World's Most Valuable Brands Ranked by Interbrand 2001

2001 #

Brand

2001 Brand % change Value (2001 vs ($MM) 2000)

2000 Brand Value ($MM) 72,537 70,197 53,184 38,128 38,528 39,049 33,553 36,368 27,859 25,548 22,111 21,105 18,810 18,824 20,572 20,068 16,122 17,359 N/A 16,410 15,245 12,969 13,681 14,602 N/A 10,685 11,822 N/A N/A N/A 9,316 9,476 N/A 8,015 7,834 7,805 N/A 6,887 7,357 6,411 N/A 5,223 6,136 6,637 9,700 6,032 N/A N/A 6,594 5,150 N/A 4,877 N/A 5,144 5,482 4,418

% change (2000 vs 1999) -13% 24% 21% 14% 86% 30% 4% 10% 6% 6% 5% 19% N/A 53% 20% N/A 28% 9% N/A 15% 37% 15% N/A N/A N/A 26% -20% N/A N/A N/A 18% 5% N/A -2% 19% -47% N/A 69% 4% N/A N/A N/A N/A 12% -14% N/A N/A N/A 54% N/A N/A N/A N/A 12% N/A 24%

1999 Brand Value ($MM) 83,845 56,654 43,781 33,502 20,694 30,021 32,275 33,197 26,231 24,181 21,048 17,781 N/A 12,310 17,132 N/A 12,550 15,894 N/A 14,231 11,101 11,281 N/A N/A N/A 8,510 14,830 N/A N/A N/A 7,909 9,043 N/A 8,155 6,603 14,766 N/A 4,076 7,052 N/A N/A N/A N/A 5,932 11,225 N/A N/A N/A 4,283 N/A N/A N/A N/A 4,602 N/A 3,568

Brand Market Cap Brand Value as Market Cap of parent Value as % Brand of parent % of company of Market Notes Leverage Market company (@ (@ July Cap (@ July (2001) Cap (@ July 2000) 2001) 2000) July 2001) 113,400 380,000 198,700 498,600 104,200 202,200 60,000 45,900 35,400 148,950 107,300 45,530 268,900 133,400 55,800 140,700 52,300 31,400 49,600 52,500 44,000 22,220 82,720 25,500 111,000 38,600 13,200 148,400 27,200 255,300 24,700 70,000 40,800 11,500 17,040 47,500 14,700 24,500 12,100 93,300 32,600 22,320 17,600 66,800 6,500 N/A 6,400 14,300 8,340 7,930 6,400 18,200 51,800 30,300 32,700 33,700 61% 17% 27% 9% 34% 17% 54% 66% ^^ 15% 21% 48% 7% 14% 32% 12% 32% 49% 30% 29% 33% 62% 16% 48% 11% 28% 82% 7% 35% 4% 35% 12% 19% 66% 43% 15% 48% 29% 58% 7% 20% 29% 36% 9% 93% N/A ^^ 39% 66% 68% ^^ 29% 10% 17% 15% 14% 142,163 420,992 194,236 524,351 239,828 447,719 80,645 48,781 44,012 118,671 60,740 53,399 203,325 171,166 124,875 446,454 69,240 36,471 N/A 85,349 33,247 20,307 N/A 43,405 N/A 33,741 18,432 N/A N/A N/A 26,565 127,576 N/A 11,212 11,930 165,767 15,410 40,558 12,066 N/A N/A 40,821 51,814 64,035 13,825 N/A N/A N/A 17,047 9,636 N/A 24,330 N/A N/A 64,250 34,527 51% 17% 27% 7% 16% 9% 42% 75% ^^ 22% 36% 40% 9% 11% 16% 4% 23% 48% N/A 19% 46% 64% N/A 34% N/A 32% 64% N/A N/A N/A 35% 7% N/A 71% 66% 5% 76% 17% 61% N/A N/A 13% 12% 10% 70% N/A N/A N/A 39% 53% N/A 20% N/A N/A 9% 13% # 4.18 3.16 0.67 0.38 1.37 1.15 1.91 0.27 0.75 0.39 2.28 0.59 0.86 0.23 0.41 1.01 0.80 3.89 0.63 0.29 0.31 0.54 2.72 0.33 1.35 1.70 0.86 0.26 2.11 0.57 1.32 0.37 0.27 0.99 0.20 0.27 2.54 2.77 1.16 2.55 0.30 0.23 1.19 0.88 0.36 0.79 0.87 2.17 0.76 4.00 0.87 1.40 0.37 2.08 0.15 2.00

Industry

Country of origin

Ticker Symbol (parent company)

Parent Company

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

Coca-Cola Microsoft IBM GE Nokia Intel Disney Ford McDonald's AT&T Marlboro Mercedes Citibank Toyota Hewlett-Packard Cisco Systems American Express Gillette Merrill Lynch Sony Honda BMW Nescafe Compaq Oracle Budweiser Kodak Merck Nintendo Pfizer Gap Dell Goldman Sachs Nike Volkswagen Ericsson Heinz Louis Vuitton Kellogg's MTV Canon Samsung SAP Pepsi Xerox IKEA Pizza Hut Harley Davidson Apple Gucci KFC Reuters Sun Microsystems Kleenex Philips Colgate

68,945 65,068 52,752 42,396 35,035 34,665 32,591 30,092 25,289 22,828 22,053 21,728 19,005 18,578 17,983 17,209 16,919 15,298 15,015 15,005 14,638 13,858 13,250 12,354 12,224 10,838 10,801 9,672 9,460 8,951 8,746 8,269 7,862 7,589 7,338 7,069 7,062 7,053 7,005 6,599 6,580 6,374 6,307 6,214 6,019 6,005 5,978 5,532 5,464 5,363 5,261 5,236 5,149 5,085 4,900 4,572

-5% -7% -1% 11% -9% -11% -3% -17% -9% -11% 0% 3% 1% -1% -13% -14% 5% -12% N/A -9% -4% 7% -3% -15% N/A 1% -9% N/A N/A N/A -6% -13% N/A -5% -6% -9% N/A 2% -5% 3% N/A 22% 3% -6% -38% 0% N/A N/A -17% 4% N/A 7% N/A -1% -11% 3%

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food & beverages US software US technology US industrial US telecoms Finland technology US travel and leisure US automotive US retail US telecoms US leisure goods US automotive Germany financial services US automotive Japan technology US technology US financial services US personal care US financial services US electronics Japan automotive Japan automotive Germany food & beverages Switzerland technology US software US alcohol US leisure goods US pharmaceutical Germany leisure goods Japan pharmaceutical US retail US technology US financial services US leisure goods US automotive Germany telecoms Sweden food & beverages US luxury France food & beverages US media US business services Japan electronics Korea software Germany food & beverages US business services US retail Sweden retail US automotive US technology US luxury Italy retail US media UK software US personal care US electronics Netherlands personal care US

KO Coca-Cola MSFT Microsoft IBM International Business Machines GE GE NOK Nokia INTC Intel DIS Disney F Ford MCD McDonald's T AT&T MO Phillip Morris DCX Daimler Chrysler C Citigroup TM Toyota HWP Hewlett-Packard CSCO Cisco Systems AXP American Express G Gillette MER Merrill Lynch SNE Sony HMC Honda SIDBY BMW NSRGY Nestle CPQ Compaq ORCL Oracle BUD Anheuser Busch EK Kodak MRK Merck 7974 Nintendo PFE Pfizer GPS Gap DELL Dell GS Goldman Sachs NKE Nike VLKAY Volkswagen ERICY Ericsson HNZ Heinz LVMHY LVMH K Kellogg's VIAb Viacom CAJ Canon 0830.KS Samsung SAP SAP PEP Pepsico XRX Xerox private IKEA YUM Tricon HDI Harley Davidson AAPL Apple GUC Gucci YUM Tricon RTRSY Reuters SUNW Sun Microsystems KMB Kimberley-Clark PHG Philips CL Colgate-Palmolive
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World's Most Valuable Brands Ranked by Interbrand 2001

57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Wrigley's AOL Yahoo! Avon Chanel Duracell Boeing Texas Instruments Kraft Motorola Levi's Time Rolex adidas Hertz Panasonic Tiffany & Co. BP Bacardi amazon.com Shell Smirnoff Moet & Chandon Burger King Mobil Heineken Wall Street Journal Barbie Polo Ralph Lauren Fedex Nivea Starbucks Johnnie Walker Jack Daniels Armani Pampers Absolut Guinness Financial Times Hilton Carlsberg Siemens Swatch Benetton

4,530 4,495 4,378 4,369 4,265 4,140 4,060 4,041 4,032 3,761 3,747 3,724 3,701 3,650 3,617 3,490 3,483 3,247 3,204 3,130 2,844 2,594 2,470 2,426 2,415 2,266 2,184 2,037 1,910 1,885 1,782 1,757 1,649 1,583 1,490 1,410 1,378 1,357 1,310 1,235 1,075 1,029 1,004 1,002

5% -1% -31% N/A 3% -30% N/A N/A N/A -15% N/A N/A 4% -4% 5% -7% N/A 6% 1% -31% 2% 6% -12% -10% N/A 2% 0% -12% 4% N/A N/A 32% 7% 7% 2% 1% N/A 11% 14% -17% N/A N/A N/A -1%

4,324 4,532 6,300 N/A 4,142 5,885 N/A N/A N/A 4,446 N/A N/A 3,561 3,791 3,438 3,734 N/A 3,067 3,187 4,529 2,786 2,443 2,799 2,702 N/A 2,219 2,185 2,315 1,834 N/A N/A 1,330 1,541 1,480 1,456 1,400 N/A 1,225 1,149 1,483 N/A N/A N/A 1,008

-2% 5% 258% N/A 32% N/A N/A N/A N/A 22% N/A N/A 47% 5% -3% N/A N/A 3% 10% 233% 4% 6% 0% -4% N/A 2% N/A N/A 11% N/A N/A N/A -6% N/A N/A -2% N/A -3% N/A 12% N/A N/A N/A N/A

4,404 4,329 1,761 N/A 3,143 N/A N/A N/A N/A 3,643 N/A N/A 2,423 3,596 3,527 N/A N/A 2,985 2,895 1,361 2,681 2,313 2,804 2,806 N/A 2,184 N/A N/A 1,648 N/A N/A N/A 1,634 N/A N/A 1,422 N/A 1,262 N/A 1,319 N/A N/A N/A N/A

8,700 220,600 11,200 11,000 N/A 31,400 49,100 56,100 52,900 36,800 N/A 220,600 N/A N/A 45,900 32,500 5,400 184,000 N/A 5,080 200,400 37,710 24,500 37,710 301,300 15,900 4,000 8,060 2,520 12,000 8,800 8,400 37,710 4,570 N/A 83,700 N/A 37,710 13,700 9,500 2,800 55,300 6,400 24,700

52% 2% 39% 40% N/A 13% 8% 7% 8% 10% N/A 2% N/A N/A 8% 11% 65% 2% N/A 62% 1% 7% 10% ^^ 1% 14% 55% 25% 76% 16% 20% 21% 4% 35% N/A 2% N/A 4% 10% 13% 38% 2% 16% 4%

7,349 121,044 67,297 N/A N/A N/A N/A N/A N/A 62,550 N/A N/A N/A N/A 3,138 55,774 N/A 216,745 N/A 12,774 133,815 N/A N/A N/A N/A 19,163 N/A 5,614 N/A N/A N/A 7,085 N/A 3,653 N/A N/A N/A N/A N/A N/A N/A N/A N/A 3,812

59% 4% 9% N/A N/A N/A N/A N/A N/A 7% N/A N/A N/A N/A 110% 7% N/A 1% N/A 35% 2% N/A N/A N/A N/A 12% N/A 41% N/A N/A N/A 19% N/A 41% N/A N/A N/A N/A N/A N/A N/A N/A N/A 26%

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2.36 0.65 4.42 0.86 2.03 1.79 0.09 0.38 1.05 0.11 1.17 0.89 2.76 0.94 0.79 0.08 2.33 0.04 2.90 1.26 0.02 2.75 2.29 0.24 0.04 1.27 1.60 1.74 1.14 0.12 1.06 0.90 2.36 1.91 1.36 1.71 4.57 0.48 1.72 1.33 0.51 0.02 1.57 0.95

food & beverages US WWY Wrigley's media US AOL AOL Time Warner media US YHOO Yahoo! personal care US AVP Avon luxury France private Chanel leisure goods US G Gillette industrial US BA Boeing technology US TXN Texas Instruments food & beverages US KFT Kraft telecoms US MOT Motorola leisure goods US private Levi's media US AOL AOL Time Warner luxury Switzerland private Rolex leisure goods Germany private adidas travel and leisure US F Ford electronics Japan MC Matsushita luxury US TIF Tiffany & Co. oil UK BP BP alcohol Bermuda private Bacardi media US AMZN Amazon oil UK RD/SC Royal Dutch/ Shell alcohol UK DEO Diageo alcohol France LVMHY LVMH retail US DEO Diageo oil US XOM Exxon Mobil alcohol Netherlands HINKY Heineken media US DJ Dow Jones leisure goods US MAT Mattel luxury US RL Polo Ralph Lauren business services US FDX Fedex personal care Germany BEI Beiersdorff retail US SBUX Starbucks alcohol UK DEO Diageo alcohol US BF.B Brown Forman luxury Italy private Armani personal care US PG P&G alcohol Sweden private Vin&Sprit alcohol Ireland DEO Diageo media UK PSO Pearson travel and leisure US HLT/HLTGY Hilton Corp/ Hilton Group alcohol Denmark CARC Carlsberg industrial Germany SI Siemens leisure goods Switzerland UHRZ.S Swatch retail Italy BNG Benetton

P1 P2 P3 P4 P5 P6 P7 P8 # ^^ **

Johnson & Johnson P&G Nestle Unilever L'Oreal Diageo Colgate-Palmolive Danone

68,208 45,435 41,688 37,847 17,798 15,004 14,361 13,583

N/A -6% 4% 2% N/A 3% 5% N/A

N/A 48,352 40,250 37,100 N/A 14,557 13,636 N/A

N/A -2% 4% 9% N/A 6% 20% N/A

N/A 49,193 38,769 33,929 N/A 13,704 11,333 N/A

140,800 83,700 82,720 56,600 44,700 37,710 33,800 18,600

48% 54% 50% 67% 40% 40% 42% 73%

N/A 74,877 79,158 46,038 N/A 30,711 34,527 N/A

N/A 65% 51% 81% N/A 47% 39% N/A

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2.61 1.27 0.92 0.94 1.66 1.41 1.71 1.13

portfolio portfolio portfolio portfolio portfolio portfolio portfolio portfolio

US US Switzerland UK France UK US France

JNJ Johnson & Johnson PG P&G NSRGY Nestle UN/ UL Unilever LORLY L'Oreal DEO Diageo CL Colgate-Palmolive DA Danone

These businesses own a portfolio of brands and so comparing the value of any one brand to value of the parent company needs to recognize that there are other brands whose value is not captured here. The value of these brands takes account of all the earnings made under this brand both by the parent company and its franchisees. Because of this, a comparison with the parent company's Market Cap is not legitimate. Market Cap is the sum of both the brand owning companies in each case.

* Brand Leverage reflects Brand Value in relation to the previous year's Branded Sales. The higher the Leverage the more value is being generated from each $ of sales. In this way the relative size of one business over another is neutralised. Since this is often a function of the industry (its margins and how brands operate within the category) this is best viewed at an industry level. The numbers have been indexed to 1.00 such that they reflect a position above or below the average for the set of global brands shown.
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INTERBRAND WORLD’S MOST VALUABLE BRAND’S 2001 METHODOLOGY

Introduction We have published our third survey of “The World’s Most Valuable Brands” in cooperation with BusinessWeek. For the survey we have identified the 100 most valuable global brands with a value greater than $1 billion. The brands were selected according to two criteria: First, the brands had to be global, generating significant earnings in the main global markets. Second, there had to be sufficient marketing and financial data publicly available for preparing a reasonable valuation. For that reason, valuations for brands such as VISA, BBC, Mars and CNN could not be prepared. The financial forecasts were prepared in co-operation with Citigroup. The survey includes an additional table of values of leading brand portfolios to recognize the fact that some companies create significant brand value, not from the value of a single brand, but the management of a portfolio of brands. Prominent examples are Procter & Gamble, Unilever, L’Oreal and Nestle.

Brand Valuation Approach Interbrand was the first consulting firm that recognized the economic value of brands by pioneering and establishing brand valuation. We are globally the leading supplier of brand valuation services. Our approach has become the global industry standard for valuing brands and is widely endorsed by marketing and financial constituencies comprising auditors, accounting firms, banks, rating agencies, management consultants, advertising agencies, academics, tax authorities and other government bodies. Over the last 13 years we have provided brand valuation services to more than 2500 brands around the world. The values of the brands have been assessed according to Interbrand’s widely recognized brand valuation model. The model calculates Brand Value as the net present value of the earnings the brand is expected to generate in the future. The model comprises four key elements: 1) 2) 3) 4) Financial Forecasting Role of Branding Brand Strength Brand Value Calculation

1) Financial forecasting Based on the data provided by Citigroup and publicly available information we have prepared a financial forecast for each brand. The forecasts start with the projections of Branded Revenues representing all revenues the brands are expected to generate in the future. From Branded Revenues we have deducted all operating costs, corporation tax and a charge for the capital employed that are necessary to operate the branded
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businesses. As a result we have derived Intangible Earnings representing all earnings generated by the intangibles of the branded businesses. The concept of Intangible Earnings is similar to value based profit models such as intellectual capital or EVAT M (Economic Value Added). 2) Role of Branding Through our Role of Branding analysis we have determined Brand Earnings as the percentage of Intangible Earnings that are attributable solely to the brand. The Role of Branding analysis identifies and weights the key drivers of customer demand and their dependence on the brands. This is calculated as a percentage and applied to the Intangible Earnings to derive Brand Earnings. 3) Brand Risk The brand risk analysis provides the brand specific risk rate at which the forecast Brand Earnings are discounted to their net present value. The discount rate is based on the risk free rate, represented by the yield on a government bond for the forecast period and a brand premium according to our Brand Strength analysis. The analysis assesses the risk profile of the projected Brand Earnings based on the security of the brand franchise. Brand Strength is measured against seven key attributes comprising Market, Stability, Leadership, Support, Trend, Geography and Protection. It provides a brand specific discount rate for the Brand Earnings forecast. 4) Brand Value Calculation The values of the brands have been calculated as the net present value of the projected Brand Earnings. The value of the brand depends both on a good financial performance and a strong marketing position. Sometimes even if short-term earnings performance is weakened, investment in the brand can produce better long term results, a stronger brand and, consequently, a higher Brand Value.

Applications of Brand Valuation in Brand Management Recognition of the economic value of brands has increased the demand on the management of the brand as an asset. In the pursuit of increasing shareholder value companies need to establish procedures for the management of brands that are aligned with those for other business assets as well as for the company as a whole. Our brand valuations help companies to establish a value based brand management. Economic value creation becomes the focus of brand management and all brand-related investment decisions. In detail brand value based management provides the following insights and decision tools for understanding and managing brand value: Understanding brand value

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• • • • •

Identify the value contribution of the brand asset to shareholder value Compare the value of the brand to other intangible and tangible company assets Understand the value of the brand in different markets: customer, consumer groups, countries, products and services, distribution channels, etc. Understand the leverage of the brand relative to competitors Focus senior management and investors on the value of the brand asset and its investment requirements

Managing brand value • Establish an investment calculation for the brand asset to increase accountability of brand management: Return on investment of marketing expenses and initiatives • Internal licensing of the brand asset to share brand investments more fairly amongst all beneficiaries • Align brand management with existing value based management frameworks: shareholder value, economic value, balanced scorecards • Establish best practice brand management • Integrate brand value into the corporate planning process • Establish brand value as performance benchmark (brand value score card) Our brand valuation approach is a formidable tool to establish a value based brand management process. The brand valuation process comprises a comprehensive year end assessment of the brand’s performance assisted by quarterly brand value score card tracking.

Applications of Brand Valuation in Financial Transactions Our brand valuations are also used for a variety of financial transactions in which the brand asset constitutes the main asset. The origins of brand valuation date back to the balance sheet recognition of brand value in the late 1980’s. In 1988, RHM capitalized the value of its brand portfolio to successfully fend off a take over bid. Today accounting and tax regulations as well as mergers and acquisitions around the world are asking for the employment of brand valuation. Our brand valuations have been leveraged in a wide range of financial transactions: • Balance sheet recognition: We provide valuation services for capitalizing brand assets on the balance sheet for both acquired goodwill on acquisitions and internally generated brands. Changes in international accounting standards require increasingly the capitalization of goodwill such as brands on acquisition and the performance of periodical impairment tests for the derived values. We perform both the initial valuation as well as the succeeding impairment tests. Securitization: Increasingly companies use intellectual property rights such as brands to obtain debt financing. We provide valuations for the securitization of debt facilities in which the rights for the economic exploitations of brands are used as collateral. Our brand valuations are endorsed by the rating agencies.
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Licensing: Based on our brand valuation approach we provide brand licensing programs. Our valuation services are used for licensing the brand to subsidiaries (transfer pricing) as well as to third parties. Interbrand’s approach to brand licensing is now the preferred approach of many authorities around the world. Mergers & Acquisitions: Our brand valuations are used in many mergers and acquisitions to establish the value of the brand assets involved in the respective transactions. In this situation we also provide brand opportunity modeling to provide a range of brand values. Our brand valuations either add a value component to the business value or in heavily branded businesses drive the business value. Litigation: We provide expert opinions in brand related litigation cases. Our brand valuation approach is used to assess the financial losses and impairment of brand value resulting from an unlawful use of a brand or distinctive brand elements such as in passing of actions. Investor Relations: We provide brand valuations for communications with investors and financial analysts. Such valuations highlight the importance of branding for shareholder value and assist in supporting a company’s share price.

Contacts
North America: Jeff Parkhurst Stefan Daiberl +1 212 798 7613 +1 212 798 7718 jeffrey.parkhurst@interbrand.com stefan.daiberl@ interbrand.com

Latin American: Eduardo Tomiya Europe: Asia-Pacific: Jan Lindemann Simon Cole

+55 11 3017 8787 eduardo.tomiya@interbrand.com +44 20 7554 1175 jan.lindemann@interbrand.com +44 20 7554 1291 simon.cole@interbrand.com alistair.cunningham@interbrand.com

Alistair Cunningham +61 3 9670 5333

Important Notice The valuations of the brands draw upon publicly available information. Interbrand has not made its own independent investigation or research into the accuracy or completeness of the information. The valuations do not represent advice from Interbrand with respect to the suitability of the sale, licensing or franchising or any commercial exploitation of the brands in any respect, or for the purpose of investment, in the companies in question. Nothing contained in the valuations should be relied upon as a promise or representation as to the future prospects of the brand s or companies. Interbrand accepts no representations and warranties with respect to the valuations.

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