Kingsdale Presentation - June 25, 2010


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Roop Mundi presentation at CLCA Seminar: Best Practices IR and PR for Junior Issuers (June 25th, 2010)

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Kingsdale Presentation - June 25, 2010

  1. 1. Investor Relations Best Practices<br />IRWebsites<br /> June 2010<br />
  2. 2. About Kingsdale Communications <br />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.<br />2<br />
  3. 3. What Sets Us Apart<br />Strategic Communications Counsel Based on Experience<br />Award–winning leadership <br />Industry recognition and validation of capabilities<br />Seasoned industry professionals<br />Team approach to all client accounts<br />Tailored IR solutions <br />Strategic services based on your unique needs<br />Integrated partnerships<br />In-house access to leading legal and corporate governanceprofessionals within Kingsdale Shareholder Services<br />3<br />
  4. 4. Investor Relations Defined<br />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.) <br />A black and white definition, but with many shades of grey.<br />4<br />
  5. 5. Benefits of an IR Program<br />A well developed and executed investor relations program can help:<br /><ul><li>Improve market understanding of long-term value proposition</li></ul>Improve relationships with your current investors<br /><ul><li>Raise awareness about your company and its investment brand</li></ul>Support your business and marketing plans <br />Attract new investors and/or diversify shareholder base<br />Achieve appropriate valuation<br />Access large capital pool<br />Attract analyst engagement on stock<br />Increase trading liquidity<br />Overcome “legacy” issues<br />Build management team mindshare<br />5<br />
  6. 6. 6<br />Value of IR: Return on Investor Relations<br />Effective IR has clear market impact<br />Return on Investor Relations*<br />The “10% rule”<br />3 of 4 surveyed said they believe that good IR has a definite impact<br />Superb IR added 10% to stock price; poor IR negatively impacted stock price 25%<br />Providing the right strategic advice at the right time<br />Managing risk and optimizing opportunity <br /> for a company in the capital markets<br />* (Valuing Investor Relations – IR’s Impact on a Company’s Valuation, Rivel Research Group’s Q1 2010 White Paper)<br />
  7. 7. Best Practice IR Communication <br />Financial Reporting<br />More than financial statements<br />Ensure easy to read analysis that includes comparables, charts and FAQs using clear and concise language with limited legal jargon <br />Don’t overwhelm your reader with information but provide easy access to full details <br />Develop and execute financial communication schedule in addition to mandatory reporting<br />Shareholder Engagement<br />Know your audience and how they access information – tailor your communication, positioning and communication schedule accordingly<br />Current and potential shareholders<br />Financial analysts <br />Regulators <br />Employees <br />Competitors <br />Suppliers<br />Allow for two way communication and ensure timely response (i.e. within 24 hours)<br />Don’t be afraid to pick up the phone<br />7<br />
  8. 8. Communications Tactics: Tell Your Story<br />Multiple Channels<br />Regulatory filings (filed on SEDAR in Canada):<br />News Releases<br />Annual and quarterly reports<br />Material change reports<br />Management Circulars<br />Website - often first point of contact<br />RSS feeds<br />Social media<br />Investor presentations<br />Investor conference calls<br />Face-to-face meetings<br />Road shows (Investor Meetings / Analyst Days)<br />Email blasts <br />Proxy solicitation<br />Perception audits<br />8<br />
  9. 9. IR Websites<br />Objectives of an IR Website: One-Stop Source<br />Enhance company image<br />Provide easy & timely access to information<br />Convey company investment proposition <br />Compelling Statistics:<br /><ul><li>75% of portfolio managers use IR website weekly if not daily1
  10. 10. 47% of investment professionals rate as very or extremely important1
  11. 11. 45% of U.S. portfolio managers say their perceptions are substantially impacted by a corporate site1
  12. 12. 77% of investors say investor relations websites have an impact on their perceptions of a company2
  13. 13. 74% of portfolio managers use IR websites at least weekly, 30% use them daily2</li></ul>1 Q4 IR Web Site Best Practices Webinar, August 30, 2009 <br />2 Thomson Financial<br />9<br />
  14. 14. Best Practice Benchmarks<br />Qualities of best-in-class IR websites:<br />Acts as one-stop source <br />Investor-friendly <br />Easy to navigate<br />Tiered information that is easy to find<br />Accessible financial information<br />Flexible access to updates through RSS feeds, Twitter, etc.<br />Leading-edge design with intuitive use of technology<br />Interactive features <br />Feedback forms<br />Search function<br />Information is current, complete, up-to-date, relevant, clear and well-organized<br />Content is written for an online audience<br />IR section is not promotional & adheres to all disclosure policies and securities laws<br />10<br />
  15. 15. Key Audiences<br />11<br />
  16. 16. Suggested Content<br />IR Websites should include the following sections:<br />Corporate and management overview <br />Corporate governance<br />Governance practices<br />Committee descriptions <br />Financial information<br />Regulatory filings and news releases<br />Presentations and events<br />Calendar of events<br />Share information<br />Stock quotes and charts<br />Real-time and historical information<br />Corporate social responsibility<br />Contact information<br />12<br />
  17. 17. Best-in-Class Company Websites<br />Dedicated “Capital Markets Day” Event Page<br />Rotating Announcements on Landing Page<br />Growth Strategy & Why Invest Overviews<br />Regularly Disseminated Investor Newsletter<br />Financial Information Dashboards<br />Flexible Communication Through Social Media<br />13<br />
  18. 18. Transaction Specific Websites<br />14<br />
  19. 19. Don’t Overlook<br />The importance of clear, concise and easy to use information<br />True to your brand<br />Use every opportunity to communicate<br />Promoting two-way communication<br />Contact information<br />Feedback forms<br />Ensure timely response (i.e. 24-48 hour guarantee)<br />Ensuring investors have easy access to information the way THEY want it<br />RSS feeds<br />Investor newsletters<br />Social media (Twitter / Facebook / Youtube)*<br />*take care when choosing social media to use it in a carefully targeted approach – what portion of your investors will use it regularly?<br />15<br />
  20. 20. Three Keys to Getting Started<br />Where to start when producing your best-in-class IR website:<br />Know your investors <br />Who are you talking to?<br />How do they want to access information?<br />Audit your current practices<br />Inventory of current IR website and/or outreach program<br />Pay attention to your peers and what they do<br />Work with best-in-class partners for best-in-class results<br />Not all web designers are created equal<br />Work with partners who have experience with IR<br />16<br />
  21. 21. Key message & news release development <br />Investor relations strategy and investment thesis development<br />News releases<br />Investor fact sheets<br />Quarterly and annual report writing and production<br />Media relations<br />Media relations and communications planning<br />Media monitoring and coverage analysis<br />Website development<br />Investor relations website auditing <br />Investor relations website design and development<br />Multi-media management<br />Shareholder engagement programs<br /><ul><li> Shareholder analysis and targeting</li></ul>Investor road show development and execution<br /><ul><li> Analyst day / site tour management</li></ul>Annual general meeting planning and execution<br />Stakeholder perception surveys<br />Logistics support & supplier relations<br />Kingsdale Communications IR Solutions<br />17<br />
  22. 22. Kingsdale Communications Contact<br />Vancouver<br />Roop Mundi<br />Vice President, Business Development<br />604.638.0140<br /><br />Toronto<br />Joel ShafferDirector, Kingsdale Communications416.867.2327<br />Toll-Free in North America:1-877-373-6007<br /><br />18<br />