Welcome!

Let’s start with a short description of the most rigorous brand valuation method in the World

Brand Value Brand Contribution Financial Value X =

X = The secret ingredient Brand Value Brand Contribution Financial Value X =

WHAT IS ‘BRAND’? CLOSE YOUR EYES!

DO NOT THINK OF…

Valuable brands have STRONG RELATIONSHIPS with consumers and are MEANINGFULLY DIFFERENT

The Brand Relationship is like dating… Now a very strong relationship Bonding A strong liking is developing Advantage The first date goes well Performance At first you are cautious Relevance Relationships start with awareness Presence

More valuable brands have stronger relationships All LatAm Top 50 LatAm Bonding More valuable brands have stronger relationships Advantage Performance Relevance Presence (6.977 brands)

LatAm compares favourably with Global brands Top 50 LatAm Top 50 Global Bonding LatAm compares favourably with Global brands Advantage Performance Relevance Presence

Bonding Advantage Performance Relevance Presence Top 50 LatAm Top 50 China Top 50 Global Bonding Advantage Performance Relevance Presence

Bonding Advantage Performance Relevance Presence Top 5 LatAm Top 5 Argentina Bonding Advantage Performance Relevance Presence

The POWER of the brand: Brand Contribution

Bonding Bonding only 51% Advantage Advantage only 25% Performance Coca Cola Argentina Bonding Bonding only 51% Advantage Advantage only 25% Performance Relevance Presence

Coca Cola Argentina Bonding only 51 76 Advantage only 25 14 Customers % Value % Customers % Value % Bonding only 51 76 Advantage only 25 14 Performance/ Relevance/ 23 Presence 10 No Presence 1

Brand Contribution Percentage Coca Cola Argentina Brand Contribution Percentage These people account for the vast majority of sales because they are more loyal to the brand. Bonding Advantage Performance Relevance Presence

The Brand Contribution effect… = X X =

Example from Global Valuations Brand Contribution effect: Example from Global Valuations

BRAND CONTRIBUTION AVERAGE BRANDZ™ value $23bn Interbrand value $28bn Values very similar

$13bn $28bn BRAND CONTRIBUTION LOWER BRANDZ™ value $13bn Interbrand value $28bn Interbrand fails to take account of lower Brand Contribution

$183bn $34bn BRAND CONTRIBUTION HIGH BRANDZ™ value $183bn Interbrand value $34bn Interbrand fails to take account of high Brand Contribution

GLOBALBRAND VALUE BRANDZ™ 4 3 $183BN Interbrand $34BN $16bn $9bn 2006 BRAND CONTRIBUTION 4 BRAND CONTRIBUTION 3 Interbrand $34BN $16bn $9bn 2006 2012

STRONG BRANDS PERFORM BrandZ Global Valuations 37.5% 0.4% S&P 500 APR 06 MAY 12

What drives Brand Contribution? Global LatAm Local Top 50 Top 50 LatAm Popularity 302 208 117 Affinity 192 139 86 Difference 107 42 90 Price 35 20 210 Source: BrandZ (Index Average = 100)

Top Brands are more trusted, recommended and more desirable Global LatAm China Top 50 Top 50 Top 50 Trust 105 104 110 Recommendation 104 102 106 Desire 112 112 110 Source: BrandZ (Index Average = 100)

Character of Top Brands Global LatAm China Top 50 Top 50 Top 50 In Control 109 Friendly 106 Wise 108 Assertive 107 Kind 105 In Control 107 Creative 105 Generous 104 Friendly 105 Source: BrandZ (Index Average = 100)

Before we see some results… Let’s have a short QUIZ (5 questions)

Stand up please! If you get the answer wrong you will need to sit down again…

Q1. BRAND CONTRIBUTION Some brands generate more than their fair share of financial value because the brand contributes so much. Which one of these has the greatest Brand Contribution (in Argentina)? Guinness Heineken Quilmes 

 Q2. BRAND TRUST & RECOMMENDATION Brands that are BOTH trusted by all and recommended by their users have heritage and contemporary relevance. Which one of these has the greatest TrustR (in Argentina)? Ford Honda VW 

Q3. BRAND DIFFERENCE Brands that are different can have an advantage over others. Which one of these is rated most different (in Argentina)? Apple iPhone Nokia Samsung 

Q4. BRAND DESIRE Brands that create desire tend to justify their price premiums and can generate greater profits. Which one of these has the greatest Brand Desire(in Argentina)? Carrefour Jumbo Walmart 

Q5. CHARACTER CLARITY Brands that have a distinct and defined character tend to be stronger. Which one of these has the clearest Character(in Argentina)? Andes Eki Tai 

Anyone still standing is a WINNER!

And brands that score well on these things will also be winners: Clear Character/Personality Recommendation by users Affinity/Desire/Popularity Trust Different

And now, some facts about the most valuable brands…

Combined value ($US) of Top 50 brands 1,845bn What we did: we sum brand value of top 50’s most valuable Global, Chinese, Latam and Brazilian brands (We couldn’t do the same as for others countries because we only have top 50’s for Brazil, not for Mexico, Chile and other). First to try to put all the valuation into a global context, we could see that the importance of the top 50 Most valuable Latan brands is less than 50% of China, and this is similar to GDP importance. Besides that, both China and Latin American has still a great space to growth, since their GPD per capita is extremely lower than developped economies. But both China and Latin American can grow a lot in brand values as theur brands are starting internationalization process, making their brands widespread all over the world. When compare to Brazil, there is a great potential for Brazilians brands to grow. Both in terms of using branding to be a competitive advantage and also to have their companies become public trade in capital markets. 311bn 136bn 60bn Global China LatAm Brazil

Contribution of countries (% of $US brand value in Top 50) What we did? We calculated the importance of each country in the ranking composition. My first conclusion is that there is very few Real Latin american brands. Of course that when you some brands with international presence, such as Petrobras, Cemex, Vale, but in reality they don’t work as a Latin American brand, but as a Brazilian and Mexican brand. Secondly I would say that Brasil and Mexico are the most important brands. Brasil with some advantages due to the fact that two important brands are commodities – Petrobras (Oil) and Vale (mining) – and as such, an strong relevance. Chile is a good surprise for all of us. Chile has opened its economy to global competition earlier than others Latin American Countries. The country is extremely strong in Retail, with brands such as Falabella, Líder, Almacén Paris. All these retail brands have their own financial institutions. Also, Lan is a very important Chilean brand, and after the acquisition of Brazilian TAM, they have a great potential to be a very important player in Latin American. Colombia has an important importance as a whole, but also has Comcel, a very traditional Colombian brand, as one of the most valuable. Comcel also belongs to Carlos Slim’s brand portoflio, and in an recent decision, Claro will replace the brand ComCel (They will kill the brand Comcel). This will be a tremendous challenge for Claro. Second most valuable brand is a Oil brand, Ecopetroil. Third is Bancolombia, very well positioned brand with high brand contribution when you compare the category Financial Institution as a whole. Argentina – due to all economy problems that Argetina is facing, very few valuable brands, and the most valuable YPF recently faced intervention of Government and took the shares from Spainh Repsol, which created a huge problems for investing in the country.

How LatAm compares (% value) LatAm China Global Financial 25 43 13 Telecoms 19 22 15 Retail 19 3 5 B2B 18 8 13 Consumer Goods 16 10 20 Technology - 11 27 Other 3 3 7 We classified Brand value for each countries into categories: B2B – Oil Mining, Steel, Cement, industry – High dependence of this sectors in commodities and b2b Relationship. Very important in Argentina and Brasil. In Mexico, Pemex is a monopoly B2C – Consumer goods – Brazilian and Mexican brands play a more important role in brand value composition. In others a lot of global and international brands are relevant for the others’ markets Financial Institution – Colombia, Brazil and Mexico brands are very relevants for brand valuation composition. Retail – Clearlly Chile is very developed in this industry. Telecom – Clearly relevant for Colombia, Argentina and Mexico.

How countries differ (% value) Brazil Mexico Chile Colombia Argentina Financial 32 29 13 48 4 Telecoms 4 18 - 29 23 Retail 8 22 59 5 - B2B 21 4 12 18 66 Consumer Goods 26 27 2 - 7 Other 9 - 14 - - We classified Brand value for each countries into categories: B2B – Oil Mining, Steel, Cement, industry – High dependence of this sectors in commodities and b2b Relationship. Very important in Argentina and Brasil. In Mexico, Pemex is a monopoly B2C – Consumer goods – Brazilian and Mexican brands play a more important role in brand value composition. In others a lot of global and international brands are relevant for the others’ markets Financial Institution – Colombia, Brazil and Mexico brands are very relevants for brand valuation composition. Retail – Clearlly Chile is very developed in this industry. Telecom – Clearly relevant for Colombia, Argentina and Mexico.

Now it is time to reveal the most valuable brands