Spain 100 2021 The annual report on the most valuable and strongest Spanish brands September 2021 © 2021 All rights reserved. Brand Finance Plc. Contents. About Brand Finance 4 Get in Touch 4 Brandirectory.com6 Brand Finance Group 6 Foreword 8 Executive Summary 10 Brand Value Analysis 12 Sector Reputation Analysis 20 Spain’s top CEOs 22 Brand Finance Spain 100 (EUR m) 26 Brand Spotlights 28 Bankinter 30 Interview with Yolanda Sanz Rey Iberdrola 32 Interview with Juan Luis Aguirrezabal Meliá 34 Interview with André P. Gerondeau Vueling 36 Interview with Manuel Ambriz Methodology 38 Definitions 40 Brand Valuation Methodology 41 Brand Strength 42 Brand Equity Research Database 43 Our Services 44 Consulting Services 46 Brand Evaluation Services 47 Communications Services 48 Brand Finance Network 51 Brand Finance Spain 100 September 2021 3 About Brand Finance. Brand Finance is the world's leading brand valuation consultancy. We bridge the gap between marketing and finance Brand Finance was set up in 1996 with the aim of 'bridging the gap between marketing and finance'. For 25 years, we have helped companies and organisations of all types to connect their brands to the bottom line. We quantify the financial value of brands We put 5,000 of the world’s biggest brands to the test every year. Ranking brands across all sectors and countries, we publish nearly 100 reports annually. We offer a unique combination of expertise Our teams have experience across a wide range of disciplines from marketing and market research, to brand strategy and visual identity, to tax and accounting. We pride ourselves on technical credibility Brand Finance is a chartered accountancy firm regulated by the Institute of Chartered Accountants in England and Wales, and the first brand valuation consultancy to join the International Valuation Standards Council. Our experts helped craft the internationally recognised standards on Brand Valuation – ISO 10668 and Brand Evaluation – ISO 20671. Our methodology has been certified by global independent auditors – Austrian Standards – as compliant with both, and received the official approval of the Marketing Accountability Standards Board. Get in Touch. For business enquiries, please contact: Teresa de Lemus Managing Director, Brand Finance Spain t.delemus@brandfinance.com For media enquiries, please contact: Cristina Campos Communications Director, Brand Finance Spain c.campos@brandfinance.com For all other enquiries, please contact: enquiries@brandfinance.com +44 (+34) 654 48 10 43 For more information, please visit our website: www.brandfinance.com 4 Brand Finance Spain 100 September 2021 linkedin.com/company/brand-finance twitter.com/brandfinance facebook.com/brandfinance instagram.com/brand.finance brandfinance.com Request your own Brand Value Report A Brand Value Report provides a complete breakdown of the assumptions, data sources, and calculations used to arrive at your brand’s value. Each report includes expert recommendations for growing brand value to drive business performance and offers a cost-effective way to gaining a better understanding of your position against competitors. Visit brandirectory.com/request-a-valuation or email enquiries@brandfinance.com Insight Strategy Benefits Brand Valuation Summary Brand Strength Tracking Conte Royalty Rates Cost of Capital Analysis nts benraqnudiriireesc@tobryr.acnodmir/escptaoirny.com Customer Research Findings Competitor Benchmarking Benchmarking Education Communication Understandin Brand Finance Spain 100 September 2021 5 Brandirectory.com Brandirectory is the world’s largest database of current and historical brand values, providing easy access to all Brand Finance rankings, reports, whitepapers, and consumer research published since 2007. + Browse thousands of published brand values + Track brand value, strength, and rating across publications and over time + Use interactive charts to compare brand values across countries, sectors, and global rankings + Purchase and instantly unlock premium data, complete brand rankings, and research Visit brandirectory.com to find out more. Brand Finance Group. 6 Brand Finance Spain 100 September 2021 Brand Finance Institute Brand Finance Institute is the educational division of Brand Finance, whose purpose is to create and foster a professional environment for knowledge-sharing and networking among practitioners and experts in the market. BFI organises events, in-company training, and corporate educational initiatives around the world. In the quest for marketing excellence and with the purpose to equip the brand valuation and strategy practitioners with the necessary skills and tools, we have developed a wide range of programmes and certifications in collaboration with the most coveted business schools, universities and thought leaders in the field. Brand Dialogue Brand Dialogue is a public relations agency developing communications strategies to create dialogue that drives brand value. Brand Dialogue has over 25 years of experience in delivering campaigns driven by research, measurement, and strategic thinking for a variety of clients, with a strong background in geographic branding, including supporting nation brands and brands with a geographical indication (GI). Brand Dialogue manages communications activities across Brand Finance Group's companies and network. VI360 VI360 is a brand identity management consultancy working for clients of all sizes on brand compliance, brand transition, and brand identity management. VI360 provide straightforward and practical brand management that results in tangible benefits for your business. brandfinance.com Global Brand Equity Monitor Original market research on 2,500 brands 29 countries and 23 sectors covered More than 50,000 respondents surveyed annually We are now in our 5th consecutive year conducting the study Visit brandirectory.com/consumer-research or email enquiries@brandfinance.com benraqnudiriireesc@tobryr.acnodmir/escptaoirny.com Brand Finance Spain 100 September 2021 7 Foreword. Teresa de Lemus Managing Director, Brand Finance Spain The year 2021 will be remembered by one thing: COVID-19. An unforeseen event that has changed the way in which both people and brands operate. The way in which brands have responded to the pandemic have made them either an example of those who learn or an example of those who deny. Spain’s top brands – along with those globally – have been grappling with the turmoil of the previous year. The total value of the nation’s top 100 most valuable brands has dropped by 13% from €118.2 billion in 2020 to €102.3 billion in 2021. There are seven new brands that feature in the ranking this year. MasMóvil Group – which already had its brand Yoigo in the ranking – now has two further brands in the ranking, MasMóvil and Pepphone in 90th and 96th position, respectively. Other new entrants include OHL and Cintra. OHL has celebrated strong financial results, as well as strong growth and activity in the US market. Cintra is now operating the first NTE emission neutral highway in Texas, one of the most innovative projects for environmental protection. Finally, hotel brands that have been able to leverage their brand strength despite the dire situation across the sector due to nationwide and global lockdowns is impressive. Despite everything, crises are an opportunity for growth and an expansion of knowledge. Many brands have seen where they can add value and how they can work towards becoming the most important thing: human. 2019 2020 2021 120,4€ 118,2€ 102,3€ Mil M -1.8% Mil M -13.4% Mil M 8 Brand Finance Spain 100 September 2021 Only 17 of Spain’s Top 100 Most Valuable Brands Record Brand Value Growth; Día is Fastest Grower, up 56% + No movements in top 10 this year. Top 10 most valuable brands in ranking account for 60% of total brand value + 45 brands rise ranks and 32 maintain rank + 81% of brands in ranking lose brand value. Meliá (down 65.0%), Merlin Properties (down 55.8%) and eDreams (down 47.2%) are fastest fallers + 17 brands increase in brand value. Día is fastest growing, up 55.9%, followed by MasMóvil (up 29.0%) and Ibercaja (up 28.9%) + Sum of top 100 most valuable brands in Spain down 13% + Santander, Zara, and Movistar claim top 3 spots + BBVA, Mapfre and Stradivarius claim top 3 spots for brand strength + 7 new entries in ranking: Puleva (72nd), Chufi (82nd), MasMóvil (90th), Cintra (93rd), OHL (94th), Pepephone (96th) and Campsa (100th) + Sectors that have best responded to pandemic are banking, technology, telecommunications, food, beverages, logistics, and distribution + Most impacted sectors are tourism (hotels and airlines), apparel, insurance, and media. Brand Finance Spain 100 September 2021 9 Executive Summary. Brand Value Analysis. This year, the total value of Spain’s top 100 most valuable brands has decreased by 13.4%, down €15.8 billion to €102.3 billion. Seven brands have entered the ranking for the first time: Puleva (72nd), Chufi (82nd), MasMóvil (90th), Cintra (93rd), OHL (94th), Pepephone (96th) and Campsa (100th). Madrid is the most valuable region, with Madrid-based brands contributing 40.3% of the total brand value in the ranking. Galicia follows in second, home to 13.5% of the total brand value, the Basque Country sits in third with 13.4% of the total brand value, Cantabria follows with 11.9% and Catalonia contributes 10.5%. The remaining 11.6% is distributed among the Valencian Community (7.8%), the Balearic Islands (1.9%), Andalusia (0.6%), Aragon (0.2%) and the Principality of Asturias (0.1 %). Monitor, perceptions are changing, and banks now have the opportunity to react to this shift. If brands continue to lose brand value, it will have a significant impact on profits. Brands have to react quickly and intelligently. Teresa de Lemus Managing Director of Brand Finance Spain Spain’s top sectors and brands The reputation of the banking sector improves In the Brand Finance Banking 500 2021 ranking, the sum of the world’s top 500 most valuable banking brands fell by 10% to €1.08 trillion. Despite losing brand value, banks have played a vital role over the last year in supporting communities through the pandemic. These positive actions are reflected in the increase in positive perceptions about the sector’s reputation – perceptions that have increased globally and across Spain. Traditionally, the banking sector is among the least reputable, but according to Brand Finance’s Global Brand Equity The total value of Spain’s banking brands has fallen by 21% this year and three of the ten banks that feature in the ranking have recorded a drop in their Brand Strength Index (BSI) score, mainly a result of poor financial results. It is the four strongest banks in Spain that have lost the most brand value. Aside from CaixaBank, Spanish banks have seen their reputation scores. Santander has maintained its position as the most valuable brand in Spain despite recording a 23.4% drop in brand value to €12.2 billion. Its brand value is over double the value of the second most valuable banking brand, BBVA (brand value €6.5 billion). 12 Brand Finance Spain 100 September 2021 brandfinance.com Brand Value Analysis. Santander benefits from its global presence that results in a significantly higher income compared to its Spanish rivals. Exposure to increased risk in the South American market, however, has contributed to the drop in brand value as profitability is less optimistic than in previous years. In addition to measuring overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. BBVA is Spain’s strongest brand, with a BSI score of 85.2 out of 100, and is the only bank that has an AAA brand strength rating. According to the Global Brand Equity Monitor, BBVA is perceived as being particularly innovative, as well as for having an excellent website and digital offerings – both factors that have been even more important given the increase in online presence during the pandemic. The bank has the highest growth ratio for the consideration metric, as well as scoring an almost perfect score on the heritage metric, scoring 97.5 out of 100. Banco Sabadell has suffered one of the largest drops in brand value, falling 27.5%. This steep drop in brand value has enabled Bankia to overtake following a 9.2% brand value loss this year. Banco Sabadell’s failed merger with BBVA has left the bank seeking a restructuring of its operations and more job cuts are expected in 2021. Spanish technology companies suffer during pandemic, while the sector grows 9% internationally As the pandemic continues to wreak havoc on the global economy, tech brands have managed to emerge relatively unscathed. The top 100 most valuable technology brands in the Brand Finance Tech 100 2021 ranking have grown 9% on average year-on-year, performing well compared with other sectors worldwide. Indra Sistemas’s brand value is down 7% this year, mainly due to pandemic-related challenges. Its performance has suffered despite the fact that in recent years the brand has celebrated strong income and profitability. The COVID-19 crisis has brought new challenges in Indra's Transportation and Defense division and, to a lesser degree, in the IT services division. brandirectory.com/spain Top 10 Most Valuable Brands 1 01 g 2021: €12,150m -23.4% 2020: €15,852m d 2 0 2 2021: €11,200m 2020: €13,166m -14.9% H 3 0 3 2021: €6,704m 2020: €8,677m -22.7% g 4 0 4 2021: €6,537m -23.4% 2020: €8,531m D 5 0 5 2021: €5,204m 2020: €4,657m +11.7% L 6 0 6 2021: €4,383m 2020: €4,323m +1.4% D 7 0 7 2021: €4,072m 2020: €4,097m -0.6% t 8 0 8 2021: €3,100m 2020: €3,589m -13.6% z 9 0 9 2021: €2,898m -14.2% 2020: €3,380m g 10 0 10 2021: €2,813m 2020: €3,200m -12.1% Brand Finance Spain 100 September 2021 13 © Brand Finance Plc 2021 Brand Value Analysis. Panic purchases save the logistics and distribution sectors Despite the pandemic disrupting supply chains, pandemic-induced panic purchases have fuelled the logistics industry. However, the reduction in demand for certain products, the implementation of social distancing and other safety procedures to combat the virus in warehouses, have all posed significant challenges for some brands. That said, this year the total value of the top 25 most valuable logistics brands in the world, according to the Brand Finance Logistics 25 2021 ranking, has increased from €143 billion to € 148.5 billion. UPS ranks first in the Brand Finance Logistics 25 2021 ranking for the seventh consecutive year, registering a modest 2% increase in brand value to €25.2 billion and maintaining a healthy lead ahead of FedEx (up 2% to €19.7 billion). MTR is once again the strongest logistics brand in the world, with a BSI score of 81.1 out of 100 and a AAA brand strength rating. Chinese SF Express is the fastest growing logistics brand this year, recording an impressive 54% brand value growth to €5.8 billion. McLane, on the other hand, is the fastest falling brand, registering a 25% brand value loss to €3.7 billion. Spain’s Abertis recorded a 13.6% brand value loss to €1.2 billion. Revenue was impacted by restrictive government-imposed measures associated with commercial and economic activities, coupled with mobility constraints. Regarding the distribution sector, e-commerce brands have thrived over the last year, registering an average 38% growth in brand value. Amazon continues to dominate the sector as the world's strongest and most valuable retail brand, with brand value of €213.2 billion. Chinese brands have recorded solid growth too - Alibaba.com is the fastest growing brand in the Brand Finance Retail 100 2021 ranking. Traditional bricks and mortar brands that have invested in technology have also prospered, including Walmart which has recorded a 20% brand value increase this year. The supermarket segment has registered an average growth in brand value of 6%. Sfera has lost 12.4% of brand value as the effects of the pandemic left its parent company El Corte Inglés struggling to reorganise and reallocate its resources. Despite this, El Corte Inglés has posted an 11.7% brand value increase to €5.2 billion due to its successful shift to online shopping. © Brand Finance Plc 2021 Brand Value by Sector 14 Brand Finance Spain 100 September 2021 Sector Brand Value (EUR bn) ● Banks ● Apparel ● Distribución ● Telecoms ● Utilities ● Engineering & Construction ● Insurance ● Oil & Gas ● Technology ● Beers ● Others Total 25.2 18.0 11.2 9.2 9.0 4.7 4.2 4.2 3.1 2.8 10.7 102.3 % of Number of total Brands 24.7% 10 17.6% 10 11.0% 7 9.0% 7 8.8% 6 4.6% 10 4.1% 3 4.1% 4 3.0% 2 2.7% 8 10.4% 33 100% 100 brandfinance.com Brand Value Analysis. In the supermarket segment, Día has recorded a significant 55.9% brand value increase, partly thanks to the change in consumer habits during the pandemic, which saw a shift to favour neighbourhood retailers. Its partnership with Amazon allowed Amazon Prime customers to access a two-hour home delivery service. Almost all Spanish telecommunications brands grow in brand value Cellnex’s brand value has grown by 28.4% due to impressive revenue growth as the brand undertakes significant geographical expansion across Portugal, France, the United Kingdom, and Poland. Euskaltel is also expected to grow rapidly with revenues projected to double over the next five years due to growth of the mobile and fixed line customer base. Grupo MasMóvil is the fourth largest telecommunications operator in Spain and provides fixed, mobile, and broadband internet services for residential, commercial, and wholesale customers. Three of its brands (Yoigo, Pepephone and MasMóvil) are some of the fastest growing brands in the ranking this year. Despite the pandemic, the group has managed to maintain its growth momentum, adding more than 500,000 new customers in 2020. The COVID-19 has hit Movistar and companies of the Telefónica group hard. Despite the challenging environment, Telefónica has remained at the forefront of developments in the sector, activating its 5G network, with the aim of achieving 75% coverage by the end of the year. Food and drink brands record growth Ebro Foods (brand value up 10.6%), the owner of the Minute Rice brand (brand value up 17%), has successfully capitalised on the pandemic by increasing sales of non-perishable products in North America and Europe. Puleva and Chufi are new entries into the ranking this year in 72nd and 82nd positions, respectively. Looking ahead, Chufi should see an increase in sales after having received a UHT milk certification for China last year. The outbreak of the pandemic has had a significant impact on the beer industry as the sector grapples with the closure of bars and restaurants as a result of global lockdowns. The most valuable Spanish beer brands have performed relatively well amid optimism of a quick rebound. Spanish brands that have grown strongly include: Damm (up 26.7%), Estrella Damm (up 23.3%), Voll-Dam (up 15.4%), San Miguel (up 14.9%) and Mahou (up 3.8%). In contrast, Cruzcampo’s brand value dropped by 13.6% and Xibeca Damm was down 7.8%. The energy sector has remained somewhat stable this year as its brands’ services remain essential. Both Iberdrola and Naturgy have maintained stable growth and have recorded good financial results over the previous year. Iberdrola’s (up 1.4%) brand value was boosted by its large investment made in renewable energy. Endesa's subsidiary, Enel (down 18.3%) was affected by the group's results, as was Elecnor (down 34.4%). brandirectory.com/spain Brand Finance Spain 100 September 2021 15 Brand Value Analysis. Spain’s sectors and brands that have suffered most severely Zara remains the most valuable brand in the Spanish apparel sector, but the Inditex group takes hit from pandemic All Inditex Group brands in the ranking (Zara, Bershka, Massimo Dutti, Stradivarius, Kiddy’s Class, Pull & Bear and Oysho) have felt the impact of the drop in the group’s financial forecasts. The fashion brands of the Inditex portfolio, including Zara (down 14.9%), Bershka (down 24.1%) and Pull & Bear (down 21.5%), have suffered the most. Traditional media brands lose value Across the media sector, brands have fared differently from the traditional media space to the newer digital media brands. In the Brand Finance Global 500 2021 ranking, gaming and streaming services enjoyed a significant boost in brand value this year as users turned to online means of entertainment in the wake of the pandemic. However, unlike its new media counterparts, COVID-19 has exacerbated the issues faced by traditional media brands. All three Spanish media brands have recorded a brand value loss this year: Telecinco (down 5%), Antena 3 (down 15%) and PRISA (down 32%). End of the glory years for the insurance sector After a few years of strong growth for insurers, with the industry as a whole more than doubling in brand value in the past decade in the Brand Finance Global 500 2021 ranking, results have been more varied this year as lockdowns produced widespread financial difficulties, with half of all insurance providers in the ranking experiencing dips in brand value year-on-year. Three insurance brands appear in the Brand Finance Spanish 100 2021 ranking. By far the most valuable of them is Mapfre, which sits in 8th with a brand value of €3.1 billion (down 13.6%). Mapfre is one of the most global brands in the ranking, with 44% of its operation residing in Spain and the remaining 56% worldwide. In contrast, Catalana Occidente, the second most valuable insurance brand in the ranking has recorded a 1.8% brand value increase to €826 million. Santalucía, has also recorded a 1.1% increase in brand value, jumping from 61st to 55th in the overall ranking. Regarding consumer sentiment, there is strong competition between international players AXA (more innovative), Allianz (price and quality) and Bupa (excellent website and applications). As the world begins to open up once again, insurance brands will need to position themselves intelligently to attract consumers in a world that has new risks and in response to changing priorities for consumers. The COVID-19 pandemic has had a significant effect on the television industry by the closing, suspending, and rescheduling of the production of television programs worldwide, which has negatively impacted revenue. Of the two main televisions brands in Spain, Antena 3 has more than 25% of market share. Although Antena 3 broadcast more ads than Telecinco, its total revenue decreased by 18%. The PRISA brand value has been significantly impacted this year falling 32.2%. Its brand strength also suffered dropping 2.0 points to 59.4 out of 100. In October 2020, PRISA reached an agreement with Sanoma Corporation to sell the Santillana business in Spain for €465 million. Analysts foresee lower revenues after the sale of their Santillana sub-brand in the coming years compared to previous years. Hotel brands on a long road to recovery The hotel and leisure & tourism sectors are among the sectors most affected by the pandemic. As holidays are cancelled and people are instructed to work from home, the hospitality sector has reached an almost complete standstill both from tourism, as well as corporate travel. While restaurants and bars expect a rapid recovery as they begin to open again, it is feared that the road to recovery will be longer for hotels. Recent sector research suggests that recovery to preCOVID-19 levels will not be achieved until at least 2023. Hotels in the economy segment are expected to recover faster than luxury hotels, as they can 16 Brand Finance Spain 100 September 2021 brandfinance.com Brand Value Analysis. Brand Value Change 2020-2021 (%) -27.0% -27.5% -29.3% -31.9% -32.2% -32.9% -34.4% -47.2% -55.8% -65.0% Día Ibercaja Cellnex Telecom Damm Estrella Damm Yoigo Minute Rice Voll Damm San Miguel Seat +55.9% +28.9% +28.4% +26.7% +23.3% +20.1% +17.0% +15.4% +14.9% Kiddy's Class +13.4% Sabadell Codere Vueling Promotora De Informaciones Air Europa Elecnor eDreams Merlin Properties Meliá serve demand for those traveling for work, as well as long-term guests. All hotel and leisure & tourism brands in the ranking have decreased in brand value this year. Meliá has lost the most brand value, down 65% year-onyear. However, it is interesting to note that most of the brands across these sectors have increased in brand strength. The airlines sector has suffered too. Iberia (BV down 25.3% and BSI down 1.0 points) and Vueling (BV down 31.9% and BSI down 5.1 points) like many other airlines have suffered significant losses in their brand values due to the global pandemic. The Spanish Government provided a rescue package of €1 billion exclusively to the Iberia and Vueling brands, which cannot be passed on to other members of the IAG group. Although Air Europa, has lost the most brand value (down 32.9%) its brand strength has increased by 4.1 points. Seat (up 13.4%) is the only auto brand in the ranking. Its increase in brand value can attributed to solid sales, with sales in 2021 exceeding sales in 2019. Brand Value by Autonomous Community Autonomous community ● Madrid ● Galicia ● Basque Country ● Cantabria ● Catalonlia ● Valencian Community ● Balearic Islands ● Andalusia ● Aragon ● Asturias Total Brand Value (EUR bn) 43.3 13.8 13.7 12.1 8.7 7.9 1.9 0.6 0.2 0.1 102.3 % of total Number of Brands 42.3% 52 13.5% 6 13.4% 9 11.9% 1 8.5% 15 7.8% 4 1.9% 9 0.6% 2 0.2% 1 0.1% 1 100% 100 © Brand Finance Plc 2021 brandirectory.com/spain Brand Finance Spain 100 September 2021 17 Brand Strength Analysis. In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, customer familiarity, staff satisfaction, and corporate reputation. Along with revenue forecasting, brand strength is a crucial factor in brand value. Brand Finance's analysis showed that, on average, the strongest brands were more resilient to the pandemic. Brands with a Brand Strength Index score of more than 70 out of 100 saw their brand values fall, on average, by 8%. While brands with a BSI score of less than 60 experienced a decrease in brand value of 20% on average. BBVA, Mapfre and Stradivarius: the strongest brands in Spain The total brand value of the banking sector in Spain fell 21% in 2021 and three of the ten banks that feature in the ranking also recorded a drop in their BSI score. Despite the global trend, it is the four strongest banks in Spain that lost the most value. BBVA (BSI 85.2 out of 100) is, for the second consecutive year, the strongest brand in Spain and is the only Spanish bank to receive a AAA brand strength rating. Mapfre is the second strongest brand in Spain, with a BSI score of 85.1 out of 100. Brand Finance’s Brand Equity Monitor showed that Mapfre has the highest scores in the familiarity and consideration metrics compared to any other Spanish insurance brand. Stradivarius - the fashion brand of the Inditex group focused on the younger generation segment – is the nation’s third strongest brand, with a BSI score of 83.5 out of 100. According to Brand Finance's Global Brand Equity Monitor, Massimo Dutti is best known and considered among female consumers (women over 35). Bershka and Stradivarius, however, are better known and appreciated among younger consumers in the 18-34 age group. Zara celebrates impressive global appeal across all age groups, even though it is not in the top 10 for brand strength. Amid the turmoil in the tourism sector, Meliá has increased its brand strength by 2.0 points to 82.9 out of 100 and as a result has climbed four spots in the brand strength ranking. LOEWE, the only brand from the luxury segment featured in the ranking and is the fifth Top 10 Strongest Brands 1 01 2021: 85.2 AAA 2020: 84.6 AAA 2 27 2021: 85.1 AAA 2020: 81.3 AAA- 3 25 2021: 83.5 AAA2020: 81.9 AAA- 4 28 2021: 82.9 AAA2020: 80.9 AAA- 5 14 2021: 82.0 AAA2020: 83.3 AAA- 6 12 2021: 82.0 AAA2020: 84.0 AAA- 7 13 2021: 81.6 AAA2020: 83.4 AAA- 8 16 2021: 81.2 AAA2020: 81.7 AAA- 9 2 12 2021: 79.9 AAA2020: 77.2 AA+ 10 2 13 2021: 79.5 AA+ 2020: 77.2 AA+ g +0.6 t +3.8 d +1.6 r +2.0 d -1.3 r -2.0 D -1.8 p -0.5 h +2.7 E +2.3 18 Brand Finance Spain 100 September 2021 brandfinance.com © Brand Finance Plc 2021 © Brand Finance Plc 2021 Brand Strength Analysis. strongest brand in Spain, with a BSI score of 82.0 out of 100 and a AAA- brand strength rating. Outside of the top 10, the brand that has recorded the greatest increase in brand strength is Ebro Foods (up 9.2 points to 59.2 out of 100), rising 20 spots in the brand strength ranking. It is followed by Damm (up 8.5 points to 64.9), Codere (up 6.5 points to 64.8), Euskaltel (up 5.7 points to 67.6), MasMóvil (up 5.4 points to 67.2). In contrast, Ferrovial is the brand that has lost the most brand strength, down 7.6 points. Brand Strength AAA 4 1 AAA- 8 8 AA+ 10 11 AA 14 12 AA- 24 25 15 A+ 22 19 A 14 6 A- 7 ● 2021 ● 2020 brandirectory.com/spain Brand Finance Spain 100 September 2021 19 Sector Reputation Analysis. The importance of reputation Consumers reach a final decision about a brand when (i) they have a good reputation, (ii) they offer the right price, (iii) the product is readily available and (iv) when the product meets their needs. Reputation is therefore key when discussing and trying to anticipate customer choice. Reputation is one of the attributes that concerns brand and marketing managers. When we undertake our brand valuations, the reputation metric filters into the Brand Strength Index. The correlation between reputation and the final brand value is revealing. Although reputation is important, it is not the only thing that should concern brand managers. Reputation only explains about 50% of the relevance of a brand. An increase in investment must be supported by a strong positioning and vice versa. Brands that have protected themselves from the pandemic due to their reputation Commercial aviation has been severely impacted by the pandemic, but despite this, Iberia’s reputation has skyrocketed, as it scores number one for reputation across the airline sector, according to the Brand Finance Global Brand Equity Monitor 2021. Ranking second and third in terms of reputation is El Corte Inglés and Mercadona, respectively. Meliá ranks fourth in the metric, showcasing that despite the turbulence of the last year with hotels closing their doors, reputation is resilient. Mapfre is the only brand in the insurance sector to score within the top 10 for reputation, demonstrating its position as a respected and reliable insurance provider across the nation. Of the financial services brands, the next highest ranked for reputation is BBVA in 28th. In the 12 sectors analysed, average reputation was lowest among banks (12th) telecommunications (11th) and utilities (10th) despite the fact that these sectors remain in high demand. This suggests that there is still a lot of work to be done to improve overall customer perceptions across these industries. Sectors Ranked by Reputation o 1= Food l 1= Cosmetics M3 Electronics D 4= Retail r 4= Hotels h 6= Beers d 6= Apparel A 8= Pharma z 8= Oil & Gas 7.6/10 7.6/10 7.5/10 7.4/10 7.4/10 7.3/10 7.3/10 7.2/10 7.2/10 Oil and gas brands fly the Spanish flag Domestic oil and gas brands Repsol and Cepsa also scored well for reputation in 5th and 10th positions, C 8= 7.2/10 Restaurants 20 Brand Finance Spain 100 September 2021 brandfinance.com Sector Reputation Analysis. N 8 7.2 = /10 Supermarkets respectively. Repsol, although originating from Spain, is now a well-established global brand operating in 37 different countries and continues to expand its reach through partnerships, including its sponsorship of the "Repsol Honda" title for MotoGP. f 12= Auto w 12= Logistics G 12= Technology 7.1/10 7.1/10 Both Repsol and Cepsa are above the global average in the sector for reputation, implying a positive outlook for the controversial sector, as the general public become more environmentally conscious, and more pressure is exerted on corporate brands to act as good corporate citizens. Spanish consumers are hungry for holidays 7.1/10 In terms of general brand consideration, three airline brands - Iberia (2nd), Air Europa (3rd) and Vueling (9th) - and three hotel brands are among the top 10. When traveling is considered safe, demand is expected to increase significantly, and airline brands will rebound. B 15 Real Estate b 16 Airlines 6.9/10 6.8/10 NH Hotels, Meliá and Occidental rank fourth, fifth and tenth respectively for brand consideration. Such favourable levels of consideration indicate that these brands continue to be well perceived among the Spanish public with more than 85% of people saying that they would consider staying there. Hotels also have the highest average reputation of any sector within the top 100 Spanish brands. t 17 Insurance 6.6/10 L 18 Utilities 6.5/10 g 19= Banks 6.3/10 H 19 6.3 = /10 Telecommunications brandirectory.com/spain Brand Finance Spain 100 September 2021 21 Spain’s top CEOs. This year sees new additions to the list of CEOs who best defend their Spanish brands around the world. Onur Genç, the head of BBVA and José Ignacio Sánchez Galán of Iberdrola, are the internationally recognised CEOs who best defend their respective Spanish brands. In third place is José María ÁlvarezPallete of Telefónica who is not on the list of the 25 most internationally valued CEOs this year. In fourth position is Víctor del Pozo, the head of the Spanish distribution giant, El Corte Inglés, which is going through a period of internal restructuring with store closings and staff changes. José Antonio Álvarez Álvarez, comes in at the fifth spot, representing the most valuable international Spanish bank, Santander. In sixth and seventh positions are two of the most valued CEOs in Spain in the distribution sector, Juan Roig Alfonso, CEO of Mercadona in the supermarket segment and Carlos Crespo González, head of the Inditex Group in the textile segment. Gonzalo Gortázar Rotaeche and Philippe Boisseau complete the list, leading CaixaBank and Cepsa - the only oil and gas brand on the list - respectively. Of Turkish origin and a graduate in electrical engineering, Onur Genç was appointed CEO of BBVA in 2018. He previously held positions of responsibility in corporations such as American Airlines and McKinsey & Company. According to one of his latest interviews, for him there are "three key aspects define a good leader: entrepreneurial spirit, empowerment and responsibility". Among the actions he has prioritised during his tenure is the digital strategy, which has directly impacted the bank's customer satisfaction data. José Ignacio Sánchez Galán is committed to maintaining and increasing the value of his brand, Iberdrola. This year the Spanish energy company launched a strategic plan to deal with the effects of the coronavirus crisis, which includes historical investments of €75 billion with the main objective of overtaking the rest of companies in the energy sector: “taking advantage of the opportunities of the energy revolution faced by the main economies of the world through a clean model, green and renewable with more networks, more storage and more smart solutions for customers”. José María Álvarez-Pallete, Executive President of Telefónica was the only internationally recognised Spanish brand guardian among the 25 most important worldwide in the Brand Finance Global Report 500 2020. This year it is the BBVA and Iberdrola brand guardians who appear in that list whilst the Telefónica Executive President has dropped off this list. However, he continues to occupy the third position in the Spanish CEO rankings. In the midst of the pandemic, ÁlvarezPallete received 6.21% less in 2020 than the previous year (€5.2 million in 2020 compared to€5.5 million in the previous year) and has renounced the collection of €240,000 as president of the board of directors and €80,000 as president of the delegated commission. In 2020, he was recognised with ECOFIN's “Financial of the Year” award for “his impeccable role as head of the telecommunications company” 22 Brand Finance Spain 100 September 2021 brandfinance.com Spain’s top CEOs. The greatest advocate of the company's vision and purpose is its CEO, so the most valuable brands are expected to have the highest rated CEOs. If this is not the case, it must be analysed why the CEO may be damaging business, or vice versa, or have greater potential for business creation than is being used. Teresa de Lemus Managing Director, Brand Finance Spain If we compare the nine most valued CEOs in Spain with the top nine brands in the Brand Finance Spain 100 2021 ranking by brand value, we see that seven of them align with the most valuable brands in the ranking (BBVA, Iberdrola, Telefónica -Movistar -, El Corte Inglés, Santander, Mercadona and Inditex Zara -). Only the CEOs of Mapfre and Repsol brands are missing from the list of CEOs. Undoubtedly, the personal brand of the organisation’s chief executive influences the brand value and vice versa. This year's top CEO on the Brand Finance Guardianship Index is Ajay Banga from Mastercard. Banga announced his transition from CEO to Executive President in 2020, closing a successful ten-year cycle as CEO. Since he assumed command of Mastercard, Banga has adopted technological innovation, ensuring that the brand remains relevant despite the current period of rapid changes in financial services. Banga also defends the idea of financial inclusion and has used its influence to build strategic partnerships with financial institutions around the world to help fight poverty. If we look at the rating received on reputation, the top 5 of the most reputable Spanish CEOs are: 1. José Antonio Álvarez Álvarez of Santander, 2. José María Álvarez-Pallete López of Telefónica, 3. Juan Roig Alfonso of Mercadona, 4. Onur Genç of BBVA and 5. Carlos Crespo González of Inditex. CEO and Communication Without a doubt Josu Jon Imaz, CEO of Repsol since 2014, is considered one of the best in his field in Europe. The oil company closed 2018 with a profit of around €1.5 billion, while announcing a plan to become "multi-energy" in order to reduce polluting emissions. He is also a faithful defender of the importance of communication in organisation. “Communication brings value, involvement of company people, talent attraction, market positioning Rank 1 2 3 4 5 6 7 8 9 Name Onur Genç José Ignacio Sánchez Galán José María Álvarez-Pallete López Víctor del Pozo José Antonio Álvarez Álvarez Juan Roig Alfonso Carlos Crespo González Gonzalo Gortázar Rotaeche Philippe Boisseau Brand BBVA Iberdrola Telefónica El Corte Inglés Santander Mercadona Inditex CaixaBank Cepsa Country Spain Spain Spain Spain Spain Spain Spain Spain Spain brandirectory.com/spain Brand Finance Spain 100 September 2021 23 Spain’s top CEOs. and social license to operate in the environment. Communication makes society accept you and consider you a good neighbour. Companies that survive in ten years will be companies that communicate well.” According to data from the second wave of the I Barometer "COVID-19 and Marketing" from the Marketing Association of Spain, it appears that 66% of marketing and communication professionals surveyed in this I Barometer believe that the CEOs of the companies have acted in advance in this crisis. The future and reputation of companies in the coming months will depend on the ability of CEOs to refocus business strategy and their choice messaging. In moments of uncertainty like the current one, they must demonstrate their leadership and their more human side. If we talk about female CEOs in Spain, there are not only several at the forefront of major brands but they have excellent management and communication skills. One of them is María Dolores Dancausa who, after more than ten years at the head of Bankinter, is not only an advocate of the value of communication, but also proves to be a great brand guardian. Although the company says that brand guardians are each and every one of those who make up Bankinter, the charisma and connection capacity of its CEO positively influences the strength and value of the brand. Without leaving the world of banking there are great leaders like Ana Botín, President of Banco Santander, who started 2020 showing her most human side in the Planeta Calleja program, which undoubtedly changed the perception of the banker. But the list of women at the forefront of major brands in Spain is increasingly impressive: Sol Daurella, President of Coca Cola European Partners; Sabina Fluxá, CEO of Iberostar; Sara Harmon, CEO of LinkedIn Spain and Portugal; Belén Martín, CEO of Restalia; María Río, CEO of Gilead Spain; Marie Eve Rougeot, CEO of Famosa; Cristina Ruiz, Indra IT CEO; Olga Sánchez, CEO of Axa Seguros España; Ángeles Santamaría CEO of Iberdrola Spain or Susana Voces, Global VP of Deliveroo restaurants among others. Cristina Campos General Director, Brand Dialogue Spain For Antonio Huertas of Mapfre, the crisis has highlighted the value of communication, which, together with supervision and interaction, are for him the three essential elements for the chief executive. Javier Tebas, chief executive of LaLiga is another example of someone who has his own personal brand of success and commitment to communication: he is very active on social networks, which he likes to manage personally. There are those who not only believe in the value of communication but also actively participate in it and have remarkable communication skills. José Muñoz, CEO of the food group Copese, is also a blogger and has recently received, together with José Moro, president of Bodegas Emilio Moro and Bodegas Cepa 21, the award for the most communicative and influential CEOs by the CEO Club. According to the latest Brand Finance Global 500 report where the most internationally valued CEOs were analysed, only eight of the brand's top 100 guardians are women due to the continuing shortage of female leadership in large corporations worldwide. The women in this ranking are made up of six CEOs from US companies and two from Chinese companies. The value and influence of the CEO does not lie in popularity, the most valued are not the CEOs with the highest notoriety or the most socially recognised. The most familiar like Mark Zuckerberg, Jeff Bezos, Tim Cook and Elon Musk, so-called "CEO celebrities" have gained great publicity due to the success and wide appeal of the brands they protect, as well as their willingness to be in the centre of public attention. However, fame is not everything and they are not at the top of the ranking. 24 Brand Finance Spain 100 September 2021 brandfinance.com brandirectory.com/spain Spain’s top CEOs. Brand Finance Spain 100 September 2021 25 Brand Finance Spain 100 (EUR m). Top 100 most valuable Spanish brands 1-50 2021 2020 Rank Rank Brand 1 1 0 Santander 22 33 44 55 66 77 88 99 10 10 11 11 12 13 13 12 14 14 15 17 16 16 17 24 18 18 19 15 20 20 21 23 22 22 23 25 24 19 25 29 26 26 27 28 28 21 29 33 30 27 31 31 32 30 33 37 34 49 35 35 36 36 37 40 38 34 39 32 40 41 41 43 42 39 43 52 44 53 45 51 46 44 47 47 48 45 49 48 50 50 0 ZARA 0 Movistar 0 BBVA 0 El Corte Inglés 0 Iberdrola 0 Mercadona 0 Mapfre 0 Repsol 0 CaixaBank 0 Amadeus 2 Naturgy 1 Endesa 0 Telefonica 2 Loewe 0 Abertis 2 Seat 0 Siemens Gamesa 1 Bershka 0 Cepsa 2 Bankia 0 Mirinda 2 Mango 1 Sabadell 2 Acciona 0 Massimo Dutti 2 ACS 1 Pull & Bear 2 Estrella Damm 1 Stradivarius 0 Catalana Occidente 1 Eroski 2 Mahou 2 Dia 0 Bankinter 0 LaLiga 2 FCC 1 NH Hotels 1 Iberia 2 Gestamp 2 Grupo Barceló 1 Prosegur 2 Yoigo 2 San Miguel 2 Grifols 1 Cruzcampo 0 Indra 1 Kutxabank 1 Oysho 0 Telecinco Sector Banking Apparel Telecoms Banking Retail Utilities Retail Insurance Oil & Gas Banking Tech Utilities Utilities Telecoms Apparel Logistics Automobiles Engineering & Construction Apparel Oil & Gas Banking Soft Drinks Apparel Banking Engineering & Construction Apparel Engineering & Construction Apparel Beers Apparel Insurance Retail Beers Retail Banking Football Engineering & Construction Hotels Airlines Auto Components Hotels Commercial Services Telecoms Beers Pharma Beers Tech Banking Apparel Media Autonomous Community Cantabria Galicia Community of Madrid Basque Country Community of Madrid Basque Country Valencian Community Community of Madrid Community of Madrid Valencian Community Community of Madrid Community of Madrid Community of Madrid Community of Madrid Community of Madrid Catalonia Catalonia Basque Country Galicia Community of Madrid Community of Madrid Community of Madrid Catalonia Valencian Community Community of Madrid Catalonia Community of Madrid Galicia Catalonia Catalonia Catalonia Basque Country Community of Madrid Community of Madrid Community of Madrid Community of Madrid Community of Madrid Community of Madrid Community of Madrid Community of Madrid Balearic Islands Community of Madrid Community of Madrid Community of Madrid Catalonia Andalusia Community of Madrid Basque Country Catalonia Community of Madrid 2021 Brand Value Brand Value Change €12,150 €11,201 €6,704 €6,537 €5,204 €4,383 €4,072 €3,100 €2,898 €2,813 -23.4% -14.9% -22.7% -23.4% +11.7% +1.4% -0.6% -13.6% -14.2% -12.1% 2020 Brand Value €15,852 €13,166 €8,677 €8,531 €4,657 €4,323 €4,097 €3,589 €3,380 €3,200 2021 Brand Rating AA+ AA+ AA+ AAA AA AA+ AAAAAA AAAA+ 2020 Brand Rating AA+ AA+ AAAAAA AA+ AA+ AAAAAAAAAA+ 26 Brand Finance Spain 100 September 2021 brandfinance.com Brand Finance Spain 100 (EUR m). Top 100 most valuable Spanish brands 51-100 2021 2020 Rank Rank Brand 51 54 52 66 53 55 54 56 55 61 56 46 57 58 58 63 59 64 60 73 61 65 62 60 63 71 64 57 65 38 66 69 67 59 68 70 69 80 70 76 71 67 72 73 77 74 74 75 78 76 82 77 85 78 75 79 83 80 90 81 81 82 83 84 84 92 85 95 86 89 87 87 88 98 89 94 90 91 79 92 91 93 94 95 93 96 97 99 98 100 99 88 100 - 2 Sacyr 2 Cellnex Telecom 2 Abanca 2 Tecnicas Reunidas 2 SANTALUCIA 1 Vueling 2 Alcampo 2 Ferrovial 2 Desigual 2 Euskaltel 2 CIE Automotive 1 Codere 2 Acerinox 1 PRISA 1 Melia 2 Antena 3 Television 1 Elecnor 2 Red Electrica 2 Ibercaja 2 Supercor 1 Air Europa 3 Puleva 2 Dominion 0 Occidental 2 Sfera 2 Petronor 2 EBRO FOODS 1 Enagas 2 Liberbank 2 Damm 0 Sol 3 Chufi 2 Madrid–Barajas Airport 2 Voll Damm 2 Minute Rice 2 Xibeca Damm 0 Barcelona–El Prat Airport 2 Mixta Shandy 2 Valoriza 3 MasMovil 1 Merlin Properties 1 BME 3 Cintra 3 OHL 1 Kiddy's Class 3 pepephone.com 2 Opodo 2 Paradisus 1 eDreams 3 Campsa Sector Engineering & Construction Telecoms Banking Engineering & Construction Insurance Airlines Retail Engineering & Construction Apparel Telecoms Auto Components Leisure & Tourism Mining, Iron & Steel Media Hotels Media Utilities Utilities Banking Retail Airlines Food IT Services Hotels Retail Oil & Gas Food Utilities Banking Beers Hotels Food Airports Beers Food Beers Airports Beers Engineering & Construction Telecoms Real Estate Stock Exchanges Engineering & Construction Engineering & Construction Apparel Telecoms Leisure & Tourism Hotels Leisure & Tourism Oil & Gas Autonomous Community Community of Madrid Catalonia Community of Madrid Galicia Community of Madrid Catalonia Balearic Islands Community of Madrid Balearic Islands Community of Madrid Community of Madrid Community of Madrid Community of Madrid Community of Madrid Balearic Islands Balearic Islands Community of Madrid Community of Madrid Aragon Balearic Islands Balearic Islands Andalusia Community of Madrid Galicia Basque Country Basque Country Community of Madrid Basque Country Community of Madrid Community of Madrid Balearic Islands Valencian Community Community of Madrid Catalonia Galicia Catalonia Asturias Basque Country Catalonia Community of Madrid Community of Madrid Catalonia Community of Madrid Community of Madrid Community of Madrid Community of Madrid Balearic Islands Community of Madrid Community of Madrid Community of Madrid 2021 Brand Value Brand Value Change 2020 Brand Value 2021 Brand Rating 2020 Brand Rating brandirectory.com/spain Brand Finance Spain 100 September 2021 27 Brand Spotlights. Bankinter. 30 Brand Finance Spain 100 September 2021 brandfinance.com Interview with Yolanda Sanz Rey. Yolanda Sanz Rey Director of Image and Brand Management, Bankinter brandirectory.com/spain Bankinter: one of the top 100 Spain brands Bankinter, one of the Spanish brands that has been talked about the most during the pandemic due to its successful advertising campaign. Yolanda Sanz, Head of Image and Brand, tells us how to improve the bank's reputation in times of a pandemic. Bankinter’s brand spirit is "Being exceptional on a daily basis". How do you make it evident through the brand? We understand “exceptionalness” from a double point of view: extreme quality of service in all internal processes and in customer service; and showing the differential nature of our entity in a market of very homogeneous proposals. In short, it reflects our attitude and reveals our qualities without conflict within the sector. The brand is the representation of that culture and those values that are deeply rooted in each of the employees who work at Bankinter. This translates into the emotional connection of our clients with the brand, which is one of the fundamental pillars in the construction of our entity. The Bankinter Brand is well-recognised and has been awarded by some of the most prestigious institutions in the world of brands, such as the IV ESADE Brand Center Awards. How do you measure it to continue improving? Measurement is essential to manage. You must know how you are being perceived by all stakeholders and on all axes of differentiation of your brand. We do this with employee and customer surveys and customers, by actively listening on and offline to find out what their target audiences say about the entity, with internal audits at the main contact points,and of course, with a brand indicator that measures the main dimensions that build our identity. The brand is spoken of as a shield for companies in times of crisis, trade wars or unexpected external eventualities. To what extent do you consider this statement to be true and in which cases it has been for Bankinter during the COVID-19 pandemic? How are you considering the brand for the Post-COVID-19 strategy? As has happened in previous crises, Bankinter has emerged reinforced from the complicated situation generated by the coronavirus pandemic. Having a very strong corporate identity, built over 55 years of history, a financially sound balance, and a well-defined business strategy have helped us achieve that position. In addition, the agility that the bank had when launching specific measures designed to alleviate the impact of the crisis among families and companies especially affected. Our communication management has allowed us to capitalize all those assets on the brand , whichdemonstrates those values we believe in to our audiences . The banking sector has been dragging a damaged reputation for years but one that seems to have taken a turn during this crisis. Bankinter has not only worked to improve the reputation of its brand, but one of your focus is on the reputation of the sector. How are you working on this line of communication? Do you do it in collaboration with other entities? Obviously, we participate in sectoral strategies to optimise the public perception of banking, and I sincerely believe that we have achieved a substantial improvement in reputation. Banking is now perceived as part of the solution and not as part of the problem. And at the same time, we also work on the concept of differentiation, transmitting the competitive advantages of our entity and our positioning in the market. In this regard, communication is essential. Communication that we understand from a global point of view, using different formats and channels, both internal and external, to reach all our stakeholders with the appropriate information and message. María Dolores Dancausa is the face and voice of Bankinter, and her belief and commitment to communication becomes latent, essential for a good guardian of the brand. Who do you consider should be the brand guardian or ultimate protector of the brand and who is at Bankinter? There is no doubt that our CEO represents correctly the values that our brand treasures, and that she has always opted for transparent communication to transmit those values. But at Bankinter, we usually say that the brand is every person who works at the entity. When we interact with each other, with our customers, suppliers, etc. we are the brand. Our behavior, our attention is already transmitting an idea of who we are and how we want to be perceived. Hence the importance of assuming these values in a consistent way and, in this way, being perceived by all our stakeholders. In short, there is no better brand guardian or better brand ambassador than the employees themselves. Brand Finance Spain 100 September 2021 31 Iberdrola. 32 Brand Finance Spain 100 September 2021 brandfinance.com Interview with Juan Luis Aguirrezabal. According to the brand positioning, "The Iberdrola brand is committed to caring for the environment and people". How do you make this statement tangible through the brand? Over the last twenty years, we have championed a brand positioning anchored in the concept of sustainability, which we have shown in all the areas in which we work. A sustainable society is also more inclusive and diverse; a society that creates equal opportunities and cares for the most vulnerable groups. But brands are based on facts, which we show in our communication actions: we have invested €120 million in the last two decades to lead the energy transition and we are committed to redouble that commitment with a historic investment plan that will lead us to double our renewable capacity, after investing €75 million by 2025. Juan Luis Aguirrezabal Global Director of Advertising, Brand and Sponsorships More facts: purchases from our 22,000 suppliers support 400,000 jobs related to 'green' activities. We are also the leading private energy company in Europe and the second in the world in terms of investment in R&D&I, according to the European Commission. What are the drivers or differentiators of your brand? Do you know the weight or influence of each, or do you consider them to be equally relevant? Iberdrola is a global brand, present in many countries where different differentiating elements have more meaning or sense, but our strategy is aligned around a common purpose: to contribute to the development of a clean, modern, healthy, and sustainable energy model based on renewable energy and smart grids. If we had to choose the two main differentiating attributes of our brand I would go for 'green' and 'digital'; interestingly the two vectors that Europe and our country in particular have pointed to as the foundations of economic recovery and the construction of a more sustainable, competitive and resilient society. 2020 has been a year marked by the pandemic that has affected numerous sectors and brands. Iberdrola, however, remains within the exclusive group of the seven most valuable brands in Spain in the international Global 500 ranking, which analyses the 500 most valuable brands worldwide. People talk about the brand as a shield for companies in times of crisis, trade wars or unexpected external eventualities. To what extent do you consider this statement to be true and in what cases has it been true for Iberdrola during the COVID-19 pandemic? The pandemic has strengthened the role of companies and their reputation in society. This has also been the case for Iberdrola. In the crisis, we were able to detect the needs immediately and we acted swiftly to respond to an exceptional situation, putting resources, skills, work, and a great deal of commitment at the service of society and the most vulnerable groups. But we continue in this endeavour. Having overcome the most complex moments associated with the health crisis, we have continued to work on the next phase, which must overcome the socio-economic crisis associated with the pandemic. We have gone through an exceptional period, which should serve as a lesson for us to understand that we must continue to build more resilient ecosystems in order to face new challenges. A movement that must go hand in hand with continuing to identify the expectations of our stakeholders - with active listening and dialogue - and working on a transformation based on green principles that is urgent and necessary for everyone. What role do sponsorships play within the Iberdrola brand and how do you measure effectiveness and return? Sponsorships go beyond placing the brand on a medium and have become a tool for adding value. This is what we usually refer to as the "social dividend". At Iberdrola we carried out an in-depth reflection on our sponsorship strategy years ago and decided to associate it and channel it into an area that would provide solutions to a corporate objective -equal opportunities - and define our way of understanding work, effort, the pursuit of excellence and teamwork. And so, in 2015, we undertook the commitment to work for gender equality and the empowerment of women. In this way, in addition to continuing to promote the successes of Spanish sport, we are committed to promoting women's sport. And this work is being recognised: today, 44% of the population recognises Iberdrola as the main promoter of women's sport in Spain. brandirectory.com/spain Brand Finance Spain 100 September 2021 33 Meliá. 34 Brand Finance Spain 100 September 2021 brandfinance.com Interview with André P. Gerondeau. André P. Gerondeau Chief Operating Officer, Meliã How do you get your brand's reputation to improve the outcome of the business? Meliá is a family-based and listed company, which provides our brand solid values and great rigour and transparency, a pairing that strengthens our reputation, in a very competitive market environment, largely dominated by multinational giants. Being leaders in the Corporate Sustainability Assessment, of S&P, or in the ranking of Responsible Companies of the WSJ also helps us to transmit confidence to the different stakeholders. Meliá Hotels is one of the brands that are always at the top of mind of consumers and related to Spain (even the tilde of the logo is the virgulilla of the Ñ representative of Spain). How do you work the brand to achieve that partnership? Does the Made in Spain association benefit you? Meliá is proud to have been born in Spain, the cradle of holiday tourism in which we are leaders. From Spain, we have always "exported" our know-how, our passion for service, as well as gastronomy, art, or "Spanish luxury". We are brand ambassadors for Spain, the most competitive country in the world in tourism, and that undoubtedly benefits us. What is the reason for this multi-brand strategy? Gran Meliá Hotels & Resorts, ME by Meliá, Paradisus Resorts, Inside by Meliá, Tryp by Wyndham, Sol Hotels & Resorts… Today's tourism market experiences what we call the hyper-segmentation of demand; at MHI, our experience is integrated through different hotel brands, each focused on a demographic or psychographic segment of modern travel consumers. These brands, combined with the corporate brand as an "umbrella" that supports all, make up the broadest and most complete "multi-brand" portfolio in our country. How do you manage the differences of each brand and the diversity of countries in which you are present? Our brands share common values and standards around the world, although in all cases they integrate elements of local culture and society; this would be the case of our brands in China, which have adapted so much that, for example, Gran Meliá has been recognised as the "most charismatic hotel brand of the year 2020". How are you considering branding for the Post-COVID-19 strategy? What are you doing to differentiate yourself from the competition when everyone is reinventing itself to capture the few consumers who can or dare to use hotels? Meliá has, as credentials, an impeccable management of the crisis, and a leadership in sustainability. In addition, we have taken advantage of the long months of the pandemic to work on the attributes that consumers will demand in the post-Covid environment: safety, with our ‘Stay Safe With Meliá’ program as the main sales pitch, sustainability, for a society that demands responsible brands, and authentic experiences. Meliá is an internationally recognised and reputed brand. How are you linking brand reputation strategy and communication strategy? For many years, the management of the reputation of our corporate brand is a strategic priority, and communication, together with a model of relationship and dialogue with our stakeholders, is a main vehicle to preserve and enhance it. We do this proactively, working on the communication of our key reputational values and attributes and through the reputational transfer of our top executive, Gabriel Escarrer, and we maintain powerful tools for monitoring and measuring the perception we have in our audiences. brandirectory.com/spain Brand Finance Spain 100 September 2021 35 Vueling. 36 Brand Finance Spain 100 September 2021 brandfinance.com Interview with Manuel Ambriz. With a strong personality and value proposition, how do you ensure brand consistency? At Vueling we believe that we must be true to our beliefs, and we use this principle to maintain consistency in everything we do. We consider this brand consistency - which reflects our DNA - to be fundamental in our operations. We are constantly looking for continuous improvement. In fact, we are currently working on a process of internal and external analysis to optimise and reinforce brand consistency across all touch points, both with customers and employees. Manuel Ambriz Chief Commercial Officer Does the brand's fresh, direct, intelligent, approachable tone, with a touch of humour, help to create a brand that is close to the audience? Yes, speaking the same language brings us closer to our customers and helps us develop empathy and trust. We express ourselves in this way through everything we show, say, and do. In this way, Vueling acquires a voice of its own that helps to improve positioning, brand reputation and connection with our customers. Conveying and maintaining a fresh and direct tone gives us a brand identity, which is easily recognisable in the industry and helps us to more effectively express what we want to convey to our passengers. An example of this is our 'We love places' concept where we try to connect people's interests with our choice of destinations. Vueling was one of the first budget airlines in Southern Europe. How does Vueling stand out from the competition in the low-cost market? For Vueling, the customer is the most important thing. We listen to them through continuous surveys and interviews that help us understand their needs and adapt our products, services, and processes. We believe that trust in the airline is fundamental, and we constantly invest in ensuring operational and service stability. We find the ideal balance between quality, service, and price. COVID-19 is affecting all brands and sectors. What measures are you taking at Vueling to mitigate the effects of the pandemic? The safety of our passengers and employees is our priority. For this reason, we are in constant contact with the health and aviation authorities and have implemented the procedures established by EASA (European Aviation Safety Agency) and ECDC (European Centre for Disease Prevention and Control). Furthermore, in this environment, we adapt the product to the needs of our clients, offering flexibility options (change of dates, destination and offering this reservation to third parties) that adapt to all their needs. Who do you consider should be the ultimate brand guardian or protector of the brand and who is it at Vueling? At Vueling, we are all about the brand. We believe that love for the brand starts from within, where it naturally permeates everything we do. On the one hand, we have clear brand application principles across different departments and channels. These principles are defined by the marketing department, but all Vueling employees are responsible for ensuring their proper use throughout everything we do and at every point where we interact with the customer. On the other hand, the marketing department is responsible for the continuous evaluation of the brand, both internally and externally, and works hand in hand and transversally with all departments to ensure its optimal and continuous improvement. brandirectory.com/spain Brand Finance Spain 100 September 2021 37 Methodology. Definitions. alue ution Enterprise Value Branded Business Brand Contrib V Brand Value 40 Brand Finance Spain 100 September 2021 [Inditex] [Zara] [Zara] [Zara] Brand Value + Enterprise Value The value of the entire enterprise, made up of multiple branded businesses. Where a company has a purely monobranded architecture, the ‘enterprise value’ is the same as ‘branded business value’. + Branded Business Value The value of a single branded business operating under the subject brand. A brand should be viewed in the context of the business in which it operates. Brand Finance always conducts a branded business valuation as part of any brand valuation. We evaluate the full brand value chain in order to understand the links between marketing investment, brandtracking data, and stakeholder behaviour. + Brand Contribution The overall uplift in shareholder value that the business derives from owning the brand rather than operating a generic brand. The brand values contained in our league tables are those of the potentially transferable brand assets only, making ‘brand contribution’ a wider concept. An assessment of overall ‘brand contribution’ to a business provides additional insights to help optimise performance. + Brand Value The value of the trade mark and associated marketing IP within the branded business. Brand Finance helped to craft the internationally recognised standard on Brand Valuation – ISO 10668. It defines brand as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits. brandfinance.com Brand Valuation Methodology. Definition of Brand Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits. Brand Value Brand value refers to the present value of earnings specifically related to brand reputation. Organisations own and control these earnings by owning trademark rights. All brand valuation methodologies are essentially trying to identify this, although the approach and assumptions differ. As a result published brand values can be different. These differences are similar to the way equity analysts provide business valuations that are different to one another. The only way you find out the “real” value is by looking at what people really pay. As a result, Brand Finance always incorporates a review of what users of brands actually pay for the use of brands in the form of brand royalty agreements, which are found in more or less every sector in the world. This is sometimes known as the “Royalty Relief” methodology and is by far the most widely used approach for brand valuations since it is grounded in reality. 1 Brand Impact We review what brands already pay in royalty agreements. This is augmented by an analysis of how brands impact profitability in the sector versus generic brands. This results in a range of possible royalties that could be charged in the sector for brands (for example a range of 0% to 2% of revenue) Brand Strength 2 We adjust the rate higher or lower for brands by analysing Brand Strength. We analyse brand strength by looking at three core pillars: “Inputs” which are activities supporting the future strength of the brand; “Equity” which are real current perceptions sourced from our market research and other data partners; “Output” which are brand-related performance measures such as market share. Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating. 3 Brand Impact × Brand Strength The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%. It is the basis for a public rankings but we always augment it with a real understanding of people’s Forecast Brand Value Calculation 4 perceptions and their effects on demand – from our database of market research on over 3000 brands in over 30 markets. We determine brand-specific revenues as a proportion of parent company revenues attributable to the brand in question and forecast those Disclaimer Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions produced in this study are based only on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the report are not to be construed as providing investment or business advice. Brand Finance does not intend the report to be relied upon for any reason and excludes all liability to any body, government or organisation. revenues by analysing historic revenues, equity analyst forecasts, and economic growth rates. We then apply the royalty rate to the forecast revenues to derive brand revenues and apply the relevant valuation assumptions to arrive at a discounted, posttax present value which equals the brand value. brandirectory.com/spain Brand Finance Spain 100 September 2021 41 Brand Strength. Brand Strength Brand Strength is the efficacy of a brand’s performance on intangible measures, relative to its competitors. In order to determine the strength of a brand, we look at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding rating up to AAA+ in a format similar to a credit rating. Analysing the three brand strength measures helps inform managers of a brand’s potential for future success. Marketing Investment Widely recognised factors deployed by marketers to create brand loyalty and market share. Brand Strength Index Stakeholder Equity Perceptions of the brand among different stakeholder groups, with customers being the most important. Business Performance Quantitative market and financial measures representing the success of the brand in achieving price and volume premium. Equity Investment Performance Marketing Investment • A brand that has high Marketing Investment but low Stakeholder Equity may be on a path to growth. This high investment is likely to lead to future performance in Stakeholder Equity which would in turn lead to better Business Performance in the future. •However, high Marketing Investment over an extended period with little improvement in Stakeholder Equity would imply that the brand is unable to shape customers’ preference. Stakeholder Equity •The same is true for Stakeholder Equity. If a company has high Stakeholder Equity, it is likely that Business Performance will improve in the future. •However, if the brand’s poor Business Performance persists, it would suggest that the brand is inefficient compared to its competitors in transferring stakeholder sentiment to a volume or price premium. Business Performance •Finally, if a brand has a strong Business Performance but scores poorly on Stakeholder Equity, it would imply that, in the future, the brand’s ability to drive value will diminish. •However, if it is able to sustain these higher outputs, it shows that the brand is particularly efficient at creating value from sentiment compared to its competitors. 42 Brand Finance Spain 100 September 2021 brandfinance.com Brand Equity Research Database. Original market research in 29 countries and across more than 20 sectors Sector Coverage & Classification 2021 Tier 1 sectors cover all measures, Tier 2 KPIs only Tier 1 Banking Contributes 35% To the ‘Brand Strength Index’ (BSI) score Tier 1 Insurance Tier 1 Telecoms Tier 1 Utilities T1&T2† Automotive Tier 2 Airlines Tier 2 Apparel Tier 2 Tier 2 Tier 2 Tier 2 Appliances Beers Cosmetics Food Methodology Online sample of the general population. Each respondent covers 3-4 categories. Sample sizes: 55,000 500-1500 per category/market Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 Hotels Logistics Luxury Automobiles Media Oil & Gas Brand KPIs and Diagnostics 1. Brand Funnel Awareness Have heard of your brand Familiarity Know something about your brand Tier 2 Tier 2 Tier 2 Tier 2 Pharma Real Estate Restaurants Retail 2. Brand Usage* 3. Quality* 4. Reputation Consideration Would consider buying/using your brand Tier 2 Tier 2 Tier 2 Spirits Supermarkets Tech Not all categories are covered in every country † Brand KPIs and diagnostics differ per sector depending on research tier allocation 5. Closeness* 6. Recommendation (NPS)* 7. Word of mouth 8. Brand Imagery* *Tier 1 categories only brandirectory.com/spain Brand Finance Spain 100 September 2021 43 Our Services. Consulting Services. Make branding decisions using hard data Brand Research What gets measured Brand evaluations are essential for understanding the strength of your brand against your competitors. Brand Strength is a key indicator of future brand value growth whether identifying the drivers of value or avoiding the areas of weakness, measuring your brand is the only way to manage it effectively. + Brand Audits + Primary Research + Syndicated Studies + Brand Scorecards + Brand Drivers & Conjoint Analysis + Soft Power + Are we building our brands’ strength effectively? + How do I track and develop my brand equity? + How strong are my competitors’ brands? + Are there any holes in my existing brand tracker? + What do different stakeholders think of my brand? Brand Valuation Make your brand's business case Brand valuations are used for a variety of purposes, including tax, finance, and marketing. Being the interpreter between the language of marketers and finance teams they provide structure for both to work together to maximise returns. + Brand Impact Analysis + Tax & Transfer Pricing + Litigation Support + M&A Due Diligence + Fair Value Exercises + Investor Reporting + How much is my brand worth? + How much should I invest in marketing? + How much damage does brand misuse cause? + Am I tax compliant with the latest transfer pricing? + How do I unlock value in a brand acquisition? Brand Strategy Make branding decisions with your eyes wide open Once you understand the value of your brand, you can use it as tool to understand the business impacts of strategic branding decisions in terms of real financial returns. + Brand Positioning + Brand Architecture + Franchising & Licensing + Brand Transition + Marketing Mix Modelling + Sponsorship Strategy +Which brand positioning do customers value most? +What are our best brand extension opportunities in other categories and markets? +Am I licensing my brand effectively? +Have I fully optimised my brand portfolio? Am I carrying dead weight? +Should I transfer my brand immediately? +Is a Masterbrand strategy the right choice for my business? 46 Brand Finance Spain 100 September 2021 brandfinance.com Brand Evaluation Services. How are brands perceived in my category? Brand Finance tracks brand fame and perceptions across 30 markets in 10 consumer categories. Clear, insightful signals of brand performance, with data mining options for those who want to dig deeper – all at an accessible price. What if I need more depth or coverage of a more specialised sector? Our bespoke brand scorecards help with market planning and can be designed to track multiple brands over time, against competitors, between market segments and against budgets. Our 30-country database of brand KPIs enables us to benchmark performance appropriately. Do I have the right brand architecture or strategy in place? Research is conducted in addition to strategic analysis to provide a robust understanding of the current positioning. The effectiveness of alternative architectures is tested through drivers analysis, to determine which option(s) will stimulate the most favourable customer behaviour and financial results. How can I improve return on marketing investment? Using sophisticated analytics, we have a proven track record of developing comprehensive brand scorecard and brand investment frameworks to improve return on marketing investment. What about the social dimension? Does my brand get talked about? Social interactions have a proven commercial impact on brands. We measure actual brand conversation and advocacy, both real-world word of mouth and online buzz and sentiment, by combining traditional survey measures with best-in-class social listening. brandirectory.com/spain Brand Finance Spain 100 September 2021 47 Communications Services. How we can help communicate your brand’s performance in brand value rankings Brand Accolade – create a digital endorsement stamp for use in marketing materials, communications, annual reports, social media and website. Advertising use subject to terms and conditions. TOP 100 Spanish BRAND MOST VALUABLE DRINK BRAND STRONGEST Spanish BRAND Video Endorsement – record video with Brand Finance CEO or Director speaking about the performance of your brand, for use in both internal and external communications. Bespoke Events – organise an award ceremony or celebratory event, coordinate event opportunities and spearhead communications to make the most of them. Digital Infographics – design infographics visualising your brand’s performance for use across social media platforms. Trophies & Certificates – provide a trophy and/or hand-written certificate personally signed by Brand Finance CEO to recognise your brand’s performance. Sponsored Content – publish contributed articles, advertorials, and interviews with your brand leader in the relevant Brand Finance report offered to the press. Media Support – provide editorial support in reviewing or copywriting your press release, pitching your content to top journalists, and monitoring media coverage. 48 Brand Finance Spain 100 September 2021 brandfinance.com Dialogue as a Brand and Business Driver. Brand Dialogue is a Brand Finance Group company specialised in building and measuring communication strategies that add value to a brand. We understand communication as a business lever: communication that increases the value and sales figures of the business. There are many communication consultancies, but only Brand Dialogue can quantify the real value of its actions in financial terms and focus them on the growth of brand and business value. Brand Dialogue and Brand Finance are helping clients solve branding problems by using advanced financial valuation techniques and market research analysis to provide sound, value-based information and recommendations. While we work hand in hand with brands from all sectors and countries, we have an extensive track record with Geographical Indication products. We want to give visibility and support in building value to Spanish brands. Cristina Campos Managing Director Spain c.campos@brand-dialogue.com Brand Dialogue is a member of the Brand Finance pcl group of companies. Research, Strategy & Measurement Brand & Communications Strategy Campaign Planning Communications Workshops Market Research & Insights Coverage Analysis Social Media Analytics Public Relations & Communications Media Relations Press Trips & Events Strategic Partnerships Relationship Management Influencer Outreach Media Training Social Media Management Marketing & Events Promotional Events Conference Management Sponsorship Management Native Advertising Print Advertising Shopper Marketing Trade Marketing Content Creation Bespoke Publications Press Releases Blog Posts & Newsletters Marketing Collateral Design Photography & Videography Social Media Content Strategic Communications Crisis Communications Brand Positioning & Reputation Geographic Branding Corporate Social Responsibility (CSR) brandirectory.com/spain Brand Finance Spain 100 September 2021 49 Brand Finance Institute Learn how to build, protect and measure brand value The Brand Finance Institute is the educational division of Brand Finance, offering expert training on brand evaluation, management and strategy. Our in-house training and workshops, online learning offer and webinars will help you answer key strategic questions about your brand for different levels of seniority and development needs: • How can I grow brand value? • How can I build a business case to show the return on my marketing investment? • How can I set up my marketing budget using brand research and analytics? For more information, contact enquiries@brandfinance.com Brand Finance Institute is a member of the Brand Finance plc group of companies Brand Finance Network. For further information on our services and valuation experience, please contact your local representative: Market Africa Asia Pacific Australia Brazil Canada China East Africa France Germany/Austria/Switzerland India Indonesia Ireland Italy Mexico & LatAm Middle East Nigeria Romania Spain Sri Lanka Sweden Turkey UK USA Vietnam Contact Jeremy Sampson Samir Dixit Mark Crowe Eduardo Chaves Charles Scarlett-Smith Scott Chen Walter Serem Bertrand Chovet Ulf-Brun Drechsel Ajimon Francis Jimmy Halim Declan Ahern Massimo Pizzo Laurence Newell Andrew Campbell Tunde Odumeru Mihai Bogdan Teresa de Lemus Ruchi Gunewardene Anna Brolin Muhterem Ilgüner Richard Haigh Laurence Newell Lai Tien Manh Email j.sampson@brandfinance.com s.dixit@brandfinance.com m.crowe@brandfinance.com e.chaves@brandfinance.com c.scarlett-smith@brandfinance.com s.chen@brandfinance.com w.serem@brandfinance.com b.chovet@brandfinance.com u.drechsel@brandfinance.com a.francis@brandfinance.com j.halim@brandfinance.com d.ahern@brandfinance.com m.pizzo@brandfinance.com l.newell@brandfinance.com a.campbell@brandfinance.com t.odumeru@brandfinance.com m.bogdan@brandfinance.com t.delemus@brandfinance.com r.gunewardene@brandfinance.com a.brolin@brandfinance.com m.ilguner@brandfinance.com rd.haigh@brandfinance.com l.newell@brandfinance.com m.lai@brandfinance.com Telephone +27 82 885 7300 +65 906 98 651 +61 282 498 320 +55 (16) 9 9161 7075 +1 514 991 5101 +86 186 0118 8821 +8254 733 444 969 +33 6 86 63 46 44 +49 171 690 6828 +91 989 208 5951 +62 215 3678 064 +353 85 132 5903 +39 02 303 125 105 +52 55 9197 1925 +971 508 113 341 +234 012 911 988 +40 728 702 705 +34 654 481 043 +94 11 770 9991 +44 7585 191818 +90 216 352 67 29 +44 207 389 9400 +214 803 3424 +84 90 259 82 28 50 Brand Finance Spain 100 September 2021 brandfinance.com brandirectory.com/spain Brand Finance Spain 100 September 2021 51 Contact us. The World’s Leading Brand Valuation Consultancy T: +44 (0)20 7389 9400 E: enquiries@brandfinance.com www.brandfinance.com
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