Leverage Sector-Specific Data for a More Compelling IR Web site

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For a public company, an Investor Relations Website is more than just a regulatory requirement, it's a communications platform. Investor Relations Officers should view the IR Website as an opportunity to connect with investors and analysts in a medium that offers technological and functional advantages that cannot be matched by paper filings, 24 hours a day, 7 days a week.

Companies can utilize their IR Websites to differentiate themselves and provide a more comprehensive sense of their strategy and results by including content that speaks more directly to their business and their industry. It's also an opportunity for companies to outline their own unique approach within the industry that makes their value proposition compelling to an investor, and to provide the financial data alongside that message to back it up. This whitepaper provides some examples of sector-specific data that can add great value to company IR Web sites in different industries.

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Leverage Sector-Specific Data for a More Compelling IR Web site

  1. 1. Leverage Sector-Specific Datafor a More Compelling IR Website
  2. 2. Leverage Sector-Specific Data for a More Compelling IR WebsiteOverview company information and news, or even providing high- level, generic financial data. Companies can differentiateA company’s Investor Relations website provides an themselves and provide a more comprehensive sense ofopportunity for firms to connect with shareholders, potential their strategy and results by including content that speaksinvestors, analysts, the media, and others who may just be more directly to their business and their industry. Followinginterested in learning more about the company. The IR site are some examples of sector-specific data that can addalso offers a vehicle through which companies can tell their great value to company IR Websites in different industries.story, the way they want it to be told.Most IR sites attempt to do so by presenting a collection ofstandard information including SEC filings, press releases, Banking & Financial Servicescorporate governance information, and stock price data. In the banking sector, investors looking to get a sense ofThese are all important pieces of information, and are the how well a company is performing will want to know detailnecessary components that create the framework of a great surrounding deposits, loan composition, and performanceinvestor relations Website. However, if a company really metrics like asset quality and capital ratios. By including thiswants to differentiate itself in the eyes of the investment detail in the IR Website, the company controls its messagecommunity, it needs to go beyond just these standard rather than leaving analysts to rely on their own models andelements. metrics that may not take into account performance drivers unique to a specific company.Whether analyzing the company as a potential investmenttarget, or looking for more detail about a company’sstrengths and strategies, investors and analysts maywalk away unfulfilled if some of their basic questions goun-answered. Questions such as: • How does this company stack up against its industry peers on key financial measurements? • What metrics are most important for companies in this industry, and is this firm among the leaders on these key items? • What % of revenue comes from different geographic areas or from specific product and service lines? • Where does this company rank in terms of market share in different regions across the country? • What are the key performance indicators that are most relevant to the company’s strategic and financial objectives?Answers to these questions might all be found in the Table 1: Financial Highlights – Balance Sheet/Asset Quality Ratioscompany’s financial documents and SEC filings, and Especially following the recent financial and market turmoil,experienced, long-term investors won’t make a decision to deposit/loan composition is a critical component in evaluatingbuy without that knowledge. But, if you have a good story to a bank’s financial position. Providing this information intell, why make investors and analysts hunt for this type of a transparent way helps investors make intelligent andcritical information? And, if your company has a better value informed decisions fueled by data that has been vettedproposition than your peers’, why not make sure everyone internally, and adds credibility to your company’s financialknows this by putting this material front and center? disclosure.The best IR sites don’t settle for only communicating general 2
  3. 3. Leverage Sector-Specific Data for a More Compelling IR Website Real Estate Investment Trusts (REITs) For REITs, it’s just as important to leverage the IR Website by highlighting financial metrics critical to their company’s financial performance strategy that go beyond standard GAAP disclosures. For example, adding tables that show FFO and per share ratios, as well as same-store NOI and growth rates (along with the inputs behind those calculations) provides investors with deeper insight than they would find elsewhere, and presents them in a transparent way using calculation methodologies endorsed by the company. This can help alleviate confusion and save time that could otherwise be spent clarifying and validating financial models and templates for investors and analysts. Table 2: Deposit Loan CompositionWhile GAAP data found on the income statement and balancesheet tell an important part of any bank’s story, they won’tprovide a full 360 degree view of the company’s operationson their own. Showing deposit market share information,based on data filed with the FDIC, adds context to financialperformance by illustrating the bank’s geographical footprintas compared to its peers. Investors want to know how thebank compares to other banks of similar size in its markets.Including data like this provides a much more completepicture of how a particular bank stacks up against their Table 4: Financial Highlightspeers and the market as a whole. Because REITs are legally required to distribute at least 90% of taxable income to shareholders in the form of dividends, their dividend history and yield is naturally top of mind for a REIT investor. By bringing these metrics front and center on the IR Website, as well as offering insight into how they stack up against peers, REITs can provide their potential investors a valuable service. IR websites should highlight financial metrics critical to a Table 3: Deposit Market Share company’s business strategy. 3
  4. 4. Leverage Sector-Specific Data for a More Compelling IR Website other industry, providing this data adds significant value to any IR Website. However, the insurance industry carries additional regulations that require companies to report supplemental information that is of critical importance to their business, and is extremely valuable when evaluating overall performance. By including these documents on the Investor Relations Website, companies give investors additional tools to make informed investment decisions by taking them beyond the standard generic financial statements. Table 5: Peer Analysis & DividendsPotential REIT investors also want to see detailed propertyportfolio data – property types (shopping centers,commercial office space, etc.), allocation as a % of theportfolio, geographical exposure and transaction history. Table 7: Insurance Regulatory Filings Leveraging this data, an insurance company can also supplement their NAIC filings with breakouts of their net premiums written by business line. This gives investors a strong understanding of how their premiums are allocated without having to dig through paper filings and update their models manually. Table 6: Property Portfolio DataInsurance IndustryMost public companies are required to file quarterly andannual financial results with the SEC, and those filingsdrive many of the valuable reports and datasets referencedabove. For insurance companies, this information is no lessimportant, and investors will always utilize GAAP financials,per share measurements and profitability ratios. Like any Table 8: Statutory Business Lines 4
  5. 5. Leverage Sector-Specific Data for a More Compelling IR WebsiteEnergy IndustryEnergy companies have a unique opportunity to provide awealth of information about their operations, taking investorsand analysts far beyond the standard financial disclosures.Especially in a highly regulated industry, providing insightinto energy throughput, customer counts and plant capacity(among other key business drivers) is extremely valuableto investors and analysts interested in evaluating yourcompany. By not forcing them to hunt through FERC andother regulatory filings for data, you allow them to focus onthe numbers themselves, sourced to your IR Website, and inthe context of your company’s story. Table 9: Financial Charting Summary These are just a few examples of the sector-focused data that can be used to turn a good IR site into a great one. Ultimately, the goal of the IR Website should not just be to comply with regulatory requirements, but to create another channel of communication between an investor or analyst and the company. Leveraging this type of data, while alsoThe Power of Charts providing investors and analysts with powerful tools and convenient features such as robust charting capabilities,IR sites that allow investors to chart financial information mobile accessibility, and alternative distribution formatsto compare data over time add a completely new dimension including RSS feeds and social media integration, canto financial tables, providing a unique and interactive help drive traffic to the company’s IR site and position theexperience on the company Website. company more effectively to the public.Charts are a great way for companies to drive investors to keyperformance metrics and paint an impactful picture that willassist them in evaluating the company. Whether it’s a banksimply visualizing their Assets/Equity trend of the last fouryears, a Financial Technology company showing quarterly Providing powerful chartingSales Revenue vs. Operating Income, or a Media company capabilities on an IR Websitedisplaying its Recurring EBITDA against EBITDA Margin,providing powerful charting capabilities on an IR Website has an impact that just can’thas an impact that just can’t be matched by a standard be matched by a standardfinancial table. financial table. 5
  6. 6. One SNL PlazaP.O. Box 2124Charlottesville, VA 22902434.951.7781irsales@snl.comSNL.com

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