• BrandFinance® Global 500

• BrandFinance® Global Intangible Finance Tracker (GIFT™)

• BrandFinance® Nation Brands

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

Thought Leadership Global Brand Studies

in association with:

Table 1: Top Five Most Valuable Brands in the World

Brand Value

Rank 2013 Brand Domicile

Brand Value

2013

(US$ bn)

Brand Value

2012

(US$ bn)

Change

(US$ bn)

Change

(%)

1 Apple US 87.3 70.6 16.7 24%

2 Samsung South Korea 58.8 38.2 20.6 54%

3 Google US 52.1 47.5 4.7 10%

4 Microsoft US 45.5 45.8 -0.3 -1%

5 Walmart US 42.3 38.3 4 10%

Source: BrandFinance® Global 500 (2013)

0.40

0.50

0.60

0.70

0.80

0.90

1.00

1.10

1.20

1.30

2007 2008 2009 2010 2011 2012

Ind

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Mar

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BRAND FINANCE GLOBAL 500

FSTE ALL

S&P 500

Brands in the Global 500 outperform the market

ISO 10668: brand valuation

Brand Finance Services

1. Determine forecast Revenue Determine future revenues for each brand over a five year explicit forecast period. This is done by referencing historic revenue trends, market growth estimates, competitive forces and analyst projections.

2. Establish Royalty Rate Range Review comparable licensing agreements. Analyse margins and value drivers across business units. Establish average royalty rate range for each sector.

3. Assess the Brand Strength Determine the strength of the brand using the BSI. Apply BSI to royalty rate range to determine royalty rate for the business units.

4. Determine the Discount Rate Determine discount rate to calculate the net present value (‘NPV’) of future brand earnings (accounting for the time value of money and the associated risk).

5. Brand Valuation Calculation The NPV of post-tax royalties equals the brand value

5 steps to the

Royalty Relief methodology

Brand

Strength

Index

Inputs

(25%)

Trademark & VI Strength

Marketing Investment

CAPEX

Distribution

Brand

Equity (50%)

Preference

Consideration

Stature

Attraction

Customer Delight

Net Promoter Score

Outputs

(25%)

% Net Additions

Market Share

Total Revenue

Revenue Growth

ARPU

Profitability

illustrative example only

Forecast Revenue & Earnings

Royalty Rate

Discount Rate

How does Brand Strength affect the brand valuation?