POWER & RESPONSIBILITY. We are Edelman Purpose & Technology

POWER & RESPONSIBILITY. We are Edelman Purpose & Technology

WHAT THE PEOPLE SAID. METHODOLOGY 2018 Edelman Trust Barometer The global state of trust 28 Markets 18 years of data 33,000+ respondents total via online survey, representing 85% of total global population Fieldwork: October 28 November 20 2017 2018 Edelman Earned Brand How brands can earn, strengthen and protect consumer-brand relationships 8 Markets Brazil, China, France, Germany, India, Japan, the U.K. and the U.S. All data is nationally representative based on age, region and gender 40,000 respondents via Online and Mobile Survey, Fieldwork: July 10 July 20, 2018 2

3 TRUST IS IN TRANSITION 2014 2015 2016 2017 2018 Business to lead the debate for change Trust is essential to Innovation Growing Inequality of trust Trust in Crisis The battle for truth

NO RECOVERY IN TRUST Percent trust in each institution, and change from 2017 to 2018 2017 + 0 2018 Y-to-Y Change 67 64 65 64 53 53 53 53 Informed Public -3-1 0 0 53 53 52 52 General Population 41 43 43 43 0 0 +2 0 NGOs Business Government Media Source: 2018 Edelman Trust Barometer. TRU_INS. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) Informed Public and General Population, 28-market global total. 4

A POLARIZATION OF TRUST

Trust Index A WORLD OF DISTRUST Average trust in institutions, general population, 2017 vs. 2018 Global Trust Index remains at distruster level 20 of 28 markets are distrusters, up 1 from 2017 Source: 2018 Edelman Trust Barometer. The Trust Index is an average of a market's trust in the institutions of government, business, media and NGOs. General population, 28-market global total. 2017 General Population 47 Global 72 India 69 Indonesia 67 China 60 Singapore 60 UAE 53 The Netherlands 52 Mexico 52 U.S. 50 Colombia 49 Canada 48 Brazil 48 Italy 48 Malaysia 45 Argentina 44 Hong Kong 44 Spain 43 Turkey 42 Australia 42 S. Africa 41 Germany 40 France 40 U.K. 38 S. Korea 37 Sweden 36 Ireland 35 Japan 35 Poland 34 Russia 2018 General Population 48 Global 74 China 71 Indonesia 68 India 66 UAE 58 Singapore 54 Mexico 54 The Netherlands 53 Malaysia 49 Canada 47 Argentina 47 Colombia 47 Spain 46 Turkey 45 Hong Kong 44 Brazil 44 S. Korea 43 Italy 43 U.S. 41 Germany 41 Sweden 40 Australia 40 France 39 Poland 39 U.K. 38 Ireland 38 S. Africa 37 Japan 36 Russia Biggest changes in U.S. -9 China +7 S. Korea +6 UAE +6 Italy -5 Trust (60-100) Neutral (50-59) Distrust (1-49) Trust decline in the U.S. is the steepest ever measured 6

Trust Index Informed Public Declines to Neutral Average trust in institutions, informed public, 2017 vs. 2018 A 1-point decline in the Global Trust Index Source: 2018 Edelman Trust Barometer. The Trust Index is an average of a market's trust in the institutions of government, business, media and NGOs. Informed public, 2017 Informed Public 60 Global 80 India 79 China 78 Indonesia 77 UAE 71 Singapore 68 U.S. 62 Canada 62 The Netherlands 61 Italy 61 Mexico 57 Malaysia 57 Spain 56 France 56 U.K. 55 Colombia 54 Australia 54 Germany 53 Hong Kong 51 Argentina 51 Brazil 50 S. Korea 50 Turkey 49 Japan 49 S. Africa 47 Sweden 45 Russia 44 Ireland 43 Poland 2018 Informed Public 59 Global 83 China 81 Indonesia 77 India 76 UAE 70 Singapore 67 The Netherlands 65 Malaysia 65 Mexico 62 Canada 60 Argentina 57 Italy 57 Turkey 56 France 56 Sweden 55 Australia 55 Spain 54 Germany 52 U.K. 51 Brazil 50 Colombia 50 S. Korea 49 Hong Kong 48 Ireland 48 Poland 47 Russia 46 Japan 45 S. Africa 45 U.S. Biggest changes in U.S. -23 Argentina +9 Sweden +9 Malaysia +8 Turkey +7 U.S. Trust Index crashes 23 points 28-market global total. 7 Trust (60-100) Neutral (50-59) Distrust (1-49)

A WORLD MOVING APART Number of markets with extreme changes in their aggregate trust in the four institutions, 2013 to 2018 + # of markets with extreme Trust Gains 9 2 4 12 2 6 # of markets with extreme Trust Losses 2 6 1 6 9 13 2013 2014 2015 2016 2017 2018 Source: 2018 Edelman Trust Barometer. Trust Volatility Measure. The net year-over-year (2013-2018) percentage point change across the four institutions (TRU_INS). General population, 28-market global total. For more details on how the Trust Volatility Measure was calculated, please refer to the Technical Appendix. 8

IN SEARCH OF TRUTH

WORLD WORRIED ABOUT FAKE NEWS AS A WEAPON Percent who worry about false information or fake news being used as a weapon 55-60 61-65 Canada France Ireland Sweden Netherlands Japan Germany 66-70 71-75 76-80 Italy Singapore S. Africa UAE U.K. Australia Hong Kong Poland Turkey Brazil India Colombia Malaysia S. Korea U.S. China Russia Mexico Argentina Spain Indonesia Germany passes a law that fines social media companies for failing to delete fake news Canadian Conservative leader s campaign manager roots out enemies using fake news Pope criticizes spread of fake news Nearly 7 in 10 worry about false information or fake news being used as a weapon Singapore announces plans to introduce laws designed to fight fake news Fake news disrupts elections in South Africa Source: 2018 Edelman Trust Barometer. ATT_MED_AGR. Below is a list of statements. For each one, please rate how much you agree or disagree with that statement using a nine-point scale where one means strongly disagree and nine means strongly agree. (Top 4 Box, Agree), question asked of half of the sample. General population, 28-market global total. 10

Global 28 Turkey Australia Japan Sweden U.K. France Ireland Poland Russia S. Africa Argentina S. Korea Germany U.S. Brazil Colombia Hong Kong Spain Italy Malaysia Mexico Canada Singapore The Netherlands UAE India Indonesia China MEDIA NOW LEAST TRUSTED INSTITUTION Percent trust in media, and change from 2017 to 2018 Distrust + 0 Neutral Y-to-Y Change Trust 43 30 31 32 32 32 33 33 34 35 35 Distrusted in 22 of 28 of markets 39 40 42 42 43 43 43 44 45 47 48 49 52 55 56 61 68 71 0 +5-1 0-1 0 0 +4 +3 +4-4 -1 0 0-5 -5-2 +1 0-3 +5 +1 +4-2 +1 +12-5 +1 +6 Source: 2018 Edelman Trust Barometer. TRU_INS. [MEDIA IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust) General population, 28-market global total. 11

WHILE TRUST IN PLATFORMS DECLINES, TRUST IN JOURNALISM REBOUNDS Average trust in traditional and online-only media Average trust in search engines and social media platforms Percent trust in each source for general news and information, 2012 to 2018 54 54 54 56 54 59 +5 Journalism 53 52 50 53 51 54 53 51-2 Platforms 2012 2013 2014 2015 2016 2017 2018 Source: 2018 Edelman Trust Barometer. COM_MCL. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you do not trust it at all and nine means that you trust it a great deal. (Top 4 Box, Trust), question asked of half of the sample. General population, 25-market global total. Journalism is an average of traditional media and online-only media. Platforms is an average of search engines and social media. 12

Ireland Sweden Australia U.K. Japan France Germany U.S. Canada S. Africa Russia The Netherlands S. Korea Hong Kong Poland Italy Spain Argentina Singapore Turkey Malaysia Colombia UAE Brazil China Mexico Indonesia India TRUST IN PLATFORMS DECREASED IN 21 OF 28 COUNTRIES Average trust in search engines and social media platforms, and change from 2017 to 2018 + 0 Y-to-Y Change 65% receive news through platforms such as social media feeds, search or news applications 33 33 35 36 37 Steepest decline in U.S. 40 40 42 43 46 47 47 48 49 51 53 53 54 54 55 58 62 62 64 68 68 71 73-8 -4-8 -4 +1-3 -4-11 -1-8 -1-3 0-1 -1-5 -6-6 +2 +4 +2-5 +6-5 +6-1 -4-5 Source: 2018 Edelman Trust Barometer. COM_MCL. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a nine-point scale where one means that you do not trust it at all and nine means that you trust it a great deal. (Top 4 Box, Trust), question asked of half of the sample. MED_NEW_CSP. How do you normally get your news? (callout is net of codes 2, 5 and 7), question asked of half of the sample. General population, 28-market global total. Platforms is an average of search engines and social media. 13

TRUST IN TECHNOLOGY 1

TECHNOLOGY MOST TRUSTED BUSINESS SECTOR Distrust + 0 Neutral Trust Change, 2014 to 2018 Trust in each sector, and change from 2014 to 2018 Industry 2014 2015 2016 2017 2018 5 yr. Trend Technology 75% 73% 74% 75% 74% -1 Health Care - - 62% 66% 64% - Energy 57% 56% 58% 62% 63% +6 Food And Beverage 64% 63% 64% 66% 63% -1 Telecommunications 61% 59% 60% 63% 63% +2 Automotive 69% 66% 60% 65% 62% -7 Entertainment 64% 63% 64% 64% 62% -2 Consumer Packaged Goods 61% 60% 61% 63% 60% -1 Financial Services 48% 48% 51% 54% 54% +6 2014 2015 2016 2017 2018 Source: 2018 Edelman Trust Barometer. TRU_IND. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust), industries shown to half of the sample. General Population, 27-market global total.

TECH SECTOR LOSING GROUND ON KEY BEHAVIOURS Percent who believe the technology industry performance is performing well on each behavior, 2018 and 2017, and change from year to year 2017 + 0 2018 Y-to-Y Change Protects consumer data Is transparent and authentic in how it operates -18-15 53 53 68 71 Largest performance decreases among consumer protection, transparency, and representative leadership Has leadership that effectively represents the interests of all stakeholders -11 57 68 Contributes to the greater good -9 64 73 Ensures quality control -9 67 76 Develops innovations that have a positive impact on my life and the world -9 70 79 Source: 2018 Edelman Trust Barometer. DRV_TEC_GEN. How well do you think the technology industry is performing on the behaviors listed below? Use a 9-point scale where one means they are performing extremely poorly and nine means they are performing extremely well. (Top 4 box, Performing Well), question asked of one-fifth of the sample. General population, 28-market global total. 16

Global 28 Ireland Sweden Poland Germany U.K. France Italy The Netherlands Spain U.S. Canada Malaysia Singapore Japan S. Korea China Hong Kong India Indonesia Australia Russia Mexico Colombia Brazil Argentina Turkey S. Africa UAE TRUST IN TECHNOLOGY DECLINES IN 18 OF 28 MARKETS Distrust + 0 Neutral Y-to-Y Change Trust Percent trust in the technology sector, and change from 2017 to 2018 Trusted in 26 markets 75 58 59 76 64 64 67 78 74 74 74 71 81 74 60 75 91 68 89 91 68 71 89 88 86 77 71 76 81-1 -1-4 +10 +1-5 -3-1 -5 +2-1 -1 0-7 -3 +7 +3-10 -3-2 -3-1 +2 +1 +4 0-6 -3-2 EU APAC LATAM Source: 2018 Edelman Trust Barometer. TRU_IND. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust), industries shown to half of the sample. General population, 28-market global total.

Global 28 Ireland Sweden Poland Germany U.K. France Italy The Netherlands Spain U.S. Canada Malaysia Singapore Japan S. Korea China Hong Kong India Indonesia Australia Russia Mexico Colombia Brazil Argentina Turkey S. Africa UAE INFORMED PUBLIC TRUST IN TECH CONSIDERABLE DECLINES IN 16 OF 28 MARKETS Distrust + 0 Neutral Y-to-Y Change Trust Percent trust in the technology sector, informed public, and change from 2017 to 2018 Trusted in 27 markets 80 57 70 87 66 69 67 77 81 75 67 74 93 88 76 85 90 70 94 95 78 82 92 90 89 79 84 80 81-3 -11 +3 +12-9 -6-18 -9 0-9 -19-4 +8 +6 +3 0-4 -14-1 +1-1 -2 +2-1 +4 0 +1-2 -9 EU APAC LATAM Source: 2018 Edelman Trust Barometer. TRU_IND. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust), industries shown to half of the sample. Informed public, 28-market global total.

TRUST IN TECHNOLOGY SUB-SECTORS LAGS TECH SECTOR OVERALL Distrust + 0 Neutral Y-to-Y Change Trust Percent trust in business, technology sector and technology sub-sectors, and change from 2017 to 2018 75 63 67 52 49 50 52 55 56 0-1 0 +1-2 0 N/A +3 N/A Business Technology Blockchain technology Self-driving vehicles Sharing economy businesses Virtual-reality platforms Artificial intelligence Internet of things Mobile/smart phone app developers Source: 2018 Edelman Trust Barometer. TRU_INS. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust). TRU_IND. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust), industries shown to half of the sample. TRU_SUB_TEC. Now thinking about specific sectors within the technology industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you do not trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust), question asked of one-fifth of the sample. General population, 28-market global total.

AN INDUSTRY IN FLUX FAITH IN TECHNOLOGY UNDIMINISHED Since 2012, 74% of people say they trust tech brands, ten points higher than any other sector. HEADROOM FOR MORE Solutions such as AR and the sharing economy have huge potential to increase their levels of trust. BUT SCRUTINY IS INCREASING Tech is failing to hit expectations in transparency, inclusivity and contributing to the greater good.

NAVIGATING A POLARIZED WORLD

Technical expert Academic expert A person like yourself Financial industry analyst Successful entrepreneur Employee NGO representative CEO Board of directors Journalist Government official/regulator VOICES OF AUTHORITY REGAIN CREDIBILITY 0 + Y-to-Y Change Percent who rate each spokesperson as very/extremely credible, and change from 2017 to 2018 Person like yourself at all-time low 63 61 54 50 50 47 46 44 41 39 35 +3 +1-6 +4 +1-1 +3 +7 +6 +12 +6 Source: 2018 Edelman Trust Barometer. CRE_PPL. Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/Extremely Credible), question asked of half of the sample. General population, 28-market global total. 22

BUSINESS IS EXPECTED TO LEAD Percent who agree and percent who say each is one of the most important expectations they have for a CEO Percent who say that CEOs should take the lead on change rather than waiting for government to impose it 64% For CEOs, building trust is job one Their company is trusted Their products and services are high quality Business decisions reflect company values Profits and stock price increase 69 68 64 60 Source: 2018 Edelman Trust Barometer. CEO_AGR. Thinking about CEOs, how strongly do you agree or disagree with the following statements? (Top 4 Box, Agree), question asked of half of the sample. CEO_EXP. Below is a list of potential expectations that you might have for a company CEO. Thinking about CEOs in general, whether they are global CEOs or a CEO who oversees a particular country, how would you characterize each using the following three-point scale? (Most important responsibility, code 3), question asked of half of the sample. General population, 28-market global total. 23

2015 24 Innovation and the Earned Brand 2016 The Consumer- Brand relationship 2017 The rise of the Belief-Driven buyer 2018 BRANDS TAKE A STAND

MORE THAN HALF NOW BELIEF-DRIVEN BUYERS 25 Do you choose, switch, avoid or boycott a brand based on its stand on societal issues? (Percent in each segment) 2017 2018 63 18 + 20pts 42 33 19 24 SPECTATORS Rarely buy on belief or punish brands for taking a stand JOINERS Depending on the issue and the brand, they will change their buying behavior based on the brand s stand LEADERS Have strongly-held, passionate beliefs. The brands they buy are one important way they express those beliefs 57 % BELIEF-DRIVEN BUYERS Source: 2018 Edelman Earned Brand. Belief-driven buying segments. U.K.. See Technical Appendix for a full explanation of how belief-driven buying was measured.

BELIEF-DRIVEN BUYING NOW MAINSTREAM AROUND THE WORLD Percent who are belief-driven buyers, and year-to-year change 2017 2018 0 + Y-to-Y Change Majority in Every Market 51 64 73 78 56 69 68 65 50 65 60 59 47 57 54 39 37 37 Double-digit growth in 6 of 8 markets +13 +5 +13 +3 +15 +21 +12 +20 +17 8-market average China Brazil India France Japan U.S. U.K. Germany Source: 2018 Edelman Earned Brand. Belief-driven buying segments. 8-market average. See Technical Appendix for a full explanation of how belief-driven buying was measured. 26

BELIEF-DRIVEN MINDSET NOW SPANS GENERATIONS 2017 2018 27 Percent who are belief-driven buyers, and year-to-year change 0 + Y-to-Y Change Belief-Driven Buying at All Ages 70 54 60 38 45 22 More older consumers now buying on belief +16 +22 +23 18-34 35-54 55+ Source: 2018 Edelman Earned Brand. Belief-driven buying segments. U.K., by age. See Technical Appendix for a full explanation of how belief-driven buying was measured.

BELIEF-DRIVEN MINDSET NOW SPANS INCOME LEVELS Percent who are belief-driven buyers, and year-to-year change 2017 2018 0 + 28 Y-to-Y Change Majority at All Incomes 58 58 59 34 35 46 More lower-income consumers now buying on belief +24 +23 +13 Low Middle High (Bottom 25%) (50%) (Top 25%) Source: 2018 Edelman Earned Brand. Belief-driven buying segments. U.K., by income. See Technical Appendix for a full explanation of how belief-driven buying was measured.

29 Welcome to the new Brand Democracy I believe brands can be a powerful force for change. I expect them to represent me and solve societal problems. My wallet is my vote.

PEOPLE BELIEVE IN BRANDS AS AN EFFECTIVE FORCE FOR CHANGE Percent who agree 39 Brands have Brands better ideas for solving our country s problems than government 47can % % do more to solve social ills than government Source: 2018 Edelman Earned Brand. Q17. Please indicate how much you agree or disagree with the following statements. 9-point scale; top 4 box, agree. 8-market average. 30

PEOPLE BELIEVE BRANDS WILL ANSWER THEIR CALL Percent who agree 54 % It is easier for people to get brands to address social problems than to get government to take action 73 62 60 57 50 49 43 37 India Brazil China U.S. U.K. France Germany Japan Source: 2018 Edelman Earned Brand. Q17. Please indicate how much you agree or disagree with the following statements. 9-point scale; top 4 box, agree. 8-market average. 31

The Power of a Brand s Stand Benetton and Act Up Paris,1993 32

YOUR STAND DRIVES PURCHASE INTENT Percent who express purchase intent after viewing a product or brand communication Product Features Brand s Stand 44 % 43 % Net of: Purchase 22% Consider in future 23% Learn more online 17% Net of: Purchase 22% Consider in future 21% Learn more online 19% Source: 2018 Edelman Earned Brand. Q93. What, if anything, do you intend to do (or have you done) as a result of seeing this communication. 8-market average, among those who saw a product ad vs. a brand ad. 33

YOUR STAND GETS PEOPLE TALKING Percent who express intent to advocate for the brand after viewing a product or brand communication Product Features Brand s Stand 32 Net of: 26 % % Net of: Talk to friends or family 19% Post online, like or reply to the brand 12% Talk to friends or family 24% Post online, like or reply to the brand 15% Source: 2018 Edelman Earned Brand. Q93. What, if anything, do you intend to do (or have you done) as a result of seeing this communication. 8-market average, among those who saw a product ad vs. a brand ad. 34

Your Stand Matters to Them Even at the Point of Sale Percent who agree 60 % 79 69 68 56 56 55 52 48 Brands should make it easier for me to see what their values and positions on important issues are when I am about to make a purchase India Brazil China U.K. France U.S. Germany Japan Source: 2018 Edelman Earned Brand. Q17. Please indicate how much you agree or disagree with the following statements. 9-point scale; top 4 box, agree. 8-market average. 35

Define your purpose. Take Your Stand. Belief-driven buying is now a mainstream mindset across ages and incomes People believe that brands can lead societal change A brand s stand drives purchase intent and advocacy 36

THANK YOU For more info: mark.mcginn@edelman.com