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Japan’s Best
Global Brands
2011
Special Features: Japan’s Top 30 Domestic Brands
                  Comparison of Japanese and Chinese Brand Value



Press Release
1 February 2011
Interbrand Japan’s Best Global Brands 2011




Announcing “Japan’s Top 30 Global Brands” and
“Japan’s Top 30 Domestic Brands”


Although the Toyota brand retained its number-one value
ranking, it fell 16% from last year.

Nomura, Unicharm, and Ajinomoto made the rankings for the
first time.

NTT Docomo ranked Japan’s number-one domestic brand but
is only 1/3 the value of China Mobile!



Global brand consultant Interbrand has released “Japan’s Best Global Brands 2011”, a
ranking of the values of Japanese brands according to a global standard. This ranking converts
the values of global brands originating in Japan — the brands of Japanese companies doing
business globally — into monetary amounts, and ranks them. This year is Interbrand’s third
publication of this ranking. The Japan’s Best Global Brands ranking can also be compared with
“Best Global Brands”, a ranking of the top 100 global brands that Interbrand has been
publishing every year since 1999.




                                              2
Interbrand Japan’s Best Global Brands 2011



Highlights from “Japan’s Best Global Brands 2011”

In this year’s ranking, the recalls that plagued Toyota (-16%; 1st place) at the beginning of 2010
were covered by papers worldwide, causing consumers to lose trust in the Toyota brand. As a
result, the values of both the Toyota and Lexus (-19%; 8th place) brands fell substantially. This
drop in value was enormous: the total value of the top 30 brands fell 3% from the previous year.
But if the drop in value of these two brands is excluded, the total grew 2% overall, showing the
strong reputation of most Japanese brands despite the highly unfavorable exchange rates of the
Japanese yen in 2010.

Meanwhile, Shiseido (+3%; 10th place) continues its meteoric rise in the Chinese market. This
year it became the first non-automotive or electronics brand to break into the top 10.

The brand that most increased its value year on year was Asics (+12%; 22nd place), thanks to
its popular running shoes, as well as its reinvigorated promotions of European apparel products
that brilliantly communicate the brand philosophy.

Three brands made the ranking for the first time this year:

Nomura (16th place), whose global presence skyrocketed after taking over Asia Pacific,
European, and Middle Eastern personnel and operations from the former Lehman Brothers;

Unicharm (28th place), which continues to battle P&G and other global brands, especially in East
Asia and Southeast Asia; and Ajinomoto (29th place), which does sales in over 100 countries
worldwide, and began publishing common global standards for personnel, providing equal
opportunities and chances at education to its around 20,000 foreign employees.

Although each of these companies is in a different industry, a large number of global brands are
competing in each one, and focusing their efforts on Asia.

The reputations of automotive and electronics brands were split. Some brands grew by 10% or
more year on year: Nikon (+11%; 13th place) enjoyed growth in the SLR camera market, which
is its strength; Fujitsu (+10%; 24th place) launched a new globally integrated
brand-communication campaign; and Hitachi (+10%; 25th place) is strengthening its
social-innovation business. Meanwhile, some brands fell by 10% or more. These include the
abovementioned Toyota and Lexus, as well as Yamaha (-11%; 21st place). These brands
already have high levels of global recognition, but as they move forward, they will need to
increase customer loyalty by positioning themselves in a way that differentiates them.




                                                3
Interbrand Japan’s Best Global Brands 2011



“Japan's Best Global Brands 2011” TOP30
                                                                                                    Ratio of
  2011       2010                                                     Brand Value    Change in    Overseas
                               Brand                    Sector
  Rank       Rank                                                    (US million $) Brand Value      sales
                                                                                                  (FY 2009)
    1           1     Toyota                  Automotive                   25,661     -16%          70%
    2           2     Honda                   Automotive                   18,510      2%           82%
    3           4     Canon                   Computer Hardware            11,442      9%           78%
    4           3     Sony                    Consumer Electronics         11,353      -5%          71%
    5           5     Nintendo                Consumer Electronics          9,184      -1%          84%
    6           6     Panasonic               Consumer Electronics          4,549      8%           46%
    7           8     Nissan                  Automotive                    2,886      4%           76%
    8           7     Lexus                   Automotive                    2,523     -19%          70%
    9           9     Toshiba                 Diversified                   2,246      0%           55%
    10         11     Shiseido                Personal Care                 2,215      3%           37%
    11         12     Komatsu                 Machinery                     2,190      8%           77%
    12         10     Sharp                   Consumer Electronics          2,003      -9%          48%
    13         13     Nikon                   Optical                       1,707      11%          82%
    14         14     Suzuki                  Automotive                    1,363      -9%          61%
    15         15     Ricoh                   Computer Hardware             1,234      -3%          57%
    16          -     Nomura                  Financial Services            1,177      NEW          47%
    17         16     Olympus                 Optical                       1,095      -9%          58%
    18         19     Bridgestone             Automotive                    1,089      4%           76%
    19         18     Mitsubishi Electric Diversified                       1,046      -2%          33%
    20         17     Daikin                  Machinery                     1,007      -6%          62%
    21         20     Yamaha                  Diversified                     759     -11%          68%
    22         22     Asics                   Sporting Goods                  742      12%          58%
    23         21     Konica Minolta          Computer Hardware               720      -4%          72%
    24         23     Fujitsu                 Computer Services               644      10%          37%
    25         24     Hitachi                 Diversified                     637      10%          41%
    26         25     Mazda                   Automotive                      629      9%           73%
    27         27     Shimano                 Machinery                       597      8%           88%
    28          -     Unicharm                Personal Care                   587      NEW          39%
    29          -     Ajinomoto               Food & Beverages                567      NEW          32%
    30         26     Mitsubishi Motors       Automotive                      556      -3%          75%
※Yamaha = Yamaha Motor + Yamaha Corporation




                                                            4
Interbrand Japan’s Best Global Brands 2011




Special Feature 1 :
Japan’s Top 30 Domestic Brands
(Overseas sales making up less than 30% of total sales)

As described above, one of the requirements of the “Japan’s Best Global Brands” ranking is
that the company’s overseas sales make up 30% or more of its total sales (from FY 2009 results).
Brands that do not meet this standard (whose sales are mainly in Japan) are adopting policies for
expansion overseas, especially into Asia, within the next few years.

This year, we have additionally calculated the values of the top 30 domestic brands: brands whose
overseas sales were less than 30% of total sales (from FY 2009 results), and therefore did not
qualify as “global brands” (FY 2009 results). We believe that some of these brands may be Japan’s
next global industry/brand, following in the footsteps of automotive and electronics brands.

The number-one domestic brand was NTT Docomo. This was one of the three mobile carriers to
make the top 10, together with Softbank (3rd place) and au (5th place). Three “megabank”
group brands also made the top 10: MUFG (2nd place), SMFG (4th place), and Mizuho (6th
place). The other members of the top 10 were Uniqlo (7th place), Kirin (8th place), Kao (9th
place), and Rakuten (10th place).

By industry, financial service brands were the most numerous. In addition to the three brands in
the top 10, Tokio Marine (11th place), Dai-ichi Life (21st place), and Orix (29th place) also
made the ranking. Each of these brands is advancing steadily toward becoming a global brand.
For example, MUFG launched its first retail business in Hong Kong at the end of 2010, and Tokio
Marine has been aiming to expand overseas in recent years, especially in Asia, and is involved in
large number of mergers and acquisitions.

Financial service brands are also the most numerous type of industry in the Top 100 “Best Global
Brands”. Amid the unstable markets following the financial crisis, new brands are gaining
strength. For example, last year, in addition to US brands, Barclays (UK), Credit Swiss
(Switzerland), and Santander (Spain) also made the global brands ranking.

The next-highest number of entries in the Japanese domestic ranking was by food and beverage
brands. Five food and beverage brands made the ranking: Kirin; Asahi (12th place); Nissin
(13th place); Yakult (22nd place); and Meiji (24th place). As with financial service brands, many
food and beverage brands also made the “Best Global Brands” Top 100 ranking, and this
industry also has great potential for becoming a global brand. In fact, each of these brands is
currently expanding overseas, with a focus on emerging economies (especially in Asia), and




                                                          5
Interbrand Japan’s Best Global Brands 2011



results are starting to appear. For example, in June of last year, Yakult’s average daily worldwide
sales passed the 30 million bottle mark. Leading global brands from the west are also focusing on
these markets, and surviving this competition will be the greatest key to becoming a global brand.

There are also many personal care brands in the “Best Global Brands” ranking, including
L’OREAL and NIVEA. Kao made this year’s Top 30 domestic brand ranking. Japanese brands,
including Shiseido and Unicharm, both of which are ranked among “Japan’s Best Global
Brands”, have better understanding of local Asian populations than the leading Western brands,
and their increasing popularity in Asian markets is a key step toward becoming global brands.

On the other hand, some of the brands in the Japanese domestic ranking buck the trends in the
global ranking: these are convenience-store brands, construction and real-estate brands, and
Internet-service brands.

The convenience-store business model was born in the United States, and grew enormously in
Japan. This model is currently spreading around the world, especially in Asia. Two brands made
this year’s domestic ranking: Lawson (15th place) and FamilyMart (20th place). FamilyMart
already has significant international penetration, especially in Asia — with over 9,000 stores
outside Japan (as of end-2010). Moreover, it is possible that its worldwide recognition will increase
as it expands in scale through growth in each country, making it a true global retail brand. (Note:
Seven Eleven was excluded from this ranking because it was created in the United States.)

Four construction and real-estate brands made the domestic ranking: Mitsubishi Estate (17th
place); Mitsui Fudosan (18th place); Sekisui House (25th place); and Daiwa House (27th
place). The branding-building methodology of creating combined housing, hotel, and shopping
complexes through visionary urban-planning, and the experience they offer differentiates these
brands from Western-style mega malls. These brands have significant potential to compete on the
global level, and hint at the possibility of becoming worldwide leaders in next-generation urban
planning.

Three Internet services made the domestic ranking: Rakuten ; Mobage (28th place); and Gree
(30th place). Although Mobage and Gree have yet to launch a full-scale overseas expansion,
massive growth of their brand value is expected from their successful market entry, when their
unique business models are accepted internationally. Google, which is currently ranked 4th in the
“Best Global Brands 2010”, was only founded 13 years ago. Internet service brands are
growing at a much faster pace than other industries, and massive growth can be expected by
acquiring the position of a global standard.




                                                 6
Interbrand Japan’s Best Global Brands 2011




Japan's Best Domestic Brands 2011 TOP30
                                                                          Ratio of
 2011                                                   Brand Value
                Brand                 Sector                          Overseas sales
 Rank                                                  (US million $)
                                                                        (FY 2009)
  1     NTT Docomo        Telecommunications                 10,757    under 10%
  2     MUFG              Financial Services                  5,750    22%
  3     Softbank          Telecommunications                  4,133    under 10%
  4     SMFG              Financial Services                  3,648    15%
  5     au                Telecommunications                  2,981    under 10%
  6     Mizuho            Financial Services                  2,820    16%
  7     Uniqlo            Retail                              2,606    17%
  8     Kirin             Food & Beverages                    1,809    25%
  9     Kao               Personal Care                       1,602    25%
  10    Rakuten           Internet Services                   1,360    under 10%
  11    Tokio Marine      Financial Services                  1,184    17%
  12    Asahi             Food & Beverages                    1,030    under 10%
  13    Nissin            Food & Beverages                      978    15%
  14    Secom             Security                              847    3%
  15    Lawson            Retail                                817    under 10%
  16    TEPCO             Energy                                785    under 10%
  17    Mitsubishi Estate Construction & Real Estate            672    under 10%
  18    Mitsui Fudosan    Construction & Real Estate            593    under 10%
  19    NEC               Computer Services                     566    20%
  20    FamilyMart        Retail                                498    15%
  21    Dai-ichi Life     Financial Services                    490    under 10%
  22    Yakult            Food & Beverages                      483    24%
  23    Benesse           Education                             465    12%
  24    Meiji             Food & Beverages                      431    under 10%
  25    Sekisui House     Construction & Real Estate            387    under 10%
  26    NTT Data          Computer Services                     378    under 10%
  27    Daiwa House       Construction & Real Estate            363    under 10%
  28    Mobage            Internet Services                     356    under 10%
  29    Orix              Financial Services                    352    20%
  30    Gree              Internet Services                     345    under 10%




                                          7
Interbrand Japan’s Best Global Brands 2011




Special Feature 2 :
Comparison of Japanese and Chinese Brands

Growing toward Global Brand Status
Every year, Interbrand announces the “Best Global Brands”, a ranking of the 100 global brands
with the highest value. In July 2010, Interbrand released the “Best Chinese Brands”, a ranking
of the top 50 Chinese brands which do not qualify for inclusion in the global ranking. With this
release of the top 30 Japanese global brands and the top 30 Japanese domestic brands,
Interbrand compared Japanese brands with rapidly growing Chinese brands, analyzed trends for
these brands, and compared them with global brands to gauge their success from the global
perspective.

It seems certain that China’s GDP surpassed that of Japan in 2010, vaulting it into the position of
the world’s second-largest economy. Although the Japanese and Chinese economies are
neck-and-neck in terms of size, there is currently less competition from the perspective of global
brands. While Japan had six brands in the “Best Global Brands 2010” (Toyota, Honda,
Canon, Sony, Nintendo, and Panasonic), China had none.

However, the top-ranked brand in “Best Chinese Brands 2010”, China Mobile, would rank
eighth in terms of brand value if placed in the “Best Global Brands 2010” table. This would rank
it higher than Japan’s top brand (Toyota), showing that the massive size and high growth
potential of the domestic Chinese market give Chinese brands extremely high value. We thus
verified the value of Japanese and Chinese brands by industry, including comparisons with global
brands.




                                                8
Interbrand Japan’s Best Global Brands 2011



“Best Chinese Brands 2010” (Released July 2010)
  2010                                                                       Brand
                            Brand                             Sector
  Rank                                                                       Value
    1     China Mobile                                Telecommunications       29,718
    2     CHINA LIFE                                  Financial Services       14,578
    3     CHINA CONSTRUCTION BANK                     Financial Services       14,093
    4     ICBC                                        Financial Services       11,383
    5     BANK OF CHINA                               Financial Services       10,023
    6     PING AN                                     Financial Services        8,346
    7     China Merchants Bank                        Financial Services        3,399
    8     TENCENT                                     Internet Services         3,364
    9     MOUTAI                                      Alchohol                  3,139
   10     CHINA PACIFIC                               Financial Services        2,249
   11     BANK OF COMMUNICATION                       Financial Services        1,871
   12     LENOVO                                      Electronics               1,481
   13     WULIANGYE                                   Alchohol                  1,290
   14     TSINGTAO BEER                               Alchoholic Beverage       1,242
   15     Shanghai Pudong Development Bank            Financial Services        1,192
   16     LUZHOU LAOJIAO                              Alchohol                  1,081
   17     BAIDU                                       Internet Services         1,018
   18     CITIC SECURITIES                            Financial Services          861
   19     LI NING                                     Sporting Goods              845
   20     DONGFENG MOTOR                              Automotive                  781
   21     ANTA SPORTS                                 Sporting Goods              772
   22     CITIC BANK                                  Financial Services          757
   23     CHANGYU                                     Alchohol                    743
   24     MINSHENG BANK                               Financial Services          738
   25     INDUSTRIAL BANK                             Financial Services          657
   26     GREE                                        Electronics                 605
   27     Alibaba                                     Internet Services           588
   28     MENGNIU                                     Food & Beverages            578
   29     CHINA MERCHANT SECURITIES                   Financial Services          564
   30     YUNNAN BAIYAO                               Pharmaceuticals             559
   31     MIDEA                                       Electronics                 548
   32     SOHU                                        Internet Services           490
   33     CTRIP                                       Internet Services           485
   34     NETEASE                                     Internet Services           484
   35     YURUN FOOD                                  Food & Beverage             482
   36     HAIER                                       Electronics                 457
   37     BYD                                         Automotive                  455
   38     SHINEWAY                                    Food & Beverages            417
   39     SUNING                                      Retail - Electronics        402
   40     NEW ORIENTAL EDUCATION                      Education                   387
   41     METERSBONWE                                 Retail - Apparel            373
   42     999                                         Pharmaceuticals             307
   43     361°                                        Sporting Goods              292
   44     PEAK SPORT                                  Sporting Goods              264
   45     HAITONG SECURITIES                          Financial Services          256
   46     BOSIDENG                                    Retail - Apparel            208
   47     Gome                                        Retail - Electronics        180
   48     HISENSE                                     Electronics                 178
   49     GEELY                                       Automotive                  176
   50     HUAXIA BANK                                 Financial Services          169
Calculated at USD 1 = RMB 0.1465 (rate as of May 22, 2010)




                                             9
Interbrand Japan’s Best Global Brands 2011




Analysis by sector:

Automotive

Although Toyota was rocked by a recall in 2010, it remains the world’s most valuable automotive
brand. Honda is ranked fourth following Mercedes-Benz and BMW.

Japan has many other global-level automotive brands, in “Japan’s Best Global Brands 2011”
including Nissan, Lexus, Suzuki, Mazda, and Mitsubishi Motors. Meanwhile, although the
Chinese brands Dongfeng Motor, BYD, and Geely were ranked in the “Best Chinese Brands
2010”, the values of these brands remain low. Chinese automakers are building strength by
rapidly acquiring globally recognized brands. However, considerable effort will probably be
required to transform a made-in-China brand into a global brand.




                                               Brand Value Comparison                     (US million $)
                                           (Japanese/Chinese/Global Brands)
               25,661                                                          25,179

                                                                                                 22,322

                                18,510




                                                   781              455


              Toyota            Honda           Dongfeng            BYD       Mercedes-           BMW
                                                 Motor                          Benz
              Japan's Best Global Brands          Best C hinese Brands 2010      Best Global Brands 2010
                        2011                        (Released July 2010)       (Released September 2010)




Electronics

Japanese brands in the electronics industry have extremely high value. Canon, Sony, Nintendo,
and Panasonic made the “Best Global Brands 2010” ranking, although they were somewhat
behind the globally successful Apple and Samsung. There were also electronics brands that
meet most of the global standards, such as Toshiba and Sharp, which are ranked in “Japan’s
Best Global Brands 2011”.




                                                               10
Interbrand Japan’s Best Global Brands 2011



Although several Chinese electronics brands made the “Best Chinese Brands 2010”, including
Lenovo, Gree, Midea, and Haier, as with automotive brands, the values of these brands remain
low. Although there is growing global recognition for Lenovo, which acquired IBM’s PC division,
and Haier, which has growing worldwide sales of white goods (large household appliances), their
scale remains extremely small. The value proposition of most Chinese white goods is low price,
which does not equate to brand value. We believe that Japanese brands must create clear brand
images in the global market, and lock in relationships with loyal customers, before Chinese brands
begin a push to shift from the low-price track to the brand-centric high value-added track.




                                               Brand Value Comparison                   (US million $)
                                          (Japanese/Chinese/Global Brands)
                                                                               21,143
                                                                                               19,491




              11,356




                               4,351

                                                1,481
                                                                  457


              Sony           Panasonic         Lenovo            Haier         Apple          Samsung
             Japan's Best Global Brands         Best C hinese Brands 2010      Best Global Brands 2010
                       2011                       (Released July 2010)       (Released September 2010)




Personal care

Although “Best Global Brands 2010” includes a large number of personal-care brands, the
ranking includes no Japanese brands in this category. In contrast, Shiseido and Unicharm made
the “Japan’s Best Global Brands 2011” list, while Kao made the Japanese domestic ranking.

No Chinese personal-care brands made the “Best Chinese Brands 2010” ranking. There are
currently no powerful domestic brands in China, while Japanese and Western brands are in fierce
competition there. There is a 1.5-fold brand-gap between Shiseido and Lancôme, which is
ranked in the “Best Global Brands”, but this gap may shrink rapidly as Shiseido establishes a
position as a leading brand in China and other Asian markets.




                                                            11
Interbrand Japan’s Best Global Brands 2011




                                        Brand Value Comparison                     (US million $)
                                       (Japanese/Global Brands)
                                                         7,981




                                                                          3,734
                                                                                          3,403

       2,215
                         1,602

                                              587



      Shiseido           Kao            Unicharm         L'Oreal          NIVEA         Lancome

                 Japan's Best Global Brands                          Best Global Brands 2010
                           2011                                    (Released September 2010)



Financial services

Following the financial crisis, the lineup of financial-service brands in the “Best Global Brands”
ranking has changed dramatically. In addition to the former US-centric cast of brands including
Citi and Goldman Sachs, the latest ranking (“Best Global Brands 2010”) also includes such
European players as Barclays (UK), Credit Suisse (Switzerland), and Santander (Spain).

Although the highest-ranked financial-service brand in the Japanese domestic top 30 was MUFG,
there is a 2.1-fold gap between its value and that of J.P. Morgan, which is the highest-ranked
financial-service brand in “Best Global Brands”. Meanwhile, there are seven financial-service
brands in the “Best Chinese Brands 2010” top 10 ranking, and the top-ranked bank brand,
China Construction Bank, is 2.5 times greater than MUFG in terms of value.

Buoyed by massive markets, we expect Chinese brands to follow the example of Japanese brands
and leverage their scale to invest worldwide. In today’s financial markets, however, where trust is
a requirement, Chinese brands have not yet reached the global level. The impact of the financial
crisis on Japanese brands has been relatively small, and they have a history of worldwide trust
and offer high-quality service. For them, the key to future success is to take initiative in branding
and reach the global level ahead of their rivals.




                                                    12
Interbrand Japan’s Best Global Brands 2011




                                                       Brand Value Comparison                      (US million $)
                                                  (Japanese/Chinese/Global Brands)

                                                              14,093

                                                                                          12,314
                                                                                11,383                          11,561




         5,750

                           3,648
                                              2,820




         MUFG              SMFG               Mizuho    C hina C onstruction     IC BC   JP Morgan              HSBC
                                                               Bank
                 Japan's Best Global Brands                  Best C hinese Brands 2010       Best Global Brands 2010
                           2011                                (Released July 2010)        (Released September 2010)




Details of each ranking can be found on the following sites:

Best Global Brands 2010 (published September 2010)
http://www.interbrand.com/ja/best-global-brands/Best-Global-Brands-2010.aspx

Best Chinese Brands 2010 (published July 2010)
http://www.interbrand.com/zh-CHT/Default.aspx
Calculated at USD 1 = RMB 0.1465 (rate as of May 22, 2010)




                                                                13
Interbrand Japan’s Best Global Brands 2011



                                < Reference: “Japan's Best Global Brands 2011” 60 Brands >
                                                                                                                         (US million $)
            1 Toyota                                                                                                             2 5 ,6 6 1

            2 Honda                                                                                                     18,510

            3 Canon                                                                         11,442

              4 Sony                                                                       11,353

      5 NTT Docomo                                                                      10,757

          6 Nintendo                                                            9,184

             7 MUFG                                                     5,750

         8 Panasonic                                            4,549

          9 Softbank                                       4,133

            10 SMFG                                     3,648

               11 au                             2,981

           12 Nissan                            2,886

           13 Mizuho                            2,820

           14 Uniqlo                         2,606

            15 Lexus                         2,523

          16 Toshiba                     2,246

         17 Shiseido                     2,215

        18 Komatsu                       2,190

            19 Sharp                    2,003

             20 Kirin                 1,809

            21 Nikon                 1,707

              22 Kao                 1,602

           23 Suzuki             1,363

         24 Rakuten              1,360

            25 Ricoh             1,234

    26 Tokio Marine             1,184

          27 Nomura             1,177

         28 Olympus             1,095

      29 Bridgestone            1,089

30 Mitsubishi Electric          1,046

            31 Asahi           1,030

           32 Daikin           1,007

            33 Nissin          978

           34 Secom        847

          35 Lawson        817

           36 TEPCO        785

         37 Yamaha         759

             38 Asics      742

  39 Konica Minolta        720

40 Mitsubishi Estate      672

           41 Fujitsu     644

           42 Hitachi     637

           43 Mazda       629

         44 Shimano       597

  45 Mitsui Fudosan       593

        46 Unicharm       587

       47 Ajinomoto       567

              48 NEC      566

49 Mitsubishi Motors      556

      50 FamilyMart       498

      51 Dai-ichi Life   490

           52 Yakult     483

         53 Benesse      465

             54 Meiji    431

   55 Sekisui House      387

        56 NTT Data      378

    57 Daiwa House       363

          58 Mobage      356

              59 Orix    352

             60 Gree     345
                                                                                                     Japan's Best Global Brands TOP30
                                                                                                     Japan's Best Domestic Brands




                                                                                  14
Interbrand Japan’s Best Global Brands 2011



Brand Evaluations in “Japan’s Best Global Brands 2011”

■ CRITERIA FOR CONSIDERATION

This ranking uses criteria for consideration that are similar to those of the “Best Global Brands” ranking published
by Interbrand every year in order to clarify the values of Japanese brands that are active worldwide, and compare
                        ,
ranks using a “global standard.” Companies meeting the following criteria were selected for consideration:

   •   •The brand must have been created in Japan
       – It must be a corporate or business brand that was created by a Japanese enterprise

   •   It must publish financial information
       - It must be a corporation listed on a stock exchange as of October 31, 2010, and must make analyst reports
       available

   •   Over 30% of its total sales must come from overseas sales (sales outside Japan) based on results from FY
       2009

   •   Even if it is a B2B company, it must have general level of global recognition
       – It must have recognition of at least 10% among consultants at Interbrand’s global offices

(Note: “Domestic brands” are selected by adding to the above the criterion the requirement that overseas sales
account for no more than 30% of total sales)

■ METHODOLOGY

Interbrand’s methodology evaluates brand value based on its financial strength, the influence of the brand on
purchasing decisions, and the brand’s future earning potential. In the same way that securities analysts analyze and
evaluate corporate value, we analyze and evaluate brand value based on the question, “What is its future earning
potential?” This methodology has been certified under International Organization for Standardization (ISO) 10668
as a global standard for measuring the monetary values of brands. The evaluation consists of the following three
specific analyses.

Financial Performance: Estimate the profits that the company will generate

We first estimate the current and future revenues of the business operating under the brand. We then arrive at the
future economic profit by subtracting from that number the cost of sales, taxes, and capital cost from invested
capital. This analysis is based on published corporate data, while future estimates are based on performance
estimates made by financial analysts. (Note: the performance estimates by financial analysts employed in this
evaluation use the average estimated values by major analysts called the IFIS Consensus, published by IFIS Japan,
Ltd. http://www.ifis.co.jp/index.htm)

The IFIS Consensus data used is current as of November 18, 2010.




                                                        15
Interbrand Japan’s Best Global Brands 2011



Role of Brand: Identify the contribution that the brand makes to profits

We next analyze the impact that the brand has on customer purchasing decisions, in order to identify the
contribution that the brand makes to the future economic profit calculated in the financial analysis. With regard to
the role that brands play in consumer purchasing trends, the evaluation uses a database of brand-value evaluation
performance that we have built up over the past 25 years, as well as benchmark analyses by industry. We then
research and analyze each individual brand based on its industry benchmark to calculate the brand’s contribution as
a score.

Brand Strength: Evaluate the future earnings potential provided by the brand

Brand-strength analysis measures the brand’s power to generate client need (the ability to maintain future earnings)
– market loyalty, repeat purchases by consumers and lock in – and calculates a current value by discounting the
brand’s earnings by this amount. This evaluation is a systematic method for determining a brand’s risk, and is made
from a wide range of perspectives relating to the brand, including the brand’s market position, consumer recognition
and popularity, image, and support for the brand. The evaluation score is then converted into a discount rate, which
is subtracted from the brand’s future profitability to arrive at the brand value.

Note: Role of brand and brand strength are calculated based on a multidimensional evaluation by expert consultants
at our global offices, using a wide range of published reports and other information.




                                                          16
Interbrand Japan’s Best Global Brands 2011



About Interbrand

Founded in 1974, Interbrand is recognized for being at the forefront of the dialogue on brands as
business assets. Today, Interbrand is amongst the largest brand consultancies and has grown to
include 40 offices in 25 countries. The combination of rigorous strategy and analytics with
world-class design creativity help its clients to create and manage brand value in all market
dynamics. It is widely respected for its annual study, The Best Global Brands, and creating a
broader platform for the discussion on brands in the Webby-award winning website
brandchannel.com. For more on Interbrand, visit http://www.interbrand.com/.




Contacting us



                                        Interbrand Japan

                       Contact: Burton Blume / Hiromitsu Hatakeyama
                             tel:03-3230-1075       fax:03-3230-8772
                                    contact@interbrand.co.jp




                                               17

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Interbrand top30 Japanese brands

  • 1. Japan’s Best Global Brands 2011 Special Features: Japan’s Top 30 Domestic Brands Comparison of Japanese and Chinese Brand Value Press Release 1 February 2011
  • 2. Interbrand Japan’s Best Global Brands 2011 Announcing “Japan’s Top 30 Global Brands” and “Japan’s Top 30 Domestic Brands” Although the Toyota brand retained its number-one value ranking, it fell 16% from last year. Nomura, Unicharm, and Ajinomoto made the rankings for the first time. NTT Docomo ranked Japan’s number-one domestic brand but is only 1/3 the value of China Mobile! Global brand consultant Interbrand has released “Japan’s Best Global Brands 2011”, a ranking of the values of Japanese brands according to a global standard. This ranking converts the values of global brands originating in Japan — the brands of Japanese companies doing business globally — into monetary amounts, and ranks them. This year is Interbrand’s third publication of this ranking. The Japan’s Best Global Brands ranking can also be compared with “Best Global Brands”, a ranking of the top 100 global brands that Interbrand has been publishing every year since 1999. 2
  • 3. Interbrand Japan’s Best Global Brands 2011 Highlights from “Japan’s Best Global Brands 2011” In this year’s ranking, the recalls that plagued Toyota (-16%; 1st place) at the beginning of 2010 were covered by papers worldwide, causing consumers to lose trust in the Toyota brand. As a result, the values of both the Toyota and Lexus (-19%; 8th place) brands fell substantially. This drop in value was enormous: the total value of the top 30 brands fell 3% from the previous year. But if the drop in value of these two brands is excluded, the total grew 2% overall, showing the strong reputation of most Japanese brands despite the highly unfavorable exchange rates of the Japanese yen in 2010. Meanwhile, Shiseido (+3%; 10th place) continues its meteoric rise in the Chinese market. This year it became the first non-automotive or electronics brand to break into the top 10. The brand that most increased its value year on year was Asics (+12%; 22nd place), thanks to its popular running shoes, as well as its reinvigorated promotions of European apparel products that brilliantly communicate the brand philosophy. Three brands made the ranking for the first time this year: Nomura (16th place), whose global presence skyrocketed after taking over Asia Pacific, European, and Middle Eastern personnel and operations from the former Lehman Brothers; Unicharm (28th place), which continues to battle P&G and other global brands, especially in East Asia and Southeast Asia; and Ajinomoto (29th place), which does sales in over 100 countries worldwide, and began publishing common global standards for personnel, providing equal opportunities and chances at education to its around 20,000 foreign employees. Although each of these companies is in a different industry, a large number of global brands are competing in each one, and focusing their efforts on Asia. The reputations of automotive and electronics brands were split. Some brands grew by 10% or more year on year: Nikon (+11%; 13th place) enjoyed growth in the SLR camera market, which is its strength; Fujitsu (+10%; 24th place) launched a new globally integrated brand-communication campaign; and Hitachi (+10%; 25th place) is strengthening its social-innovation business. Meanwhile, some brands fell by 10% or more. These include the abovementioned Toyota and Lexus, as well as Yamaha (-11%; 21st place). These brands already have high levels of global recognition, but as they move forward, they will need to increase customer loyalty by positioning themselves in a way that differentiates them. 3
  • 4. Interbrand Japan’s Best Global Brands 2011 “Japan's Best Global Brands 2011” TOP30 Ratio of 2011 2010 Brand Value Change in Overseas Brand Sector Rank Rank (US million $) Brand Value sales (FY 2009) 1 1 Toyota Automotive 25,661 -16% 70% 2 2 Honda Automotive 18,510 2% 82% 3 4 Canon Computer Hardware 11,442 9% 78% 4 3 Sony Consumer Electronics 11,353 -5% 71% 5 5 Nintendo Consumer Electronics 9,184 -1% 84% 6 6 Panasonic Consumer Electronics 4,549 8% 46% 7 8 Nissan Automotive 2,886 4% 76% 8 7 Lexus Automotive 2,523 -19% 70% 9 9 Toshiba Diversified 2,246 0% 55% 10 11 Shiseido Personal Care 2,215 3% 37% 11 12 Komatsu Machinery 2,190 8% 77% 12 10 Sharp Consumer Electronics 2,003 -9% 48% 13 13 Nikon Optical 1,707 11% 82% 14 14 Suzuki Automotive 1,363 -9% 61% 15 15 Ricoh Computer Hardware 1,234 -3% 57% 16 - Nomura Financial Services 1,177 NEW 47% 17 16 Olympus Optical 1,095 -9% 58% 18 19 Bridgestone Automotive 1,089 4% 76% 19 18 Mitsubishi Electric Diversified 1,046 -2% 33% 20 17 Daikin Machinery 1,007 -6% 62% 21 20 Yamaha Diversified 759 -11% 68% 22 22 Asics Sporting Goods 742 12% 58% 23 21 Konica Minolta Computer Hardware 720 -4% 72% 24 23 Fujitsu Computer Services 644 10% 37% 25 24 Hitachi Diversified 637 10% 41% 26 25 Mazda Automotive 629 9% 73% 27 27 Shimano Machinery 597 8% 88% 28 - Unicharm Personal Care 587 NEW 39% 29 - Ajinomoto Food & Beverages 567 NEW 32% 30 26 Mitsubishi Motors Automotive 556 -3% 75% ※Yamaha = Yamaha Motor + Yamaha Corporation 4
  • 5. Interbrand Japan’s Best Global Brands 2011 Special Feature 1 : Japan’s Top 30 Domestic Brands (Overseas sales making up less than 30% of total sales) As described above, one of the requirements of the “Japan’s Best Global Brands” ranking is that the company’s overseas sales make up 30% or more of its total sales (from FY 2009 results). Brands that do not meet this standard (whose sales are mainly in Japan) are adopting policies for expansion overseas, especially into Asia, within the next few years. This year, we have additionally calculated the values of the top 30 domestic brands: brands whose overseas sales were less than 30% of total sales (from FY 2009 results), and therefore did not qualify as “global brands” (FY 2009 results). We believe that some of these brands may be Japan’s next global industry/brand, following in the footsteps of automotive and electronics brands. The number-one domestic brand was NTT Docomo. This was one of the three mobile carriers to make the top 10, together with Softbank (3rd place) and au (5th place). Three “megabank” group brands also made the top 10: MUFG (2nd place), SMFG (4th place), and Mizuho (6th place). The other members of the top 10 were Uniqlo (7th place), Kirin (8th place), Kao (9th place), and Rakuten (10th place). By industry, financial service brands were the most numerous. In addition to the three brands in the top 10, Tokio Marine (11th place), Dai-ichi Life (21st place), and Orix (29th place) also made the ranking. Each of these brands is advancing steadily toward becoming a global brand. For example, MUFG launched its first retail business in Hong Kong at the end of 2010, and Tokio Marine has been aiming to expand overseas in recent years, especially in Asia, and is involved in large number of mergers and acquisitions. Financial service brands are also the most numerous type of industry in the Top 100 “Best Global Brands”. Amid the unstable markets following the financial crisis, new brands are gaining strength. For example, last year, in addition to US brands, Barclays (UK), Credit Swiss (Switzerland), and Santander (Spain) also made the global brands ranking. The next-highest number of entries in the Japanese domestic ranking was by food and beverage brands. Five food and beverage brands made the ranking: Kirin; Asahi (12th place); Nissin (13th place); Yakult (22nd place); and Meiji (24th place). As with financial service brands, many food and beverage brands also made the “Best Global Brands” Top 100 ranking, and this industry also has great potential for becoming a global brand. In fact, each of these brands is currently expanding overseas, with a focus on emerging economies (especially in Asia), and 5
  • 6. Interbrand Japan’s Best Global Brands 2011 results are starting to appear. For example, in June of last year, Yakult’s average daily worldwide sales passed the 30 million bottle mark. Leading global brands from the west are also focusing on these markets, and surviving this competition will be the greatest key to becoming a global brand. There are also many personal care brands in the “Best Global Brands” ranking, including L’OREAL and NIVEA. Kao made this year’s Top 30 domestic brand ranking. Japanese brands, including Shiseido and Unicharm, both of which are ranked among “Japan’s Best Global Brands”, have better understanding of local Asian populations than the leading Western brands, and their increasing popularity in Asian markets is a key step toward becoming global brands. On the other hand, some of the brands in the Japanese domestic ranking buck the trends in the global ranking: these are convenience-store brands, construction and real-estate brands, and Internet-service brands. The convenience-store business model was born in the United States, and grew enormously in Japan. This model is currently spreading around the world, especially in Asia. Two brands made this year’s domestic ranking: Lawson (15th place) and FamilyMart (20th place). FamilyMart already has significant international penetration, especially in Asia — with over 9,000 stores outside Japan (as of end-2010). Moreover, it is possible that its worldwide recognition will increase as it expands in scale through growth in each country, making it a true global retail brand. (Note: Seven Eleven was excluded from this ranking because it was created in the United States.) Four construction and real-estate brands made the domestic ranking: Mitsubishi Estate (17th place); Mitsui Fudosan (18th place); Sekisui House (25th place); and Daiwa House (27th place). The branding-building methodology of creating combined housing, hotel, and shopping complexes through visionary urban-planning, and the experience they offer differentiates these brands from Western-style mega malls. These brands have significant potential to compete on the global level, and hint at the possibility of becoming worldwide leaders in next-generation urban planning. Three Internet services made the domestic ranking: Rakuten ; Mobage (28th place); and Gree (30th place). Although Mobage and Gree have yet to launch a full-scale overseas expansion, massive growth of their brand value is expected from their successful market entry, when their unique business models are accepted internationally. Google, which is currently ranked 4th in the “Best Global Brands 2010”, was only founded 13 years ago. Internet service brands are growing at a much faster pace than other industries, and massive growth can be expected by acquiring the position of a global standard. 6
  • 7. Interbrand Japan’s Best Global Brands 2011 Japan's Best Domestic Brands 2011 TOP30 Ratio of 2011 Brand Value Brand Sector Overseas sales Rank (US million $) (FY 2009) 1 NTT Docomo Telecommunications 10,757 under 10% 2 MUFG Financial Services 5,750 22% 3 Softbank Telecommunications 4,133 under 10% 4 SMFG Financial Services 3,648 15% 5 au Telecommunications 2,981 under 10% 6 Mizuho Financial Services 2,820 16% 7 Uniqlo Retail 2,606 17% 8 Kirin Food & Beverages 1,809 25% 9 Kao Personal Care 1,602 25% 10 Rakuten Internet Services 1,360 under 10% 11 Tokio Marine Financial Services 1,184 17% 12 Asahi Food & Beverages 1,030 under 10% 13 Nissin Food & Beverages 978 15% 14 Secom Security 847 3% 15 Lawson Retail 817 under 10% 16 TEPCO Energy 785 under 10% 17 Mitsubishi Estate Construction & Real Estate 672 under 10% 18 Mitsui Fudosan Construction & Real Estate 593 under 10% 19 NEC Computer Services 566 20% 20 FamilyMart Retail 498 15% 21 Dai-ichi Life Financial Services 490 under 10% 22 Yakult Food & Beverages 483 24% 23 Benesse Education 465 12% 24 Meiji Food & Beverages 431 under 10% 25 Sekisui House Construction & Real Estate 387 under 10% 26 NTT Data Computer Services 378 under 10% 27 Daiwa House Construction & Real Estate 363 under 10% 28 Mobage Internet Services 356 under 10% 29 Orix Financial Services 352 20% 30 Gree Internet Services 345 under 10% 7
  • 8. Interbrand Japan’s Best Global Brands 2011 Special Feature 2 : Comparison of Japanese and Chinese Brands Growing toward Global Brand Status Every year, Interbrand announces the “Best Global Brands”, a ranking of the 100 global brands with the highest value. In July 2010, Interbrand released the “Best Chinese Brands”, a ranking of the top 50 Chinese brands which do not qualify for inclusion in the global ranking. With this release of the top 30 Japanese global brands and the top 30 Japanese domestic brands, Interbrand compared Japanese brands with rapidly growing Chinese brands, analyzed trends for these brands, and compared them with global brands to gauge their success from the global perspective. It seems certain that China’s GDP surpassed that of Japan in 2010, vaulting it into the position of the world’s second-largest economy. Although the Japanese and Chinese economies are neck-and-neck in terms of size, there is currently less competition from the perspective of global brands. While Japan had six brands in the “Best Global Brands 2010” (Toyota, Honda, Canon, Sony, Nintendo, and Panasonic), China had none. However, the top-ranked brand in “Best Chinese Brands 2010”, China Mobile, would rank eighth in terms of brand value if placed in the “Best Global Brands 2010” table. This would rank it higher than Japan’s top brand (Toyota), showing that the massive size and high growth potential of the domestic Chinese market give Chinese brands extremely high value. We thus verified the value of Japanese and Chinese brands by industry, including comparisons with global brands. 8
  • 9. Interbrand Japan’s Best Global Brands 2011 “Best Chinese Brands 2010” (Released July 2010) 2010 Brand Brand Sector Rank Value 1 China Mobile Telecommunications 29,718 2 CHINA LIFE Financial Services 14,578 3 CHINA CONSTRUCTION BANK Financial Services 14,093 4 ICBC Financial Services 11,383 5 BANK OF CHINA Financial Services 10,023 6 PING AN Financial Services 8,346 7 China Merchants Bank Financial Services 3,399 8 TENCENT Internet Services 3,364 9 MOUTAI Alchohol 3,139 10 CHINA PACIFIC Financial Services 2,249 11 BANK OF COMMUNICATION Financial Services 1,871 12 LENOVO Electronics 1,481 13 WULIANGYE Alchohol 1,290 14 TSINGTAO BEER Alchoholic Beverage 1,242 15 Shanghai Pudong Development Bank Financial Services 1,192 16 LUZHOU LAOJIAO Alchohol 1,081 17 BAIDU Internet Services 1,018 18 CITIC SECURITIES Financial Services 861 19 LI NING Sporting Goods 845 20 DONGFENG MOTOR Automotive 781 21 ANTA SPORTS Sporting Goods 772 22 CITIC BANK Financial Services 757 23 CHANGYU Alchohol 743 24 MINSHENG BANK Financial Services 738 25 INDUSTRIAL BANK Financial Services 657 26 GREE Electronics 605 27 Alibaba Internet Services 588 28 MENGNIU Food & Beverages 578 29 CHINA MERCHANT SECURITIES Financial Services 564 30 YUNNAN BAIYAO Pharmaceuticals 559 31 MIDEA Electronics 548 32 SOHU Internet Services 490 33 CTRIP Internet Services 485 34 NETEASE Internet Services 484 35 YURUN FOOD Food & Beverage 482 36 HAIER Electronics 457 37 BYD Automotive 455 38 SHINEWAY Food & Beverages 417 39 SUNING Retail - Electronics 402 40 NEW ORIENTAL EDUCATION Education 387 41 METERSBONWE Retail - Apparel 373 42 999 Pharmaceuticals 307 43 361° Sporting Goods 292 44 PEAK SPORT Sporting Goods 264 45 HAITONG SECURITIES Financial Services 256 46 BOSIDENG Retail - Apparel 208 47 Gome Retail - Electronics 180 48 HISENSE Electronics 178 49 GEELY Automotive 176 50 HUAXIA BANK Financial Services 169 Calculated at USD 1 = RMB 0.1465 (rate as of May 22, 2010) 9
  • 10. Interbrand Japan’s Best Global Brands 2011 Analysis by sector: Automotive Although Toyota was rocked by a recall in 2010, it remains the world’s most valuable automotive brand. Honda is ranked fourth following Mercedes-Benz and BMW. Japan has many other global-level automotive brands, in “Japan’s Best Global Brands 2011” including Nissan, Lexus, Suzuki, Mazda, and Mitsubishi Motors. Meanwhile, although the Chinese brands Dongfeng Motor, BYD, and Geely were ranked in the “Best Chinese Brands 2010”, the values of these brands remain low. Chinese automakers are building strength by rapidly acquiring globally recognized brands. However, considerable effort will probably be required to transform a made-in-China brand into a global brand. Brand Value Comparison (US million $) (Japanese/Chinese/Global Brands) 25,661 25,179 22,322 18,510 781 455 Toyota Honda Dongfeng BYD Mercedes- BMW Motor Benz Japan's Best Global Brands Best C hinese Brands 2010 Best Global Brands 2010 2011 (Released July 2010) (Released September 2010) Electronics Japanese brands in the electronics industry have extremely high value. Canon, Sony, Nintendo, and Panasonic made the “Best Global Brands 2010” ranking, although they were somewhat behind the globally successful Apple and Samsung. There were also electronics brands that meet most of the global standards, such as Toshiba and Sharp, which are ranked in “Japan’s Best Global Brands 2011”. 10
  • 11. Interbrand Japan’s Best Global Brands 2011 Although several Chinese electronics brands made the “Best Chinese Brands 2010”, including Lenovo, Gree, Midea, and Haier, as with automotive brands, the values of these brands remain low. Although there is growing global recognition for Lenovo, which acquired IBM’s PC division, and Haier, which has growing worldwide sales of white goods (large household appliances), their scale remains extremely small. The value proposition of most Chinese white goods is low price, which does not equate to brand value. We believe that Japanese brands must create clear brand images in the global market, and lock in relationships with loyal customers, before Chinese brands begin a push to shift from the low-price track to the brand-centric high value-added track. Brand Value Comparison (US million $) (Japanese/Chinese/Global Brands) 21,143 19,491 11,356 4,351 1,481 457 Sony Panasonic Lenovo Haier Apple Samsung Japan's Best Global Brands Best C hinese Brands 2010 Best Global Brands 2010 2011 (Released July 2010) (Released September 2010) Personal care Although “Best Global Brands 2010” includes a large number of personal-care brands, the ranking includes no Japanese brands in this category. In contrast, Shiseido and Unicharm made the “Japan’s Best Global Brands 2011” list, while Kao made the Japanese domestic ranking. No Chinese personal-care brands made the “Best Chinese Brands 2010” ranking. There are currently no powerful domestic brands in China, while Japanese and Western brands are in fierce competition there. There is a 1.5-fold brand-gap between Shiseido and Lancôme, which is ranked in the “Best Global Brands”, but this gap may shrink rapidly as Shiseido establishes a position as a leading brand in China and other Asian markets. 11
  • 12. Interbrand Japan’s Best Global Brands 2011 Brand Value Comparison (US million $) (Japanese/Global Brands) 7,981 3,734 3,403 2,215 1,602 587 Shiseido Kao Unicharm L'Oreal NIVEA Lancome Japan's Best Global Brands Best Global Brands 2010 2011 (Released September 2010) Financial services Following the financial crisis, the lineup of financial-service brands in the “Best Global Brands” ranking has changed dramatically. In addition to the former US-centric cast of brands including Citi and Goldman Sachs, the latest ranking (“Best Global Brands 2010”) also includes such European players as Barclays (UK), Credit Suisse (Switzerland), and Santander (Spain). Although the highest-ranked financial-service brand in the Japanese domestic top 30 was MUFG, there is a 2.1-fold gap between its value and that of J.P. Morgan, which is the highest-ranked financial-service brand in “Best Global Brands”. Meanwhile, there are seven financial-service brands in the “Best Chinese Brands 2010” top 10 ranking, and the top-ranked bank brand, China Construction Bank, is 2.5 times greater than MUFG in terms of value. Buoyed by massive markets, we expect Chinese brands to follow the example of Japanese brands and leverage their scale to invest worldwide. In today’s financial markets, however, where trust is a requirement, Chinese brands have not yet reached the global level. The impact of the financial crisis on Japanese brands has been relatively small, and they have a history of worldwide trust and offer high-quality service. For them, the key to future success is to take initiative in branding and reach the global level ahead of their rivals. 12
  • 13. Interbrand Japan’s Best Global Brands 2011 Brand Value Comparison (US million $) (Japanese/Chinese/Global Brands) 14,093 12,314 11,383 11,561 5,750 3,648 2,820 MUFG SMFG Mizuho C hina C onstruction IC BC JP Morgan HSBC Bank Japan's Best Global Brands Best C hinese Brands 2010 Best Global Brands 2010 2011 (Released July 2010) (Released September 2010) Details of each ranking can be found on the following sites: Best Global Brands 2010 (published September 2010) http://www.interbrand.com/ja/best-global-brands/Best-Global-Brands-2010.aspx Best Chinese Brands 2010 (published July 2010) http://www.interbrand.com/zh-CHT/Default.aspx Calculated at USD 1 = RMB 0.1465 (rate as of May 22, 2010) 13
  • 14. Interbrand Japan’s Best Global Brands 2011 < Reference: “Japan's Best Global Brands 2011” 60 Brands > (US million $) 1 Toyota 2 5 ,6 6 1 2 Honda 18,510 3 Canon 11,442 4 Sony 11,353 5 NTT Docomo 10,757 6 Nintendo 9,184 7 MUFG 5,750 8 Panasonic 4,549 9 Softbank 4,133 10 SMFG 3,648 11 au 2,981 12 Nissan 2,886 13 Mizuho 2,820 14 Uniqlo 2,606 15 Lexus 2,523 16 Toshiba 2,246 17 Shiseido 2,215 18 Komatsu 2,190 19 Sharp 2,003 20 Kirin 1,809 21 Nikon 1,707 22 Kao 1,602 23 Suzuki 1,363 24 Rakuten 1,360 25 Ricoh 1,234 26 Tokio Marine 1,184 27 Nomura 1,177 28 Olympus 1,095 29 Bridgestone 1,089 30 Mitsubishi Electric 1,046 31 Asahi 1,030 32 Daikin 1,007 33 Nissin 978 34 Secom 847 35 Lawson 817 36 TEPCO 785 37 Yamaha 759 38 Asics 742 39 Konica Minolta 720 40 Mitsubishi Estate 672 41 Fujitsu 644 42 Hitachi 637 43 Mazda 629 44 Shimano 597 45 Mitsui Fudosan 593 46 Unicharm 587 47 Ajinomoto 567 48 NEC 566 49 Mitsubishi Motors 556 50 FamilyMart 498 51 Dai-ichi Life 490 52 Yakult 483 53 Benesse 465 54 Meiji 431 55 Sekisui House 387 56 NTT Data 378 57 Daiwa House 363 58 Mobage 356 59 Orix 352 60 Gree 345 Japan's Best Global Brands TOP30 Japan's Best Domestic Brands 14
  • 15. Interbrand Japan’s Best Global Brands 2011 Brand Evaluations in “Japan’s Best Global Brands 2011” ■ CRITERIA FOR CONSIDERATION This ranking uses criteria for consideration that are similar to those of the “Best Global Brands” ranking published by Interbrand every year in order to clarify the values of Japanese brands that are active worldwide, and compare , ranks using a “global standard.” Companies meeting the following criteria were selected for consideration: • •The brand must have been created in Japan – It must be a corporate or business brand that was created by a Japanese enterprise • It must publish financial information - It must be a corporation listed on a stock exchange as of October 31, 2010, and must make analyst reports available • Over 30% of its total sales must come from overseas sales (sales outside Japan) based on results from FY 2009 • Even if it is a B2B company, it must have general level of global recognition – It must have recognition of at least 10% among consultants at Interbrand’s global offices (Note: “Domestic brands” are selected by adding to the above the criterion the requirement that overseas sales account for no more than 30% of total sales) ■ METHODOLOGY Interbrand’s methodology evaluates brand value based on its financial strength, the influence of the brand on purchasing decisions, and the brand’s future earning potential. In the same way that securities analysts analyze and evaluate corporate value, we analyze and evaluate brand value based on the question, “What is its future earning potential?” This methodology has been certified under International Organization for Standardization (ISO) 10668 as a global standard for measuring the monetary values of brands. The evaluation consists of the following three specific analyses. Financial Performance: Estimate the profits that the company will generate We first estimate the current and future revenues of the business operating under the brand. We then arrive at the future economic profit by subtracting from that number the cost of sales, taxes, and capital cost from invested capital. This analysis is based on published corporate data, while future estimates are based on performance estimates made by financial analysts. (Note: the performance estimates by financial analysts employed in this evaluation use the average estimated values by major analysts called the IFIS Consensus, published by IFIS Japan, Ltd. http://www.ifis.co.jp/index.htm) The IFIS Consensus data used is current as of November 18, 2010. 15
  • 16. Interbrand Japan’s Best Global Brands 2011 Role of Brand: Identify the contribution that the brand makes to profits We next analyze the impact that the brand has on customer purchasing decisions, in order to identify the contribution that the brand makes to the future economic profit calculated in the financial analysis. With regard to the role that brands play in consumer purchasing trends, the evaluation uses a database of brand-value evaluation performance that we have built up over the past 25 years, as well as benchmark analyses by industry. We then research and analyze each individual brand based on its industry benchmark to calculate the brand’s contribution as a score. Brand Strength: Evaluate the future earnings potential provided by the brand Brand-strength analysis measures the brand’s power to generate client need (the ability to maintain future earnings) – market loyalty, repeat purchases by consumers and lock in – and calculates a current value by discounting the brand’s earnings by this amount. This evaluation is a systematic method for determining a brand’s risk, and is made from a wide range of perspectives relating to the brand, including the brand’s market position, consumer recognition and popularity, image, and support for the brand. The evaluation score is then converted into a discount rate, which is subtracted from the brand’s future profitability to arrive at the brand value. Note: Role of brand and brand strength are calculated based on a multidimensional evaluation by expert consultants at our global offices, using a wide range of published reports and other information. 16
  • 17. Interbrand Japan’s Best Global Brands 2011 About Interbrand Founded in 1974, Interbrand is recognized for being at the forefront of the dialogue on brands as business assets. Today, Interbrand is amongst the largest brand consultancies and has grown to include 40 offices in 25 countries. The combination of rigorous strategy and analytics with world-class design creativity help its clients to create and manage brand value in all market dynamics. It is widely respected for its annual study, The Best Global Brands, and creating a broader platform for the discussion on brands in the Webby-award winning website brandchannel.com. For more on Interbrand, visit http://www.interbrand.com/. Contacting us Interbrand Japan Contact: Burton Blume / Hiromitsu Hatakeyama tel:03-3230-1075 fax:03-3230-8772 contact@interbrand.co.jp 17