The Latino Brand is EverythingSol Trujillo for theLatino Leaders Magazine Luncheon101 Most Influential Latino Leaders“Breaking Through Frontiers”The Willard IntercontinentalWashington, D.C. October 29, 2014

The Rising Importance ofAmerica’s Large, Growing,

Youthful, Affluent & DispersedLatino Population

Hispanic Buying Power growing at the rate of $90 B per year...

Projected

Rapid Population Growth

Younger Hispanics Now Entering Workforce

High Level of Entrepreneurial Activity Strong Work Ethic

Increasing Educational AttainmentGrowing Per Capita Wealth

What Drives Hispanic Buying Power?

($ in billions)

Source: Selig Center for Economic Growth, 2010

1990 2000 2010 2015 $-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$210 B

$499 B

$1.1 T

$1.7 T

Hispanics Lead New American Mainstream

The Real Dropout Rate for Latinos

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

6.6%

30 %

12 %

All Hispanic

Hispanic dropout rate has plummeted over the last 15 years…

It is often quoted that 50% of Latinos drop out of high school but that figure is wildly overstated – and the trend has been improving dramatically

Source: U.S. Department of Commerce, U.S. Census Bureau, Current Population Survey (CPS), October 1967 through 2012, prepared May 2013

49%

45%

Hispanic College Enrollment Passes Whites80.0%

70.0%

66.1%

60.0%

50.0%

40.0%

30.0%

…and college enrollment has skyrocketed since 200620.0%

10.0%

0.0%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

White, N-H Black Asian Hispanic

Source: U.S. Census Bureau, Current Population Survey, 1967 to 2012. Data for the “Asian” category shown prior to 2003 consists of those identifying themselves as“Asian or Pacific Islanders”

Hispanic college enrollment has doubled since 2006 and grown more than 1.5x the rate of Hispanic population growth

35.8%

US Hispanic Purchasing Power (IMF, 2013)

China($13.3 Trillion)

United States($16.8 Trillion)

Brazil($2.4 T)

India ($5.0 T) Russia

($2.5 T)

US Hispanic

($1.7 T)

US Hispanic Growth Rate Beats BRICs

The US Hispanic population is growing faster than all the BRIC countries combined

US Hispanic

Brazil

Russia

China

India

4.19%

1.62%

1.34%

0.62%

0.12%

Average Population Growth per Year

GDP Per Capita: OECD, BRIC & Hispanics

GDP per capita as of 2010 (est.)

Source: World Bank, U.S. Census, Selig Center for Economic Growth and LDC Calculations

OECD Average: $34,673

BRIC Average:$3,927

Hispanic Average: $27,162

%

Growing Wealth is a MagnetProjected Growth by Age Group (2012-2017) Change in Spending at each

Age & Stage of Life31%Peak Spending

23%

1514%

11%9%

5%3% 2%

(1%)

46 - 50Family(8%)

(9%) 50+22 - 30Young

31 - 42YoungFamily

College Empty18 - 22 60+

Kids Nesters RetiredSingle Married18-22 23-30 31-42 46-50 50-59 60+

Hispanic Non-Hispanic

Source: Harry S. Dent, Jr., author of The Great Crash Ahead and editor of Boom & Bust and U.S. Census Bureau, Projections of the National Population, 2012

Hispanics Define the New RichHousehold Growth by Ethnicity (2000-2012)

Source: U.S. Census Bureau

Middle Income Upper-Middle Income Upper Income

49%

132%

214%

(-8%)

43%

116%

Hispanic Non-Hispanic

($35,000 - $74,999) ($75,000 - $149,999)

($150,000 and higher)

1990 2000 2010 2020

10.7

16.7

22.7

30.5

Hispanics are the Future Workforce

Source: U.S. Bureau of Labor Statistics, Employment Projections, 2010-20

(in millions)

(9%)

(12%)

(19%)

Projected(15%)

36% of new

workers

54% of new

workers

74% of new

workers

Still, Challenges PersistEspecially in the Leadership Pipeline

1.5% Fortune 1000

1.5% Fortune 1000

Source: Hispanic Association on Corporate Responsibility 2007 Corporate Governance Study; U.S. News & World Report; Alliance for Board Diversity Report, July 2011

3.7% Fortune 100 board seats are held by Hispanics

3.7% Fortune 100 board seats are held by Hispanics

3.0% Fortune 500

3.0% Fortune 500

Metric Example Value (2012) Current Value

BankingChairman or CEO, Top 10 banks by assets

N/A 0 0

Academic Institutions

President, top 50 undergraduate institutions

N/A 1 chancellorUniversity of Texas

0

Hollywood Studios

Chief / Head top 10 studios by box office revenue

N/A none none

Top Foundations

President and Trustees, top 10 foundations by assets

N/A1 president

Ford Foundation

5% trustees

05% trustees

Silicon Valley

Chairman or CEO, Top 10 tech companies by revenue

N/A 0 0

Fortune 100

CEO of Fortune 100 companies

George Paz (Express Scripts) 1 CEO 1 CEO

Source: Federal Reserve, U.S. News and World Report, School websites, Box Office Mojo, Studio websites, The Foundation Center, various Foundation websites, Fortune and The Wall Street Journal

Progress is Slow Despite Room at the Top

15

Myths About LatinosWidespread in the Media

1. Latinos are taking our jobs.2. Unauthorized workers are a burden on society.3. Unauthorized workers don’t pay taxes.4. Latinos are "different" from "regular Americans."5. Latino immigrants don't want to learn or speak

English.6. Latinos succeed in sports and entertainment, but

not as entrepreneurs or in business and professional services.

Exposure Occurs in Entertainment and Ads

Source: Market sizing assumptions based primarily on Nielsen ratings, assuming a three-hour primetime period from Monday – Thursday and approximately 12 viewer impressions per hour. Movies data based on MPAA “Theatrical Statistics for 2011”, U.S./Canada admissions. Network nightly news is assumed to occur for one half-hour on ABC, CBS and NBC only.

Networ

k

ente

rtain

men

t

Adver

tisem

ents

Networ

k ni

ghtly

new

s

Mov

ies

(in th

eate

r)

Fox

News

CNN /

MSN

BC

9,600

2,212

675 443 270 72

Millions of Weekly Viewer Impressions

Avg. Viewers

10,000,000 7,500,000 1,500,000 200,000

Younger generations are far more likely to believe that undocumented workers become tax paying citizens in the long-

run.• This difference underscores the change in attitudes towards Latinos over the course of the last 3 generations.

43

35

24

17

15

13

40

51

63

Baby Boomers

Generation X

Millennials

Undocumented immigrants in the long-run become productive citizens and pay their fair share of taxes

Undocumented immigrants cost the taxpayers too much by using government services like public education and medical services

Don’t Know

+11

+19

4651 50

47 4642

23 22 20

Close Latino friend

Familiarity Breeds RespectHaving just a few Latino acquaintances reduces the

power of negative attributes

Having just a few Latino acquaintances

more than doubles the likelihood of

disagreeing with the most damaging assertions about

Latinos

Disagreement with Negative AttributesShowing those who “strongly disagree” with top negative attributes about

Latinos,

+24 +24

+22

Undocumented Latinos Number Under 20%.But more than one-third of Americans believe, incorrectly,

that the number exceeds 40%

0-19% 20-39% 40-59% 60-79% 80-100% Don't know

19

28

18

13

6

16

5

22 21

27

17

8

28 28

13

17

2

12

GP Negative Towards Latinos Elites

Only 1 in 5 knows the correct percentage of Latinos who are here

illegally.

Conclusion1. The Brand is Everything.2. The Latino Brand Has Been Tarnished

While Latino Brand Assets Soar.3. Latinos Must Reframe and Reposition

Their Brand.4. Latinos Must Control Their Brand.

Thank YouSol Trujillo

www.soltrujillo.com