1) The presentation discusses developing a needs-driven approach to online investor relations by segmenting audiences and understanding what information and functionality each group needs. 2) It recommends providing clear signposting, archives, webcasts, and contact details for analysts, as well as practical guidance and appropriate share data for individual investors. 3) It also suggests considering the use of social media and mobile sites but cautions that social media requires understanding to avoid potential risks from viral stories.

1. Investor relations: What to do online? David Bowen Moscow, November 2010

2. This presentation A suggested general approach Best practices from around the web Specific ideas to consider

3. A short history of online investor relations The beginning (mid - late 90s): IR teams quickly saw the huge advantage of announcing on the web Corporate website were often IR-driven The middle (late 90s – early 2000s): IR sites matured Shift away from IR focus on corporate sites, as other audiences came to the fore The recent (early 2000s onwards): Some moves to serve retail shareholders Some companies starting to make individual judgments, not following the herd But a general failure to think in different ways

4. What we need An approach driven by needs Needs should be those both of the customer and the company A way to identify what is needed, and what is not Also: an understanding that online comms is now longer just about the website and mail. Think of social media too

5. Developing a needs-driven approach Segment your audience, as a marketer would Work out what you, the company, need to get from your online communications Understand what content and functionality each audience needs – and does not need. The key word is ‘appropriate’. Do not add features simply to get extra points in rankings Time spent on market research and planning is never wasted

6. Do not think only of the investor section Investors and analysts are humans too – they want a good experience as much as anybody The look and feel, and usability, of the site is crucial. They also understand that if the site is used only for IR, it is not being exploited properly – and reflects badly on the company So IR officers should take an interest in the whole site, and not demand as much emphasis as possible on finance.

7. Segmenting your audience Possible groups Analysts/Institutional investors who know your company Analysts/institutional investors who don’t (researching analysts) Individual investors Depositary receipt holders Identify your needs Identify their needs Draw up approximate charts

8. Your needs (for example) Professionals who know the company Providing the best possible service, to make them feel comfortable and well informed Complementing personal contact Providing information they cannot get from Reuters, Bloomberg etc Researching professionals Providing as much background as possible Encouraging personal contact ‘ Selling’ your company as an investment Individual shareholders Improving service level while cutting your costs Replacing personal contact Making it rational to use the web rather than print and phone Depositary receipt holders Providing self-service where possible Providing appropriate contact level Explaining the company

9. Their needs (for example) Professionals who know the company Results, with archive Financial calendar Webcasts Investor tools Researching professionals Risk factors Strategy M & A information Contacts Individuals shareholders How to manage shares AGM practical information Tailored FAQs Electronic delivery Depositary receipt holders Historic dividend info Link to transfer agent site Tailored FAQs Direct purchase options All (shared) Share information

10. Use this as a starting point Work out what is appropriate for only one group Work out what should be shared Spend time gathering content into the most appropriate sections – provide signposts Divide between Recommend and Consider

11. Recommend: Create clear signposts

12. Serving analysts who follow you

13. What they need Easy access to data Data they cannot get from Reuters/Bloomberg (eg historical figures, reports) Other content/functionality – but only if it appropriate The further you are from a major financial centre, the more important the website can be – it is your ‘virtual’ investor relations team. Examine www.potashcorp.com

14. 2003 2006 2010 Potash Corp, based in western Canada, moved away from an investor focus, then back again. It provides an exceptional service to analysts

15. Recommend: Clear layout, good archive

16. Recommend: Provide webcasts, but how? Webcasts are expected – they allow analysts to ‘attend’ meetings they would otherwise miss, and also allow other groups eg journalists) to listen in Choice 1: What to provide Presentations Conference calls AGM speeches Choice 2: What format Simple audio, perhaps with MP3/podcasts Sophisticated audio. Including slides, presentations Video with slides, presentations.

17. Audio with MP3 Fully-featured video

18. Consider: Provide data in multiple formats

19. Consider: Provide results interviews

20. … and on YouTube

21. Consider: Provide an event reminder

22. Consider: Provide RSS feeds

23. Provide a Twitter feed

24. Consider: Provide a download system

25. Consider: Provide a mobile IR site

26. Consider: Use Slideshare

27. Analysts wanting background

28. What they need Detail material that can be used to write reports and make judgments Good contact points

29. Recommend: Provide background for analysts

30. Beware splitting it between different places Same subjects covered in the investor section and the annual report

31. Recommend: Provide good contact details

32. Consider: Provide a dedicated strategy section

33. Consider: Provide an ownership breakdown

34. Consider: Targeting socially responsible investors

35. Consider: Provide analysts’ estimates

36. Consider: Make a direct invitation to invest

37. Individual shareholders

38. Do they matter? They are often ignored by IR teams They can be served well and inexpensively online Good web service should cut direct contacts They can be noisy promoters or detractors (especialy with social media)

39. What they need Good practical help A feeling that the company cares about them Do not add features ‘for the sake of it’ (or to win points in rankings)

40. Recommend: Provide a friendly introduction

41. Recommend: Provide practical guidance

42. Recommend: Provide good FAQs

43. Recommend: Provide appropriate share data ExxonMobil has a simple but useful chart TNT Group has unnecessary detail

44. Recommend: Post annual meeting details

45. Consider: Provide a cut down annual report

46. Consider: Educate shareholders on your industry

47. Consider: Educate shareholders on the stock market

48. Depositary Receipt holders

49. What they need A good understanding of the company The same practical services that US companies provide Needs overlap with those of analysts and individual shareholders

50. Recommend: Provide a dedicated section

51. Recommend: Provide good FAQs

52. Consider: Providing SEC filings

53. Consider: Integrate with transfer agent site

54. Social media Consider what is appropriate There are ways to use it actively – Twitter feeds, YouTube videos, Slideshare But it is safest to consider it primarily as a source of risk, because it has huge viral power – it is important to understand it, and monitor it.

55. Blogs spread stories – true or false

56. YouTube has huge viral power – good or bad

57. Twitter acts as a ‘connector’ – spreading stories

58. Consider: Use Stocktwits to monitor Twitter

59. What else can you do? And how can Bowen Craggs help you?

60. We help you close the web effectiveness gap: the difference between what you are doing and what you could be doing online. We learn from and advise private and public sector organisations. We can offer a truly global view of online communications FT Index benchmark database of 75+ global corporate websites, with unparalleled depth and breadth. Unique library of 1,000 examples of best (and worst) practice from around the world. 10+ years in business, dedicated to online communications. We don’t build web sites or sell IR tools (this means you can rely on the independence of our advice)

61. www.webeffectivenessnetwork.com More than 300 members from 5 continents Quarterly meetings & annual conference LinkedIn group with lively discussion forum Group research - helping you to stay in touch with the key operational and strategic issues (and how they are being addressed by fellow members around the world) Need to know how others deal with specific issues? Ask the group and get real answers fast. Managers from very different organizations discover that they are facing the same challenges, and share ways to tackle them.

62. The most successful organisations align their web strategy with the overall business vision, strategy and goals. They measure success and continuously improve. We can help you to turn websites into powerful tools that polish the reputation, increase sales, satisfy investors, impress journalists, improve customer service, raise the quality of recruits and much, much more . Our deliverables are typically crystal clear documents and management presentations that combine deep analysis with actionable recommendations.

63. For more information please contact: Dan Drury Director [email_address] +44 7786 707434 Sign up for David Bowen’s free bi-monthly column: www.bowencraggs.com/best-practice/commentaries Or contact David Bowen dbowen@bowencraggs.com

64. Investor relations: What to do online? David Bowen Moscow, November 2010