The Shareholder Letter - NIRI Presentation by Rob Berick

National Investor Relations Institute Webinar
The Annual Shareholder Letter
November 8, 2011

Perspective on the Annual Report and Shareholder Letter
Annual report still widely read by current and prospective investors
Also by employees, customers, media, regulators, civic leaders
CEO letter is most-read section of the annual report
More investors will read the letter than will meet with the CEO during the year
Puts CEO “stamp” on go-forward investor messaging

Basic Functions of Annual Shareholder Letter
Set tone, share perspective on previous year
Review year-over-year results
Highlight financial and operational milestones
Discuss major corporate events during past 12 months
Acknowledge of Board, employees, customers, investors
Assert enthusiasm for opportunities going forward
Provide update on strategic initiatives
Offer “guidance” on outlook, market, industry trends

Other Content to Consider
CSR/sustainability
Don’t allow your company to “green blush”
New product launches and innovation pipeline
Significant new customer engagements and/or contracts
New strategic initiatives
From acquisitions to joint ventures to market expansion to geographic diversification
Update on governance-related matters

Getting Started
Review disclosures and conference call transcripts from past year
Review recent non-deal road show and industry conference presentations, including any feedback from investors
Review most recent investor perception study findings (if still relevant)
Discuss forward-looking “investor” message and metrics with CEO, CFO and other relevant senior leadership
Build upon “uniqueness” of CEO’s personal style/voice – he/she personifies the company’s brand and investor identity
Intangibles make a difference
Develop expanded content outline for input and approval by CEO before you start writing

Do’s & Don’ts
Do
Give yourself enough time
No shortage of editors
Keep all constituents in mind – from long-time investors to prospective employees to customers to regulators
Focus on underlying question on every investor’s mind: “Why is now the right time to have a position in this company’s equity?”
Establish realistic expectations for the company
Credibility is a paramount objective
Consider alternative writing approaches – from Q&A to a more narrative style – to further differentiate the message from other annual reports
Regardless, it needs to clearly tie back to the theme of the annual report
Allow time for any CEO photos to be reviewed by the CEO’s CEO (read: spouse)

Do’s & Don’ts (continued)
Don’t
Presume readers have been following your company closely or for long
Use industry jargon
Avoid addressing the “elephant(s) in the room”
Forget to get consensus on the date shown on the letter
Overlook the Web component (e.g., CEO video) or alternative uses for content

Resources
Report Watch
http://www.reportwatch.net/annual-report-on-annual-reports-2011
League of American Communications Professionals (LACP)
http://www.lacp.com/2010vision/competition.htm
NIRI
www.niri.org
IR Magazine
www.insideinvestorrations.com
Dix & Eaton
“ Report on Annuals” @ http://www.dix-eaton.com/reportonannuals/

The Shareholder Letter - NIRI Presentation by Rob Berick

by Dix & Eaton on Nov 09, 2011

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The Shareholder Letter - NIRI Presentation by Rob Berick — Presentation Transcript