kingsdale presentation - june 25, 2010
DESCRIPTION
Roop Mundi presentation at CLCA Seminar: Best Practices IR and PR for Junior Issuers (June 25th, 2010)TRANSCRIPT
Investor Relations Best Practices
IR Websites
June 2010
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About Kingsdale Communications
Kingsdale Communications Inc. – a division of Kingsdale Shareholder Services providing tailored investor relations and strategic communications solutions with the highest level of client service. Canada’s experts in shareholder communications are now the choice for helping companies reach out to the entire investment community. Kingsdale Communications is a team of seasoned industry professionals, with years of experience and expertise in investor relations, public relations, multi-media, media management and corporate communications. From micro- to mega-cap companies, with a unique Canadian perspective, we can provide the sound advice to help you build investor confidence and drive shareholder value.
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What Sets Us Apart
Strategic Communications Counsel Based on Experience
Award–winning leadership • Industry recognition and validation of capabilities
Seasoned industry professionals• Team approach to all client accounts
Tailored IR solutions • Strategic services based on your unique needs
Integrated partnerships• In-house access to leading legal and corporate governance
professionals within Kingsdale Shareholder Services
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Investor Relations Defined
Investor Relations (IR) is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation. (Adopted by the NIRI Board of Directors, March 2003.)
A black and white definition, but with many shades of grey.
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Benefits of an IR Program
A well developed and executed investor relations program can help:• Improve market understanding of long-term value proposition• Improve relationships with your current investors• Raise awareness about your company and its investment brand• Support your business and marketing plans • Attract new investors and/or diversify shareholder base• Achieve appropriate valuation• Access large capital pool• Attract analyst engagement on stock• Increase trading liquidity• Overcome “legacy” issues• Build management team mindshare
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Value of IR: Return on Investor Relations
Effective IR has clear market impact
• Return on Investor Relations*– The “10% rule”– 3 of 4 surveyed said they believe that good IR has
a definite impact– Superb IR added 10% to stock price;
poor IR negatively impacted stock price 25%
• Providing the right strategic advice at the right time
• Managing risk and optimizing opportunity
for a company in the capital markets
* (Valuing Investor Relations – IR’s Impact on a Company’s Valuation, Rivel Research Group’s Q1 2010 White Paper)
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Best Practice IR Communication
Financial Reporting• More than financial statements• Ensure easy to read analysis that includes comparables, charts and FAQs using clear
and concise language with limited legal jargon • Don’t overwhelm your reader with information but provide easy access to full details • Develop and execute financial communication schedule in addition to mandatory
reporting
Shareholder Engagement• Know your audience and how they access information – tailor your communication,
positioning and communication schedule accordingly– Current and potential shareholders– Financial analysts – Regulators – Employees – Competitors – Suppliers
• Allow for two way communication and ensure timely response (i.e. within 24 hours)• Don’t be afraid to pick up the phone
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Communications Tactics: Tell Your Story
Multiple Channels• Regulatory filings (filed on SEDAR in Canada):
– News Releases– Annual and quarterly reports– Material change reports– Management Circulars
• Website - often first point of contact– RSS feeds– Social media
• Investor presentations– Investor conference calls– Face-to-face meetings
• Road shows (Investor Meetings / Analyst Days)• Email blasts • Proxy solicitation• Perception audits
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IR Websites
Objectives of an IR Website: One-Stop Source• Enhance company image• Provide easy & timely access to information• Convey company investment proposition
Compelling Statistics:– 75% of portfolio managers use IR website weekly if not daily1 – 47% of investment professionals rate as very or extremely important1 – 45% of U.S. portfolio managers say their perceptions are substantially impacted
by a corporate site1 – 77% of investors say investor relations websites have an impact on their
perceptions of a company2 – 74% of portfolio managers use IR websites at least weekly, 30% use them daily2
1 Q4 IR Web Site Best Practices Webinar, August 30, 2009 2 Thomson Financial
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Best Practice Benchmarks
Qualities of best-in-class IR websites:• Acts as one-stop source • Investor-friendly
– Easy to navigate– Tiered information that is easy to find– Accessible financial information– Flexible access to updates through RSS feeds, Twitter, etc.
• Leading-edge design with intuitive use of technology– Interactive features – Feedback forms– Search function
• Information is current, complete, up-to-date, relevant, clear and well-organized
– Content is written for an online audience• IR section is not promotional & adheres to all disclosure policies and
securities laws
Key Audiences
Key Audience: What they use the IR website for:
Retail Investors (current and prospective)
• Often represent the most common user group; catering to this group can reduce both costs and demand on the IR department (i.e. reduce investor calls, mailings, etc.)
Analysts, Portfolio Managers & Brokers (current and prospective)
• Typically have access to sophisticated resources to obtain company information
• Are highly influential therefore their needs cannot be disregarded
• Expect the IR website to be a “one-stop-source” for relevant information
Media• Research begins with the website; will form an impression
about a company based on the website and their user experience
Employees• Will refer to corporate website to learn more about the
company
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Suggested Content
IR Websites should include the following sections:• Corporate and management overview • Corporate governance
– Governance practices– Committee descriptions
• Financial information• Regulatory filings and news releases• Presentations and events
– Calendar of events• Share information
– Stock quotes and charts– Real-time and historical information
• Corporate social responsibility• Contact information
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Best-in-Class Company Websites
Dedicated “Capital Markets Day” Event Page
Regularly Disseminated Investor Newsletter
Rotating Announcements on Landing Page
Financial Information Dashboards
Growth Strategy & Why Invest Overviews
Flexible Communication Through Social Media
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Transaction Specific Websites
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Don’t Overlook
• The importance of clear, concise and easy to use information– True to your brand– Use every opportunity to communicate
• Promoting two-way communication– Contact information– Feedback forms– Ensure timely response (i.e. 24-48 hour guarantee)
• Ensuring investors have easy access to information the way THEY want it– RSS feeds– Investor newsletters– Social media (Twitter / Facebook / Youtube)*
*take care when choosing social media to use it in a carefully targeted approach – what portion of your investors will use it regularly?
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Three Keys to Getting Started
Where to start when producing your best-in-class IR website:• Know your investors
– Who are you talking to?– How do they want to access information?
• Audit your current practices– Inventory of current IR website and/or outreach program– Pay attention to your peers and what they do
• Work with best-in-class partners for best-in-class results– Not all web designers are created equal– Work with partners who have experience with IR
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Key message & news release development • Investor relations strategy and
investment thesis development• News releases• Investor fact sheets• Quarterly and annual report writing
and production
Media relations• Media relations and communications
planning• Media monitoring and coverage
analysis
Website development• Investor relations website auditing • Investor relations website design and
development• Multi-media management
Shareholder engagement programs• Shareholder analysis and targeting
– Investor road show development and execution
• Analyst day / site tour management– Annual general meeting planning
and execution
Stakeholder perception surveys
Logistics support & supplier relations
Kingsdale Communications IR Solutions
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Kingsdale Communications Contact
Vancouver
Roop Mundi
Vice President, Business Development
604.638.0140
Toronto
Joel ShafferDirector, Kingsdale Communications416.867.2327
Toll-Free in North America:1-877-373-6007