COLMAR BRUNTON C O R P O R A T E R E P U T A T I O N I N D E X I N PA R T N E R S H I P W I T H W R I G H T C O M M U N I C AT I O N S

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1 COLMAR BRUNTON C O R P O R A T E R E P U T A T I O N I N D E X 2018 I N PA R T N E R S H I P W I T H W R I G H T C O M M U N I C AT I O N S

2 THE 2018 NZ CORPORATE REPUTATION RANKING Uses the global RepZ framework with standardised reputation attributes Includes New Zealand s top 100 consumer facing corporates by revenue as listed in Deloitte Top 200, plus includes financial services brands 17 Industry categories Brands indexed against major competitors in their category to remove industry bias Nationally representative sample by age, gender and region. Average sample size of n=500 per category Over 20,000 New Zealanders interviewed over last 4 years Survey period from end October 2017 to December 2017

3 Our model focuses on the four pillars driving reputation weighted by their impact on advocacy SUCCESS PURPOSE SUBSTANCE 28% 22% 14% 36% L E A D E R S H I P / S U C C E S S Well known Leaders not followers First to market with new products & services Offer investors a good financial return F A I R N E S S R E S P O N S I B I L I T Y T R U S T Charge fair prices Treat employees well Can be trusted Environmentally responsible Positive influence on society Honest and ethical in the way they conduct business

4 Compared to global consumers, New Zealanders still respond more strongly to corporates that show they care SUCCESS PURPOSE SUBSTANCE L E A D E R S H I P / S U C C E S S FA I R N E S S R E S P O N S I B I L I T Y T R U S T NZ IMPACT ON ADVOCACY 28% 50% 22% 14% 50% 36% GLOBAL IMPACT ON ADVOCACY 35% 67% 32% 17% 33% 16%

5 WHY IS REPUTATION IMPORTANT AND WHAT CAN WE LEARN FROM OUR REPUTATIONAL LEADERS?

6 A RepZ score of >105 places corporates into a Resilient Zone. We see little movement in ranking amongst our top performing organisations even if they face tough issues 9% LOW <95 REPUTATION INDEX 72% MID REPUTATION INDEX 19% HIGH 105+ REPUTATION INDEX BRITTLE WITH MOST OF THESE COMPANIES ACHIEVING INDICES BETWEEN , WE SEE RANKING SHIFTS YEAR ON YEAR RESILIENT

7 Average Sentiment MOST POPULAR POSITIVE BRANDS AND THEIR SENTIMENT (TOP BOX) We can see the benefits of having a strong reputation by people s ability to recall positive experiences AA Insurance Pak nsave Apple The Warehouse Z Energy Toyota New World Briscoes Auckland International Airport Air New Zealand Fisher & Paykel TVNZ Average Intensity

8 95% of the thinking we do is automatic and informs most of our judgement 95% S Y S T E M 1 Fast, effortless Look for patterns/associations Unconscious Jumps to conclusions S Y S T E M 2 Slow, effortful Logical, deliberative Conscious Allows for reflection If what we see and hear doesn t connect with a personal experience, it is difficult to shift a pre-existing bias Source: Thinking Fast & Slow - Daniel Kahneman Nobel Prize Winner

9 SYSTEM 1 IS MORE INFLUENTIAL THAN YOUR EXPERIENCE TELLS YOU, AND IT IS THE SECRET AUTHOR OF MANY OF THE CHOICES AND JUDGEMENTS YOU MAKE

10 Shifting negative perceptions therefore requires significantly more work than reinforcing the positive but it can be achieved RESILIENT ZONE Auckland Intnl Airport SilverFernFarms BRITTLE ZONE 90 Countdown

11 Equally, maintaining positive messages and experiences is important to nourish reputation, otherwise it can start to wilt RESILIENT ZONE BRITTLE ZONE

12 LET S TAKE A LOOK AT NEW ZEALAND S TOP 20 CORPORATES IN 2018

13 TOP 20 R A N K E D B Y I N D E X A RepZ Index of 105 or above places corporates in the top 10% globally REPZ INDEX

14 LEADERSHIP/ SUCCESS FAIRNESS RESPONSIBILITY TRUST LEADERSHIP/ SUCCESS FAIRNESS RESPONSIBILITY TRUST The top 10 generally demonstrate strength across all reputation pillars, often with outstanding performance in one or more = within top 10% globally

15 T H E TO P 1 0 T R U S T L E A D E R S I N N Z : Trust remains the most important pillar driving reputation Amongst top 100 NZ corporates by revenue

16 TRUST MEANS BEING RELIABLE AND DEPENDABLE I have been a member of the AA for over 50 years... AA Insurance has always shown to me as being a brand you can trust to deliver when required. - AA Insurance TVNZ have been around a long time. They entertain as well as inform. - TVNZ Our current cars are Toyota. We have had a few over the years. Always reliable, economical, look great. They are just made to last. - Toyota We have never had any issues with F&P appliances that we have had over the years and they would be my first choice if I was replacing appliances. Also love that they are a New Zealand company. - Fisher & Paykel It s my national carrier and thus trust my own to take care of me and my friends and family - good record and I know what to expect. - Air New Zealand And why do you think so well of [xxx], that you would speak highly of them?

17 T H E T O P 1 0 S U C C E S S L E A D E R S I N N Z : Amongst top 100 NZ corporates by revenue Leaders in the RepZ Success component tend to be big and established, dominating or leading their categories and seen as meaningfully different from the competition

18 BEING WORLD CLASS AND ADDING VALUE THROUGH INNOVATION CONTRIBUTE TO A LEADERSHIP POSITION Great products that are at the leading edge of technology, which are also intuitive to use. Apple Excellent performance in both domestic and export domains Very innovative when it comes to adding value to milk products. Fonterra They set high standards and regularly achieve excellence. Air New Zealand The main international port into New Zealand. World class facilities with the capability of servicing large amounts of visitors and cargo. Auckland International Airport In comparison to other international airports we are a class leader. Auckland International Airport And why do you think so well of [xxx], that you would speak highly of them?

19 T H E TO P 1 0 FA I R N E S S L E A D E R S I N N Z : Amongst top 100 NZ corporates by revenue Brands known for a strong value proposition help create a sense of Fairness about the corporation

20 AFFORDABILITY, VARIETY AND GOOD SERVICE UNDERPIN A SENSE OF FAIRNESS Definitely the most cost-effective way to shop and feed a family. - Pak n Save Awesome variety of well priced products easy returns and good after sales back-up. - The Warehouse Good quality, reliable cars at a reasonable price point. - Toyota Good local service, simple to claim when required, and reasonable premiums. - AA Insurance Great selection at a fair price. - Briscoes And why do you think so well of [xxx], that you would speak highly of them?

21 T H E TO P 1 0 R E S P O N S I B I L I T Y L E A D E R S I N N Z Amongst top 100 NZ corporates by revenue Responsibility is not the main driver of reputation, but where it is conspicuously lacking it is a weakness holding back the brand and corporation

22 GIVING BACK TO NZ ENVIRONMENTALLY, SOCIALLY AND ECONOMICALLY IS VALUED The programs they run are good and they do a lot of good community work. - TVNZ NZ owned, innovative, invest in employee training and [offer] the good in the hood programme. - Z Energy [Meridian has a] commitment to sustainability. - Meridian [Toyota has a] partnership with DoC for conservation in NZ. - Toyota Air New Zealand supports the community very well and has a strong international presence and reputation promotes NZ well. - Air New Zealand And why do you think so well of [xxx], that you would speak highly of them?

23 Sustainability is increasingly influencing decision making behaviour across categories W H E T H E R B U Y I N G I S I N F L U E N C E D B Y S U S T A I N A B I L I T Y Insurance Companies Cosmetics And Personal Care Manufacturers Banks Airlines Fast Food Companies Local And Regional Government Food And Beverage Producers Food Retailers Energy / Power Companies Oil / Petrol Companies Technology And Communications Suppliers Car Makers Home-care And Appliance Manufacturers / 1 0 d i f f w i t h / 1 7 Base: 2009/2010 (n=5045) 2016/2017 (n=2000) How much influence do issues of sustainability have on who you choose to buy or deal with?

24 COMMITMENT TO LIVING A SUSTAINABLE LIFESTYLE We are also seeing significant increases in commitment to a sustainable lifestyle by New Zealanders NC LOW COMMITMENT MEDIUM COMMITMENT HIGH COMMITMENT Base: (n= 2000) Source: Where would you place yourself on our scale in terms of how committed you are to living a sustainable lifestyle? COLMAR BRUNTON BETTER FUTURES REPORT 2017 EDITION

25 KEY TAKEOUTS

26 1 Why is reputational strength so important to strive for? There is payback for being in the Resilient Zone In times of crisis it can determine how quickly a company will bounce back Actively managing your reputation will reduce the possibility of the contamination effect

27 A re-brand /refresh 2 If you need to change perceptions, doing something exceptional may be required to get people to reconsider their current view. Brave commitment to a cause Outstanding products/services/ experiences A strong connection to the NZ mindset

28 GLOBALLY, THERE ARE A NUMBER OF BRANDS THAT HAVE BEEN DRIVING GREEN INITIATIVES AND ARE STILL DELIVERING GROWTH. 3 Social licence to operate has never been more important people are enacting choice through the products and services they buy. Purpose before profits Sugarcane bricks Full disclosure on palm oil Carbon neutral operations Are NZ corporates doing enough? Source: Does sustainability sell, Anita Rao Kapur, Regional Director, Brand Guidance Systems, Kantar Millward Brown

29 Congratulations! TO THE TOP PERFORMERS FOR

30 F O R F U R T H E R I N F O R M A T I O N P L E A S E C O N T A C T : SARAH BOLGER S A R A H. B O L G E C O L M A R B R U N T O N. C O. N Z Colmar Brunton, a Kantar Millward Brown Company Level 1, 46 Sale Street, Auckland 1010 PO Box 3622, Auckland 0740 Phone (09)