Global @dvisor Wave 5 Global Economic Crisis: The End of the Beginning, or the Beginning of the End…

1. Global @dvisor Wave 5Global Economic Crisis: The End of the Beginning, or the Beginning of the End… May 2009

2. Methodology • Semi annual study fielded in April & November. • N = 1,000 completes per country. • 95% confidence level, +/- 3.1% margin of error. • 75% of world’s GDP covered: • US, Canada, Brazil, Mexico, Argentina, South Korea, China, Japan, Australia, Russia, India, Czech Republic, Poland, Hungary, Turkey, Sweden, Netherlands, Belgium, Germany, France, Italy, Spain, and Great Britain. • Balanced by age, gender, city population, and education levels. 23,000 online surveys. 23 countries.

3. Key Findings

4. Key Points: Economic Crisis • The Overall Confidence Average has stabilized. • Stabilization is fueled by US confidence improving, along with India and China. • BUT, previously unaffected countries are now feeling the ripple affects, especially in the BRICs with Brazil and Russia. • European countries are also showing less resilience. • Drops in economic confidence across the board in all European countries except Italy. • Crisis is personal and local – jobs. Global consensus as most salient issue. 4 4

5. Key Points: Coping Behaviors • In response to the crisis, a super-majority of the world’s consumers cut their budgets in November 08. These cuts have not deepened – but remain the same. • 73% are cutting back expenses in some way. • Entertainment is the first on the chopping block (with luxury goods, vacations, and clothing not far behind). • The rank order of the cuts, however, varies across countries. • In response to the crisis, citizens prefer that governments cut services before increasing taxes. • If governments tax, citizens prefer “sin taxes” on cigarettes and alcohol.

6. The Global Agenda 6

7. The global agenda is all about jobs… Changing Citizen Demands A4a. Which three of the following topics do you find the most worrying in your country?

8. US agenda has radically changed Increased demand for economic solutions. All other priorities are out, for now! A4a. Which three of the following topics do you find the most worrying in your country?

9. Economic Confidence 9

10. Economic CrisisAverage of all countries A3. Now thinking about our economic situation, how would you describe the current economic situation in [INSERT COUNTRY]? Is it very good, somewhat good, somewhat bad or very bad?

11. Economic Crisis EUROPE continues to dip while the rest of the regions rise and stabilize A3. Now thinking about our economic situation, how would you describe the current economic situation in [INSERT COUNTRY]? Is it very good, somewhat good, somewhat bad or very bad?

12. BRICS – Drops in Russia and Brazil A3. Now thinking about our economic situation, how would you describe the current economic situation in [INSERT COUNTRY]? Is it very good, somewhat good, somewhat bad or very bad?

13. LATAM – Brazil finally feels the economic slump A3. Now thinking about our economic situation, how would you describe the current economic situation in [INSERT COUNTRY]? Is it very good, somewhat good, somewhat bad or very bad?

14. Europe – Only Italy shows upward signs A3. Now thinking about our economic situation, how would you describe the current economic situation in [INSERT COUNTRY]? Is it very good, somewhat good, somewhat bad or very bad?

15. … while consumers believe cutting back is essential, they also believe that government regulation is needed Crisis Impact B1_1. (It is in [Country]'s interest that our big industries should be controlled by the government) - Do you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements... It is in [Country]'s interest that our big industries should be controlled by the government Top 2 Box AGREE.

16. So what’s next??? Some indicators of economic confidence [First/ Second] For you personally, which of the following will be the best indicator that the economy is improving? And which would be the second best indicator? 16

17. Economic Downturn and Sector and Company Reputation 17

18. The Banking and Automobile industries are the two sectors globally that have shown a decline. All others have remained constant C1. (Top2Box Summary (Favorable)) - Please indicate your overall opinion of the following industries and sectors...

19. Some examples of sectors……. C1. (Top2Box Summary (Favorable)) - Please indicate your overall opinion of the following industries and sectors...

20. A look across some multi-national companies… F2. (Top2Box Summary (Favorable)) - Now, taking into account all of the things which you think are important, how favorable or unfavorable is your overall opinion or impression of each company or organization?

21. Consumer Coping Behavior 21

22. Cutbacks in spending have remained constant J3. Given the current state of the global economy, have you and your family had to cut back on your household spending recently?

23. Specific Cut BacksAverage of all countries J4. What are the specific things that you and your family are cutting back on these days? Base: respondents who have cut back in J3

24. Cutbacks on Groceries – Alcoholic beverages are the top items to cut J5_3. [First/ Second] During difficult economic times for your household, which of the following grocery items would you prioritize cutting back your household spending on first? And what is your second priority?

25. The Economic Crisis and Social Disruption 25

26. Job losses are hitting LATAM/BRIC countries the hardest K1. In the past six months, the global economy has experienced large scale job losses and economic cutbacks. Have you or someone you know lost their job in the past six months as a result of the current economic situation?

27. Economic Crisis – social affects K2. In the past six months, do any of the following statements apply to you, your family or someone close to you?

28. Confidence in Economic Stimulus K2. In the past six months, do any of the following statements apply to you, your family or someone close to you?

29. Most (60%) Believe Increased Government Regulation Will Stifle Economic Growth… Do you believe that increased government regulation will stifle economic growth?

30. 42% Think US Has Done Enough To Kick Start Global Economy… In your opinion, have the following countries or groups of countries done enough to help kick start the global economy?

31. 47% Think European Union Has Done Enough To Kick Start Global Economy… In your opinion, have the following countries or groups of countries done enough to help kick start the global economy?

32. 32% Think China Has Done Enough To Kick Start Global Economy… In your opinion, have the following countries or groups of countries done enough to help kick start the global economy?

33. Government Solutions? 34

34. Cut vs. Tax – by Region J9. In your opinion, what solution is the better one for governments to undertake in order for them to meet their budgets?

35. Cutting Agenda J10_4. [Cut service #1, #2 & #3] Thinking now about cuts that governments can make to their budgets, please rank the top three things you think should be cut in your country.

36. Taxing Agenda – Sin Taxes receive most support J11_4. [Tax increase #1, #2 & #3] Many governments are considering adding new taxes as a way to meet their budgets. If you had to raise taxes, please rank your top 3 products or services where you would support a tax increase.

37. Closing Thoughts and Outlook 38

38. Key Points: Economic Crisis • Overall Global Confidence has stabilized thanks in large part to an anchoring effect from the US, China, and India. • However joblessness has lead to violence and corruption in Europe and Russia, which has halted any effects of economic resiliency in these regions. • This crisis is personal and local • Jobs and unemployment is affecting everyone directly/indirectly • De-leveraging trend has become a mixed blessing • Citizens have paid down debt, and stock-piled savings • Spending into the economy is still an issue affecting many industries • Upcoming job reports are step 1 in a full turnaround 39