Shareholder Communication in Ghana A presentation to executives of listed companies African Alliance Securities Ghana Ltd Sep 2009

Agenda An organisations’ stakeholders What shareholders want How we currently communicate Scorecards on Shareholder Communication

An organisations’ stakeholders

What shareholders want

How we currently communicate

Scorecards on Shareholder Communication

An Organisation’s Stakeholders Employees Internal Stakeholders External Stakeholders Organisation Directors Majority + Minority Shareholders Financial Institutions Competitor s Customers Suppliers Labour Unions The Media Special-Interest Groups Government or Regulators

Majority Shareholder (s) Minority Shareholders Usually has a controlling stake Board representation Appoints the management team Well informed on their investments Comprise local and foreign institutions and individuals Typically hold less than 10% No Board representation Usually relies on the following to stay informed press releases, investor presentations, company websites, annual periodic financials AGMs It is critical to understand your shareholding dynamics

Usually has a controlling stake

Board representation

Appoints the management team

Well informed on their investments

Comprise local and foreign institutions and individuals

Typically hold less than 10%

No Board representation

Usually relies on the following to stay informed

press releases,

investor presentations,

company websites,

annual periodic financials

AGMs

What Shareholders Want A return on their investments Transparency and fair treatment both the good and bad news tell as it is minority shareholders also have a stake Access to information in a structured manner Increase use of online communication platforms Management’s willingness to communicate Investor presentations Meeting with executive teams

A return on their investments

Transparency and fair treatment

both the good and bad news

tell as it is

minority shareholders also have a stake

Access to information in a structured manner

Increase use of online communication platforms

Management’s willingness to communicate

Investor presentations

Meeting with executive teams

How we currently communicate Press Releases via the GSE Too many distribution channels before PRs reach investors GSE’s Facts behind the Figures Low patronage by listed companies Investor Meetings Particularly important for our foreign clients Annual General Meetings Low on content, limited to the agenda Company Websites Increasing awareness, however most platforms need major enhancement

Press Releases via the GSE

Too many distribution channels before PRs reach investors

GSE’s Facts behind the Figures

Low patronage by listed companies

Investor Meetings

Particularly important for our foreign clients

Annual General Meetings

Low on content, limited to the agenda

Company Websites

Increasing awareness, however most platforms need major enhancement

Scorecard – Website & IR Page Listed Co with Website Websites with IR page

Listed Co with Website

Websites with IR page

Scorecard – Website & IR Page IR page with Contact person

IR page with Contact person

Scorecard – Website & IR Page Websites with Annual Reports Websites with 2008 Ann Report

Websites with Annual Reports

Websites with 2008 Ann Report

Scorecard – Annual Report Websites with 2008 Ann Reports

Websites with 2008 Ann Reports

Scorecard – Investor Presentations Investor Presentation in 2008 Investor Presentation in 2009

Investor Presentation in 2008

Investor Presentation in 2009

Conclusion Based on the scorecards, how would rate your company’s shareholder communications!

Based on the scorecards, how would rate your company’s shareholder communications!

Contact: Winston Nelson Jr CEO - African Alliance Securities Ghana Tel: +233 21 679 761 – 2 Email: [email_address] Disclaimer: This document is confidential and issued for the information of internal and external clients of African Alliance Ltd (Reg no 79171C, Isle of Man) and its subsidiaries (African Alliance). It is subject to copyright and may not be reproduced in whole or in part without written permission. The information, opinions and recommendations contained herein are and must be construed solely as statements of opinion and not statements of fact. No warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such recommendation or information is given or made by African Alliance in any form or manner whatsoever. Each recommendation or opinion must be weighed solely as one factor in any investment or other decision made by or on behalf of any user of the information contained herein and such user must accordingly make its own study and evaluation of each strategy/ security that it may consider purchasing, holding or selling and should appoint its own investment or financial or other advisors to assist the user in reaching any decision. African Alliance will accept no responsibility of whatsoever nature in respect of any statement, opinion, recommendation or information contained in this document.

Contact:

Winston Nelson Jr

CEO - African Alliance Securities Ghana

Tel: +233 21 679 761 – 2

Email: [email_address]

Disclaimer:

This document is confidential and issued for the information of internal and external clients of African Alliance Ltd (Reg no 79171C, Isle of Man) and its subsidiaries (African Alliance). It is subject to copyright and may not be reproduced in whole or in part without written permission. The information, opinions and recommendations contained herein are and must be construed solely as statements of opinion and not statements of fact. No warranty, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any such recommendation or information is given or made by African Alliance in any form or manner whatsoever. Each recommendation or opinion must be weighed solely as one factor in any investment or other decision made by or on behalf of any user of the information contained herein and such user must accordingly make its own study and evaluation of each strategy/ security that it may consider purchasing, holding or selling and should appoint its own investment or financial or other advisors to assist the user in reaching any decision. African Alliance will accept no responsibility of whatsoever nature in respect of any statement, opinion, recommendation or information contained in this document.

Stake Vs Communication style 15% of listed companies sampled have majority shareholder holding more than 75% stake Strong Control over the company Weak Communication 29% of listed companies sampled have majority shareholder holding more than 50% but less than 75% Comfortable control over the company Usually open to communication

15% of listed companies sampled have majority shareholder holding more than 75% stake

Strong Control over the company

Weak Communication

29% of listed companies sampled have majority shareholder holding more than 50% but less than 75%

Comfortable control over the company

Usually open to communication

Stake Vs Communication Style 29% of listed companies sampled have majority shareholder holding Less than 50% stake Weak Control More engaging with shareholders

29% of listed companies sampled have majority shareholder holding Less than 50% stake

Weak Control

More engaging with shareholders