Houlberg, (up 72% to DKK 1.7 10 19 billion) is the fastest-growing brand in the Denmark 50 2019: 71.1 AA th th +5.9 ranking, jumping from 45 to 36 place. 2018: 65.3 AA-

10 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 11 Brand Finance Denmark 50 (DKK m). Brand Finance Denmark 50 (DKK m).

Top 50 most valuable Danish brands 1-50 Top 50 most valuable Nordic brands 1-50 2019 Brand 2018 2019 2018 2019 Brand 2018 2019 2018 2019 2018 Brand Value Brand Brand Brand 2019 2018 Brand Value Brand Brand Brand Rank Rank Brand Sector Value Change Value Rating Rating Rank Rank Brand Country Sector Value Change Value Rating Rating 1 1 0 Lego Toys 43,371 kr. -9.5% 47,920 kr. AAA AAA+ 1 1 0 IKEA Retail 138,197 kr. +12.6% 122,706 kr. AAA- AA+ 2 4 2 Maersk Logistics 28,599 kr. +45.2% 19,696 kr. AA- AA- 2 2 0 H&M Sweden Apparel 101,898 kr. -15.1% 119,996 kr. AAA- AAA 3 2 1 Arla Food 21,972 kr. +1.4% 21,677 kr. A+ A+ 3 3 0 Volvo Sweden Auto 88,395 kr. +10.5% 79,968 kr. AA+ AA+ 4 3 1 Danske Bank Banking 18,947 kr. -12.2% 21,575 kr. AA AA+ 4 4 0 Nokia Tech 63,123 kr. +18.8% 53,146 kr. AA+ AA+ 5 5 0 Pandora Apparel 16,938 kr. -11.2% 19,078 kr. AA+ AA+ 5 5 0 Equinor Oil & Gas 59,340 kr. +14.0% 52,057 kr. AAA- AAA 6 7 2 Vestas Engineering & Construction 14,368 kr. +30.1% 11,040 kr. AA- A+ 6 6 0 Lego Denmark Toys 43,371 kr. -9.5% 47,920 kr. AAA AAA+ 7 6 1 ISS Commercial Services 11,636 kr. -21.9% 14,897 kr. A A 7 7 0 Telenor Norway Telecoms 36,847 kr. -15.1% 43,388 kr. AA AA+ 8 10 2 Pharma 10,957 kr. +25.2% 8,749 kr. AA AA- 8 8 0 Denmark Banking 36,188 kr. -10.0% 40,222 kr. AA+ AA+ 9 8 1 DSV Logistics 9,881 kr. -5.5% 10,454 kr. A+ A+ 9 10 2 Telia Sweden Telecoms 30,323 kr. +11.9% 27,094 kr. AAA- AA+ 10 11 2 Carlsberg Beers 8,792 kr. +8.8% 8,078 kr. AA A+ 10 14 2 Swedbank Sweden Banking 22,546 kr. +8.0% 20,882 kr. AAA AA 11 12 2 Danfoss Engineering & Construction 11 11 0 Arla Denmark Food 12 14 2 Dansk Supermarked Retail 12 15 2 Svenska Handelsbanken Sweden Banking 13 9 1 Coop Danmark Retail 13 13 0 DNB Norway Banking 14 15 2 Ørsted Utilities 14 12 1 Danske Bank Denmark Banking 15 16 2 Nykredit Banking 15 18 2 SEB Sweden Banking 16 18 2 Healthcare 16 17 2 Pandora Denmark Apparel 17 13 1 TDC Telecoms 17 9 1 Ericsson Sweden Tech 18 19 2 Tuborg Beers 18 24 2 Absolut Sweden Spirits 19 17 1 Tulip Food 19 23 2 Securitas Sweden Commercial Services 20 20 0 Banking 20 19 1 Skanska Sweden Engineering & Construction 21 24 2 Den Grønne Slagter Food 21 27 2 Vestas Denmark Engineering & Construction 22 22 0 Danish Crown Food 22 20 1 Scania Sweden Auto 23 21 1 ECCO Apparel 23 26 2 Sandvik Sweden Engineering & Construction 24 25 2 Tryg Insurance 24 21 1 Atlas Copco Sweden Engineering & Construction 25 26 2 Lurpak Food 25 28 2 Kone Finland Engineering & Construction 26 27 2 Rockwool Engineering & Construction 26 22 1 ISS Denmark Commercial Services 27 23 1 Danepak Food 27 33 2 Novo Nordisk Denmark Pharma 28 28 0 Topdanmark Insurance 28 29 2 DSV Denmark Logistics 29 29 0 CHR Hansen Food 29 30 2 Vattenfall Sweden Utilities 30 30 0 GN Tech 30 37 2 Carlsberg Denmark Beers 31 32 2 DFDS Seaways Logistics 31 31 0 SKF Sweden Engineering & Construction 32 38 2 Rema 1000 Retail 32 35 2 Essity Sweden Household Products 33 31 1 KMD Tech 33 38 2 Danfoss Denmark Engineering & Construction 34 36 2 Pharma 34 41 2 Dansk Supermarked Denmark Retail 35 40 2 Spar Nord Bank Banking 35 50 2 Yara Norway Chemicals 36 45 2 Steff Houlberg Food 36 36 0 Tele2 Sweden Telecoms 37 34 1 Banking 37 32 1 Coop Danmark Denmark Retail 38 35 1 Royal Greenland Seafood Food 38 34 1 ICA Sweden Retail 39 33 1 Fakta Retail 39 43 2 Ørsted Denmark Utilities 40 41 2 PER Aarsleff Engineering & Construction 40 25 1 Electrolux Sweden Tech 41 42 2 Alm Brand Insurance 41 - 3 Nykredit Denmark Banking 42 39 1 NNIT Commercial Services 42 39 1 NCC Sweden Engineering & Construction 43 43 0 Yousee Telecoms 43 - 3 Valio Finland Food 44 49 2 Prince Tobacco 44 45 2 Peab Sweden Engineering & Construction 45 48 2 H A/S Pharma 45 48 2 Stora Enso Finland Engineering & Construction 46 44 1 Harmonie Food 46 46 0 Kesko Finland Retail 47 47 0 Bang & Olufsen Tech 47 49 2 If Sweden Insurance 48 - 3 Danica Pension Banking 48 - 3 Fortum Finland Utilities 49 50 2 Matas Retail 49 - 3 Coloplast Denmark Healthcare 50 - 3 Buko Food 50 40 1 TDC Denmark Telecoms

12 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 13 Brand Finance Nordic 50 (DKK m). Brand Finance Nordic 50 (DKK m).

Sweden reigns supreme Top 10 Most Valuable Brands Top 50 most valuable Nordic brands 1-50 2019 Brand 2018 2019 2018 2019 2018 Brand Value Brand Brand Brand Looking at the classification in the wider region, Swedish 0 1 Rank Rank Brand Country Sector Value Change Value Rating Rating brands have claimed one in every two positions in the 1 1 1 0 IKEA Sweden Retail 138,197 kr. +12.6% 122,706 kr. AAA- AA+ Brand Finance Nordic 50 ranking and six out of the top 10 2019: 138,197 kr. +12.6% 2 2 0 H&M Sweden Apparel 101,898 kr. -15.1% 119,996 kr. AAA- AAA spots, with Ikea crowned most valuable (up 13% to DKK 2018: 122,706 kr. 3 3 0 Volvo Sweden Auto 88,395 kr. +10.5% 79,968 kr. AA+ AA+ 138.2 billion), H&M in second (down 15% to DKK 101.9 4 4 0 Nokia Finland Tech 63,123 kr. +18.8% 53,146 kr. AA+ AA+ 0 billion), and Volvo in third (up 11% to DKK 88.4 billion). 0 2 5 5 Equinor Norway Oil & Gas 59,340 kr. +14.0% 52,057 kr. AAA- AAA 2 6 6 0 Lego Denmark Toys 43,371 kr. -9.5% 47,920 kr. AAA AAA+ 7 7 0 Telenor Norway Telecoms 36,847 kr. -15.1% 43,388 kr. AA AA+ Engineering and construction leads among sectors with 10 2019: 101,898 kr. -15.1% 8 8 0 Nordea Denmark Banking 36,188 kr. -10.0% 40,222 kr. AA+ AA+ brands included in the ranking. Sweden’s Skanska is the 2018: 119,996 kr. 9 10 2 Telia Sweden Telecoms 30,323 kr. +11.9% 27,094 kr. AAA- AA+ highest ranked in 20th, with a brand value of DKK 14.6 billion, 10 14 2 Swedbank Sweden Banking 22,546 kr. +8.0% 20,882 kr. AAA AA followed closely by Vestas, in 21st position, with a brand 0 3 3 11 11 0 Arla Denmark Food 21,972 kr. +1.4% 21,677 kr. A+ A+ value of DKK 14.4 billion. Other notable sectors across the 12 15 2 Svenska Handelsbanken Sweden Banking 21,567 kr. +7.7% 20,032 kr. AAA- AAA- 2019: 88,395 kr. region are banking with 7 brands and retail with 5 brands. +10.5% 13 13 0 DNB Norway Banking 21,057 kr. -1.8% 21,434 kr. AA+ AAA- 2018: 79,968 kr. 14 12 1 Danske Bank Denmark Banking 18,947 kr. -12.2% 21,575 kr. AA AA+ Sixteen brands from Denmark feature in the Brand 15 18 2 SEB Sweden Banking 16,971 kr. -4.2% 17,707 kr. AA+ AA+ Finance Nordic 50 rankings, fewer than from Sweden 0 4 16 17 2 Pandora Denmark Apparel 16,938 kr. -11.2% 19,078 kr. AA+ AA+ (24), but more than from Finland (6) or Norway (4). Lego 4 17 9 1 Ericsson Sweden Tech 16,275 kr. -43.6% 28,863 kr. AA- AA – named 6th most valuable brand across the region – is 2019: 63,123 kr. +18.8% 18 24 2 Absolut Sweden Spirits 15,429 kr. +13.1% 13,646 kr. AA+ AA+ the only Danish brand to feature in the top 10. 2018: 53,146 kr. 19 23 2 Securitas Sweden Commercial Services 14,701 kr. +6.6% 13,791 kr. A+ A+ 20 19 1 Skanska Sweden Engineering & Construction 14,639 kr. -12.4% 16,709 kr. AA- AA- 2 0 5 21 27 Vestas Denmark Engineering & Construction 14,368 kr. +30.1% 11,040 kr. AA- A+ Brand Value by Country 5 22 20 1 Scania Sweden Auto 13,581 kr. -9.5% 15,009 kr. AA AA 23 26 2 Sandvik Sweden Engineering & Construction 12,672 kr. +3.5% 12,237 kr. AA AA 2019: 59,340 kr. +14.0% 2018: 52,057 kr. 24 21 1 Atlas Copco Sweden Engineering & Construction 11,929 kr. -20.0% 14,902 kr. AA AA 25 28 2 Kone Finland Engineering & Construction 11,734 kr. +7.8% 10,890 kr. AA- AA- 26 22 1 ISS Denmark Commercial Services 11,636 kr. -21.9% 14,897 kr. AAA A 0 6 6 27 33 2 Novo Nordisk Denmark Pharma 10,957 kr. +25.2% 8,749 kr. AA AA- 28 29 2 DSV Denmark Logistics 9,881 kr. -5.5% 10,454 kr. A+ A+ 2019: 43,371 kr. -9.5% 29 30 2 Vattenfall Sweden Utilities 9,255 kr. -8.6% 10,129 kr. AA AA 2018: 47,920 kr. 30 37 2 Carlsberg Denmark Beers 8,792 kr. +8.8% 8,078 kr. AA A+ 31 31 0 SKF Sweden Engineering & Construction 8,681 kr. -10.3% 9,679 kr. AA- AA- 0 7 32 35 2 Essity Sweden Household Products 8,663 kr. +2.1% 8,486 kr. A A 7 33 38 2 Danfoss Denmark Engineering & Construction 8,414 kr. +6.0% 7,936 kr. AA- AA 2019: 36,847 kr. -15.1% 34 41 2 Dansk Supermarked Denmark Retail 8,160 kr. +6.8% 7,643 kr. A- A- 2018: 43,388 kr. 35 50 2 Yara Norway Chemicals 7,926 kr. +35.6% 5,844 kr. AA AA- 36 36 0 Tele2 Sweden Telecoms 7,813 kr. -4.9% 8,213 kr. AAA- AA 1 0 8 37 32 Coop Danmark Denmark Retail 7,741 kr. -16.0% 9,212 kr. AA AA- 8 38 34 1 ICA Sweden Retail 7,521 kr. -12.7% 8,611 kr. AA- AA- 39 43 2 Ørsted Denmark Utilities 7,503 kr. +16.6% 6,437 kr. AA- AA- 2019: 36,188 kr. -10.0% 2018: 40,222 kr. 40 25 1 Electrolux Sweden Tech 6,955 kr. -48.3% 13,452 kr. A+ A+ 41 - 3 Nykredit Denmark Banking 6,924 kr. - - AA - 42 39 1 NCC Sweden Engineering & Construction 6,920 kr. -11.4% 7,813 kr. A+ AA- Brand Value 2 10 43 - 3 Valio Finland Food 6,579 kr. +29.9% 5,067 kr. A+ A- Sector (DKK bn) % of total 9 44 45 2 Peab Sweden Engineering & Construction 6,529 kr. +5.7% 6,177 kr. AA- AAA- 2019: 30,323 kr. Sweden 587,405 55.6% +11.9% 45 48 2 Stora Enso Finland Engineering & Construction 6,360 kr. +6.6% 5,969 kr. AA- AA- ● 2018: 27,094 kr. 46 46 0 Kesko Finland Retail 6,060 kr. -0.6% 6,095 kr. A A Denmark 243,549 23.1% ● 47 49 2 If Sweden Insurance 5,943 kr. +1.2% 5,873 kr. AA A+ ● Norway 125,171 11.9% 2 14 48 - 3 Fortum Finland Utilities 5,930 kr. +9.4% 5,420 kr. AA- AA- 10 3 ● Finland 99,787 9.5% 49 - Coloplast Denmark Healthcare 5,889 kr. +19.7% 4,918 kr. AA- A 2019: 22,546 kr. +8.0% 50 40 1 TDC Denmark Telecoms 5,868 kr. -24.9% 7,813 kr. A+ AA- Total 1,055,912 100.0% 2018: 20,882 kr.

14 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 15 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 to its (BSI) score out of 100, which feeds into the brand up of multiple branded businesses. competitors. value calculation. Based on the score, each brand [Danish Crown] is assigned a corresponding rating up to AAA+ in a Where a company has a purely mono- Ente In order to determine the strength of a brand, we look format similar to a credit rating. rpris branded architecture, the ‘enterprise value’ e V at Marketing Investment, Stakeholder Equity, and the alu is the same as ‘branded business value’. e impact of those on Business Performance. Analysing the three brand strength measures helps + Branded Business Value inform managers of a brand’s potential for future success. Bra nded The value of a single branded business Bu si operating under the subject brand. ne ss [Tulip] V A brand should be viewed in the context of Marketing Widely recognised factors deployed by marketers to create brand loyalty and B a the business in which it operates. Brand rand lu Investment market share. C e Finance always conducts a branded on tr business valuation as part of any brand ib u valuation. We evaluate the full brand value t io chain in order to understand the links n between marketing investment, brand- Stakeholder Perceptions of the brand among different stakeholder groups, with customers tracking data, and stakeholder behaviour. Equity 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 of the the brand rather than operating a Brand Strength Index Performance brand in achieving price and volume premium. [Tulip] generic brand.

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

16 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 17 Consulting Services. Brand Evaluation Services.

How are brands perceived in my 1. Valuation: What are my intangible 2. Analytics: How can I improve 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 over 30 markets in 10 consumer categories. Clear, which potential strategic brand factors which drive consumer behaviour insightful signals of brand performance, with data mining scenarios can be evaluated. allows an understanding of how brands options for those who want to dig deeper – all at an N 2. create bottom-line impact. 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 or A I V C + Brand Contribution Brand Audits + coverage of a more specialised . S 1 Brand & Brand Scorecard Tracking + sector?

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. 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.

18 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 19 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 50 MOST VALUABLE STRONGEST • Communications Workshops Danish Danish Danish BRAND BRAND BRAND For more information, contact [email protected] or visit www.brand-dialogue.co.uk We also offer a variety of other services to help communicate Video Endorsement – record video with Brand Finance CEO or Director your brand’s performance 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 offered CHARACTERFUL SPACE MEMBERS' EVENTS DISCOUNTED to the press. for with ROOM HIRE MEETINGS FOCUS ON MARKETING & & for PRIVATE EVENTS BRANDING Media Support – provide editorial support in reviewing or copywriting your MEMBERS

press release, pitching your content to top journalists, and monitoring media 3 Birchin Lane, London, EC3V 9B +44 (0)207 389 9410 [email protected] coverage. Brand Exchange is a member of the Brand Finance plc group of companies

20 Brand Finance Denmark 50 September 2019 Brand Finance Denmark 50 September 2019 21 Brand Finance Network.

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

Market Contact Email Telephone 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 East Africa Jawad Jaffer j.jaffer@brandfi nance.com +254 204 440 053 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 Savio D’Souza s.dsouza@brandfi nance.com +44 207 389 9400 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 1559 197 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 South Africa Jeremy Sampson j.sampson@brandfi nance.com +27 82 885 7300 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 Charles Scarlett-Smith c.scarlett-smith@brandfi nance.com +1 514 991 5101 Vietnam Lai Tien Manh m.lai@brandfi nance.com +84 90 259 82 28

T: +44 (0)20 7389 9400 E: [email protected] www.brandfinance.com

22 Brand Finance Denmark 50 September 2019