2014 INVESTOR RELATIONS PLANAmazon
2014 Investor Relations Plan
MSG Public Relations | December 2013
AGENDA
Agenda
• Current Landscape
• Internal Perspectives
• External Perspectives
• Ownership Summary
• Observations
• Fin...
CURRENTLANDSCAPE
Current Landscape
Internal Perspective
• Stock price increase of 120% over two years
• Promising sales gr...
CURRENTLANDSCAPE
Current Landscape
External Perspective
Black - Amazon
Blue - eBay
Red - Dow Jones Industrial Average
Gree...
CURRENTLANDSCAPE
Current Landscape
Ownership Summary
Institutional
Ownership
69%
Top 5 Holders
% of Total Shares Outstandi...
OBSERVATIONS
Observations
Amazon’s Status – Financial Performance
• Bold investments: long-term success more important tha...
OBSERVATIONS
Observations
Amazon’s Status – Shareholders Changes
• Shares heavily sold by financial institutions (Neutral ...
OBSERVATIONS
Observations
Amazon’s Status – Social Messaging
• Lack of new media utilized in comparison with competitors (...
2014IROBJECTIVES
2014 IR Objectives
Institutional
Ownership
69%
Effectively maximize corporate financial communications to...
MSGDELIVERABLES
Deliverables
Financial Calendar Communication
• Earnings reports preparation
• Draft and finalize earnings...
MSGDELIVERABLES
Deliverables
Investors and Analysts Targets and Outreach
Amazon’s Analyst Coverage, 106 equity analysts (p...
MSGDELIVERABLES
Deliverables
Investors and Analysts Targets and Outreach
Amazon’s Top Institutional Investors (partial lis...
MSGDELIVERABLES
Deliverables
Investors and Analysts Targets and Outreach
• Create and maintain invest calendar
o Coordinat...
MSGDELIVERABLES
Deliverables
Message Delivery and Development
• Leveraging Communication Channels
o Streamline investor re...
MSGDELIVERABLES
Deliverables
Market Intelligence
• Assess top shareholders and trends in market
• Prepare and distribute k...
BUGET
Budget
Hourly Labor Fees
 Material Creations - $2,000
 Executive Training - $1,000
 Direct-to-Investor Relations ...
2014 INVESTOR RELATIONS PLAN
Q & A
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Jour597 final project amazon 2014 ir plan

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Jour597 final project amazon 2014 ir plan

  1. 1. 2014 INVESTOR RELATIONS PLANAmazon 2014 Investor Relations Plan MSG Public Relations | December 2013
  2. 2. AGENDA Agenda • Current Landscape • Internal Perspectives • External Perspectives • Ownership Summary • Observations • Financial Performance • Shareholder Changes • Social Messaging • 2014 IR Objectives • MSG Deliverables • Financial Calendar Communication • Investor and Analyst Targets and Outreach • Message Development • Market Intelligence • Budget
  3. 3. CURRENTLANDSCAPE Current Landscape Internal Perspective • Stock price increase of 120% over two years • Promising sales growth • Investment in new business • Two straight quarterly losses • Profit is due in the near future “We will continue to: make bold investment decisions in light of long- term leadership considerations rather than short-term profitability considerations.” - Amazon, A Message to Our Shareowners.
  4. 4. CURRENTLANDSCAPE Current Landscape External Perspective Black - Amazon Blue - eBay Red - Dow Jones Industrial Average Green - S & P 500 “Amazon famously has survived on meager profits, despite fast-rising sales” - Bensinger G. “Amazon earnings: what to watch”, WSJ, Oct 24, 2013 “Retailers have been the strongest performing industry group this year, outperforming the S&P 500 by 15%” - WSJ, November 2013
  5. 5. CURRENTLANDSCAPE Current Landscape Ownership Summary Institutional Ownership 69% Top 5 Holders % of Total Shares Outstanding • Bezos, Jeffrey P. – 18.56% • Capital Research and Management Company – 10.04% • T. Rowe Price Group, Inc. - 4.6% • BlackRock, Inc. – 4.13% • The Vanguard Group, Inc. – 3.81% Type % of Total Shares Outstanding Institutions 69.96 Individuals / Insiders 18.69 State Owned Shares 0.04 Public and Other 11.31 Total 100.00
  6. 6. OBSERVATIONS Observations Amazon’s Status – Financial Performance • Bold investments: long-term success more important than short-term profitability (Neutral) • Large-cap and sales growth (Positive) • Great losses in two consecutive quarters (Negative) • Most recent quarterly earnings report lower than analysts’ consensus forecast (Negative)
  7. 7. OBSERVATIONS Observations Amazon’s Status – Shareholders Changes • Shares heavily sold by financial institutions (Neutral / Negative) Source: Yahoo! Finance
  8. 8. OBSERVATIONS Observations Amazon’s Status – Social Messaging • Lack of new media utilized in comparison with competitors (Negative) Live Tweeting Earnings
  9. 9. 2014IROBJECTIVES 2014 IR Objectives Institutional Ownership 69% Effectively maximize corporate financial communications to enhance company value and status among industry. • Streamline communications efforts to ensure maximum effectiveness • Emphasize promising business initiatives and long-term visions through financial results • Improve regular interaction with investors and analysts - frequency and effectiveness
  10. 10. MSGDELIVERABLES Deliverables Financial Calendar Communication • Earnings reports preparation • Draft and finalize earnings script, presentation and Q&A preparations • Press releases and financial press relations • Manage logistic for earnings release/call • Schedule sell-side analyst follow-up • Monitor trading activity post-release
  11. 11. MSGDELIVERABLES Deliverables Investors and Analysts Targets and Outreach Amazon’s Analyst Coverage, 106 equity analysts (partial list) Source: Capital IQ
  12. 12. MSGDELIVERABLES Deliverables Investors and Analysts Targets and Outreach Amazon’s Top Institutional Investors (partial list) Source: Yahoo! Finance Institutions that sold shares heavily (sold more than 132,000 shares): T. Rowe Price Associates, Inc. Capital Research Global Investors Baillie Gifford & Co Limited. Sands Capital Management, LLC Jennison Associations LLC Northern Trust Investment, N.A. (partial list)
  13. 13. MSGDELIVERABLES Deliverables Investors and Analysts Targets and Outreach • Create and maintain invest calendar o Coordinate non-deal roadshows and investor conferences • Update and maintain investor fact sheet • Handle all inbound investor inquiries • Schedule investor-related calls and meetings • Prioritize investor relations with key stakeholders • Enhance relationships with Amazon and industry analysts • Analyst Day o Assist with message and presentation development o Target key investors o Handle all event logistics o Present post-event recap
  14. 14. MSGDELIVERABLES Deliverables Message Delivery and Development • Leveraging Communication Channels o Streamline investor relations, corporate communications, public relations o Website updates to the investor sections (social media, investor calendar) o Social media integration (social media policy, Reg. FD guidelines training, ) • Define Website Sections • Message Resonance o Refine corporate messaging o Internal FAQ for executives o Media training for corporate spokespeople • Define / Refine Investment Thesis Key Messages • Amazon is committed to promising new business ventures o Keep investor faith in management’s vision • Sales growth remains a positive indicator of future success o Turn spotlight to positive sales figures • Amazon has a culture of long-term investment o Maintain investor patience in long-term investment o Continue the consistent message: “it’s early.”
  15. 15. MSGDELIVERABLES Deliverables Market Intelligence • Assess top shareholders and trends in market • Prepare and distribute key investor dossiers prior to meetings • Monitor buy/sell activity • Record all interactions with investors • Crisis Preparedness o Solidify messaging o Plan of attack • Regular analyze shareholder base to benchmark it against peers (eBay, Google, Apple, The Home Depot, Target) • Analyze investors/analysts discussions • Perception studies- Feedback to Senior Management on company’s investment market perception
  16. 16. BUGET Budget Hourly Labor Fees  Material Creations - $2,000  Executive Training - $1,000  Direct-to-Investor Relations - $4,000  Scheduling and Planning - $1,500  Analyst and Industry Research - $1,500  Total Cost: $10,000/month Billable Expenses  Earnings Releases: $3,500/each  Annual Meetings: $25,000/each  Expensed Items: $3,000/month  Roadshow: TBA
  17. 17. 2014 INVESTOR RELATIONS PLAN Q & A

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