France Pharma RepTrak 2017 The World s Most Reputable Pharmaceutical Companies in France Olivier Forlini, Director Reputation Institute France June 2017 1
Why Measure Reputation? The success of your company depends on getting people to support you. Reputation is an emotional bond that ensures Customers buy your products The general public recommend your company Policy makers and regulators give you a license to operate The financial community invest in you The media report favorably on your point of view Employees deliver on your strategy RepTrak is a registered trademark of Reputation Institute. Copyright 2017 Reputation Institute. All rights reserved. 2
The RepTrak Model Summary The RepTrak System measures a company s ability to deliver on stakeholder expectations on the 7 key rational dimensions of reputation A company that delivers on expectations in the 7 domains will earn support from its stakeholders PRODUCTS & SERVICES INNOVATION WORKPLACE GOVERNANCE CITIZENSHIP LEADERSHIP PERFORMANCE PURCHASE RECOMMEND CRISIS PROOF VERBAL SUPPORT INVEST WORK REPUTATION DIMENSIONS REPUTATION (RepTrak Pulse) SUPPORTIVE BEHAVIORS RepTrak is a registered trademark of Reputation Institute. Copyright 2017 Reputation Institute. All rights reserved. 3
Reputation Drives Support (France drivers) - Only Companies in the Excellent RepTrak Pulse Range Achieve Support Above 50% Poor 0-39 4% 9% 21% 42% 75% 2% 6% 14% 32% 69% 1% 8% 22% 50% 78% 4% 9% 17% 36% 68% 2% 4% 11% 22% 58% 4% 7% 17% 30% 59% 3% 6% 13% 26% 57% Source: 2017 France RepTrak 4
Reputation Management Requires Clear Measurement and Structure What You Do Reputation Behavior Business Results Products Investments Customer Service Employment What You Say Branding Marketing Public Relations Sponsorship What Others Say Media Topic Experts Key Opinion Leaders Friends/Family 5
Reputation Institute Pharma RepTrak 2017 2017 Pharma RepTrak Global 6
Welcome to the Pharma RepTrak 2017 The 2017 Global Pharma RepTrak measures 17 companies with the general public in 8 countries. With nearly 17,000 ratings collected in Q1 and Q2, 2017 this is the largest study of corporate reputation in the world Respondents are qualified at 2 tiers: Familiarity: Respondent must be somewhat or very familiar with companies RepTrak Pulse: 75% completion of pulse rating to be included The results tell us: Which pharmaceutical companies are best regarded by the general public What drives trust and support with general public How the top companies are living up to public expectations BRAZIL CANADA FRANCE GERMANY ITALY SPAIN THE UNITED KINGDOM THE UNITED STATES RepTrak is a registered trademark of Reputation Institute. Copyright 2017 Reputation Institute. All rights reserved. 7
Pharma Reputation Development 2014 2017 Pharma continues positive trend into 2017 and has for the first time a strong Reputation 80 75 70 65 65.8 66.2 68.2 71.8 Countries measured 2014-2017 60 55 Normative Scale 50 2014 2015 2016 2017 Source: 2017 Pharma RepTrak n = 16,898 ratings from general public across 8 countries Global RepTrak Pulse scores that differ by more than +/- 0.2 are significantly different at the 95% confidence level Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 8
Reputation of the Pharma Industry by Market Mostly strong Reputation across markets, with best Reputation in the US and poorest in France 6.9 71.2 72.6 72.5 2.4 Global Pharma RepTrak Score Canada 4.8 UK 3.6 69.5 France Germany 71.8 USA 70.8 5.8 Spain Italy 7.2 73.5 72.0 Brazil Indicates statistically significant increase All RepTrak Pulse scores that differ by more than +/- 0.7 are significantly different at the 95% confidence level 72.4 1.5 Normative Scale Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 9
The youngest generation are the most critical towards the Industry Overall General Population Male 71.8 Female 70.9 72.8 Gender 18-24 45-64 25-34 35-44 Age 70.1 71.8 72.0 72.7 Low High Middle 69.8 71.2 72.2 Education Low Middle High 69.4 72.1 73.7 Income France Spain Canada Italy 69.5 70.8 71.2 72.0 Country All RepTrak Pulse scores that differ by more than +/- 0.4 are significantly different at the 95% confidence level Brazil 72.4 Germany 72.5 UK 72.6 USA 73.5 Normative Scale Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 10
Best Reputation in Pharma AbbVie leads, and except for GSK and Pfizer all Pharma companies have a strong reputation Tier 1 Tier 2 Tier 3 Tier 4 Company All RepTrak Pulse scores that differ by more than +/- 1.0 are significantly different at the 95% confidence level 2017 RepTrak Pulse AbbVie 74.5 Novo Nordisk 74.0 Takeda Pharmaceutical 73.8 Roche 73.4 Janssen Pharmaceuticals 72.5 Gilead Sciences 72.4 Bayer 72.3 MSD (Merck Sharp & Dohme) 72.2 Sanofi 72.0 Eli Lilly 71.9 Allergan 71.8 Merck KGaA 71.6 Bristol-Myers Squibb 70.5 AstraZeneca 70.4 Novartis 70.4 GlaxoSmithKline 68.5 Pfizer 68.4 Development since 2016 5.3 3.8 New company 3.7 New company 1.7 4.0 4.1 3.4 1.8 4.1 3.1 3.4 2.0 3.5 Normative Scale Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 11
Reputation Institute Pharma RepTrak 2017 2017 Pharma RepTrak France 12
Welcome to the Pharma RepTrak 2017 France The 2017 France Pharma RepTrak measures 24 companies with the general public in France through 2849 ratings. Respondents are qualified at 2 tiers: Familiarity: Respondent must be somewhat or very familiar with companies RepTrak Pulse: 75% completion of pulse rating to be included The results tell us: Which pharmaceutical companies are best regarded by the general public in France What drives trust and support with general public How the top companies are living up to public expectations RepTrak is a registered trademark of Reputation Institute. Copyright 2017 Reputation Institute. All rights reserved. 13
Who is the General Public? Gender Age Education Somewhat or very familiar with the pharma companies 52% 48% 44% 13% 21% 43% 3% 55% 23% Male Female 18-24 25-34 35-44 45-64 Low Middle High Balanced female-male ratio 67% are 35 or older 43% with high education RepTrak is a registered trademark of Reputation Institute. Copyright 2017 Reputation Institute. All rights reserved. 14
Pharma Companies Will Benefit from Telling Their Company Story - Enterprise Drives 62% of Willingness to Support 62% 38% > ENTERPRISE PRODUCT SUPPORTIVE BEHAVIORS RECOMMEND COMPANY SAY SOMETHING POSITIVE GIVE THE BENEFIT OF DOUBT BUY PRODUCTS INVEST WORK FOR COMPANY 15
Pharma Reputation Development 2013 2017 in France: Pharma Reputation Improves in 2017 80 75 70 69,5 65 60 60,6 63,4 64,5 65,8 55 Normative Scale 50 2013 2014 2015 2016 2017 Source: 2017 Pharma RepTrak in France N = 2,078 ratings from general public across France RepTrak Pulse scores that differ by more than +/- 3.1 are significantly different at the 95% confidence level Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 16
Pharma has a high average to strong perception across the 7 dimensions. 2017 Pharma in France Across the 7 dimensions Pharma Companies has the strongest perception for Financial Performance. 72,6 74,6 66.0 69,5 72,7 72,6 The weakest and average perceptions are for the three CSR dimensions: Workplace, Citizenship and Governance. 66,3 66,3 France RepTrak Industry Pulse scores that differ by more than +/- 6,1 and dimension scores that differ by more than +/- 2.0 are significantly different at the 95% confidence level 68,5 Normative Scale Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 17
Pharma has a high average to strong perception across the 7 dimensions. 11,5% 2017 Industry Weights 16,8% 9,9% 66.0 18,8% 16,7% 12,4% 14,0% 2017 Pharma in France 72,6 66,3 74,6 66.0 69,5 66,3 72,7 68,5 72,6 Across the 7 dimensions Performance is perceived as the least important. In order to be effective, French Pharma companies should focus mostly on the three CSR dimensions, which unfortunately in 2017 are perceived with an average reputation. Normative Scale France RepTrak Industry Pulse scores that differ by more than +/- 6,1 and dimension scores that differ by more than +/- 2.0 are significantly different at the 95% confidence level Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 18
Why is CSR important for Pharma companies in France? 2017 9,9% 16,7% Top 3 priorities for Reputation 11,5% 16,8% 12,4% 14,0% 1. Governance 2. Citizenship 3. Product & Services 18,8% CSR Index 49,6% 19
Reputation Institute Pharma RepTrak 2017 The Best Reputation in Pharma - France 20
2017 The 5 Pharma Companies with the Best Reputations in France Company 2017 RepTrak Pulse 75,8 75,5 75,0 75,0 Normative Scale Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 All RepTrak Pulse scores that differ by more than +/- 3,1 are significantly different at the 95% confidence level 74,3 21
2017 Pharma France RepTrak # Company 2017 RepTrak Pulse # Company 2017 RepTrak Pulse 1 Allergan 75,8 9.1 13 Bristol-Myers Squibb 70,9 6.1 2 ViiV 75,5 3 Takeda Pharmaceutical 75,0 14 AstraZeneca 69,7 15 Eli Lilly 69,5 3.4 3.6 4 Sartorius Stedim Biotech 75,0 5 MSD 74,3 6 Amgen 74,2 7 Celgene 73,5 8 Gilead Sciences 73,2 9 Roche 73,1-5.5 16 Biomerieux 69,4 17 IPSEN 66,6 18 GlaxoSmithKline 66,0 19 Merck KGaA 64,4 20 Novartis 63,9 21 Pfizer 63,7 1 6.1 2.1 6 10 AbbVie 73,0 11 Janssen Pharmaceuticals 73,0 12 Novo Nordisk 71,8 9.9 2.5-22 Sanofi 62,7 23 Bayer 61,5 24 Servier 31,0 3 4 Normative Scale All RepTrak Pulse scores that differ by more than +/- 3,1 are significantly different at the 95% confidence level Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 22
Pharma Industry overview in France Products/services Innovation # Company 2017 Score # Company 2017 Score 1 Sartorius Stedim Biotech 77,8 1 Sartorius Stedim Biotech 77,1 2 MSD 77,4 2 MSD 75,8 3 Allergan 76,8 3 ViiV 75,8 Workplace Citizenship # Company 2017 Score 1 Sartorius Stedim Biotech 76,0 # Company 2017 Score 1 Sartorius Stedim Biotech 73,7 2 Allergan 74,8 2 Allergan 73,2 3 MSD 74,1 3 Amgen 72,8 Normative Scale All scores that differ by more than +/- 6,1 are significantly different at the 95% confidence level Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 23
Pharma Industry overview in France Governance # Company 2017 Score 1 Sartorius Stedim Biotech 74,2 2 MSD 73,5 3 ViiV 73,0 Leadership # Company 2017 Score 1 Sartorius Stedim Biotech 77,6 2 Allergan 76,6 3 MSD 76,5 Performance # Company 2017 Score 1 Sartorius Stedim Biotech 78,2 2 Novartis 78,0 3 Roche 77,8 All scores that differ by more than +/- 6,1 are significantly different at the 95% confidence level Normative Scale Excellent/ Top Tier 80+ Strong/ Robust 70-79 Avg./ Moderate 60-69 Weak/ Vulnerable 40-59 Poor/ Lowest Tier <40 24
Reputation Institute Pharma RepTrak 2017 Key dynamics in Pharma - France 25
Pharma in France is facing a large Risk or Opportunity: 52%-66% are Uncertain About What Pharma Companies do Across the 7 dimensions FENCE SITTERS = % of public who is neutral or not sure about the company s performance on that dimension PRODUCTS & SERVICES 3% 43% 53% 2% 55% INNOVATION 2% 43% 52% 3% 55% WORKPLACE 3% 31% 54% 12% 66% GOVERNANCE 5% 32% 55% 9% 64% CITIZENSHIP 6% 32% 56% 6% 62% LEADERSHIP 2% 39% 54% 6% 60% PERFORMANCE 2% 47% 47% 5% 52% DISAGREE STRONGLY AGREE NEUTRAL NOT SURE 26
Supportive Behaviours Industry Distribution FENCE SITTERS Buy 9% 41% 45% 5% 50% Trust To Do The Right Thing 9% 40% 45% 6% 51% Recommend Company 11% 39% 45% 5% 50% Say Positive 10% 38% 46% 6% 52% Work For 14% 37% 42% 7% 49% Invest 15% 37% 40% 8% 48% Benefit Of Doubt 11% 36% 46% 7% 53% Welcome To Neighbourhood 13% 35% 44% 8% 52% DISAGREE STRONGLY AGREE NEUTRAL NOT SURE 27
Industry Battery FENCE SITTERS = % of public who is neutral or not sure about the company s performance on that dimension Committed to advances in treatments and cures 4% 48% 42% 5% 47% Provides complete and reliable product information 6% 42% 45% 7% 52% Promotes wellness and healthy lifestyles 7% 40% 45% 8% 53% Has strong data privacy and security practices 4% 40% 43% 14% 57% Committed to patient and personal safety 5% 40% 42% 13% 55% Handles product recall proactively 4% 39% 43% 14% 57% Practices responsible product marketing and advertising 5% 37% 47% 12% 59% Sets prices fairly 7% 35% 49% 10% 59% DISAGREE STRONGLY AGREE NEUTRAL NOT SURE 28
Trust in a Crisis: If the company as was facing a crisis, I would give them the benefit of the doubt 6% 44% 47% 3% TOP 3 6% 45% 46% 3% 5% 50% 47% 3% BOTTOM 3 DISAGREE NEUTRAL STRONGLY AGREE NOT SURE 13% 48% 25% 15% 16% 50% 21% 13% 60% 25% 8% 7% DISAGREE NETURAL STRONGLY AGREE NOT SURE 29
French Pharma Companies Top 10 drivers 2017 Rank Attribute Weight Distribution FENCE SITTERS 1. Has a positive influence on society 5,9% 6 47% 39% 8% 55% 2. Supports good causes 5,7% 7% 43% 30% 20% 63% 3. Offers high quality products and services 5,5% 3% 44% 49% 4% 48% 4. 5. Offers products and services that are a good value for the money Is open and transparent about the way the company operates 5,5% 5,5% 5% 8% 50% 44% 38% 34% 7% 14% 57% 58% 6. Acts responsibly to protect the environment 5,4% 8% 42% 30% 19% 61% 7. Behaves ethically 5,3% 8% 45% 30% 17% 62% 8. Stands behind its products and services 5,0% 3% 42% 49% 6% 48% 9. Is fair in the way it does business 4,6% 4% 45% 33% 19% 64% 10. Rewards its employees fairly 4,5% 4% 38% 27% DISAGREE NEUTRAL STRONGLY AGREE NOT SURE 31% 69% *FENCE SITTERS = % of public who is neutral or not sure about the company s performance on that dimension 30
On a global level, Familiarity with the Industry is generally low among the public 100% 90% 80% 70% Global RepTrak 100 Pharma Companies Familiarity % 60% 50% 40% 30% 20% 10% 0% 50,0 55,0 60,0 65,0 70,0 75,0 80,0 85,0 RepTrak Pulse Score 31
Company Awareness is not enough... Improving Company Familiarity is required to win - A 20 point increase in reputation as Familiarity grows Awareness Familiarity Aware 41,6% 100% Excellent 17,0% Good 35,6% Reputation +20,3 73,0 66,3 n= 405 80,8 n= 405 Not Aware 58,4% Sufficient 24,0% Poor 23,4% 60,5 n= 405 Poor Sufficient Good Excellent Familiarity 32
French Pharma Scorecard Top 10 drivers 2017 High Quality Value for money Stands behind its products Environmentally Responsible Positive influence on society Supports good causes Rewards employees Fairly Fair in Business Behaves Ethically Open and Transparent 33
RepTrak Helps Measure and Manage Your Reputation Reputation helps you to drive your business What You Do Reputation Behavior Business Results Products Investments Customer Service Employment What You Say Branding Marketing Public Relations Sponsorship What Others Say Media Topic Experts Key Opinion Leaders Friends/Family 34
Next steps 1. How can we help you take action based on the results? 2. How can we help you share this with the leaders in the countries? Ask us at oforlini@reputationinstitute.com 35