XI Regional EACD Lisbon Debate over the topic "Balancing Shareholders and Stakeholders Interests: Enhancing trustworthy sterling reputations", 16th april 2013,presentation by Sónia Baldeira, Martifer

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MEETING EXPECTATIONS OF STAKEHOLDERS IN CRISIS TIMES
1. Understanding the roots and foundations of the Crisis
2. The delay of projects and business achievements – deception
3. New challenges of today IR Communication officers
4. Vision and Best Practices of IR and Communication
5. Martifer’s example

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1. UNDERSTANDING THE ROOTS AND FOUNDATIONS OF THE CRISIS
• Capital Markets:
• Shocks effects and correlations
• Contagion
• Delays due to the process
of economic adjustment
GLOBALIZATION
Different Assumptions and Risks
Complexities of global
approach and leadership

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• Credit Agencies
• Equity and Fixed Income Investors
• Speculators and Hedging
HOW FINANCIAL MARKETS PERCEIVE EUROPE OR PORTUGAL AND PORTUGUESE COMPANIES?
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GAP between sovereign yields in all
maturities, among European countries
Country Risk
Higher discount rates applied
“NO PORTUGAL TOO RISKY!”
Portugal’s pulse
Step by step confidence recovery
1. UNDERSTANDING THE ROOTS AND FOUNDATIONS OF THE CRISIS

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“WHEN EVERYTHING CHANGED FROM DAY TO NIGHT”
European Crisis, Portugal Bailout
Failing targets and market guidelines
Example: BNP Pariba’s deal
2. THE DELAY OF PROJECTS AND BUSINESS – DECEPTION

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WHEN RISK ARRIVES? AND MARKETS HAVE NO CONFIDENCE?
Equity Interests Debt Interests
CONVERGE
3. NEW CHALLENGES

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RISK
MANAGEMENT
Counterparty Risk
Interest Rate Risk
Capital Risk and Solvency
Market and trading Risk
Fx Risk
Funding Risk
Credit Risk
Operating Risk
Reputation Risk
Off-balance Sheet Risk
Sovereign Risk
Regulatory Risk
Source: UCP
3. NEW CHALLENGES

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• Consistency in delivery of the message is important
• Focusing the message on the key issues of your company for investors
• Regularity of contact and clarity of message
• Engage in two way discussions with investors for feedback
• Communication comprise the usual scheduled updates
• Communication can be pro-active, and/or reactive
• Ensure you can communicate effectively with different types of audiences
COMMUNICATION WITH INVESTORS AND MARKETS IS CRUCIAL
4. VISION, BEST PRACTICES OF IR AND COMMUNICATION
“a market is the combined behaviour of thousands of people responding to information,
misinformation and whim” – Kenneth Chang

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Martifer has faced a number of complex communications situations while refocusing its
business strategy, in a restructuring process that started in 2009. In other words, impact of:
5. MARTIFER’S EXAMPLE
• Impairments, Losses
• Write-off
• Capacity Closure
• Relocations
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01-2011
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03-2011
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01-2012
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Martifer PSI20 Index

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MEETING EXPECTATIONS OF STAKEHOLDERS IN CRISIS TIMES
IT HAS BEEN A REMARKABLE CHANGE IN THE LAST YEARS,
It is really important to be aligned and knowing what is happening, so that employees,
developers, customers, suppliers, partners, shareholders can become
• Educated, informed about company’s priorities, and next steps
• Communicating frequently: Short calls; e-mails; using social media network to potential results
• Always connected with markets expectations, following news: Reuters, Bloomberg, FT, Wall Street

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THANK YOU SO MUCH
MEETING EXPECTATIONS OF STAKEHOLDERS IN CRISIS TIMES
QUESTIONS AND ANSWERS