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May31,2017

PharmaRepTrak®2017TheWorld’sMostReputablePharmaceu?calCompanies

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TheWorld’sLeadingResearchandAdvisoryFirmforReputa?onFoundedin1997byDr.CharlesFombrunandDr.CeesvanRiel,wehelporganiza?onsanswertheques?ons:•  Whatismyreputa?onandhowdoesitcompare?•  HowcanIimproveit?•  Whoisdoingitwell?

RepTrak®FrameworkWemeasurethereputa?onsofthousandsoftheworld’smostpres?giouscompaniesannuallyusingourRepTrak®framework–theworld’slargestandhighestqualitynorma?vereputa?ondatabase.

Con?nuousReputa?onMeasurement&GuidanceWeprovidecon?nuousreputa?onmeasurement,benchmarkingandconsul?ngservicestohundredsofthebest-knowncompaniesgloballytohelpthemprotecttheirreputa?ons,analyzerisksanddrivecompe??veadvantage.

Reputa?onManagementBestPrac?cesThroughourReputa?onLeadersNetwork,webringexecu?vesfrom100+globalmembercompaniestogethertoadvancetheprac?ceofreputa?onmanagementcollec?velyandfortheirorganiza?ons.

AboutReputa?onIns?tute

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•  Customersbuyyourproducts…

•  Thegeneralpublicrecommendyourcompany…

•  Policymakersandregulatorsgiveyoualicensetooperate…

•  Thefinancialcommunityinvestinyou…

•  Themediareportfavorablyonyourpointofview…

•  Employeesdeliveronyourstrategy…

Reputa'onisanemo'onalbond… …thatensures

Thesuccessofyourcompanydependsonge^ngpeopletosupportyou.WhyMeasureReputa?on?

RepTrak®isaregisteredtrademarkofReputa?onIns?tute.Copyright©2017Reputa?onIns?tute.Allrightsreserved.

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Reputa?onIns?tute-PharmaRepTrak®Scorecard

SUPPORTIVEBEHAVIORS

Buy

RecommendCompany

Benefitofthedoubt

Workfor

SayPosi?ve

Acompanythatdeliversonexpecta?onsinthe7dimensionswillearnsupportfromitsstakeholders

Recommendproducts/services

Recommendasinvestment

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Howtomanagereputa?on

WhatYouDo

Products CustomerServiceInvestments Employment

WhatYouSayBranding PublicRela?onsMarke?ng Sponsorship

WhatOthersSay

Media KeyOpinionLeadersTopicExperts Friends/Family

Reputa?on Behavior BusinessResultsTouchPoints

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2017PharmaRepTrak®Reputa?onIns?tute–PharmaRepTrak®2017

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•  The2017GlobalPharmaRepTrak®measures17companieswiththegeneralpublicin8countries.

•  With16,800ra?ngscollectedinQ1,2017thisisthelargeststudyofcorporatereputa?onforpharmacompaniesintheworld

•  Respondentsarequalifiedat2?ers:•  Familiarity:Respondentmustbe“somewhat”or“very”familiarwith

companies•  RepTrak®Pulse:75%comple?onofpulsera?ngtobeincluded

•  Theresultstellus:•  Whichpharmaceu?calcompanieshavethebestreputa?on•  Whatdrivesreputa?onandsupportwiththegeneralpublic•  Whatisthebusinessimpactfromreputa?on•  Howpharmacompaniescanimprovereputa?on

BRAZIL●CANADA●FRANCE●GERMANY●ITALY●SPAIN●THEUNITEDKINGDOM●THEUNITEDSTATES

WelcometothePharmaRepTrak®2017

RepTrak®isaregisteredtrademarkofReputa?onIns?tute.Copyright©2017Reputa?onIns?tute.Allrightsreserved.

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52%48%

Gender

Male Female

15%

20%

22%

43%

Age

18-24 25-34 35-44 45-64

3%34%

64%

Educa?on

Low Middle High

Somewhatorveryfamiliarwiththe

pharmacompanies

Balancedfemale-malera?o 65%are35orolder 64%withhigheduca?on

BRAZIL●CANADA●FRANCE●GERMANY●ITALY●SPAIN●THEUNITEDKINGDOM●THEUNITEDSTATES

PharmaRepTrak®measuredpercep?onwiththeInformedGeneralPublic

RepTrak®isaregisteredtrademarkofReputa?onIns?tute.Copyright©2017Reputa?onIns?tute.Allrightsreserved.

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PharmaRepTrak®Findings•  Thereputa?onofthePharmaceu?calindustryisstrong!

•  15ofthe17companiesmeasuredhaveastrongreputa?onacrossthe8markets.11companieshaveimprovedtheirreputa?on.2companieshavelostreputa?on

•  Thepercep?onhasimprovedacrossall7dimensionssince2016,with5dimensionsnowperceivedasstrong.OnlyGovernanceandCi?zenshipareaverage.

•  Governance,Ci?zenship,andProduct/Servicesarethekeydriversofreputa?on.

•  Stronglinkbetweenreputa?onandsupport.A5-pointincreaseinreputa?onresultsina9%increaseinrecommenda?on.

•  Pharmacompanieswouldbenefitfrommorecommunica?onasoverallfamiliarityiss?lllow,andthegeneralpublicisaskingformoreinforma?onaboutthecompanies.

10

50

55

60

65

70

75

80

2014 2015 2016 2017

Poor/LowestTierWeak/VulnerableAvg./ModerateStrong/RobustExcellent/TopTier 80+

70-7960-6940-59<40

Norma'veScale

71.8

65.8 66.268.2

Source:2017PharmaRepTrak®n=16,898ra?ngsfromgeneralpublicacross8countriesGlobalRepTrak®Pulsescoresthatdifferbymorethan+/-0.2aresignificantlydifferentatthe95%confidencelevel

PharmaReputa?onDevelopment2014–2017Pharmacon?nuesposi?vetrendinto2017andhasforthefirst?meastrongReputa?on

Countriesmeasured2014-2017

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Poor0-39

8% 15%18% 15% 44%Distribu?onamongrespondents

Poor/LowestTierWeak/VulnerableAvg./ModerateStrong/RobustExcellent/TopTier 80+

70-7960-6940-59<40

Norma'veScale

Source:2017PharmaRepTrak®n=16,898ra?ngsfromgeneralpublicacross8countriesGlobalRepTrak®Pulsescoresthatdifferbymorethan+/-0.2aresignificantlydifferentatthe95%confidencelevel

44%ofrespondentsviewedthecompaniesashavinganExcellentreputa?on-a7%pointincreasecomparedto201626%perceivedthecompaniestobeweakorpoor,downfrom35%in2016.

Thereisaposi?vemovementinreputa?onscores

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4%

44%47%

5%OffersProducts/ServicesthatareGoodValueforMoney

NEGATIVE NEUTRAL POSITIVE NOTSURE

13

4%

40%47%

8%HasaPosi?veInfluenceonSociety

NEGATIVE NEUTRAL POSITIVE NOTSURE

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5%

38%42%

15%BehavesEthically

NEGATIVE NEUTRAL POSITIVE NOTSURE

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2.8%

35.1%

56.8%

5.2%

Commiuedtoadvancesintreatmentsandcures

nega?ve neutral posi?ve notsure

3.4%

37.1%

51.9%

7.5%

Commiuedtopa?entandpersonalsafety

nega?ve neutral posi?ve notsure

5.6%

43.9%42.1%

8.4%

Setspricesfairly

nega?ve neutral posi?ve notsure

Percep?ononspecificPharmatopics

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69.5

71.8

GlobalPharmaRepTrak®Score

73.5

71.2 72.672.5

70.8

72.0

72.4

USA

UK

Brazil

Italy

Germany

Spain

France

Canada

Poor/LowestTierWeak/VulnerableAvg./ModerateStrong/RobustExcellent/TopTier 80+

70-7960-6940-59<40

Norma'veScale

AllRepTrak®Pulsescoresthatdifferbymorethan+/-0.7aresignificantlydifferentatthe95%confidencelevel

MostlystrongReputa?onacrossmarkets,withbestReputa?onintheUSandpoorestinFranceReputa?onofthePharmaIndustrybyMarket

6.9

1.5

2.4

4.8

7.2

5.8

3.6

Indicatessta?s?callysignificantincrease

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Overall General Population

71.8

70.9

Male

72.8

Female

Gender

72.7

35-44

Age70.1

18-2418-24

72.0

25-34

71.8

45-64

Country71.2

Canada

70.8

Spain

72.6

UK

69.5

France

73.5

USA

72.0

Italy

72.5

Germany

72.4

Brazil

72.2

Middle

71.2

High

69.8

Low

Educa'on

72.1

Middle

73.7

High

69.4

Low

Income

Poor/LowestTierWeak/VulnerableAvg./ModerateStrong/RobustExcellent/TopTier 80+

70-7960-6940-59<40

Norma'veScale

AllRepTrak®Pulsescoresthatdifferbymorethan+/-0.4aresignificantlydifferentatthe95%confidencelevel

Reputa?onacrosssegments

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n=16,898

2017GlobalPharmaRepTrak®Scoresbasedon8markets

73.8

73.4

71.469.2

69.5

73.5

75.6

71.8

2016GlobalPharmaRepTrak®Scoresbasedon8markets

4.4

3.8 2.8

2.5

4.3 2.7

2.3

n=12,796

71.1

70.9

68.666.9

65.7

69.1

71.3

68.2

GlobalRepTrak®PulseandDimensionscoresthatdifferbymorethan+/-0.2aresignificantlydifferentatthe95%confidencelevel

Alldimensionsimprovedsince2016butCi?zenshipandGovernances?llaverageDimensionScores

19Allauributescoresthatdifferbymorethan+/-2.1aresignificantlydifferentatthe95%confidencelevel

ThestrengthandweaknessofthePharmaCompaniesPharmascoresbestaroundfinancials,products,andvision,worstonenvironment,transparency,andsuppor?vegoodcauses

Top5percep?ons

Bouom5percep?ons

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TheBestReputa'oninPharmaReputa?onIns?tute–PharmaRepTrak®2017

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Company 2017RepTrak®Pulse

AbbVie 74.5NovoNordisk 74.0

TakedaPharmaceu'cal 73.8Roche 73.4

JanssenPharmaceu'cals 72.5GileadSciences 72.4

Bayer 72.3MSD/Merck&Co 72.2

Sanofi 72.0EliLilly 71.9Allergan 71.8

MerckKGaA 71.6Bristol-MyersSquibb 70.5

AstraZeneca 70.4Novar's 70.4

GlaxoSmithKline 68.5Pfizer 68.4

Tier2

Tier3

Tier1

Tier4

AllRepTrak®Pulsescoresthatdifferbymorethan+/-1.0aresignificantlydifferentatthe95%confidencelevel

BestReputa?oninPharmaRepTrak®2017AbbVie,NovoNordisk,Takeda,andRocheleads.GSKandPfizerarelast

5.33.8

3.7New

New

1.74.04.13.41.84.1

3.13.42.03.5 Poor/LowestTier

Weak/VulnerableAvg./ModerateStrong/RobustExcellent/TopTier 80+

70-7960-6940-59<40

Normative Scale

Developmentsince2016

1234567891011121314151617

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Reputa'on:TheDriverofSupportReputa?onIns?tute–PharmaRepTrak®2017

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Poor0-39

8% 55%14% 34% 85%

83%

77%

50%

50%

27%

33%

11%

17%

4%

9%

Benefitofdoubt 75%40%23%9%3%

Source:2017GlobalPharmaRepTrak®n=16,898ra?ngsfromgeneralpublicacross8countries

Reputa?ondrivessupportReputa?onhasposi?veimpactacrossthebusiness

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Bouom3:

Top3:

5%

5%

3%

42%

40%

40%

48%

51%

52%

6%

4%

4%

DISAGREE NEURAL STRONGLYAGREE NOTSURE

10%

10%

6%

43%

41%

46%

36%

40%

42%

12%

8%

6%

DISAGREE NEURAL STRONGLYAGREE NOTSURE

10%pointdifferenceforBenefitofthedoubt:“Ifthecompanyaswasfacingacrisis,Iwouldgivethemthebenefitofthedoubt”

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AstraZeneca

Bayer

Bris tol-MyersSquibb

El i Li lly

GlaxoSmithKline

MerckKGaA

Novartis

NovoNordisk

Pfizer

Roche

Sanofi

JanssenPharmaceuticals

MSD(MerckSharp&Dohme)

Al lergan

TakedaPharmaceutical

Gi leadSciences

AbbVie

42%

44%

46%

48%

50%

52%

54%

56%

68,0 69,0 70,0 71,0 72,0 73,0 74,0 75,0

%Peoplewhowoulddefinite

lyrecommend

RepTrak®PulseScore

A5-pointIncreaseinReputa'onResultsina9.0%IncreaseinRecommenda'on

R2=0.833

Reputa?onvssupportinPharma

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2017GlobalPharmaRepTrak®Drivers

FactorAdjustedRegressionN=13,600

Adj-R²=0.757 n=16,898

2017GlobalPharmaRepTrak®Scores

16.4%

13.0%

12.8%

16.8%

17.6%

12.2%

11.1% 73.8

73.4

71.469.2

69.5

73.5

75.6

Poor/LowestTierWeak/VulnerableAvg./ModerateStrong/RobustExcellent/TopTier 80+

70-7960-6940-59<40

Norma'veScale

71.8

GlobalRepTrak®PulseandDimensionscoresthatdifferbymorethan+/-0.2aresignificantlydifferentatthe95%confidencelevel

DriversofReputa?onPharmaisweakestontop2drivers:GovernanceandCi?zenship

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CorporateBrandandCommunica'onReputa?onIns?tute–PharmaRepTrak®2017

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

50.0 55.0 60.0 65.0 70.0 75.0 80.0 85.00%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

50 55 60 65 70 75 80 85

GlobalRepTrak®100PharmaCompanies

RepTrak®PulseScore

Familiarity

%

Reputa?onvs.FamiliaritywithinthePharmaIndustryFamiliaritywiththeIndustryisgenerallylowamongthepublic

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Growingfamiliarityimprovesreputa?onforPharmacompanies

67.6 SomewhatFamiliar

Poor/LowestTierWeak/VulnerableAvg./ModerateStrong/RobustExcellent/TopTier 80+

70-7960-6940-59<40

Norma'veScale

VeryFamiliar

62.4

69.1

75.5

83.4+6,7

+6,4

+7,9

Reputa'on

Familiarity

Reputa?onvs.FamiliaritywithinthePharmaIndustry

30

64

69

74

79

84COMMUNICATESOFTEN

STANDSOUTFROMTHECROWD

CONSISTENTEXPERIENCE

SUFFICIENTINFORMATION

APPEARSGENUINE

WELCOMESOPENDISCUSSION

MEETSNEEDSOFCUSTOMERS

DELIVERSONPROMISE

GlobalPharma GlobalRTTop10

PharmaCompaniesarefallingbehindinCommunica?onvsBestinClass

AllBrandExpressivenessscoresthatdifferbymorethan+/-2.1aresignificantlydifferentatthe95%confidencelevel

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BrandPersonalityTraitsofthePharmaIndustryPharmacompaniesareprimarilyseenasIntelligent,Modern,Confident,andHard-working

32BLUEauributesreflectpersonalityauributesthathavethehighestposi?veimpactonreputa?onREDauributesreflectpersonalityauributesthatnega?velyimpactreputa?on

-20 -15 -10 -5 0 5 10

5.2

4.4

-6.5

-15.1

-15.2

3.7

Exci'ng

Genuine

Sincere

Boring

Arrogant

Greedy

BrandPersonalityhasabigimpactonReputa?on–Top3andBouom3traits

3Mostassociated

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DrivingBusinessSuccessThroughReputa'onManagement

Reputa?onIns?tute

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GlobalPharmaRepTrak®Summary

1.   Thereputa'onofthePharmaIndustryisstrongandimproving.

2.   Ci'zenship,Product/Services,andGovernancearethemaindriversofReputa'on.

3.   Products/ServicesandFinancialPerformancearestrengths,CSRchallenged.

4.   The'meisrighttocommunicatemoreaboutkeydrivers.

5.   Bigdifferencebetweenmediacoverageandreputa'on.

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WhatYouDo

Products CustomerServiceInvestments Employment

WhatYouSayBranding PublicRela?onsMarke?ng Sponsorship

WhatOthersSay

Media KeyOpinionLeadersTopicExperts Friends/Family

Reputa?on Behavior BusinessResults

UseRepTrak®toMeasureandManageYourReputa?on

TouchPoints

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GetYourCompany’sResults

Understandyourreputa?onindetailSeehowlikelyyourstakeholdersaretobuyfromyou,workwithyou,andinvestinyourcompany.

Understandhowyoucanimproveyourscoresandgrowyourstakeholdersupport.Askusatinfo@reputa?onins?tute.com