The document discusses the pros and cons of providing financial guidance to investors. It notes that while guidance reduces surprises and increases transparency, it can also promote short-term thinking and loss of credibility if the guidance is not met. The document also examines whether guidance is better provided on a quarterly or annual basis, and if guidance should be discontinued during tough economic times. It summarizes surveys of companies' guidance practices and provides an analysis that guidance is generally preferable to no guidance to promote transparency with investors.

1. Ehud Helft | March 2011 GUIDANCE To Give or Not to Give?

3. NIRI Survey Why do you provide guidance?

4. NIRI Survey Why do you not provide guidance? Management philosophy Increased volatility/economic uncertainty Senior management/Board request Industry trends Senior management/Board request

5. NIRI Survey What financial measure do you provide guidance on? Revenue or sales Tax rate Oper. expenses/margins EBITDA or EBIT SG&A or G&A Other, please specify Working capital

6. NIRI Survey What non-financial forward looking statements do you provide?

16. Summary – What Investors Want from a Company Openness Transparency Honesty Predictable Stability Clarity Simplicity Expectations LT Goals Results Communication No Surprises Responsible Consistent Performance

17. Thank You