IR Intelligence at Companies - IBRI...IR – Helping to Create Value Be viewed as a trusted advisor,...
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IR Intelligence at Companies The International Experience Panelists Jeff Morgan, National Investor Relations Institute Barbara Gasper, MasterCard Incorporated Neil Stewart, IR Magazine
Transcript of IR Intelligence at Companies - IBRI...IR – Helping to Create Value Be viewed as a trusted advisor,...
IR Intelligence at Companies The International Experience
Panelists
Jeff Morgan, National Investor Relations Institute
Barbara Gasper, MasterCard Incorporated
Neil Stewart, IR Magazine
The Investor Relations Professional
What competencies, skills and expertise are required to be an Investor Relations
professional? Jeff Morgan National Investor Relations Institute
The Investor Relations Professional What competencies or expertise is required for success?
• Job task analysis done by NIRI in 2014. • Almost 1,000 IR professionals from across the globe
provided detail information on what they do in the IR role, but majority were from U.S.A.
• NIRI will be launching IR certification in 2015 to test these competencies.
• NIRI found there are ten areas IR professionals must have good understanding for success in the position.
• Ethics, global practices, and writing skill also to be tested. • The following main areas are in order of time spent.
The IR Competencies
Domain 1 - IR Strategy Formulation
Fair Valuation Drivers
Brand & Reputation
Domain 2 – IR Planning, Implementation & Measurement
Annual IR plan design & Implementation
IR Budget
Information production (releases, scripts, etc.)
Measuring IR effectiveness
Crisis Planning/Implementation
3rd Party service provider management
The IR Competencies
Domain 3 – Messaging Development
Establish a process for message development
Ensure effectiveness of messaging
Domain 4 – Marketing & Outreach
Targeting markets & audiences
Execution & Measurement
Relationship Building
The IR Competencies
Domain 5 – Financial Reporting & Analysis
Financial Reporting (earnings releases, etc)
Guidance
Models & Forecasts (economic/corporate scenarios)
Domain 6 – Business Insight
Industry Trends & Issues
Competitive Analysis
Domain 7 – Strategic Counsel & Collaboration
Counsel to Executive Management & Board
Internal Collaboration
The IR Competencies
Domain 8 – Capital Markets & Capital Structure
Capital markets understanding and insight
Capital structure (support investment bank activity)
Domain 9 – Regulatory Compliance
Compliance with internal and external laws, listing rules, etc.
Participate on Disclosure Committee
Domain 10 – Corporate Governance
Corporate Governance & Shareholder relations on proxy, say-on-pay, annual meeting, etc
The Investor Relations Professional
How IR Can Help Create Value
Personal Experiences Across 5 Different Industries
Barbara Gasper, IRO MasterCard Incorporated
IR – Helping to Create Value
Knowing how to use IR to help create value
Management and the Board need to be educated
What shareholders think does matter
IROs may need to step up their game
An existing public company
Compare your program to Best Practice examples and what others in your industry are doing
Query external audiences about what can be improved
The IPO situation
Focus on building a program from the ground up
IR – Helping to Create Value
Be viewed as a trusted advisor, both internally and externally
Clear, consistent and honest communications
Build strong relationships based on trust and credibility
Represent the shareholders’ views to management
IR is a 2-way communication conduit, not just outbound
Important to understand investor expectations and concerns when thinking about strategy and performance
Help set realistic, measurable expectations for investors
IR – Helping to Create Value
Internal Audiences – Earning that Seat at the Table
Management
Clearly articulate investor expectations and concerns
Make sure management is well prepared when interacting with investors
Competitive intelligence; know how your company compares
Board Members
Regular communication on investor views and concerns
Annual in-person presentation
IR – Helping to Create Value
External Audiences – Be seen as having a Seat at the Table
Consistency of messaging
Know what’s been said before
“Bridge the gap” if things have changed
Transparency, simplicity and candor
Demonstrate your business and industry knowledge
Make things easy to understand
Don’t “perfume the pig”
Gather input/feedback
Direct conversations – be proactive
Perception studies
IR Intelligence at Companies The International Experience
Global Snapshots: Case Studies of ‘Intelligent IR’
Neil Stewart IR Magazine
Learning From the Best
Agenda
Intelligent IR = “Extracting maximum information from the players in the capital markets, so that companies can benefit from insights, accelerate their growth and create value for their shareholders” – Helmut Bossert
Today’s case studies
Gathering intelligence directly from analysts and investors
Communicating intelligence internally
Putting market data to work
Next frontier: Crowdsourcing intelligence
CapitaLand: Simplifying the Message
CapitaLand Limited
Harold Woo
Senior Vice President, Investor Relations
November 2013
Used IR intelligence to identify why CapitaLand was underperforming
Did investor perception studies
Presented the results to a management retreat
Came up with suggestions about how to win back investors’ attention
These included a simplified message, buyback and dividend policy
Did a series of small group meetings with long-time analysts and at least one senior executive
Cisco: Rebuilding Credibility
Cisco: Rebuilding Credibility
IR intelligence key to turnaround after 2011 stumble
Leveraged global perspective of IR team
Used sell side as a sounding board
Tracked investor base shift from growth to GARP/value
Introduced first-ever dividend and first-ever EPS growth forecast
Readjusted senior management and employees away from narrow focus on top-line growth
Communicating intelligence internally
Daily market update sent to management with honest feedback
Weekly IR conference call with management
Broad internal outreach to employees around quarterly results
Honeywell: Art of the Investor Perception Study
Honeywell: Art of the Investor Perception Study
CEO engagement in the process is a critical factor
Source: 2014 IR Magazine Honorees – NIRI webinar, April 8, 2014
Honeywell: Art of the Investor Perception Study
Proactively seeking feedback leads to tangible results
Source: 2014 IR Magazine Honorees – NIRI webinar, April 8, 2014
Wright Medical Group: Gaining Feedback & Trust
Subject: Input requested for WMGI’s upcoming Q4 2013 earnings call
Wright Medical’s management team would like to request your input ahead of our 4Q 2013 earnings call, which is scheduled for Monday, February 24, 2014 at 4:30 p.m. Eastern Time.
To provide your input, please click on the link below. Your responses will be anonymous. If this link does not work, please copy this URL and paste it into your Web browser:
https://www.surveymonkey.com/s/WMGI_4Q_2013_Survey
As always, we appreciate you taking the time to provide your input. Please let me know if you have any questions.
Best regards,
Julie
Sample email to request investor input ahead of
earnings calls Request input ahead of
quarterly earnings calls
Online survey, ensure anonymity
Benefits: Feedback to inform
management
More effective earnings calls
Increased shareholder engagement
Source: NIRI Virtual Chapter presentation, May 7, 2014
Wright: Pre-earnings Investor Poll
Wright: Sample Survey
Source: NIRI Virtual Chapter presentation, May 7, 2014
‘Julie Tracy, the IRO at Wright Medical Group, sends out everything I need and then a questionnaire to check how she could do her job better. she is extremely proactive and very good at her job as a result’ – sell side
Wright: Investors Like to be Asked
Source: IR Magazine Awards – US 2014
Wright: Putting Market Intelligence to Work
Holder Name 6/30/2011 Change 3/31/2011 City Holdings Style Turnover
1 BlackRock Advisors LLC 3,853,373 1,695,707 2,157,666 New York Value 35%
2 Tremblant Capital Group 3,252,077 2,159,319 1,092,758 New York Value 108%
3 Kornitzer Capital Management, Inc. 2,257,387 (44,075) 2,301,462 Shawnee Mission Growth 25%
4 HealthCor Management LP 2,126,956 2,126,956 0 New York Value 225%
5 Relational Investors LLC 1,920,300 1,920,300 0 San Diego Value 80%
6 Fisher Asset Management LLC 1,905,342 929,472 975,870 Woodside GARP 47%
7 Penn Capital Management, Inc. 1,556,533 (585,723) 2,142,256 Philadelphia Deep Value 75%
8 T. Rowe Price Associates, Inc. 1,217,900 (20,600) 1,238,500 Baltimore GARP 35%
9 Camber Capital Management LLC 1,135,452 (280,000) 1,415,452 Boston Value 120%
10 Fidelity Management & Research 1,020,000 (2,072,898) 3,092,898 Boston GARP 39%
20,245,320 shares
(53% of outstanding
shares)
Top 10 Actively Managed Shareholders - 2011 Weighted Avg Turnover 79%
Weighted Avg Holding Period 23.5 months
Goal is < 67% turnover and
> 30 months holding period
Source: NIRI Virtual Chapter presentation, May 7, 2014
Wright: Putting Market Intelligence to Work
71% 68%
61% 56%
61%
66%
71%
76%
2011 2012 2013
Source: NIRI Virtual Chapter presentation, May 7, 2014
Significant progress in reducing weighted average turnover of Top 50 investors DWYSYWD
Sustained targeting
Proactive outreach
Zillow: Crowdsourcing Intelligence
Zillow: Crowdsourcing Intelligence
Intel: Measuring Social Media Sentiment
Source: NIRI’s IR Magazine Awards webinar, March 26, 2013
Date Sent
Message Impressions Engagements Link Clicks
22 Mar
In celebration of World Water Day, Intel is recognizing the winners of the Environmental Excellence Awards..http://stks.co/gPQp $INTCMarch 22, 01:00PM
1,826 1 1
22 Mar
Intel Labs and the U.S. Army have signed an R&D agreement to dramatically improve virtual reality tools..http://stks.co/p6MS $INTCMarch 22, 11:00AM
1,853 4 4
21 Mar
Building on the recently announced Intel® Distribution for Apache Hadoop* software, the Enterprise Platforms..http://stks.co/q6DB $INTCMarch 21, 02:30PM
819 0 0
21 Mar
SANTA CLARA, Calif., March 21, 2013 – Intel Corporation's board of directors has declared a 22.5 cents..http://stks.co/q68W $INTCMarch 21, 06:15AM
2,337 21 20
19 Mar
Intel Capital has announced an investment in Geofusion, a Brazilian company providing geomarketing..http://stks.co/jOxh $INTCMarch 19, 10:45AM
1,290 2 1
19 Mar
Intel Free Press has revised and updated its mobile app to version 4.3 with new a new look and new features..http://stks.co/gP2L $INTCMarch 19, 08:45AM
1,287 2 2
14 Mar
The Enterprise Platforms and Services Division (EPSD) recently rolled out an the Intel® Storage System..http://stks.co/fOiO $INTCMarch 14, 11:15AM
1,865 0 0
13 Mar
Congratulations to Shafi Goldwasser and Silvio Micali, winners of the latest ACM Turing Award. Their work..http://stks.co/t5HZ $INTCMarch 13, 09:30AM
1,669 4 4
13 Mar
As part of Samsung’s ‘Built for Africa’ program, which focuses on developing products to.. http://stks.co/eNPw $INTCMarch 13, 09:00AM
2,221 2 2
12 Mar
Sara Volz of Colorado Springs, Colo. wins $100,000 Award from the Intel FoundationNEWS HIGHLIGHTSSara Volz..http://stks.co/dNEL $INTCMarch 12, 06:15PM
714 0 0
Intel: Measuring Social Media Sentiment
Source: NIRI’s IR Magazine Awards webinar, March 26, 2013
Q&A
Panelists
Jeff Morgan, National Investor Relations Institute
Barbara Gasper, MasterCard Incorporated
Neil Stewart, IR Magazine
