Insurance Slide 18 Slide 43

pulse: Insights and Implications by Industry Vertical

April 8th Edition Financial Services High-Tech & B2B Slide 3 Slide 27

Media & Entertainment Health & Wellness Slide 7 Slide 32

Travel & Hospitality CPG Slide 10 Slide 35

Auto Restaurants Slide 14 Slide 38

Retail Insurance Slide 18 Slide 43

Luxury & Beauty Non-Profit Slide 25 Slide 46

2 Financial Services Seeing Upside of Trading Volatility, Credit Extensions • Because of coronavirus-related market volatility, trading is booming. Banks could post an increase of as much as 30% in their first quarter trading revenues, with Citigroup and JPMorgan conservatively anticipating increases in the “mid single-digit percentage range”. • Lending volumes at large US banks are soaring, and expected to grow further in coming months, as they extend credit to companies and individuals whose incomes have been compromised. • Between March 11 and 18, American banks grew their loan books by $243B, twice the amount they add to their loan books in a typical year, bringing bank lending to a total of $4.1T. • Mortgage delinquencies could bankrupt the payment system. With millions losing jobs and income, the mortgage delinquency numbers will likely spike in April and worsenin May. • If about a quarter of all borrowers receive loan forbearance for six months or longer, demands on servicers could exceed $75B and climb well above $100B, easily bankrupting the mortgage finance system. • This Week’s Headlines: Financial • Federal Reserve allows banks to take on more leverage: The leverage ratio, a key limit on big banks’ indebtedness, will be temporarily relaxed. For one year, the biggest U.S. banks will no longer have to add their Treasuries and reserves into the basket of assets they are required to maintain capital for, Services significantly reducing capital requirements. This change, effective immediately, will reduce capital demands by 2% overall. • Visa’s consumer spending has sharply declined, even online: Overall, Visa consumer spending has declined -4% in the US, -19% overseas. Visa forecasts mid-single-digit percentage Q2 revenue growth. • Major financial firms are taking no-coronavirus-layoffs pledges: PayPal, Bank of America, and Morgan Stanley have offered job-safety assurances to employees. • Many banks waiving fees during the pandemic: Includes ATM, credit card, late loan payment, service charge reversal, and overdraft fees. Multiple institutions are also offering deferment on loan payments. • Bank of America will allow 50,000 mortgage customers to defer payments: If customers have lost income as a result of the pandemic, they can defer payments for three months Source: CNBC, Bloomberg, Reuters, Mintel, Financial Times, JD Pow er, The Financial Brand, Aite Group, Bloomberg Brand Actions | Financial Services

Ally Bank is introducing a relief package to Chase is hosting webinars that help small BBVA launched a new brand campaign, support customers, auto dealers, communities businesses sign up for and navigate the #IstayatHome, empowering customers to conduct and employees. It defers payment for auto and Paycheck Protection Program. The program is needed transactions from their homes. The bank is mortgage customers up to 120 days, pledging focused on explaining what’s needed to sign up also providing assistance to customers negatively $3m in financial aid to local communities and for the program and how to best navigate the impacted by the pandemic, including special loan organizations. requirements. products, refunds, fee waivers and payment deferrals.

American Express. • Spent over $1M promoting its #StayHome and #ShopSmall campaign on Facebook. • Leveraged Instagram trends to promote the campaign, Amex directs viewers to take the #StayHome and #ShopSmall pledge. • Encouraged consumers to spend online with small businesses to help them stay afloat as they close physical storefronts. This allowed the company to re-up its well- worn "shop small" campaign—and to position itself on the side of the little guys. • Updated its Twitter header photo and its Facebook cover photo to support the campaign and has shared respective content across its owned social channels.

Chase. Third Federal. Lunched a webinar promoted on social media Through print, Third Federal for small business owners helping them work assured customers that banking on contingency plans in real time. with them is still stable and safe.

Empower Retirement. Supported local coronavirus relief efforts and made a donation of $250K to community organizations fighting against Covid-19.

© 2020 Dentsu Aegis Network 6 Video Viewing Exploding, While Networks Adjust • Video viewing is exploding across the board. In the last week of March, Americans streamed 156 billion minutes of television, compared to 115 billion during the last week of February. • Americans streamed 85% more minutes of video in March 2020 vs. March 2019. • Binge watching increased more than 25% the last two weeks of March. • Netflix had the biggest share of streaming minutes during the last week of March with 29%, followed by YouTube at 20%, Hulu at 10% and Amazon at 9%. • Local TV viewership has grown, increasing to 30.9% of all quarter-hours tuned across broadcast the week of March 9. Share of overall broadcast viewership for drama, participation variety(TV that depends on viewership participation), situation comedy, and feature film has also increased. • Radio maintains listener trust. Currently, 60% of Americans of adults 18 and older hold radio in high regard and trust it to deliver timely information about the current COVID-19 outbreak. 83% of Americans are listening to as much or more radio as they were before the pandemic. • Mobile gaming jumped 24% in the last two weeks of March. Almost half (45%) of U.S. consumers are playing new mobile games on their smartphones. One-third (33%) of consumers said they play games on their smartphones Media & multiple times a day, a gain of 8% during the two-week study period. • This Week’s Headlines • Fox, Discovery, AMC To See Mostly Double-Digit Ad Declines For 2020: Fox cable networks’ US Entertainment advertising is projected to decline 8%, while its news stations’ advertising will be up 8% (versus previously projected 12% increase). Discovery is predicted to decline 11% in US advertising (against previously projected 1% increase) and 13% in international advertising (versus previously projected 5% increase), with significant impacts from loss of Tokyo Olympics for its Eurosport network. AMC Networks will decline 17% in US advertising (versus previously projected 6% decline). • For the 2008-2009 financial crisis, national broadcast TV recorded five consecutive quarters of negative ad growth and national cable only had two negative quarters. • NBCUniversal to Permanently Reduce Linear Ads: NBCU had long-term plans to reduce linear ads and has accelerated its timetable in response to COVID-19. NBCU did not specify how much ad time will be reduced, or whether the changes will involve eliminating ad pods entirely or reducing their size. The ad Source: iHeartMedia, Nielsen, AdWeek, Axios, SemRush, Media reductions will affect news programming, late-night NBC and Bravo shows, reality programming, Marketer, Variety, MediaPost competition shows, and other cable originals. Brand Actions | Media & Entertainment

With libraries and schools closed, Audible is Following the cancellation of the SXSW Verizon launched ‘Pay it Forward’ a weekly streaming launching Audible stories, a new service that offers conference and festivals, Amazon Prime and concert series to support small businesses affected free audiobooks to children and teens during the SXSW have come together show films that would by COVID-19. An 8-week series, artists will perform pandemic. have premiered at the festival. The one-time on Verizon’s Twitter handle and on Yahoo event will be free to audiences around the US, Entertainment. Concerts will be available to watch on showing films that would have premiered at the demand for one week. festival.

Verizon. Fox Sports. Is streaming the Pay It Forward Live events on Launched "Safe at Home Live its Twitter account, Yahoo Entertainment, and a Stream" where sports reporters Fios channel. The company is further pushing and players answer audience engagement by encouraging viewers to tag local questions live. businesses (and make purchases from them) during the performances. As they do so, Verizon will "unlock" $2.5M to donate to nonprofit Local Initiatives Support Corporation, to which it's already given $2.5M. Vox Media’s NBC Sports. Today Explained. Announced Football Week which will Came up with a social distancing relive memorable NBC Sunday Night song and dance and asked Football games and performances, with audience to tweet dance covers two primetime SNF games. During the to increase awareness. telecast, fans will be provided with on- screen information on how they can help with Coronavirus relief.

© 2020 Dentsu Aegis Network 9 Airlines Raise $17B In Bank Loans, Some US Hotels on Verge of Bankruptcy • Preliminary analysis estimates air travel may not recover until Q1/Q2 2021, with a faster recovery pace for domestic travel than long-haul and international travel. • Worldwide, airlines raised more than $17B in bank loans in March. • US carriers were the most active, borrowing $12.5B. Globally, Delta Airlines was the top borrower in March, obtaining $5.6B in bank loans, followed by Singapore Airlines, which secured a $2.8B bridge loan, and United Airlines, which raised $2.5B. • With 90% fewer passengers flying in March versus this same period last year, US air carriers continue to trim flights. American Airlines, United, Southwest, and Delta are planning additional flight cuts for May. • As non-essential travels diminished, foot traffic to national airports decreased by 86% as of 3/29 from the week of 1/20, the case of the first reported coronavirus case in the US. • The threat of widespread hotel bankruptcy in the US looms. The US contains approximately 56,000 hotels, with an estimated 25,000 at risk of closing in the next few weeks, at least temporarily. 10% to 15% of hotels may go bankrupt in this same time period. • This Week’s Headlines: • Boeing and Airbus Halting American-based Production: Boeing has suspended 787 production at its South Travel & Carolina plant until further notice, while Airbus has halted production at its A220/A320 facility in Alabama, citing slump in demand, high inventory levels at sites, and government recommendations. Hospitality • Saudi Arabia Sovereign Wealth Investment Fund Takes 8.2% Stake in Carnival Cruises: As of April 3rd, Saudi Arabia’s new stake is worth $369.4M. The sale is expected to generate enough cash for Carnival to survive without revenue for the rest of the year and into 2021. While Carnival shares rose 20% after the sale disclosure, Carnival has still seen share prices tank more than 80% over the last month. In the week prior to the sale, Carnival raised a total of $6.25B in debt and equity financing, including the sale of $500MM in new shares. Carnival serves nearly 11.5M travelers a year, roughly 50% of the global cruise market. Royal Caribbean and Norwegian Cruises are also looking for cash. Norwegian has tapped an existing $1.55B credit line, while Royal Caribbean secured a $2.2B loan, in March using its ships as collateral. • Cruise Ship Bookings Are Up For 2021: Booking volume in the last 30 days for 2021 is up 9% versus the same time period last year. This volume, however, includes individuals applying their future cruise credits from sailings cancelled this year.

Source: US Trav el Association, Forbes, Bloomberg, USA Today , Seattle Times, • Over 3.3M US Hotel Rooms Available As Temporary Housing For Healthcare Workers: More than 15,000 SemRush, Barrons, McKinsey , NinthDecimal hotels have signed up for the American Hotel and Lodging Association’s “Hospitality for Hope” initiative, which identifies hotel properties that have offered temporary housing for emergency and healthcare workers. US Airport Foot Traffic Trends

The apps created a special booking option As healthcare workers fight the Delta extended waivers for flights affected by ‘NHS Heroes’ for NHS medical workers, COVID-19 pandemic, Hilton and COVID to (2) years, allowing passengers to reducing the fare to let them get to American Express are partnering to rebook travel without any change fees through hospitals quickly and at a lower cost. donate one million hotel rooms May 2022. Passengers can also change the across the U.S. to those working on destination and apply credit from the cancelled the front lines. fare.

Red Roof. IHG. Promoted their “Work Under Highlights that in changing Our Roof” program on social times they are also media helping customers changing by opening their work efficiently from their doors to healthcare rooms. workers who are working on the front lines.

Cloudbeds. Spirit Airlines. A global property management Made a flight cancellation company that works with over update for its customers 20,000 properties in 157 which enables them to countries, launched a campaign obtain reservation credit. called #HospitalityHelps to connect lodging providers with empty beds to healthcare and government agencies in need of housing for patients and first responders.

© 2020 Dentsu Aegis Network 13 Automotive Industry Sales Dropping, Stepping In To Help Pandemic Response • Q1 automotive sales sank 11.8% due to coronavirus, compared to Q1 2019. • Visitations to auto dealerships continue to decline, dropping an additional 15% in the last week of March as the US surpassed China in the number of confirmed coronavirus cases. • Consumers are concerned about various factors when it comes to visiting dealerships: around 70% of consumers are concerned about shaking hands with dealership staff, 67% of them concerned about touching surfaces or objects, while 51% are concerned about using dealership pens or paperwork. • US auto dealers are exploring the use digital channels to improve declining sales. • American automakers are engaged in a growing government partnership to combat coronavirus. Notable US automakers, including Ford and Tesla, have already started manufacturing critical medical devices and personal protective gear for medical professionals. Automakers have also donated vehicles to hospitals and Auto first responders to show their support. • This Week’s Headlines: • Honda, Nissan Furlough Workers As Auto Plant Shutdowns Are Extended: Japanese car giants Nissan and Honda are furloughing thousands of workers across North America, Canada, and Mexico • GM offers manufacturing blueprints for face masks to 600 auto parts suppliers: To encourage the production of PPE for frontline medical and emergency workers, GM has provided detailed specs to its suppliers on necessary materials, equipment, and process. GM expects to have 20,000 masks ready for delivery by April 8th. Once their converted production line is running at full speed, GM anticipates it will be able to produce 50,000 masks every day, up to 1.5M masks a month.

Source: Adobe, Big Commerce, Ninth Decimal Auto Dealership Foot Traffic Trends

The company is supporting ride-sharing Tesla is buying and distributing lower-end Ford announced its ‘Built to Lend a Hand’ program, initiatives by providing ‘charging credit’ for ReMed BiPAP machines (non-invasive providing up to 6 months of payments. People who electric taxi drivers who are participating in ventilators) to hospitals in NYC that want them. purchase cars will receive (3) months of payments the ‘NHS Heroes’ initiative. In total, this automatically, letting customer’s them choose to could add to over one million miles of defer the last 3 month payments to a later date. journeys. Customers must finance through Ford Credit to be eligible.

BMW. Ford. Encourages its Launched a new virtual customers to stay at initiative to help home and find joy in communities. People can different things. BMW is learn about what Ford is also offering special doing for community and discounts and cashback find online resources using to frontline workers the new portal.

Honda. Chevrolet. Appreciates frontline Shared a similar post, as workers and healthcare BMW, asking people to professionals for their efforts stay at home and also donates protective gear to healthcare professionals.

Sources: Twitter

© 2020 Dentsu Aegis Network 17 While Retail Continues to Suffer, eCommerce and Grocery Demand Grows • By the end of March, eCommerce sales were up 25%, with virus protection product sales collectively up 807% from January 1st to March 11th. Companies that invested in digital transformation are seeing the fruits of these efforts now. • Fastest growing categories in eCommerce (March 2020 vs. March 2019): disposable gloves (+670%), bread machines (+652%), weight training (+307%), computer monitors (+172%), dog food (+159%), craft kits and projects (+117%), hair coloring (+115%), ping pong (+89%), and office desks (+89%). • Notable declines in eCommerce (March 2020 vs. March 2019): luggage and suitcases (-77%), cameras (- 64%), event and party supplies (-55%), automotive mats (-50%), sunglasses and eyeglasses (-43%), camping equipment (-39%), classroom furniture (-35%), golf clubs (-33%), and coolers (-36%). • Grocery both online and offline continues to field significant demand, with heavy burdens on delivery service capacities and potential supply chain consequences. • By the end of March, online grocery sales were up 100%. This sudden surge in online orders has some retailers’ pickup and home delivery operations stressed to the breaking point, despite grocery chains investing to make their pickup and delivery services even more robust. • Due to panic-buying, retailers have been struggling to meet the demand in certain product categories, which may result in supply chain strains. Retail • This Week’s Headlines: • Amazon Postpones Prime Day to “at least August”: Prime Day typically takes place in July, and represents Amazon’s most successful day of the year, surpassing Black Friday and Cyber Monday. In 2019, Prime Day global sales hit an estimated $7.16B USD. • Kroger reports 30% jump in March sales: Shopper stockpiling in March drove monthly sales to highs. • Retailers begin suspending rent payments: Mall and retail owners are increasingly concerned over mortgage payments, as major retailers, including Urban Outfitters, PVH (owner of Calvin Klein and Tommy Hilfiger), Pier 1, and the Cheesecake Factory, announce their intentions to suspend rent payments. Most retailers, whether they announce publicly or not, are expected to skip rent in upcoming months. • DTC Brands Feeling Pandemic Pressures: DTC brand week-over-week spending fell 7% on average between March 2 and March 22. DTC darlings like Everlane, ThirdLove, and Away have laid off and Source: CNBC, Forbes, Business Insider, Stackline, Retail Div e, Cincinatti, Reuters, Ninth Decimal furloughed large swaths of their employee base. Grocery Store Foot Traffic Trends

Aritzia created a relief fund for its employees, Dick’s Sporting Goods announced that Chairman The footwear brand announced it will be donating a giving all proceeds to directly support and CEO Edward Stack and president Laurent pair of shoes to healthcare workers across the US, as employees and international partners. So far, Hobart will receive no salary starting March 29. In part of its ‘A Free Pair for Healthcare’ program. The they’ve raised over $4.9m. addition, top execs will be issued pay cuts. brand is also donating up to 100k pairs of shows to hospitals and other facilities.

Walmart. Target. Introduces Walmart Radio DJs, who talk about cleaning, sanitizing Talks about introducing additional measures to ensure safety – by and the 6’ rule in the stores. including masks and gloves for the teams, monitoring store traffic, etc.

Kohl’s. Introduces free Store Drive Up for online orders and takes a customer through the process of using the service.

Aeropostale. Gives out discounts on various products like clothes, home décor, etc.

© 2020 Dentsu Aegis Network 24 Luxury Fashion Shows, Supply Chains Compromised by Lockdowns and Decreased Demand • The coronavirus pandemic may wipe out €30B to €40B in 2020 luxury sales globally, resulting in a loss of the industry’s cumulative gains over the past five years. • As a global recession looms, analysts anticipate continued sharp decreases in luxury consumer spending. • Sales for this year’s spring season at as much as 70% lower than last year. • These decreases are expected to register in Q1 2020 earnings calls. Luxury giant LVMH has already estimated a 10% to 20% decline in revenue for Q1 2020, compared to the same period last year. • The luxury industry felt the impacts of coronavirus earlier than other industries. China is the world’s largest luxury market, with Chinese shoppers account for a third of global luxury spending, and luxury store closures throughout mainland China in December and January have already negatively impacted luxury conglomerates’ revenue. • Country lockdowns and local shelter-in-place orders compromise the luxury industry’s fashion show schedule, Luxury with Paris Haute Couture Week and New York’s Resort 2021 Week (showing spring 2020) cancelled. • Lockdowns also significantly affect the production of luxury goods, with more than 40% of global luxury-goods production taking place in Italy, which is under a country-wide shutdown. & Beauty • Declines in travel may also impact the luxury industry. 20% to 20% of industry revenues are generated by consumers making luxury purchases outside their home countries. • This Week’s Headlines • Major brands delay and cancel garment factory orders, amounting to $3B lost: Brands and retailers, including Primark, Marks & Spencer, and Inditex have attempted to justify these order cancellations with their own financial difficulties and their prioritization of saving jobs in their home countries. Bangladesh has been hit particularly hard, with more than 25% of the country’s four million garment factory workers already laid off without severance or due pay in March. • Major luxury houses, including LVMH, contribute to pandemic response: LVMH has secured an order of 40MM face masks for the French government, to augment its ongoing work to produce hand Source: The Guardian, Times, Bain & Company , McKinsey , The Holly wood Reporter, Forbes sanitizer for the French healthcare system. Multiple maisons are coordinating individual efforts to support local hospitals and emergency responders. Brand Actions | Luxury & Beauty

A luxury apartment-style boutique hotel in LVMH is manufacturing hand sanitizer in its French The premier German audio brand launched Switzerland is offering a customized package perfume and makeup facilities. This product is #DontStopTheMusic and #TogetheratHome to for guests that want to go through social destined for the doctors and nurses in Paris hospitals counteract the numerous live gigs/tours cancelled distancing in the lap of luxury. The package who are on the front lines. As of the first week of or postponed by hosting a series of exclusively includes on-site testing capabilities, private April, they’ve donated 12 tonnes of hand sanitising streamed concerts on its Instagram account, gym, sauna, spa, kitchen and an option for gel to 39 hospitals and expect to ramp up production broadcast via IGTV and hosted on its website. grocery delivery. to (2) additional product lines as soon as it can get approved.

© 2020 Dentsu Aegis Network 26 Big Tech Mobilizes to Address COVID-19, Electronic Supply Chains Fear Disruption • Electronics companies’ supply chains are feeling the pandemic’s pressure. Computer shipments from China to the US dropped 64% and monitor and TV imports dropped 66% in the first two weeks of March, against a broader 45% drop in total Chinese imports. Some analysts are already worried that the next round of iPhones will be delayed. • Unified communication providers such as Skype, Zoom, and Slack continue to record huge increases in daily user bases. although Zoom faces backlash due to privacy and security issues in midst of widespread “Zoom-bombing”. • Significantly, Slack developed a new integration of video calls from rival Microsoft Teams into its chat app. • Google will help public health officials use its vast storage of data to track people’s movements, creating reports on the degree to which locales are abiding by social-distancing measures. • The “mobility reports” will be posted publicly and show, for instance, whether particular localities, states or countries are seeing more or less people flow into shops, grocery stores, pharmacies and parks. • The data goes down to the county level in the US. Figures will be presented as percentage changes, rather than precise totals, and will only apply to broad categories of location types. High-Tech • This Week’s Headlines: • Google Will Start Lifting Its Ban on Coronavirus-Related Ads in April: Google will allow government entities, hospitals, medical providers, and NGOs to run ads related to coronavirus on its platforms. Google instituted & B2B the ban in February to stifle those seeking to spread misinformation or profiteer off panic. • Major tech companies join WHO’s #BuildforCOVID19 Global Online Hackathon: Microsoft, Facebook, Twitter, Pinterest, TikTok, WeChat, Salesforce, and Slack are among the participants. The hackathon aims to develop software tackling challenges related to the pandemic. Each participating company has committed resources for developers who apply. The site has received close to 20,000 submissions. Winning proposals will be announced on Friday, April 10. • Cyber threats to both health care sector and individual Americans spike: Major agencies including the Department of Health and Human Services (HHS) and the World Health Organization (WHO) have been targeted by hackers in unsuccessful but ongoing attacks. In the US, March saw a 667% increase in phishing emails using mention of the coronavirus to trick individuals into clicking links or downloading attachments that included computer viruses, while cyber criminals have also been capitalizing on the pandemic to steal Source: Tech Republic, The Verge, CNBC, The HIll data and blackmail individuals for money. Brand Actions | High-Tech & B2B

Google is setting up 100k WiFi access points Spectrum is expanding its 60-day free internet MailChimp is giving $10m in services to their to increase broadband access for California. and WiFi access to include educators (K-12 small business customers who’ve been It will be free for at least (3) months. In and College/University professors) who don’t impacted by COVID, offering to give them a addition to this, they will be providing already have a Spectrum account. much-needed price relief refund for (3) thousands of Chromebooks to students. months.

Slack. Skype. Cisco. Shares tips about healthy habits for Shares a post about how Skype can Highlight its WebEx platform capabilities and shares remote teams and how to stay active improve productivity and chat experience how medical professionals, labs and researchers across the world are using WebEx platform to stay connected. Cisco regularly shares tips on best practices about from home and for remote workers

Sources: Twitter

Facebook. Verizon. Launched a new update with US Census Bureau Is donating $5 MN to non profits that are helping small business Verizon shares an update about its next Pay It Forward event

Sources: Twitter

Dell. Acer. Shares tips on best practices for work from Launched an e-Learning program for students home and remote teams

Sources: Twitter

© 2020 Dentsu Aegis Network 31 Digitally Connected Workouts Succeeding, COVID-19 Testing Develops • WHO remains “deeply concerned about the rapid escalation and global spread of coronavirus outbreak,” stating that current government lockdowns are not enough to contain the outbreak. • Consumers are increasingly turning to at-home workouts, with interactive and digitally-connected workout products, such as Peloton and Mirror, anticipated to field increased demands. • While Peloton has had to pause its live classes, close its retail locations, and pause delivery of its treadmill product, it continues to ship its flagship stationary bike. The company also saw total app downloads (distinct from hardware sales) increase five times in March 2020 compared to February 2020, while its total iOS user numbers doubled. Shares of Peloton are up 5% for March. • Shelter-in-place orders and lockdowns have crippled the boutique fitness industry. Classpass reported that 95% of its revenue disappeared in March, and announced lay-offs and furloughs for over 50% of its staff. • In an attempt to stay connected with their customers while studios are closed, boutique fitness studios have Health & largely turned to Instagram Live sessions. These complimentary sessions, however, do not bring in any revenue, and studios remain concerned about the long-term consequences for their industry. Wellness • This Week’s Headlines: • Health insurance companies waiving treatment costs: Companies like CVS Health, Cigna, Humana and UnitedHealth Care have waived coronavirus treatment costs. • Plasma from COVID-19 survivors is being used to help the infected population: Doctors have begun experimenting with blood plasma from coronavirus survivors for current critical patients. This method has successfully been used in treatment of Ebola and H1N1. • Abbott’s point-of-care COVID-19 test delivers results within minutes: The FDA issued an Emergency Use Authorization for Abbott’s ID Now COVID-19 test, which provides clinicians with positive results within five minutes and negative results within 13 minutes.

Source: WHO, CNBC Brand Actions | Health & Wellness

Planet Fitness is offering free at-home workout Nike dropped the subscription fee for its Premium TalkSpace app is increasing access to its classes a t7pm everyday via livestream. The app products (Nike Training Club, Nike Running resources and therapists for current customers classes are open to anyone, including non- Club, Nike apps and its ’Trained’ podcast, providing and nonsubscribers, crating a free Facebook members. The workouts will also be available on- streaming workout videos, training programs and support group and IG account where people can demand on FB and on Planet Fitness’ YouTube expert tips from trainers. The company also donated seek tips, resources and guidance directly from channel. $15m to fight the pandemic. licensed therapists. Its also offering a discount for first month’s use and added COVID-related courses.

Sanofi. AbbVie. Tries to address the myths about Educates people on the Coronavirus and make sure necessities of clinical trials to find people are well informed about a treatment for the virus. the virus.

Pfizer. Roche. Talks about leadership at Dducates people on the these uncertain times and Dos and Don’ts while how important it is for the dealing with the virus. leaders to be clear, kind and flexible.

© 2020 Dentsu Aegis Network 34 CPG Sales Continue to Increase, Supply Chain Concerns Raised • CPG sales could rise as much as 30% from March to May. • Credit Suisse predicts that U.S. packaged food companies' retail sales will grow by anaverage of 15% to 30% from March to May 2020, based on the massive shifts in eating patterns to more at-home consumption. • Engagement of CPG companies, especially the ones dealing with beauty products, have increased on social media. With people quarantined, beauty companies are engaging with the customers via make-up tutorials, in-house fashion shows, tips and tricks of choosing the right product, in order to maintain consumer connection and bolster declining sales. • While customers have reduced purchases of beauty services which require human contact, like spas, tanning, and waxing, they have moved towards wellness products, such as “immunity-boosting” drinks. • This Week’s Headlines: CPG • Alcohol sales spike: Alcoholic beverage sales jumped 55% in the third week of March compared to the same time a year ago. This growth outpaces the previous week, which saw a 28% YoY sales increase from the year before. • Unilever prioritizes restocking of larger sizes of products: Unilever has prioritized restocking shelves with popular and larger sizes of its products as U.S. consumers stock their pantries, kitchens and freezers with more ice cream, condiments and easy-to-prepare meals. • CPG panic-buying prompts concerns around supply chain pressures: Various CPG companies are working with federal and state officials to ensure critical manufacturing facilities are kept open in midst of shelter-in- place orders. Companies are also recommending the Trump administration temporarily lift restrictions on hours of service for truck drivers to help keep the freight system operational and efficient.

Source: Adobe, Bigcommerce, Food Dive, The New York Times Brand Actions | CPG

Aviation Gin kicked off a #TipYourBartenders The Coca-Cola Foundation is donating $5m in Modelo announced a partnership with effort with a $15k donation to the US COVID-19 relief funding to Boys and Girls Clubs #FirstRespondersFirst, an initiative that supports US Bartender’s Guild. The brand says it plans to of America which will immediately help ensure healthcare workers battling the pandemic. add an additional 30% tip to that tab from each clubs can continue critical response work and bottle delivered through May 1. ready additional clubs throughout the country . The brand’ will redirect marketing resources to help raise awareness of the program in a national TV ad campaign along with committing$500k to the cause.

Nestle. P&G. Global CEO, Mark Schneider, Talks about teams working to fulfil discusses about how the company payroll and benefits to the and the teams are working hard to employees across the world as meet the rise in demands. well as deliver the needs of customers.

Kimberly-Clark Corp. Danone. Talks about families being unable to In this creative, urges people pay for essentials and people also to contribute to various struggle to purchase diapers. Thus, organizations and support the company partners with local food banks to ensure organizations and donates to ensure people don’t go hungry. people needing diapers can get it anyway.

© 2020 Dentsu Aegis Network 37 Restaurants Continue to Suffer Immense Trauma • Customer transactions at restaurants fell 42% in the week ending March 29th. As of April 1st, full-service restaurants in all states suffered sales declines of 60%. • The National Restaurant Association Educational Foundation (NRAEF) announced the creation of a Restaurant Employee Relief Fund (RERF) to support U.S. restaurant workers financially impacted by the COVID-19 crisis, with 100 percent of the money raised going to impacted restaurant workers. • This Week’s Headlines: • Entire Restaurant Supply Chain Reeling: With American restaurants crippled, farmers are sitting on produce, food banks that depend on extra produce are looking at shortages, and suppliers and distributors Restaurants face huge cuts in revenue. Restaurants also constitute a crucial part of the $1B wedding and event industry. • Yelp Sets Up Donation Page For Restaurants Without Permission: Yelp planned to automatically set up fundraisers on restaurants’ Yelp pages to help support them. The initiative, however, drew ire from restaurant owners, as Yelp did not inform restaurants of the “partnership,” and opting out was allegedly an arduous process.

Source: Business Insider, National Restaurant News Quick Service Restaurants Foot Traffic Trends

In response to increased consumer demand for Resy created city guides for restaurants that are Many brands have altered their logos and fresh bread, the sandwich chain is selling recently now (or always have been) open for advertisements to promote the COVID- loaves for $2. The move also serves as a takeout/delivery- giving people the opportunity to conscience look on social media, it is used to reminder that the brand drive-through and support their local neighbourhood restaurants. show solidarity and social distancing in the face delivery services remain open. of this crisis. The brand is also providing 100% relief on all fees and billing for at least 60-days and will update the policy as needed.

Red Lobster. Outback Steakhouse. introduces new items In this video ad, asks its customers on the menu in the why they still have kitchens while the family meal deals and food chain is offering free delivery delivers it contactless and asks them to think of an answer or curbside. while having a steak.

TGI Fridays. Applebee’s. In this creative, informs Introduces its free video chat customers about backgrounds, where customers curbside delivery of chats with the crew after placing an beer and wine at places order and share their screenshots where it is allowed by and get a chances to win gift cards. law.

© 2020 Dentsu Aegis Network 42 Insurers Warn of Legislation Repercussions • Congress continues to pursue potential legislation around insurance payouts, and is currently considering a Pandemic Risk Insurance Act. The Act would force insurers to compensate businesses for coronavirus- related losses. • Insurers warn that, if passed, the bill could cause a stock market meltdown, presenting the insurance industry with high costs and forcing them to have a massive “fire-sale” of stocks. • Preliminary analysis by McKinsey places the insurance industry’s recovery date into Q4 2020, without accounting for the impacts of legislation. Insurance • This Week’s Headlines: • Auto Insurance Companies Returning $800MM in Premiums: All State and American Family Insurance have announced refunds to customers, as America stalls under shelter-in-place orders. Allstate will refund 15% of premiums paid by its customers in April and May, for a total of approximately $600MM, while American Family insurance will refund $50 per car per household, for a total of $200MM

Source: McKinsey, Reuters, CNN Brand Actions | Insurance

Highmark with UPMC have pledged to eliminate any Allstate states that customers can request a special CVS is waiving charges for home delivery of out-of-pocket costs for patients who are treated for payment plan that lets them skip (2) premium prescription medications. In partnership with COVID-19 at an in-network hospital. payments without penalty. This applies to auto, Aetna, it will also offer 90-day maintenance property and powersports insurance payments. medication prescriptions for insured and Medicare They’re also going to waive all deductibles, co-pays members. Aetna will also waive early refill limits on and co-insurance costs for insurance members who 3—day prescription maintenance medications for receive inn-network in-patient costs caused by the all members with pharmacy benefits administered virus through May 31 and June 15. Highmark has through CVS Caremark. also expanded access to tele-addiction services and waived telehealth service fees.

Nationwide. USAA. Urges its members to get in touch with them if they’re Talks about how the military community is helping experiencing financial hardships because of the people during the coronavirus pandemic. pandemic.

© 2020 Dentsu Aegis Network 45 Decline in Nonprofit Donations, Food Banks Fielding Unprecedented Demand • Nonprofit donations’ volume and revenue have been badly impacted. Between the first week of February through the fourth week of March, total mail volume of nonprofit donations declined -11.2% compared to this period in 2019. Through the third week of March, this year-over-year decline was -6.8%. • Social media platforms have made updates to aid fundraising and volunteering efforts. LinkedIn volunteer ads will link up with anexpanded Recruiting for Good program to help bring in more people to work with nonprofits in both volunteer and paid roles. • 1 in 3 new GoFundMe campaigns in the US are tied to coronavirus. Between March 20 and March 24, the number of coronavirus-related campaigns of GoFundMe shot up by 60%, from 22,000 to 35,000. As of March 24th, donors had contributed $60M to coronavirus-related campaigns. • This Week’s Headlines: • US Facing Hunger Crisis as Demand for Food Banks Soars: As the pandemic triggers widespread layoffs, unprecedent numbers of Americans have resorted to food banks for emergency supplies. The demand for food aid has increased as much as eightfold in some areas. About one in three people seeking groceries at not-for-profit pantries last month have never previously needed emergency food aid. The national guard has been deployed to help food banks cope with rising demand in cities including Nonprofit Cleveland, Pittsburgh and Phoenix. • Pandemic May Cause Silicon Valley Elite To Donate Substantively To Local Charities: The Bay Area is home to one of the country’s most pronounced virus outbreaks, with more 1,000 confirmed coronavirus cases as of March 25. The region also faces gaping income inequality, with 53% of households home to just 2% of its wealth. Its homelessness crisis is among the worst in the nation, and four out of every five of its homeless are unsheltered, the highest rate in at least eight years. • In response to this disparity, two major Silicon Valley donor groups, the Silicon Valley Community Foundation and Tipping Point, are trying to raise $60M to help people in the Bay Area cope with the coronavirus. Venture capitalist Ryan Sarver and two others have organized over $300,000 to buy 15,000 meals for hospital workers on the front lines of the crisis in San Francisco. Paul Graham, the billionaire founder of Y Combinator, gave $1M to fund some protective gear needed Source: Tech Crunch, Merkle RMG, Forbes, The by San Francisco hospital workers. Facebook’s Sheryl Sandberg and other tech executives have New York Times, USA Today, CBS sent $7M to a local food bank. Brand Actions | Non-profit

One22, a non-profit community resource Is donating $1.5m to food banks including NYC’s In partnership with Jansport, the organization is centre that’s focused on tech, launched Harvest and Feeding Westchester and helping underprivileged students who aren’t able to 22Helps, a campaign to raise $2m for Colorado’s Community Food Share and We get free meals with school closures by giving them community members in Wyoming who’ve Don’t Waste. It will also give a pay bump to its packs of food. The #UnpackThatChallenge, been economically impacted by the employees working in manufacturing plants students are creating videos on TikTok as they pandemic. through the end of April. unpack their at-home desks.

To Write Love on Her Arms (TWLOHA). Global Healthy Living Foundation. & CreakyJoints. Sent a message that’s bold and inspirational that leads with, “Fear Launched an online COVID-19 support and education program for patients Won’t Win.” They detail why the coronavirus outbreak won’t stop with chronic conditions and their families. them or their supporters as they continue to march forward.

Covenant House International. A charity that serves homeless youth, Covenant House is experimenting with replacing its spring Sleep Out events with Facebook live events. These events, held across the United States and Canada each spring and fall, typically raise more than $1M in unrestricted revenue. Teams of colleagues, students, and members of religious congregations pledge to spend the night outside in exchange for donations from friends and family. The charity used Facebook to livestream its first "virtual sleepout." The online event featured a conversation with the charity’s president, actors Rachel Brosnahan and Jason Ralph, Covenant House staff, and an estimated 100 volunteers who were sleeping outside individually. Staff talked about items they needed from toiletries to televisions to cellphone chargers to keep kids safe, healthy, and entertained while they ride out the pandemic in Covenant House shelters.

© 2020 Dentsu Aegis Network 49 About Dentsu Aegis Network Part of Dentsu Inc., Dentsu Aegis Network is made up of ten global network brands - Carat, Dentsu, dentsu X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscopeand Vizeum and supported by its specialist/multi-market brands. Dentsu Aegis Network is Innovating the Way Brands Are Built for its clients through its best-in-class expertise and capabilities in media, digital and creative communications services. Offering a distinctive and innovative range of products and services, Dentsu Aegis THANK YOU. Network is headquartered in London and operates in 145 countries worldwide with more than 40,000 dedicated specialists. www.dentsuaegisnetwork.com

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