Strategic Planning Developing an IR Plan

Transcription

1 Webinar Series Strategic Planning Developing an IR Plan 2. Applying Theory to Practice a case study August 13, p.m. ET Keith Mabee Vice Chairman, Dix & Eaton

2 Agenda 1. August 6 Introduction The role of IR in value creation Developing an IR plan Assessment Plan 2. August 13 Case study discussion Tactics and execution 3. August 20 Measuring the Success of your Program Measurement and strategy evolution 2

3 Questions from First Session How should an IRO go about determining the optimal shareholder type mix for his/her company? Can you expand on how disclosure committees work? Can you outline some of the specific metrics we should be employing to measure the effectiveness of our IR plans? How do you incorporate the SWOT analysis into the IR plan?

4 Questions from First Session (cont.) You highlighted the importance of financial media. How do you suggest approaching them? Interviews with CEO? plant visits? background or industry info talks w/ journalists? What would be the ultimate goal of reaching out to the financial? To get additional exposure for the company in order to appear (finally) at the radar screen of investors / analysts? In considering a company with negative earnings and a strong IP portfolio, how would you approach an IR communications plan taking into account that many of the potential investors may well be anticipating an acquisition, either by the company or a sale of the company to a larger entity? Who should I engage in the process?

5 Developing an IR Plan for Trifecta 1. After reading the Trifecta study, what would you recommend Samantha s first step should be in developing her plan? a. Report out interviews with lead institutions. b. Interview the CEO and CFO to develop priorities. c. Revise IR road show presentation. d. Draft an outline for the annual report.

6 Developing an IR Plan for Trifecta 2. What is the key value driver for Trifecta over the next months? a. 29% market share and industry s outsourcer of choice. b. All 14 analysts following the firm rate it outperform or buy. c. Customer spend is expected to double over the next four years. d. Company shares trade at a 15% premium to peers at 25x earnings.

7 Developing an IR Plan for Trifecta 3. What would concern you most about Trifecta s near-term performance outlook? a. Company s $1 billion in commercial paper used to finance aggressive growth is elevating its debt ratio. b. The IT outsourcing industry continues to consolidate dramatically in a highly competitive market. c. Near-term prospects for margin growth in the industry are limited. d. Trifecta s independent divisions were competing with each other and their sales forces weren t compensated for cross-selling.

8 Tactics: Broaden Institutional Base Current Goal Retail 18% Pension 5% 40% Institution s 37% Retail 10% Pension 10 5% % Employee/ Insiders 25% 25% 5% Institutions 60% 60% Employee/ Insiders

9 Tactics: Attracting the Best Shareholders Institutional targeting program A comprehensive quantitative and qualitative determination of the best institutional prospects, as well as an assessment of what shareholders may be close to selling Prioritization of targets, key meetings, oneon-ones with senior management

10 Targeting Criteria Interest in the sector Meaningful purchasing power Long-term investment orientation Sizeable equities under management

11 Role of IR in Value Creation Market awareness and feedback to management Credibility and consistent communication Number of long-term investors; optimize shareholder mix Analyst following Access to capital Share liquidity P/E ratio Share value Corporate governance

12 Developing an IR Plan Setting Program Objectives Typical IR Program Objectives To focus investors on your business, financial results and long-term prospects for creating value To provide meaningful and relevant public disclosure tied to business dynamics To establish timely and consistent communications and appropriate transparency with existing and potential investors To attract the optimal shareholder mix To educate management and employees about how their efforts can impact share price To providing management and the Board with timely competitive feedback, corporate governance and market analysis

13 Ask a Question During the live event only August 13, :00 5:00 p.m ET On the telephone call and follow the operator s instructions On your computer click on the Questions link on your computer screen Telephone access provided by In Comm

14 Replay Options A replay is available via telephone until midnight on 8/27/09 (Eastern time). Call (USA) or (International) The account number is 286 and the conference I.D. is View this forum on the web until 1/31/10 by going to the webinar page: Category/learn/webinars.aspx Webcast provided by VCall, a service of Precision IR