2017GlobalRepTrak®100 TheWorld’sMostReputableCompanies February28,2017 Reputa)onIns)tute|20YearsofReputa)onLeadership 1 Agenda • • • • AboutReputa)onIns)tute The2017GlobalRepTrak®100 CommonCharacteris)csoftheMostReputableGlobalCompanies KeyReputa)onDriversfor2017 Thispresenta)onisconfiden)alandcontainsproprietaryinforma)onandintellectualpropertyofReputa)onIns)tute,whichmaynotbereproducedordisclosedwithout theexpresswriQenpermissionofReputa)onIns)tute.RepTrak®isaregisteredtrademarkofReputa)onIns)tute.©2017Reputa)onIns)tute,allrightsreserved. Reputa)onIns)tute|20YearsofReputa)onLeadership 2 Reputa)onIns)tute AboutReputa)onIns)tute Reputa)onIns)tute|20YearsofReputa)onLeadership 3 AboutReputa)onIns)tute TheWorld’sLeadingResearchandAdvisoryFirmforReputa<on Foundedin1997byDr.CharlesFombrunandDr.CeesvanRiel,wehelporganiza)ons answerthefollowingques)ons: • Whatismyreputa)on? • Howdoesitcompare? • HowcanIimproveit? RepTrak®Framework Onanannualbasis,wemeasurethereputa)onsofthousandsoftheworld’smost pres)giouscompaniesusingourRepTrak®framework–theworld’slargestandhighest qualitynorma)vereputa)ondatabase. Con<nuousReputa<onMeasurement&Guidance Weprovidecon)nuousreputa)onmeasurement,benchmarkingandconsul)ngservicesto hundredsofthebest-knowncompaniesgloballytohelpthemprotecttheirreputa)ons, analyzerisksanddrivecompe))veadvantage. Reputa<onManagementBestPrac<ces ThroughourReputa)onLeadersNetwork,webringexecu)vesfrom150+globalmember companiestogethertoadvancetheprac)ceofreputa)onmanagementcollec)velyandfor theirorganiza)ons. Reputa)onIns)tute|20YearsofReputa)onLeadership 4 TheGlobalRepTrak®100 TheGlobalRepTrak®100isastudythatReputa)onIns)tuteconductsannuallytomeasurethe reputa)onoftheworld’s100mosthighly-regardedandfamiliarglobalcompaniesin15countries. Includedfirmsmustmeetthefollowingqualifica)ons: 1)Haveasignificanteconomicpresenceinthe15largesteconomies 2)Haveanaboveaveragereputa)oninitshomecountry 3)Haveglobalfamiliarityover40% ItisthelargestGlobalreputa)onstudy,with~170,000ra)ngscollectedinQ12017. Respondentsarequalifiedat2)ers: • Familiarity:Respondentsmustbe“somewhat”or“very”familiar • RepTrak®Pulse:Respondentsmustcomplete75%ofthepulsera)ng Theresultstellus: • Whichcompaniesarebestregardedbyconsumers • Whatdrivestrustandsupportwithconsumers • Howthetopcompaniesarelivinguptopublicexpecta)ons Studycomponentsinclude: • RepTrak®Pulse • DimensionsofReputa)onandDriversofReputa)on • Suppor)veBehaviors(willingnesstotrustorbuy) • BrandExpressiveness Reputa)onIns)tute|20YearsofReputa)onLeadership • DatabyDemographicCuts 5 RepTrak®Model:ASingleLenstoAnalyzeandDeliverReputa)on-DrivenStrategies WhyMeasureReputa)on? RepTrak®Systemmeasuresa company’sabilitytodeliveron stakeholderexpecta)onsacross the7keyra)onaldimensionsof Reputa)on REPTRAK®DIMENSIONS Ra<onalFactors PRODUCTS&SERVICES INNOVATION WORKPLACE RepTrak®Pulseconnectsthe emo)onalbondstakeholders havewithyourcompanywith ra)onalbehaviors Measurestheoverallreputation ofyourcompany REPTRAK®PULSE Emo<onalConnec<on Acompanythathasastrong brandanddeliverson expecta)onsacrossthe7 dimensions—willearn supportfromitsstakeholders SUPPORTIVEBEHAVIORS Reputa<onBenefits PURCHASE RECOMMEND CRISISPROOF GOVERNANCE CITIZENSHIP VERBALSUPPORT LEADERSHIP INVEST PERFORMANCE WORK Reputa)onIns)tute|20YearsofReputa)onLeadership 6 HowCorporateReputa)onLinkstoStakeholderSupport CompanieswithExcellentorStrongReputa)onsgetsignificantlymoresupportfromthepublic. Poor 0-39 Reputa)onIns)tute|20YearsofReputa)onLeadership 7 Reputa)onIns)tute 2017GlobalRepTrak®100 Reputa)onIns)tute|20YearsofReputa)onLeadership 8 The10CompanieswiththeBestReputa)onintheWorld Rank Home 2017 PulseScore 1 Switzerland 80.38 2 Denmark 79.46 2017Highlights 3 UnitedStates 79.19 4 Japan 78.28 5 UnitedStates 78.22 Forthefirst)me— thecompanywiththe highestra)ngandthe topspotfallsintothe “Excellent”range. 6 Germany 78.12 7 Japan 77.74 8 UnitedStates 77.74 9 TheUnited Kingdom 77.66 10 Germany 77.27 Excellent Strong TheUnitedStates, GermanyandJapan havethemost companiesintheTop Ten. Reputa)onIns)tute|20YearsofReputa)onLeadership 9 9 TopTenbyMacroRegion NorthAmerica Pulse Rolex 81.83 Google 81.29 Sony 80.35 LEGOGroup 80.32 EMEA Pulse Asia Pulse LVMHGroup 80.16 LEGOGroup 83.33 Rolex 80.84 Canon 79.74 Bosch 82.25 TheWaltDisneyCo 78.46 Kellogg’s 79.58 TheWaltDisneyCo 81.68 Intel 77.05 Amazon.com 78.84 Michelin 81.49 RollsRoyce 77.03 Caterpillar 78.62 Sony 81.02 Google 76.75 TheWaltDisneyCo 78.45 Canon 80.83 adidas 76.67 GlobalView Rolex 80.73 Microsou 76.22 La<nAmerica Pulse BMWGroup 80.15 LEGOGroup 75.44 Google 79.99 LeviStrauss&Co 79.01 Canon 75.23 BMWGroup 78.95 RollsRoyce 78.98 BBC 74.98 Nintendo 77.24 Netlix 77.22 HondaMotor 77.22 Whirlpool 77.05 LEGOGroup 77.02 Colgate-Palmolive 76.99 Canon 76.77 Rolex 76.72 24companiesare representedinthe TopTenacrossfour globalmacroregions. Onlythreecompanies maketheTopTenlist ineveryregion:Rolex, LEGOGroup,and Canon.Googleand WaltDisneyarein threeofthefour regions;andSonyand BMWareintwo. EMEAhasthehighest numberof“Excellent” scores,whileLa)n Americahasnone. 1 Reputa)onIns)tute|20YearsofReputa)onLeadership 10 0 2017GlobalRepTrak®100:TheWorld’sMostReputableCompanies Rank Company 2017RepTrak®Pulse Rank Company 2017RepTrak®Pulse 1 2 Rolex LEGOGroup 80.38 79.46 26 27 Visa Daimler 74.54 74.52 3 TheWaltDisneyCompany GiorgioArmani Canon Google Bosch Sony Intel Rolls-RoyceAerospace Adidas Microso_ BMWGroup 79.19 78.28 78.22 78.13 77.74 77.74 77.66 77.27 77.12 76.93 28 4 5 6 7 8 9 10 11 12 29 30 31 32 33 34 35 36 37 Goodyear Bridgestone Mastercard Pirelli Caterpillar Toyota Panasonic HPInc. TheEstéeLauderCompanies 74.44 74.40 74.12 74.12 74.11 74.06 73.98 76.75 76.70 38 Danone 39 BBC 75.74 75.72 75.45 75.33 75.29 74.94 74.94 74.82 74.74 74.72 74.64 40 Neclix 41 42 43 Whirlpool Emirates HugoBoss 13 Michelin 14 15 16 17 18 19 20 21 22 23 24 25 LeviStrauss&Co. Nike,Inc. Nintendo Ferrero Amazon.com IBM Apple PhilipsElectronics 3M Barilla CiscoSystems Colgate-Palmolive 73.88 73.73 73.71 73.54 73.50 73.35 73.30 73.29 73.27 44 Johnson&Johnson 45 46 47 48 49 50 RalphLaurenCorpora<on L'Oréal Siemens HondaMotor Boeing HiltonWorldwide 73.27 73.20 73.18 73.14 73.13 73.02 73.00 Reputa)onIns)tute|20YearsofReputa)onLeadership 11 2017GlobalRepTrak®100:TheWorld’sMostReputableCompanies Rank Company 2017RepTrak®Pulse Rank Company 2017RepTrak®Pulse 51 52 53 54 55 56 57 58 59 60 61 62 Airbus TheKra_HeinzCompany DHL Nestlé FedEx Bri<shAirways Kellogg's IKEAGroup Heineken Fujifilm Procter&Gamble HersheyCompany 72.96 72.90 72.85 72.63 72.59 72.59 72.48 72.46 72.41 72.32 72.30 72.28 76 77 78 Nokia AirFrance-KLM VirginGroup 70.71 70.63 70.62 79 UPS LGCorpora<on 64 65 66 67 68 69 70 71 72 73 74 75 Oracle SAP CampbellSoupCompany Xerox Dell Ford SamsungElectronics GeneralElectric Anheuser-BuschInBev Electrolux Unilever Toshiba 72.05 71.90 71.86 71.86 71.67 71.60 71.42 70.98 70.98 70.90 70.87 70.84 70.74 NissanMotor Hitachi TheCoca-ColaCompany eBay Bacardi PSAPeugeot-Citroën LinkedIn GroupeRenault Sharp AmericanExpress 70.61 69.95 69.95 69.53 69.30 69.22 69.15 68.82 68.71 63 80 81 82 83 84 85 86 87 88 89 90 Fujitsu 91 92 93 94 95 96 97 98 99 100 Ericsson Zara PepsiCo ING StarbucksCoffeeCompany GeneralMotors DeltaAirLines FCA(FiatChryslerAutomobiles) Hyundai Volkswagen 68.65 68.36 68.14 67.99 67.76 67.71 67.46 67.36 67.28 67.11 66.58 66.12 64.73 Reputa)onIns)tute|20YearsofReputa)onLeadership 12 Reputa)onIns)tute SuperiorReputa)on:WhatitTakes 1 Reputa)onIns)tute|20YearsofReputa)onLeadership 13 3 WhileProductsandServiceslead,Governanceand Ci)zenshiproundoutthetop3globaldrivers 12.9 12.5 83.06 20.5 13.1 84.6 14.4 80.24 82.8 11.6 15.0 2017 DriverAnalysis Forthefirst)meinfive yearsInnova)onfallsin rela)veimportanceasa keyreputa)ondriver, cominginat#4outof7 in2017. 73.49 80.23 13.6 75.04 18.3 12.9 14.0 13.6 2017 ProductsandServices increasesbymorethan twofullpointsandisthe mostimportant reputa)ondriver, followedbyGovernance andCi)zenshipwhich bothincreasedslightly. 13.1 14.5 2016 Reputa)onIns)tute|20YearsofReputa)onLeadership 14 Themostreputablecompaniesarestrongacrossall7dimensions 80.62 84.66 76.42 80.38 69.03 75.23 74.55 73.01 *Listshowstop10mostimportantreputa)onaQributes 78.48 80.54 75.77 79.46 72.71 77.64 75.38 75.04 80.60 79.03 77.81 79.19 72.77 78.23 74.24 73.77 1 Reputa)onIns)tute|20YearsofReputa)onLeadership 15 5 Eventhetop3needtoimproveintheCSRDimensions Dimension Amribute Score Dimension Amribute Score Dimension Amribute Score ProductsandServices Offershighquality productsandservices 86.58 ProductsandServices Offershighquality productsandservices 81.48 Performance ProductsandServices Standsbehindits productsandservices 82.81 Performance 81.17 ProductsandServices Offershighquality productsandservices 80.44 Performance 82.74 ProductsandServices Standsbehindits productsandservices 80.39 ProductsandServices Meetscustomers needs 80.31 ProductsandServices Meetscustomerneeds 80.53 ProductsandServices Meetscustomer needs 80.12 Leadership Isawellorganized company 80.24 Leadership Isawellorganized company 79.18 Performance Isawellorganized company 79.18 Leadership Hasaclearvisionfor thefuture 79.64 Leadership Hasaclearvisionfor thefuture 76.98 Innova)on Isaninnova)ve company 78.96 ProductsandServices Standsbehindits productsandservices 79.02 Performance Showsstrong prospectsforfuture growth 76.83 Performance Showsstrong prospectsforfuture growth 78.24 Innova)on Isaninnova)ve company 78.57 Performance Deliversfinancial resultsthatarebeQer thanexpected 75.97 Leadership Hasaclearvisionfor itsfuture 78.07 Ci)zenship Hasaposi)ve influenceonsociety 78.13 74.98 Hasaposi)ve influenceonsociety 77.71 Hasastrongand appealingleader 77.46 Hasexcellent managers Ci)zenship Leadership Performance Adaptsquicklyto change 77.37 Innova)on Adaptsquicklyto change 76.87 74.45 Innova)on Leadership Isaprofitable company Hasastrongand appealingleader Isaprofitable company Isaprofitable company 83.53 1 Reputa)onIns)tute|20YearsofReputa)onLeadership 16 6 Companiesthataremoreopen,moregenuineand communicatemoreouenhavefarstrongerreputa)ons Top3 BoQom3 71% 70% 66% 58% 47% 50% 47% 43% 43% 39% 38% 34% 29% Communicatesouen 28% Standsoutfromthecrowd Deliversaconsistent experience Providessufficient informa)onaboutits ac)vi)es *Pleaseconsiderhowwelleachstatementreflectsyouropinions.Pleaseselectanumberfrom“1”to“7”where“1” means“Istronglydisagree”and“7”means“Istronglyagree”(T2B%) Appearsgenuine Welcomesopendiscussion Meetstheneedsofits customers Reputa)onIns)tute|20YearsofReputa)onLeadership 17 Reputa)onIns)tute KeyReputa)onDriversfor2017 1 Reputa)onIns)tute|20YearsofReputa)onLeadership 18 8 Awarenessisnotenough...growinginfamiliarityisrequiredtowin ...tobuildReputa6onitisnecessarytoreinforcetheemo6onalbondconsumershavetowards thecompany–youneedtoleveragefamiliarity Familiarity Awareness + Excellent 36.8% Aware 60.0% 82.5 100% 68.5 61.7 - Poor 13.9% - + 74.7 Reputa<on Good 21.4% Sufficient 27.9% Notaware 40.0% +20.8 Poor Sufficient Familiarity Good Excellent Leveloffamiliarity Reputa)onIns)tute|20YearsofReputa)onLeadership 19 Familiarityisahugereputa)ondriverforcompanies&markets,CocaCola andtheUSgetthebiggestbenefitfromincrementalcommunica)onpressure AverageReputa6onimpact–LowvsHighFamiliarity +20.8 Atcountrylevel Atcompanylevel +15.6 80.6 + Reputa<on 78.2 + 79.3 Reputa<on 75.5 78.4 72.8 67.7 67.2 87.4 +24.8 71.2 65.0 62.6 67.5 60.1 61.4 45.3 +32.9 +17.0 - - Poor Sufficient Good Excellent Poor Sufficient Good Excellent Reputa)onIns)tute|20YearsofReputa)onLeadership 20 …andFerrero,theworlds’mostreputablecompanyin2009,canwinbacka Top3posi)onbyleveragingfamiliarityandreputa)oninselectedmarkets WhereFerreroneeds tobuildfamiliarity 87.6 79.2 Reputa6on Global Ranking Excellent 43.9% 85.1 65.2% High familiar 75.5 80.4 Good 21.3% 74.0 Sufficient 24.9% 63.8 Poor 9.9% 77.2 34.8% Low familiar - + Excellent 38.7% Good 22.0% 68.5 Sufficient 27.0% 65.7 Poor 12.3% 60.7% High familiar WhereFerreroneeds toimprovereputa6on 39.3% Low familiar Leveloffamiliarity Reputa)onIns)tute|20YearsofReputa)onLeadership 21 PharmaReputa)ondifferacrossmarkets Growthinfamiliaritydirectlyimpactsreputa)on(+12.9)andgenerates incrementalbusinessimpact(18.8%) Reputa<on + 79.1 +12.9 66.2 - Lowfamiliarity %ofpeoplewillingto... ...Buy (poor–sufficient) Highfamiliarity (good–excellent) Incremental businessimpact 45.2% 67.5% +22.3 ...RecommendProducts 20.1% 32.7% +12.6 ...BenefitofDoubt 32.3% 52.3% +20.0 ...Welcometoneighborhood 41.9% 63.0% +21.1 Employer branding ...Workfor 37.9% 57.1% +19.2 ...RecommendCompany 40.8% 64.5% +23.7 Media Influence ...Recommendasinvestment 14.2% 26.2% +8.0 ...SayposiMve 41.5% 65.0% Consumer Acquisi6on Licenseto operate +18.8 Reputa)onIns)tute|20YearsofReputa)onLeadership 22 +23.5 Reputa)ongrowthistheresultofincrementalfamiliaritywiththecorrect blendofcontent/messagesandtouchpoints–howtoselectyourstrategy? 3strategicop6onsforreputa6ongrowth Howtoselectyourstrategy + Leveragetouchpoints #1:consolidateposi6on Contentdrivenstrategy Integratedreputa6onstrategy Reputa<on + Content strategylevel Company... Star6ngpoint CompanyB Touchpointdrivenstrategy CompanyA - Poor Sufficient Familiarity Good Excellent Leverageboth - - Leveragecontent Touchpointstrategylevel + Reputa)onIns)tute|20YearsofReputa)onLeadership 23 Applyinganeffec)ve"touchpointdriven"strategy Selec6ngyourstrategy + Leveragetouchpoints #1:consolidateposi6on WhatresultscanIachievebyleveraging touchpointsintherightway? Content strategylevel - Leverageboth - Leveragecontent Touchpointstrategy level + Reputa)onIns)tute|20YearsofReputa)onLeadership 24 Mul)-touchpointstrategiesgenerates+8.9ptsinreputa)on…butonly10% ofconsumersrecognizecompaniesdoingit! Penetra6onbytouchpointcategory Mul6-channelstrategyimpact 43% 40% 49.5% Atleast2 Touchpoint Atleast3 Touchpoint 47% 31% 75.8 74.3% Atleast1 Touchpoint Atleast4 Touchpoint +2.8 27.0% 10.0% +2.8 +3.3 +8.9 NumberoftouchpointsusedbyGeneralPublic: Reputa)onIns)tute|20YearsofReputa)onLeadership Consumerexperience,PaidMedia,OwnedMedia,EarnedMedia 25 Applyinganeffec)ve"contentdriven"strategy Selec6ngyourstrategy + Leveragetouchpoints #1:consolidateposi6on WhatresultscanIachievebyleveraging contentandmessagingintherightway? Content strategylevel - Leverageboth - Leveragecontent Touchpointstrategy level + Reputa)onIns)tute|20YearsofReputa)onLeadership 26 Reputa)ondriversdifferbyregion...localizedcontentstrategiesareneeded towinconsumers GLOBAL 13.3 19.3 12.4 13.7 NorthAmerica 13.8 13.6 13.2 14.5 20.0 AsiaPacific 12.4 13.0 13.4 13.1 EMEA 12.8 14.6 18.1 12.8 12.8 La6nAmerica 14.1 20.7 11.9 12.7 12.1 13.5 13.6 14.0 13.8 20.1 14.3 13.2 14.7 13.5 14.4 12.9 13.8 Reputa)onIns)tute|20YearsofReputa)onLeadership 27 Aglobal"contentdrivenstrategy"needstobeprimarilyfocusedon 7keyfactorsthatexplain40%ofreputa)on,4areproduct-related, 3areCSRspecific GLOBAL Showsstrongprospectsfor futuregrowth Isaprofitablecompany FinancialresultsbeQerthan expected 95 Offershighqualityproductsand services 160 82 Goodvalueformoney 132 Meetscustomerneeds 128 Standsbehindproducts 126 77 Wellorganized 98 Strongandappealingleader 90 Hasexcellentmanagers 86 Hasaclearvisionforitsfuture 84 13.3 19.3 12.4 13.6 13.7 Hasaposi6veinfluenceon society Responsibleforenvironment 91 Supportsgoodcauses 87 97 Innova)vecompany 95 Adaptsquicklytochange 85 13.2 14.5 124 Firsttomarket Behavesethically 110 Fairinthewayitdoesbusiness 108 Openandtransparent Demonstratesconcernfor healthofemployees 82 Rewardsitsemployeesfairly 81 Equalopportuni)es 76 98 Reputa)onIns)tute|20YearsofReputa)onLeadership 28 Whatstrategyshouldyourcompanypursue? Top100companiesposi6oning + #1:consolidateposi6on Leveragetouchpoints #1:effec6vecommunica6on Content strategylevel - Leveragetouchpoints&content - Lowlevelofengagementand noteffec6vecontentstrategy Touchpointstrategy level Leveragecontent + Reputa)onIns)tute|20YearsofReputa)onLeadership 29 Step1inbuildingyourreputa)onstrategyneedstotakeintoaccountthat reputa)onmoves...itiscri)caltoacknowledgetrendsinyourindustry... 46,0% 70 68.0 TelcosectortrendsinItaly 68.3 • TheTelcobusinessischaracterized bymonthlycon)nuouspromo)ons tomaximizeARPUandwinclients 68 66 • ThisgreatlyimpactstheTelco reputa)onanditsbusinessimpact whichshowsbigmoves 64 • In12months,topscoreis68.3and boQomscoreis57.4,showinga differenceof10.9pts(19%) 62 60 58 56 59.0 57.4 30.3% • Inthesamemonthacompany’s reputa)onmoved9pts.from59to 68(15%) • Thedifferenceinbusinessimpactis big,inten)ontobuyforTelcocan vary15,7%ina12monthperiod Reputa)onIns)tute|20YearsofReputa)onLeadership 30 ...tobethenabletomovetoStep2:leveragetouchpoints,contentorboth Leveragetouchpoints • LookatyourTouchpointstrategy • Assessreachandimpact(KPI) • Re-aligncurrentac6onplan #1:consolidateposi6on • Evaluatewherethereisuntappedpoten6al(content andtouchpoints) • Decidehowtoallocateresources&targets • VerifyROIoverMme Leverageboth Leveragecontent • Re-thinkyourreputa6onbusinesscase&strategy • Lookatyourcontent&narra6vestrategy • IdenMfyKeyMessages/TPthatimpactyourbusiness • Evaluateimpactofyourkeymessages • Ac6onplanaccordingly&defineYoYTarget • Finetuningofyourkeymessages Reputa)onIns)tute|20YearsofReputa)onLeadership 31 GetYourCompany’sData Askustobeamongthefirsttoknowyourcompany's 2017scoreandranking. Seehowlikelyyourstakeholdersareto buyfromyou,workwithyou,andinvestinyour company. Understandhowyoucanimproveyourscoresand growyourstakeholdersupport. Askusatinfo@reputa)onins)tute.com Reputa)onIns)tute|20YearsofReputa)onLeadership 32 ThankYou Reputa)onIns)tute|20YearsofReputa)onLeadership 33