IIRmagazine.com | IR Magazine Winter 2016

Research Report

Global Roadshow Report 2016

– How often and for how long do companies go on the road?– Who do they go on the road with?– Where do they go? – How else do they meet investors?

Research Report

Sponsored by

II IRmagazine.com | IR Magazine Winter 2016

WHAT’S IN THIS REPORT?

VWho was on the road in 2016?

VIIIBroker trends

XITop roadshow destinations

XIVInvestor events

XVIIIThe future of roadshows

Overview

North American companies

92% go on the road

7.3 roadshows per year

15.1 days per year on the road

Top broker Bank of America Merrill Lynch

Most-visited city New York

XVISector focus

IIIIRmagazine.com | IR Magazine Winter 2016

Research Report

European companies89% go on the road

12 roadshows per year18.5 days per year on the road

Top broker Goldman SachsMost-visited city London

Asian companies

92% go on the road

5.5 roadshows per year

14.5 days per year on the road

Top broker Bank of America Merrill Lynch

Most-visited city Hong Kong

EdITORLloyd Bevan

CHIEf COPy EdITORKathleen Hennessy

HEAd Of RESEARCHJanet dignan

ART & dESIgNJames Noden

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Introduction

The IR Magazine Global Roadshow Report 2016 is our seventh annual research report on the roadshow activity of companies. Findings are taken from the latest round of IR Magazine’s Global IR Survey carried out in Q2 and Q3 of 2016. There were 730 respondents who replied to the survey questions relevant to this report.

Respondents were asked about their experiences with roadshows over the preceding 12 months, in terms of both their practices and their preferences. The report looks into the frequency, duration and location of roadshow activity, and presents findings on who IROs go on the road with, both from their own management team and the brokers they use.

This report further looks at how many brokers companies typically used for roadshows in the past year, the popularity of top brokers’ roadshows, and the frequency with which companies are prepared to go on the road with certain brokers. It also examines preferred roadshow destinations and the reasons for their popularity.

There are also new sections this year looking at changes in roadshow activity over the past five years and future anticipated change. The report concludes by placing roadshows in the context of other investor events, such as conferences, site visits and investor days.

Any figures in this report for roadshows or any other events are based on the

average for participants in those events and are not the same as the average figures for total respondents that appear in the IR Magazine Global Investor Relations Practice Report 2016. Most of the findings in this report have been further split by geographical region and company market capitalization. For the purposes of this study the key regions examined are North America, Europe and Asia, while the categories for market cap are defined in US dollars as follows:

SMALL CAP <$1 BN MId-CAP $1 BN-$5 BN LARgE CAP $5 BN-$30 BN MEgA-CAP >$30 BN

About this report8%

Rest ofworld

17%Asia

34%Europe

41%North

America

RESPONDENTS BY REGION

6%Communications 10%

Consumer discretionary

4%Consumer

staples

8%Energy

22%Financials

8%Healthcare

16%Industrials

10%Materials

12%Technology

4%Utilities

RESPONDENTS BY SECTOR

9%Mega-cap

30%Large cap

34%Mid-cap

27%Small cap

RESPONDENTS BY MARKET CAP

VIRmagazine.com | IR Magazine Winter 2016

Research Report

Who was on the road in 2016?Going on the road The decision to go on the road remains as popular as ever. Overall, 90 percent of those surveyed in 2016 have been on roadshows over the past 12 months. This reflects the same percentage as in last year’s report and is just 1 percentage point down on 2014.

The relative percentage figures for North America and Europe have swapped places from 2015. In 2016, 92 percent of North American and 89 percent of European companies went on the road, reverting back to the figures seen in 2014. Where there is a noticeable difference is in Asia, where 92 percent of companies went on roadshows, an increase of 7 percentage points from 85 percent in 2015.

The pattern of who goes on the road according to company size has changed

this year, too. In 2015, the number of companies going on roadshows remained consistent from mid to mega-cap (94 percent to 95 percent), with small-cap companies notably less likely to go on the road (77 percent). This year, 81 percent of small-cap companies have been out on the road, while the numbers for larger caps have dropped, most noticeably at mega-caps. The size of company most likely to go on the road in 2016 is mid-cap, with 96 percent of such companies doing so.

Time on the road

While the number of companies choosing to go on the road has remained consistent in 2016, roadshow activity itself has fallen. Globally, the average number of roadshows

has dropped from 8.6 to 8 this year, and companies are spending a whole day less on the road (15.9).

Regionally, European companies are spending 3.6 fewer days on the road, while Asian companies have dropped their number of roadshows by 1.7. North American companies, however, are bucking this trend by going on 0.6 extra roadshows and spending 1.2 more days on the road.

Small and mid-cap companies went on more roadshows in 2016 than in 2015, while larger companies went on fewer roadshows. There was little change in the amount of time mid-cap and large-cap companies spent on roadshows, but both small and mega-cap companies spent notably less time on the road over the last 12 months, almost three and a half days fewer in the case of mega-cap companies.

GLOBAL NORTH AMERICA EUROPE ASIA

% GO ON ROAD

ROADSHOWS PER YEAR

DAYS ON THE ROAD PER YEAR

92%90% 92%

7.38.0 5.5

15.9 15.1 14.5

12.0

18.5

89%

Roadshow activity 2016

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CFO and CEO activity on roadshows

Roadshow activity in the past 12 months has seen an increase in senior management staying at home while IROs head out on the road on their own. Globally, IROs went on an average of 2.4 roadshows on their own in 2016, compared with 1.9 in 2015. Conversely, CFOs went on the road 3.7 times in 2016, attending one roadshow fewer than the previous year, while CEOs went on 2.8 roadshows compared with four in 2015.

This shift in the make-up of roadshow personnel is largely driven by changes in the activity of North American companies. These companies have seen a drop of 12 percentage points in the share of roadshows attended by CEOs and a drop of 13 percentage points in those that CFOs participate in. Meanwhile, IRO-only trips account for nearly a quarter of roadshows among North American companies – up from just 14 percent in 2015.

There has been a sizable shift in the number of small-cap company roadshows attended by CEOs. In 2015 they went out on the road more than seven times in 10. This year, although a majority of small-cap roadshows still had the most senior figure in attendance, the percentage with a CEO in tow dropped to 55 percent. Similarly, the percentage of large-cap roadshows attended by CFOs has dropped from 54 percent in 2015 to four in 10 in 2016.

Among mega-cap companies, the proportion of IRO-only roadshows has grown to the point where it is just as likely for IROs to go on the road on their own as it is to have CFOs go with them.

Percentage of roadshows attended by senior management

No management, IR-onlyCFOCEO

Mega-capLarge-capMid-capSmall cap

55%52%

14%

36%

50%

30% 29%

40%

32%

25%

43% 43%

Planning aheadIn 2015, 30 percent of North American firms planned to go on more roadshows in the following 12 months; the result was an increase in roadshow activity in 2016. At the same time, just 22 percent of European and 26 percent of Asian companies planned to have more roadshows, and both subsequently saw a decrease in activity.

But this pattern doesn’t fit at company size: in 2015, 34 percent of small-caps said they were planning more roadshows. While the number of roadshows for small caps

did increase slightly, the number of days on the road dropped. At mid-caps – which in 2016 saw an increase in both number of roadshows and days on the road – just 24 percent said in 2015 they were planning more roadshows for the year ahead.

Planning and subsequent activity do match at mega-caps: in 2015, just 22 percent were planning more roadshows, the lowest number for any cap size. In the subsequent year, mega-caps saw the biggest drop in both number of roadshows

and number of days spent on the road.In this year’s survey, 30 percent of

respondents are planning more roadshows for the year ahead, while just 6 percent are planning fewer. There is little change in these plans at a regional level but the percentage planning more roadshows drops as cap size increases. Increased roadshow activity over the next year is planned by 38 percent of small-cap companies, dropping incrementally to 23 percent at mega-caps.

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Research Report

This year we asked survey respondents whether their roadshow activity has increased, decreased or stayed the same over the past five years. From these answers a different picture emerges: when asked what changes there have been in their roadshow activity, 40 percent say it has increased, and just 16 percent say it

has decreased. While this finding does not necessarily contradict our trend analysis of roadshow activity over the past five years, it does show 2016 respondents as having a more generous view of time spent on roadshows than the evidence of previous roadshow reports suggests.

This net increase in roadshow activity

identified by 2016 respondents is more pronounced as company size increases. At small-cap level the net increase (percentage increase minus percentage decrease) is just 12 percent. This rises incrementally to 37 percent among mega-cap companies.

Roadshow activity 2012-2016

ROADSHOWS PER YEAR

DAYS ON THE ROAD PER YEAR

2012 2013 2014 2015 2016

20.0

8.4

19.4

7.5 8.08.6

17.9 16.915.9

7.7

How has your roadshow activity changed over the past five years?

Small cap

Mid-cap

Large cap

Mega-cap

35% 42% 23%

38% 48% 14%

46% 40% 14%

46% 45% 9%

Increased Stayed the same Decreased

0 20% 40% 60% 80% 100%10% 30% 50% 70% 90%

There are several key reasons given by respondents for their increase in roadshow activity, most notably personnel changes such as new senior management, a change in IR leadership or an increase in IR staff. The need to explain a new growth strategy, including an increase in M&A activity, is a common reason for an increase in

roadshow activity. Other reasons given include the demands of having increased investor and analyst coverage and the desire for the company to see a more diversified investor base.

Budget is the most commonly cited reason for a decrease in roadshow activity. Changes in senior management

or IR leadership – reasons commonly given for an increase in time on the road – also explain many decreases in roadshow activity. Other reasons include a reassessment of corporate targeting strategy and adverse macroeconomic or market conditions.

Results from our past five roadshow surveys have shown a decrease in activity among respondents. While the proportion of companies going on the road has remained more or less the same (91 percent in 2012, 90 percent in 2016), the number

of roadshows they go on has fluctuated between 7.5 and 8.6. Respondents to the 2016 survey, however, typically went on 0.4 fewer roadshows than respondents to the 2012 survey.

It is in the number of days spent on

roadshows where the largest and most consistent decrease in activity has been seen: in 2012 companies typically spent 20 days on the road; this number has fallen year-on-year to an average of 15.9 roadshow days in 2016.

Changes in roadshow activity

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Bank of America Merrill Lynch tops list againBank of America Merrill Lynch has maintained its position as the broker companies are most likely to go on the road with. Almost a third (31.1 percent) of respondents surveyed say they went on a roadshow with Bank of America Merrill Lynch in the past 12 months, down from 32.2 percent in 2015. The general trend is for the most popular brokers to see a drop in the number of companies using their services, with all those in the top 10 list experiencing a reduction on last year.

The same companies appear in the top 10 this year as in 2015. Credit Suisse and UBS have most improved their position relative to their competitors. Credit Suisse has risen from seventh place in 2015 to third this year, while UBS has jumped from joint seventh to fourth.

Just four brokers in the top 20 – Royal Bank of Canada, Raymond James, Wells Fargo and Berenberg – have bucked the trend and seen the percentage of respondents using their services actually increase in 2016, with Berenberg entering the top 20 list for the first time.

Broker trendsMost-used brokers globally

Rank Company % of respondents who use Average number of times respondents used this company for a roadshow

1 Bank of America Merrill Lynch 31.1 1.5

2 JPMorgan Chase 26.8 1.4

3 Credit Suisse 24.6 1.3

4 UBS 24.0 1.5

5 Morgan Stanley 22.9 1.4

6 Deutsche Bank 22.0 1.4

7 Citi 21.8 1.2

8 Goldman Sachs 21.1 1.3

9 Barclays Capital 17.9 1.5

=10 HSBC 15.0 1.2

=10 Jefferies 15.0 1.3

12 Royal Bank of Canada 14.8 1.5

13 Macquarie 12.2 1.4

14 Raymond James 10.7 1.6

15 Wells Fargo 8.5 1.4

=16 CA Cheuvreux 8.3 1.4

=16 Exane BNP Paribas 8.3 1.6

18 Stifel 8.1 1.7

19 Berenberg 7.9 1.7

20 Nomura 7.8 1.4

How many brokers?The average company went on the road with 5.3 brokers over the past year, with 43 percent of companies globally using more than five brokers, and 11 percent of those using more than 10 brokers to go on the road with. North American companies tend to use fewer brokers; with an average of 4.9, just 39 percent used more than five brokers for roadshows over the past year.

The use of brokers for roadshows

among European companies is more diverse. The majority go on the road with more than five brokers, with the average number of brokers used by European companies sitting at 6.4. Asian broker use most closely matches the overall global trend, with an average of 5.2 brokers used.

Unsurprisingly, the larger the company, the more brokers it is likely to use for roadshows: small-cap firms used an average of 3.2 brokers for

roadshows in the past year, with just 15 percent using more than five. This rises to an average of 6.6 at mega-caps, with nearly six in 10 (57 percent) going on the road with more than five brokers in the last 12 months.

One notable trend is that 12 percent of small-cap companies use no brokers at all for their roadshows, compared with just 2 percent in each of the larger cap sizes.

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Research Report

Most-used brokers by North American companies1 Bank of America Merrill Lynch 26.8

2 Royal Bank of Canada 26.4

3 Raymond James 23.4

=4 Barclays Capital 22.1

=4 JPMorgan Chase 22.1

Most-used brokers by European companies1 Goldman Sachs 32.4

2 JPMorgan Chase 30.2

3 Bank of America Merrill Lynch 29.6

4 UBS 29.1

5 Deutsche Bank 28.5

Most-used brokers by Asian companies1 Bank of America Merrill Lynch 38.7

2 Credit Suisse 33.3

3 Morgan Stanley 29.0

=4 Daiwa 28.0

=4 Deutsche Bank 28.0=4 Macquarie 28.0=4 UBS 28.0

Brokers by regionAs roadshow activity has increased among North American companies, so has the number of these respondents using the top brokers for roadshows.

Each of the top five most-used brokers by North American firms has seen an increase on its 2015 figures. Royal Bank of Canada has seen an increase from 19.1 percent to 26.4 percent this year, and although JPMorgan Chase’s ranking among North American companies has dropped from third to joint fourth, it has still managed to boost the percentage of North

American respondents using its services.The opposite has happened in Europe: as

roadshow activity has declined at European companies, every one of the top five most-used brokers by European companies has seen a fall in the percentage of companies using their services. Deutsche Bank has experienced the biggest drop, from four in 10 European companies going on the road with it in 2015 to just over 28 percent in 2016. Goldman Sachs tops the list this year, rising from seventh place last year. But even it has seen a slight drop in the

percentage of European respondents using its services.

Bank of America Merrill Lynch takes top spot in Asia, with a slight increase in the percentage of Asian respondents going on roadshows with it in the past 12 months. Last year’s Asia poll topper, Citi, falls to ninth place this year.

Daiwa and Deutsche Bank are new entrants to the top five this year – Deutsche Bank doing so despite having a lower percentage of Asian companies using its services in 2016 than in 2015.

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JPMorgan Chase‘A lot of good meetings in Boston and NY’ Brazil, large cap, materials

‘Solid work by the JPM team to organize events and target investors’ US, large cap, financials

‘Good-quality meetings full of investors with a high level of interest’ Hong Kong, mid-cap, financials

Bank of America Merrill Lynch

‘Able to fill most of the time slots during roadshows, and able to meet different sizes of funds’ Hong Kong, small cap, consumer discretionary

‘BofAML was able to fill up the meeting slots with quality investors’ Thailand, mid-cap, consumer discretionary

‘Investor quality & knowledge of the company’Argentina, large cap, technology

Barclays Capital

‘High level of investors. Very familiar with the company, the country and the sector’ Spain, mid-cap, communications

‘Best post-roadshow feedback in terms of content and format’ US, small cap, technology

Royal Bank of Canada‘Well-managed trip to Canada. High-quality, well-prepared and informed investors’ US, mid-cap, materials

‘Well organized with a balanced list of investors that met our investor targets. Also provided support with respect to investor summaries’ Canada, mega-cap, energy

Citi‘Citi impressed with preparation, early communication, logistics and investor packets going into meetings. Great people as well!’ US, large cap, materials

HSBC‘Very well organized with all relevant teams like corporate access, institutional sales, marketing and research working fully such that the whole roadshow was smooth’

Singapore, mid-cap, consumer staples

JPMorgan Chase this year tops the list of those most mentioned when IR practitioners were asked which broker, in their experience, hosted the most impressive roadshow. This is up from second place in 2015. Credit Suisse, last year’s top place, doesn’t make it into the

top five list this time, while Barclays Capital and Citi remain in third and joint fifth place, respectively, with Bank of America Merrill Lynch moving up one place to second. New entrants in the top five this year are Royal Bank of Canada and HSBC.

Most impressive roadshow

Brokers that hosted the most impressive roadshow

1 JPMorgan Chase

2 Bank of America Merrill Lynch

3 Barclays Capital

4 Royal Bank of Canada

=5 Citi

=5 HSBC

XIIRmagazine.com | IR Magazine Winter 2016

Research Report

Most-visited cities globally

2016 rank City % of respondents 2015 rank 2014 rank 2015-2016 change

1 New York 77.2 1 1 No change

2 London 64.6 3 3 +1

3 Boston 63.8 2 2 -1

4 Chicago 41.5 4 4 No change

5 San Francisco 38.5 5 5 No change

6 Frankfurt 35.5 6 6 No change

7 Paris 34.5 8 =8 +1

8 Toronto 33.3 7 =8 -1

9 Los Angeles 31.5 9 7 No change

10 Edinburgh 27.5 10 10 No change

11 Zurich 25.4 11 11 No change

12 Geneva 22.8 12 12 No change

13 Montreal 20.9 14 16 +1

14 Hong Kong 20.7 16 20 +2

15 Singapore 19.7 15 17 No change

16 Amsterdam 19.2 13 =13 -3

17 Baltimore 16.9 17 15 No change

18 Copenhagen 15.3 – – New

19 Stockholm 15.0 18 18 -1

20 Denver 14.5 20 19 No change

Top roadshow destinationsNew York remains the key roadshow destination Over the last 12 months, more than three quarters (77.2 percent) of companies that went on the road passed through New York, making it once again the most-visited city for roadshows globally. In line with the general drop in roadshow activity in 2016, however, fewer companies visited New York this year than in 2015. In fact, with the exception of Copenhagen, which this year debuts in the list, every city in the top 20 most-travelled-to cities for roadshows in 2016 has seen a drop in visitors.

London overtakes Boston to take the number two spot this year, albeit only marginally, with just a 0.8 percentage-point gap between the two. These three cities remain the standout destinations for roadshows and the only cities to have more than half of respondents visiting them.

The next two most-visited destinations are both North American: Chicago and San Francisco. They are followed by two European cities, Frankfurt and Paris, with Paris jumping ahead of Toronto in 2016.

Most added/dropped citiesIn this year’s survey we asked respondents which cities they had added to or dropped from their roadshow calendar over the past five years. Toronto was the most likely city for companies to add to their travel plans, followed in joint second place by Chicago and Montreal. Two UK cities – Edinburgh and London – are the fourth and fifth most-common cities, respectively, to be added to a roadshow calendar.

The big three – Boston, London and New York – are the cities most commonly dropped, along with Paris. These are followed by San Francisco and Toronto.

The oddity of Toronto being in both the most-added and most-dropped lists is matched by Paris, which has been added to and dropped from the roadshow calendar by the same number of respondents.

Most-added cities No of mentions

1 Toronto 25

=2 Chicago 16

=2 Montreal 16

4 Edinburgh 14

5 London 11

=6 Dallas 10

=6 Paris 10

Most-dropped cities No of mentions

1 Boston 11

=2 London 10

=2 New York 10

=2 Paris 10

=5 San Francisco 9

=5 Toronto 9

Which cities have you added to or dropped from your roadshow calendar over the past five years?

XII IRmagazine.com | IR Magazine Winter 2016

Top 10 cities for North American companies

City % of respondents

New York 89.7

Boston 79.4

Chicago 56.3

San Francisco 55.6

London 47.2

Los Angeles 45.2

Toronto 45.2

Baltimore 33.7

Montreal 33.3

Minneapolis 25.4

Top 10 cities for European companies

City % of respondents

London 89.5

New York 73.2

Frankfurt 72.1

Paris 66.8

Boston 60.0

Zurich 45.3

Edinburgh 44.2

Geneva 41.6

Amsterdam 34.2

Copenhagen 33.2

Stockholm 33.2

Top 10 cities for Asian companies

City % of respondents

Hong Kong 80.6

Singapore 75.3

London 58.1

New York 50.5

Tokyo 41.9

Edinburgh 36.6

Boston 35.5

San Francisco 30.1

Kuala Lumpur 24.7

Chicago 23.7

RegionalThe top five most-visited destinations by North American companies remain the same in 2016 as in the previous year. With almost half of North American companies visiting London, it remains the only city

Warsaw

In last year’s roadshow report we identified Warsaw as an up-and-coming investment center. This was followed by subsequent articles in IR Magazine and other publications.

This year’s findings give a clear

indication as to where that interest is coming from. Outside of Poland it is German companies that are clearly the most interested in investment from Warsaw: three in 10 companies visiting Warsaw last year were from Germany.

Among the remainder, 11 percent hailed from other western European countries and 18 percent were from other central and eastern European countries.

outside of the US to feature in the top five. While the same cities appear in the top five most-visited destinations by European companies as in 2015, this year Paris overtakes Boston to claim fourth spot.

Boston also falls down the order among Asian companies, with Tokyo replacing it in the top five.

XIIIIRmagazine.com | IR Magazine Winter 2016

Research Report

New York

‘New York. Biggest bang for the buck’ US, large cap, consumer discretionary

‘Have a cake and eat it, too – many current investors and always some new opportunities to discover. Good flights from Poland’ Poland, mid-cap, technology

‘We can simply get to so many people in New York that is has to be the favorite but not necessarily the easiest or most pleasant city to get around and work in. For roadshow environment, and probably effectiveness, San Francisco or Boston would be the clear winner’

US, mega-cap, healthcare

‘Best investors in US. Good questions and professionals’ Finland, mid-cap, materials

London‘London is, so far, the capital of the world’ Hong Kong, mid-cap, financials

‘London investors are most open-minded’ Canada, small cap, materials

‘London remains by far the most important place, with the smartest and best-prepared investors’ Denmark, mega-cap, financials

‘Lots of interest and longer-term holders’ US, large cap, materials

Boston‘A large number of long-term, fundamental investors with easy access within a short radius’ US, mid-cap, industrials

‘The largest long-only investors are in Boston’ India, large cap, materials

‘Fewer accounts, but high quality; easy to commute into town; not much time lost due to jams’ Hungary, large cap, financials

Toronto‘Great long-term investors and value-style investors; a good fit for our company’ US, large cap, materials

‘We have the most investors there, so the days are usually filled much more easily than in other cities, and everyone knows us. London would be my second favorite’ Canada, small cap, energy

Hong Kong

‘Good venues, easily accessible, travel time is not bad, wider exposure to international investors’ Thailand, mid-cap, communications

Singapore‘Singapore is the capital markets hub for the financials industry, so meeting investors based in Singapore means we are reaching out to more than just Asia’

Indonesia, mid-cap, communications

City Number of mentions

New York 101

London 99

Boston 57

Toronto 17

Hong Kong 15

Singapore 15

Favorite citiesThe three most-visited cities are also those most frequently cited by survey respondents as their favorite city for roadshows. Toronto is the fourth most commonly mentioned, while Hong Kong and Singapore are joint fifth.

XIV IRmagazine.com | IR Magazine Winter 2016

Investor events

Roadshows and investor conferences remain the most popular type of investor events by some margin, with 90 percent of survey respondents having been on the road and 95 percent having attended an

investor conference in the past year.While the percentage of companies

involved in different investor events has remained the same as in 2015, their level of involvement has changed. Companies

that go on roadshows typically did so eight times in the past 12 months, a fall of 0.6 from 2015. Meanwhile, companies that host site visits put on an average of 5.6, down from 6.3 the previous year.

Roadshows have gained in popularity among North American companies in the past year, to the point that they now rival investor conferences as the most popular form of investor engagement in the region. The 92 percent of North American companies that go on the road typically went on 7.3 roadshows, while the 96 percent who attended investor conferences did so 7.4 times. Site visits have dropped in popularity, with 75 percent of North American companies typically hosting 5.6 visits as opposed to 79 percent hosting 5.3 visits in 2015.

European companies have seen drops in both roadshow and investor conference activity, with roadshow travelers going on one trip fewer this year and the 92 percent of investor conference attendees doing so on average 7.9 times, compared with 8.6 times in 2015. More European companies are hosting site visits this year but fewer visits are actually being hosted overall. In 2015, 65 percent of European survey respondents hosted 5.8 site visits on average, while this year 71 percent hosted an average of 4.9.

While percentage engagement in investor activities has increased among Asian companies, the overall level of activity has dropped. The number of Asian companies going on the road has increased this

Regionally

What type of interactions do companies use?

INVESTOR CONFERENCES ROADSHOWS SITE VISITS INVESTOR

DAYS

Number of investor events by region

ROADSHOWS

INVESTOR DAYS

SITE VISITS

INVESTOR CONFERENCES

NORTH AMERICA

7.3

1.1

4.7

7.4

EUROPE

12.0

1.4

4.9

7.9

ASIA

5.5

3.6

13.6

9.1

year to 92 percent, but the number of roadshows they go on has dropped to 5.5 from 7.2 in 2015. Similarly, while almost all Asian companies attended an investor conference in the past 12 months, they

have attended 1.6 fewer conferences on average than they did the previous year. Site visits remain far more common in Asia than in other regions, with 80 percent of Asian firms hosting an average of 13.6.

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Research Report

There has been little change this year in investor events according to company size. The larger the firm, the more likely it is to host investor days and site visits, the more roadshows it is likely to go on and the more investor conferences it attends. Mid-cap firms went on more roadshows in 2016 than in 2015, while both large and mega-caps went on notably fewer. There were also fewer site visits hosted by small and large-cap firms this year and mega-cap investor conferences are down by 0.5 on 2015.

By company size

Number of investor events

Mega-capLarge-capMid-capSmall cap

5.28.1 9.5 11.72.0

1.61.4

1.7

4.0

5.1 5.8

8.2

7.1

9.1

6.7

10.6

RoadshowsInvestor daysSite visitsInvestor conferences

Which interactions are the most rewarding?

22%Investor

conferences

10%Site visits

16%Investor

days

52%Roadshows

GLOBAL

Most rewarding investor engagement event

15%Investor

conferences

14%Site visits

16%Investor

days

55%Roadshows

NORTH AMERICA

25%Investor

conferences

8%Site visits

19%Investor

days

48%Roadshows

EUROPE

36%Investor

conferences

10%Site visits

5%Investor

days

49%RoadshowsASIA

Roadshows remain the most rewarding form of investor engagement in 2016 with more than half of survey respondents selecting them over investor days, site visits and investor conferences. They

are viewed as the most rewarding type of investor event across all regions and cap sizes. Their popularity has increased in Asia, where there is now just a 13 percentage-point difference between

those who view roadshows as the most rewarding investor event (49 percent) and those who favor investor conferences (36 percent). This compares with a 23 percentage-point difference in 2015.

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COMMUNICATIONS CONSUMER DISCRETIONARY

CONSUMER STAPLES

ENERGY FINANCIALS HEALTHCARE INDUSTRIALS MATERIALS TECHNOLOGY UTILITIES

% GO ON ROAD

ROADSHOWS PER YEAR

DAYS ON THE ROAD PER YEAR

MOST-USED BROKER

FAVORITE CITY FOR ROADSHOWS

87% 92% 90% 91% 91% 92% 88% 100%

9.4 7.2 7.0 6.3 6.9 7.8 8.5 9.7 7.9 10.3

15.2 15.4 13.1 18.1 14.8 15.1 16.3 18.7 14.3 18.4

CITI BANK OF AMERICA MERRILL LYNCH

DEUTSCHE BANK BANK OF AMERICA MERRILL LYNCH

BANK OF AMERICA MERRILL LYNCH

JEFFERIES JPMORGAN CHASE CREDIT SUISSE MORGAN STANLEY BARCLAYS CAPITAL/MAQUARIE

NEW YORK NEW YORK SINGAPORE NEW YORK NEW YORK LONDON LONDON LONDON NEW YORK BOSTON

NUMBER OF BROKERS USED

90% 91%

5.2 5.9 3.8 5.8 4.5 4.6 6.8 5.6 5.4 6.1

Sector focus

XVIIIRmagazine.com | IR Magazine Winter 2016

Research Report

COMMUNICATIONS CONSUMER DISCRETIONARY

CONSUMER STAPLES

ENERGY FINANCIALS HEALTHCARE INDUSTRIALS MATERIALS TECHNOLOGY UTILITIES

% GO ON ROAD

ROADSHOWS PER YEAR

DAYS ON THE ROAD PER YEAR

MOST-USED BROKER

FAVORITE CITY FOR ROADSHOWS

87% 92% 90% 91% 91% 92% 88% 100%

9.4 7.2 7.0 6.3 6.9 7.8 8.5 9.7 7.9 10.3

15.2 15.4 13.1 18.1 14.8 15.1 16.3 18.7 14.3 18.4

CITI BANK OF AMERICA MERRILL LYNCH

DEUTSCHE BANK BANK OF AMERICA MERRILL LYNCH

BANK OF AMERICA MERRILL LYNCH

JEFFERIES JPMORGAN CHASE CREDIT SUISSE MORGAN STANLEY BARCLAYS CAPITAL/MAQUARIE

NEW YORK NEW YORK SINGAPORE NEW YORK NEW YORK LONDON LONDON LONDON NEW YORK BOSTON

NUMBER OF BROKERS USED

90% 91%

5.2 5.9 3.8 5.8 4.5 4.6 6.8 5.6 5.4 6.1

XVIII IRmagazine.com | IR Magazine Winter 2016

The future of roadshow activity looks promising, at least from the perspective of current IR professionals. Of the 2016 survey respondents, 46 percent think their company’s roadshow activity will increase over the next five years, while just 6 percent think it will decrease – a net increase of 40 percentage points.

While the number of respondents who expect roadshow activity to decrease

remains broadly consistent across all regions and cap sizes, there are shifts between the level of those who think it will increase and those who expect it to stay the same. More European IROs anticipate an increase in roadshow activity over the next five years than expect no change, while the least optimistic view is in Asia, where just over a third of respondents think they will see an increase.

The smallest and largest companies see the greatest differences in their expectations of future roadshow activity. Six in 10 small-cap IROs are looking ahead to more time on the road over the next five years, while 35 percent anticipate no change. At the same time, seven in 10 mega-cap respondents expect roadshow activity will remain broadly consistent and just 28 percent think it is likely to increase.

The future of roadshows

In order to further understand the future of roadshows we identified three potential areas of disruption to roadshow activity and asked respondents how important an impact these are likely to have. These areas are: the availability of new online corporate access platforms, increased use of other technology such as videoconferencing or web meetings, and regulatory changes in corporate access.

The overall impression given by IROs is

that none of these areas is likely to have a significant impact on their roadshow practice or level of roadshow activity. The area considered most likely to have an impact is use of technology, and even then there is a majority of respondents who think the impact will be only slightly or not at all important. Just a third of IR professionals globally believe the impact of regulatory changes will be moderately important or higher.

Small cap

Mid-cap

Large cap

Mega-cap

Increase Stay the same Decrease

0 20% 40% 60% 80% 100%10% 30% 50% 70% 90%

How do you think your roadshow activity will change over the next five years?

60% 35% 5%

42% 54% 4%

45% 51% 4%

28% 70% 2%

Potential obstacles

XIXIRmagazine.com | IR Magazine Winter 2016

Research Report

Regional differences

There are regional differences of opinion on the importance of these areas to future roadshow activity. Three quarters of North American IROs see online corporate access platforms as likely having no meaningful impact on their roadshow practice.

That’s not a view shared by Asian IROs, however, 57 percent of whom think their impact will be at least moderately important, with more than a quarter saying they will be very important.

This trend is also seen in the increased

use of other technologies. Here, nearly two thirds (65 percent) of North American respondents say the impact will be slightly or not important, while nearly six in 10 Asian IROs (59 percent) believe it will have a meaningful effect on roadshow activity. In the use of both corporate access platforms and other technologies, the views of European IR professionals most closely match the global norm.

European IROs most expect to be affected by regulatory changes to

corporate access, with 46 percent of respondents from the region saying regulation will have a meaningful impact on their roadshow activity. Just 20 percent of North American IROs think the impact of regulation on roadshows will be moderately important and only 3 percent think it will be very important.

In fact, in all three of the potentially disruptive areas we have identified, it is North American IROs who expect the least change to their roadshow practice.

Market cap differences

Smaller companies view the impact of technology as more significant to future roadshow practice. Online corporate access platforms are expected to have a meaningful impact by 47 percent of small-cap IROs, while half of these respondents anticipate the impact of other technologies

to be at least moderately important. These figures drop among mega-cap IROs to 37 percent for corporate access platforms and 44 percent for other technologies.

The situation is reversed when anticipating the potential impact of regulatory changes. Here it is the mega-

cap respondents who view the issue as more important, with 41 percent considering it to be significant to roadshow activity, compared with 34 percent at small and mid-cap firms and 32 percent at large-cap companies.

How important will the impact of the following be on roadshows in future?

Not important

Slightly important

Moderately important

Very important

Extremely important

The availability of new online corporate access platforms

32% 31% 24% 12% 1%

Increased use of other technology (videoconferencing, web-based meetings)

24% 30% 29% 15% 2%

Regulatory changes, such as Mifid II and the FCA’s new rules on commission use in the UK

41% 25% 24% 9% 1%

XX IRmagazine.com | IR Magazine Winter 2016

Bank of America is one of the world’s largest financial institutions, serving large corporations, small and middle-market businesses and individual consumers in more than 150 countries with a full range of banking, investing, asset management and other financial and risk management products and services. Bank of America Merrill Lynch is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. The company provides, through various banking and broker-dealer affiliates, M&A advice, equity and debt capital-raising solutions, lending, risk management, treasury, liquidity and payments management. Bank of America Corporation is listed on the NYSE. For additional information regarding Bank of America Merrill Lynch, please see www.bankofamerica.com/disclaimer.

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