The document discusses trends in financial communications for companies in Asia Pacific. It notes the rise of Asia Pacific as a center for capital raising and mergers and acquisitions. Transparency and real-time communication across multiple channels are increasingly important. The document then provides guidance on developing a financial communications plan, including defining objectives, identifying stakeholders, crafting messages, and planning communications channels and issue monitoring. It also offers two case studies showing how companies effectively responded to crises through coordinated communications with investors and other stakeholders.

1. Communicating Business Agenda
to Investment Community
Sahala Sianipar
Managing Director, Corporate/Financial Practice, Asia Pacific
Burson-Marsteller
Twitter: @ssahala
Singapore, 26 September 2011

2. Content
 Trends in financial communications
 Developing financial communications plan
 Discussion
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

3. Trends in Financial
Communications

4. Asia Pacific as Global Capital Raising Centers
US$53 Billion raised via IPO in Hong
Kong Stock Exchange in 2010 (Financial
Pictures courtesy of www.bloomberg.com Times, 2011)
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

5. Asia Pacific Companies Influence Global Merger & Acquisition
Top Target Countries by Volume 2010 (US$ billion)
Source: Bloomberg
37.21
65.57 110.31
35.12
84.07
China Hong Kong Australia Japan US
Bloomberg 2011 M&A Outlook Report:
 2010: 8,700+ deals announced worth US$594 billion
 Highest M&A activity in financial industry
 Largest deal by Asian company was Bharti Airtel’s purchase of Zain Africa (US$10.7 billion)
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

6. Active Buying by Asia Pacific Companies in 2011
Where active buyers are expected in 2011?
Source: Bloomberg Poll (2010)
7%3%
7% Asia Pacific
Central Asia
45% North America
South & Central America
22%
Western Europe
Affrica & Middle East
13%
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

7. Transparency Demand
Picture: www.thedailybeast.com
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

8. Real Time and Multiple Channels
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

9. Case Study
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

10. Rapid Evolution of Issue into Crisis
 It is more difficult to plan for a crisis given the changing communications
landscape
Source: Burson-Marsteller & Penn Schoen Berland Global Crisis Preparedness Survey 2011
50%
Global
37% 35%
31% 29%
25%
Need to respond Overall challenges More globalized Increased public Increased anti- Rise of citizen
extremely quickly of digital nature of demand for corporate journalism / social
communications communications transparency sentiment in public media (e.g.
and/or media Facebook, Twitter)
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

11. Asia Pacific Companies Likely to Encounter Crisis
Source: Burson-Marsteller & Penn Schoen Berland Global Crisis Preparedness Survey 2011
67%
59% 61%
55%
46%
GLOBAL
APAC
EU
US
LATAM
Have experienced a crisis
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

12. Impact of Trends
Understand Asia Pacific, its diverse
constituents and influencers as well as
operating landscape
Connect the dots – global and locally
Invest to align internal and external
communications that support business
objectives
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

13. Developing Credible Financial
Communications Plan

14.  “A corporation managed by responsible managers will be a
responsible corporation; a corporation managed by
irresponsible managers will be an irresponsible corporation.
It is individuals who are responsible for what corporations
do.”
Harold Burson
Founder Chairman, Burson-Marsteller
November 2008
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

15. Financial Communications Plan – An Overview
 Define your objectives that are aligned with
corporate/business objectives
 List core/priority stakeholders and influencers
 Develop messages
 Identify communications channels
 Define monitoring approach & tools
 Identify issue or crisis triggers related to your
company and industry
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

16. Issues Mapping
Regulatory Stakeholders & Influencers
 Business competition  Regulators
 Environmental compliance  Customers
 Business permits  Investment community
 Foreign investment  Market commentators/analysts
 Compliance  Local community
 Traditional media
Operational  Bloggers/online influencers
 Service quality
Reputational
 Data security
 Global/local corporate reputation
 Business partner
 Product reputation
 Employee relations
 Stakeholders’ knowledge of the company
 Transparency
 Corporate responsibility commitment
 Business competition
 Disclosure
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

17. Case Study
 Situation Analysis
• A state agency claimed that a major listed bank in Indonesia did not exercise
prudent banking when it disbursed loans to several companies
• Loans were fully collateralized and companies were affected by 1997/98
financial crisis, which required debt restructuring
• The report by the state agency also claimed that the bank’s senior management
never reported these loans to its shareholders
• The report was leaked to a couple of first-tier local media, which generated
headlines even by Jakarta-based international media
• The government launched an investigation and subsequently criminal charges
against senior management of the bank
• The bank’s institutional investors were concerned and rating agencies were
about to issue updated ratings of the bank’s papers.
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

18. Case Study – cont’d
 Integrated approach to investor and stakeholder communications
• The bank quickly updated its institutional shareholders on the situation
• The bank pointed to its information memorandum prior to its listing that provided
details of the bank’s exposure to the various companies mentioned in the report
• In other words, the bank had been transparent all along and the report did not
provide any new information that investors had not known
• The bank assured its key customers of its financial and operational soundness
as it had set aside sufficient and conservative provision for those loans
• The bank also reached out to its key controlling shareholders that in turn,
provided public backing of the bank’s strategy and its ability to handle the
situation
• The bank disseminated regular updates to media (domestic and international),
which were tracked by the investment community
• Employees of the bank were regularly updated of the management’s action to
address the situation.
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

19. Case Study – cont’d
 Results
• Whilst the bank’s stock price was down, no major institutional
depositors/customers withdrew funds from the bank
• S&P affirmed its ratings of the bank’s papers despite the public
controversy in Indonesia
• Institutional investors recognized there could be other motivations from
the charges against the bank
• Key shareholders of the bank also publicly spoke in support of the bank.
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

20. Case Study (2)
 Situation Analysis
• A major Asian telecommunications company that is listed in the New York Stock
Exchange was accused of committing irregular derivative transactions
• The allegation was raised by a politician in a parliamentarian hearing involving
senior government ministers and chairperson of the capital market supervisory
board
• First-tier national and international newswires immediately picked up the story,
which became headlines
• Sell-side analysts called the company to seek clarification
• Institutional investors questioned the company’s transparency, risk management
and good corporate governance practices
• At the same time, the politician threatened to file a criminal lawsuit against the
company.
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

21. Case Study (2) – cont’d
 Rapid response and integrated approach to investor and stakeholder
communications
• The objective of the communications program was to protect the level of
stakeholders’ trust on the company
• Core stakeholders included regulators, business customers, shareholders & investors
around the globe, and employees
• Company highlighted its disclosure compliance as required by the US Securities
Exchange Commission in its regular filings
• Company’s executives reached out and briefed capital market supervisory board,
industry regulators, investment community (sell and buy-side analysts, rating
agencies), media (domestic and international) and influencers (e.g. think tanks)
regarding the company’s derivative policy, which had been instituted and disclosed
regularly
• At the same time, the Company issued regular statements via multiple channels
(online, website, traditional media) to correct earlier media reports.
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

22. Case Study (2) – cont’d
 Results
• Chairman of the capital market supervisory board issued a statement that
cleared the company from the allegation; the chairman also spoke in front of
members of the national parliament
• Investors were satisfied with the explanation that the share price did not suffer
from major decline
• Third parties such as research analysts and industry commentators published
articles in leading local media supportive of the company’s risk management,
disclosure and good governance practices.
BURSON-MARSTELLER ASIA-PACIFIC EVIDENCE-BASED COMMUNICATIONS

23. In Summary
 Asia Pacific companies are expected to be more active
in regional and international trade & investment
 Stakeholders including investors will demand more on
good corporate governance, disclosure, and
transparency from companies
 U – Understand your financial communications goals
and stakeholders in Asia Pacific
 C – Be able to connect the dots, globally and locally in
today’s digital age
 I – Be prepared to invest in aligning internal and
external communications capability including crisis
preparedness and monitoring tools.

24. THANK
YOU