Financial Communications<br />Financial Analysis Series:<br />
<ul><li>Ensuring adequate liquidity is critical for every company
There are two sources of capital that companies can tap for their cash resources:
The company’s own operations, in which it must employ efficient processes to maximise liquidity. This includes not only pr...
The company’s sources of capital such as banks and shareholders
The credit crunch started affecting banking and has now spread; credit lenders have become very defensive</li></ul>Compani...
Banks<br />Banks<br />Shareholders<br />Shareholders<br />Spin-offs<br />Private<br />investors<br />Private<br />investor...
<ul><li>Analysis of financials to look for strengths and sensitivities that could be the source of investor focus
Overview of management vision and strategy to be incorporated into the investor/creditor message
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Financial Analysis Series: Financial Communications

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Financial communications is not just financial marketing. It serves a purpose and has a variety of goals when dealing with a company's stakeholders.

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Financial Analysis Series: Financial Communications

  1. 1. Financial Communications<br />Financial Analysis Series:<br />
  2. 2. <ul><li>Ensuring adequate liquidity is critical for every company
  3. 3. There are two sources of capital that companies can tap for their cash resources:
  4. 4. The company’s own operations, in which it must employ efficient processes to maximise liquidity. This includes not only profitability, but also optimisation of the entire cash cycle
  5. 5. The company’s sources of capital such as banks and shareholders
  6. 6. The credit crunch started affecting banking and has now spread; credit lenders have become very defensive</li></ul>Companies must now pro-actively engage<br />their banks, shareholders and other stakeholders.<br />Background<br />
  7. 7. Banks<br />Banks<br />Shareholders<br />Shareholders<br />Spin-offs<br />Private<br />investors<br />Private<br />investors<br />Potential<br />Financing partners<br />Financing<br />Partners<br />Target Audiences<br />Corporate<br />Investors<br />Suppliers<br />Operating<br />Business<br />Potential<br />Business partners<br />New<br />Customers<br />Customers<br />Acquiring<br />Agencies<br />Media<br />Joint<br />Ventures<br />Employees<br />Tendering<br />Target audiences for financial communications<br />
  8. 8. <ul><li>Analysis of financials to look for strengths and sensitivities that could be the source of investor focus
  9. 9. Overview of management vision and strategy to be incorporated into the investor/creditor message
  10. 10. Creation of message for management approval
  11. 11. Coordinate message with other financial communications (e.g., annual report, bank) to ensure consistency
  12. 12. Ongoing tracking of creditor/investor communications
  13. 13. Other potential planning activities
  14. 14. Preparations for annual meeting
  15. 15. Meet with sell-side analysts and, later, buy-side analysts</li></ul>Process<br />
  16. 16. <ul><li>Easier buy-in for bank and other creditor financing
  17. 17. Clear communication to stakeholders and potential stakeholders in the company
  18. 18. Streamlining of information flow to the banks and shareholders with traceable history should lead to improving relations
  19. 19. Pro-active information allows the company to move from a historical focus in the discussions to a future-driven model</li></ul>Why this method<br />
  20. 20. <ul><li>Bank refinancing
  21. 21. Crisis management
  22. 22. Corporate repositioning
  23. 23. Targeting business partners
  24. 24. Management restructuring
  25. 25. Strategic consulting
  26. 26. Annual reports
  27. 27. Road shows
  28. 28. Web page design
  29. 29. Public affairs
  30. 30. Country and industry conferences
  31. 31. Media positioning and placement</li></ul>Uses: strategic stakeholder communications<br />
  32. 32. <ul><li>Executive Summary
  33. 33. Company strengths
  34. 34. Company overview
  35. 35. Strategy and management
  36. 36. Competitive position
  37. 37. Core businesses
  38. 38. Supplementary businesses
  39. 39. Financial review
  40. 40. Forward-looking plans</li></ul>Sample table of contents:Bank and strategic investor presentation<br />
  41. 41. Sample table of contents:Bank presentation (e.g., refinancing)Company internal (e.g., Board of Directors) presentationDetailed view of Financial Review section<br /><ul><li>For more information on these, please contactRobinBhattacharya@yahoo.com</li></li></ul><li>Corporate<br />Strategy<br />Financial<br />Communications<br />Financial<br />Analysis<br />Operational<br />Analysis<br />Valuation<br />Performance <br />Monitoring & Control<br />M&A Support<br />Treasury<br />Strategic<br />Due Diligence<br />Investment &<br />Asset Management<br />Interrelation and fit with other analytical financial functions<br />

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