Trends, opportunities and JSE performance, as presented by KW Digital at the 2013 South African Depositary Receipt Issuers' Seminar in Johannesburg

1. Digital IR communications
Trends, opportunities and
JSE performance
Rick Sellers

2. Who we are
www.kw-digital.com
www.linkedin.com/company/1816941
rick.sellers@kw-digital.com
@kwdigital
www.facebook.com/kwdigital
Digital corporate
communication
specialists
Offices in London,
Stockholm & Dubai
• Corporate websites
• Online reporting
• Social media
• Research & consultancy

3. Conference iPad App
http://kwdigital-ota.mobgen.com
• Detailed agenda
• Speaker
presentations
• Background
information
• Feedback form

4. Online corporate comms
a changing landscape
The what, why and who
trends and audience needs
South African corporate sites
how do they compare?

5. South African corporate sites
how do they compare?

6. Online corporate comms
a changing landscape
The what, why and who
trends and audience needs
South African corporate sites
how do they compare?

7. Corporate websites: increasingly the focal point…
• Sharp increase in corporate website
use over past 10 years
• Number and type of visitors
• Geographical reach
• Consumption of information
• Demand for timely information
• Loyalty
• First port of call
+114%
more visits/month
than in 2009
X3.2
visits on key days
88%
.com is first place for info

8. Not just a financial reporting exercise
Government Job seekers
General interest
Shareholders
Employees
Suppliers
Investors
Analysts
Consumers
CSR interest
Then…
Now…
Journalists

9. An internal shift
• C-suite involvement
• Strategic influence and
sign-off
• Personal involvement
• Demonstrates the
importance of .com
$160k
av. corp site build in 2012
41%
site owners increased
budget in 2013

10. Mobile revolution
2010 2013
Desktop
Mobile / tablet

11. Other factors?
Broadband
penetration
Speed of comms
expectations
Legal & regulatory
changes
Environmental
Investment community’s
geographic focus

12. A challenge… and an opportunity
• Where you build and maintain
reputation…
• Everything you do and say online
• can help protect, enhance and
build your reputation
• influence all your stakeholders
• Brand, tone of voice, transparency, depth of content,
website uptime, timeliness, user experience, and so on
= your most important communication channel?

13. Online corporate comms
a changing landscape
The what, why and who
trends and audience needs
South African corporate sites
how do they compare?

14. Social media
Governance
Mobile &
tablets
Management
Financial reporting
Transparency
Investment case
Depth of
content
Crisis communications
Analytics
Editorial
planning
Rolling reporting &
storytelling

15. Key trends
1. Content is King
2. Real impact
3. Size matters
4. #socialIR

16. Key trends
1. Content is King
2. Real impact
3. Size matters
4. #socialIR

17. Capital market quotes
Too often sites can have the
data I want, it is just put in
places that are not obvious
or do not make sense to me.
Make sure you can get to all
the data investors typically
look for (financial press
releases, presentations, etc.)
from the investor relations
page.
Don’t make me piece
everything together
Make things easy
– data files, real
contacts, updated
info… not all
hidden in a report
somewhere
Give me more. Easy
soundbites or facts
but also the detail
And… what about
going forward?
Objectives, targets?

18. Depth of content
• Not just a base archive
of information
• Future outlook
• Market trends and
growth drivers
• Debt information
• Evidence strategy

19. Investment proposition
PotashCorp
• Easy-to-understand,
simple approach
• The strengths of the
business and industry
• Constructs a coherent,
clear case

20. Investment proposition
Wolseley
• Fast facts for quick read
• Further levels of detail
• Evidenced through case
studies and multimedia

21. Management focus
• Increasing focus on
company management
• A hub of information
• Videos, interviews,
presentations, images

22. Bring events to life
SABMiller
• Use the medium to
make your events
accessible to all
• Timely information
• Live updates – video,
Twitter

23. Offer a tailored experience
Turk Telecom
• Allow users to tailor the
site
• Removes unwanted
content
• Helping your visitors

24. Key trends
1. Content is King
2. Real impact
3. Size matters
4. #socialIR

25. Capital market quotes
I would recommend all
websites to have video
clips by management
talking about their
businesses, background,
what they do, key
drivers, current trading
etc.
Let’s see the whites of their
eyes
It’s sometimes hard to believe
or get enthused by copy
straight from the PR office.
Let’s hear from real people at
all levels – more authentic and
engaging

26. Use the medium – bring things to life
• Video increases site
engagement
• Ensure clear message
• Raise management
profile

27. Use a real voice
• Authentic employee
communication
• Real and powerful
• Video, blogs, live web
chats

28. Key trends
1. Content is King
2. Real impact
3. Size matters
4. #socialIR

29. The desktop is dying?
• The way users access all websites is
changing
• Corporate sites are no different
• Smartphones, tablets, touchscreen
• Apple dominates
Just look around any
results presentation –
everyone is on their iPad
© Gaia Insight 2013

30. The issues & challenges
• Usability on smallest screens very
poor – text size, navigation
• Functionality does not work on
touchscreens
• Out-dated technology broken on
Apple devices – from video to share
tools to animation
= users are left with a negative
impression… of the website & company

31. The best possible experience – for all
• Responsive Web Design
• The latest approach to web development
• Adjusts layout, text size, content to suit
the size of screen and/or device
• One website – not separate mobile or
tablet versions

32. VimpelCom – responsive design

33. And Apps?
• Valued additions to IR
communications
• Targeted at key stakeholders
• News, share information, results,
reports, presentations, calendars,
contacts etc
• Offline accessibility, push
notifications, GPS
• Also, special event Apps for A&I
days, results etc

34. Key trends
1. Content is King
2. Real impact
3. Size matters
4. #socialIR

35. Social media for IR
• Corporate social media has seen huge growth
• Seen as ‘just another channel’
• IR more cautious, but some pioneers
• Recent developments in the US have put spotlight on Twitter
• Terminals pull-in Twitter feeds
• Integrated with investment
workflows
• Tweets by company, asset class
etc
• Clickable stock symbols
• See conversation about a
company
• SEC now allow distribution of
news, results etc
• Encouraging companies to seek
out new form of comms to better
connect with shareholders

36. Who and how?
Listen EngageIntegrate
• Push information
• Embed in .com
• Feeds + native content
• Full commitment
• Actively engage
Dedicated staff
• Secure accounts
• Monitor activity
• Report
Examples
• BASF
@basf_ir
• PotashCorp
@PotashCorp
• Deutsche Telecom
@DT_IR
• SAP
@SAPinvestor

37. Key trends
Oh… and don’t be in the dark
Make sure you know what’s going on!
• Who’s coming?
What are they doing?
Where are they going?
Are they coming back?
• What are others doing?
• What’s global best practice?

38. Online corporate comms
a changing landscape
The what, why and who
trends and audience needs
South African corporate sites
how do they compare?

39. KWD Webranking
• Oldest & most respected
rankings of corporate websites
globally
• Driven by the market, not our
personal opinion
• Surveys analysts, investors,
business journalists, SRI
analysts etc
• Press coverage in national
publications

40. And the JSE?
• Not currently part of the annual Webranking
• Bespoke assessment carried out for this event
• Analysed JSE top-40 companies
• Based on the 2012 criteria to allow comparison with
global companies
So… what did we find out?

41. Trend #1
JSE top-40 websites performance is ‘average’
• A consistency in standards
• Very few poor sites
• But also no leading, best
practice examples
• Top site would be around
84th in global list

42. Trend #2
Companies with dual listing out-perform
• Non-JSE primary listed
companies have 30% higher
overall scores
• What drives this?
• regulatory requirements?
• social factors?
• Investment audience /
geography?
• (consultancy / advice /
competition?)

43. Trend #3
Financial reporting is very strong
• SA average 33% higher
than global scores
• Primary JSE-listed
outperform primary UK-
listed companies
Online financial
reports
Reporting comms in
social media
Reports archive
Financial
presentations
KPIs
Data in Excel
Financial
calendar

44. Trend #4
Depth of other IR-related content needs improving
• Share information and investor
relations are relatively weak
• Corporate governance –emphasis
given to it, but lack of depth
• Majority of the content exists – but is
hidden in reports, presentations,
announcements
14%
average ‘Investor relations’
score
Investment
proposition
Financial targets &
achievements
Debt IR
Management profiling
& experience
Growth drivers
Dividend policy

45. Trend #5
Mobile and tablets not catered for
• 23% of sites use
flash – for video,
animation, share price tools
• 46% of interactive
share tools do not work
= a big opportunity to cater
for audience needs and
differentiate

46. Trend #5
Mobile and tablet not catered for
• 2sites built with
Responsive Design
• 3mobile sites
= a big opportunity to cater
for audience needs and
differentiate

47. What does it all mean?
There’s real opportunity for companies to:
1. Cater for the needs of a growing, changing audience –
expectations, devices, location
2. Differentiate from peers through content and
technology
3. Communicate in new channels for maximum
engagement
4. Help maintain and build reputation

48. The top performers

49. The top performers
MTN Group
Highlights:
• Strong press and careers
sections
• Site functionality is good
• URL: www.mtn.com

50. The top performers
Impala Platinum Holdings
Highlights:
• Comprehensive company
information
• Including wider market
context and detailed
business profiles
• URL: www.implats.co.za

51. The top performers
Nedbank Group
Highlights:
• Excellent IR content
• Including investment
proposition, future targets,
debt IR
• Strong governance and CR
• URL: www.nedbankgroup.co.za

52. Want to know more?
You?
• Summary assessment, including peer comparison
• Find me afterwards… I won’t bite or charge!
or rick.sellers@kw-digital.com
Coming soon
• Web management report (Autumn)
• 2013 Webranking (late 2013)