Analyst Presentation: The Learning Showcases

Transcription

1 Analyst Presentation: The Learning Showcases Case studies: 5 selected analyst presentations February 2014

2 CONTENTS Importance of analyst presentation Four steps to best practice presentation Samples 2

3 CONTENTS Importance of analyst presentation Four steps to best practice presentation Samples 3

4 A clear investment thesis/story is important Product Packaging Customers COMPANY IR MATERIALS INVESTMENT COMMUNITY The Investment Thesis Your company s angle; a way to differentiate between investment choices Similar to good consumer brand management Annual report Company profile Analyst presentation News Release Website Analysts: buy-side and sell-side Equity sales Investors: shareholders and bondholders Creditors 4

5 Key IR communication materials ANNUAL REPORT WEBSITE PRESENTATIONS Most credible Most durable Most cost effective Widest reach First point of contact Vehicle for other communications Interactive Instant feedback Best source of nonfinancial information Chance to showcase management s experience and credibility The annual report is part of due diligence for most analysts before deciding to follow a stock The IR website is the first place analysts go to get information on your company Management credibility ranks highest in factors considered important when making investment decisions Source: Rivel Research

6 Presentations are crucial Which sources of non-financial company information do you consider important? (Survey of U.S. analysts and fund managers) Analysts and fund managers rate investor presentations as their most used IR website resource Management presentations 79% Presentations 100% Public filings or reports Sell-side analysis Competitors 69% 68% 76% Webcasts news alerts 80% 72% Business press 65% Calendar synchronization 38% Investor relations department Customers Buy-side analysis 65% 65% 65% RSS fees Mobile access 33% 24% Trade press 64% Charting tools 20% Informal network 61% Excel spreadsheets 20% Source: Ernst & Young LLP 2008 Source: Rivel Research

7 Types of presentation slides Presentation slides Events: Ingredients: Identity Investment conference Non-deal roadshow Company visit Business Overview Industry & company overview Core products Market-based operations Customers Competitive advantages Future direction Corporate strategies & objectives Growth strategies Events: Performance SET s Opportunity Day Quarterly analyst meeting Full-year earning presentation Ingredients: Recap of major event (if any) Operational performance highlights Financial performance highlights Analysis of the results Outlook 7 Events: Ingredients: Event Event analyst meeting New business New strategic direction Major investment M&A or divestment Capital increase Deal roadshow Crisis Executive summary Rationale of the transaction Transaction information Impact Timeline What happened? Impact Solution / What s next?

8 Pitfalls of analyst presentation? Story & structure Lack of convincing storyline Not structure and illogical Lack of fact and/or rationale Sections of document are not clearly linked together Management Communication No clear messages Inadequate support data Just present fact, no so-what? Professional Organization Not attractive & professional visual appeal Inconsistency in terms & reference Unclear graphs, misaligned text Source: Adapted from 8

9 CONTENTS Importance of analyst presentation Four steps to best practice presentation Samples 9

10 Four steps to a best practice presentation Define your value Structure Gather Develop story/thesis presentation information Presentation What sets your company apart? Core skills and competitive advantages Develop logical structure Storyline & Storyboard Company data Industry data Economic data Slide types Effectively designed visual aids Business strategy 10

11 Four steps to a best practice presentation Define your value Structure Gather Develop story/thesis presentation information Presentation What sets your company apart? Core skills and competitive advantages Develop logical structure Storyline & Storyboard Company data Industry data Economic data Slide types Effectively designed visual aids Business strategy 11

12 Sample of investment story/thesis? Player in growth markets Extending traditional strengths to new markets New business opportunities Management competence/credibility Sustained financial performance Innovation/Industry/Market leadership Corporate partnership 12

13 Where do you get your investment thesis/story? Determine your company value Formulate the investment thesis Ascertain what management thinks Attending board & management meetings Discussion with top management Determine your business Strategy map Business model Financial model Value drivers Determine what the analysts and investors think Market signals analysis or feedback survey Analyst reports FAQ Strategy How does your company plans to grow? How do you do things differently from the competitors? Strengths What are your qualities that you utilize to achieve target? What are your qualities that your competitors do not have? Market Position Where are you positioned in relation to your competitors? 13

14 Four steps to a best practice presentation Define your value Structure Gather Develop story/thesis presentation information Presentation What sets your company apart? Core skills and competitive advantages Develop logical structure Storyline & Storyboard Company data Industry data Economic data Slide types Effectively designed visual aids Business strategy 14

15 A pyramid logic structure creating a well-organized and easy-to-follow presentation Pyramid Logic Structure Objective/ Main Point Title Presentation Vertical Relationships Sections Sub-sections Supporting facts Horizontal Relationships Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto 15

16 Sample: presentation structure Company Overview Financial Performance Business Expansion 1.1 Overview 1.2 Milestone 1.3 Shareholder 1.4 Production base 1.5 Business strategies Product variety Distribution network Logistic Brand Distribution Financial flexibility 1.6 Current issue / market concern yr financial highlights 2.2 Quarterly performance Sales performance: volume & value Costs SG&A expenses Profitability 2.3 Capital structure 3.1 Growth strategies 3.2 New project updates 3.2 CAPEX 3.3 Post-expansion capacity Appendix Profit & loss summary Balance sheet summary CSR activities Marketing activities 16

17 Sample: presentation structure 1 Business Overview 2 Financial Performance 3 Water Situation 4 Growth Direction 1.1 Overview yr financial highlights 3.1 Pipelines & reservoirs 4.1 Water demand and 1.2 Shareholder 2.2 Earnings performance 3.2 Water storage updates tariff forecasts 1.3 Steady growth performance 1.4 EASTW businesses 1.5 Water businesses Nature of business Value chain Market base Volume & tariff Concessions Revenues & Gross profit summary Raw water: financial performance Tap water: financial performance EBITDA & net profit Profitability 2.3 Capital structure Group I: Dok Krai, Nong Pla Lai,and Klong Yai reservoirs Group II: Bang Pra and Nong Kho reservoirs Group III: Prasae reservoirs 4.3 Future projects 4.4 CAPEX and timeline Appendix Profit & loss summary Balance sheet summary Detailed concessions 1.6 Office rental business 17

18 Sample: presentation structure Company Overview Operational & Financial Performance Going Forward 1.1 Overview 1.2 Vision & mission 1.3 Milestone 1.4 Business platform 1.5 Success factors 1.6 SINGER Business Product segmentation Distribution network Sales mix SINGER Way 1.7 Credit approval procedure 2.1 Turnaround performance 2.2 Financial highlights 2.3 Productivity 2.4 Quarter performance Sales performance: volume & value Gross profit & margin Profitability 2.5 Credit performance 2.6 Capital structure 3.1 Growth strategies 3.2 CAPEX Appendix Company structure Profit & loss summary Balance sheet summary Red delinquent Terminology & abbreviations 18

19 Storyboard is the key starting point for structuring presentation A storyboard lets you organize your ideas and visualize your final product and lets you lay out the logic of your presentation in the most effective sequence 19

20 Four steps to a best practice presentation Define your value Structure Gather Develop story/thesis presentation information Presentation What sets your company apart? Core skills and competitive advantages Develop logical structure Storyline & Storyboard Company data Industry data Economic data Slide types Effectively designed visual aids Business strategy 20

21 Gather information Company Data Industry Data Economic Data Financial data Financial statements, management reports Non-financial data Department statistics, management reports, minutes of the Board s meetings Context Management, department heads Industry-specific publications Industry studies Competitors Suppliers Bank of Thailand Financial sector data, interest rates, exchange rates Ministry of Finance Government income, budget, public investment projects National Statistical Office Employment, population, etc. National Economic & Social Development Board (NESDB) Retail sales, direct investment, etc. 21

22 Four steps to a best practice presentation Define your value Structure Gather Develop story/thesis presentation information Presentation What sets your company apart? Core skills and competitive advantages Develop logical structure Storyline & Storyboard Company data Industry data Economic data Slide types Effectively designed visual aids Business strategy 22

23 Three basic types of content slides to help develop this supporting story Text Exhibits Text Exhibits: Convey specific facts or ideas Eliminate errors in interpretation of the information presented Summarize information on previous or subsequent slides Organize large amounts of information Presentation Diagrams Diagrams: Convey cause / effect, sequential relationships between observations Organize information Explain conceptual ideas Graphs: Summarize numerical data Draw attention to specific facts Explain trends in underlying data Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto 23

24 Text exhibits are useful for organizing large amounts of information Text Exhibits Outline High Med Low Matrix Low Med High Form Table Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto 24

25 Diagrams are used to demonstrate sequential, cause and-effect and dependency relationships Diagrams Flow Gantt Conceptual Map Organizations Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto 25

26 Graphs help draw attention to underlying trends or relationships in data series Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto 26

27 CONTENTS Importance of analyst presentation Four steps to best practice presentation Samples Identity slide Performance slides Event slides 27

28 Types of presentation slides Presentation slides Events: Identity Investment conference Non-deal roadshow Company visit Business Overview Industry & company overview Core products Market-based operations Customers Competitive advantages Future direction Corporate strategies & objectives Growth strategies Events: Performance SET s Opportunity Day Quarterly analyst meeting Full-year earning presentation Ingredients: Recap of major event (if any) Operational performance highlights Financial performance highlights Analysis of the results Outlook Events: Ingredients: Event Event analyst meeting New business New strategic direction Major investment M&A or divestment Capital increase Deal roadshow Crisis Executive summary Rationale of the transaction Transaction information Impact Timeline What happened? Impact Solution / What s next? 28

29 Sample of business identity slides DRT is a manufacturer and distributor of roofing tiles, boards and ceilings, siding boards, and other roof accessories and non roof products as well as the service provider for roof stripping and installation under the trade names of Diamond, Roof, Adamas, and Jearanai. 29

30 Sample of business identity slides 30

31 Sample of business identity slides AIT is a leading system integrator and ICT solution provider, supplying ICT products ranging from computer hardware to software applications over turnkey projects to service contracts and outsourcing schemes in both the private and the public sector. 31

32 Sample of business identity slides 32

33 Sample of business identity slides EASTW takes responsible for the development and management of main water pipeline systems in the Eastern Seaboard by supplying raw water to industrial estates, factories and water works. 33

34 Sample of business identity slides 34

35 Sample of business identity slides SINGER is the distributor of electrical appliances under the Singer trademark. The Company sells products on both cash and hire purchase basis, via direct sales channel, its owned branches, and authorized dealers throughout the country nationwide. Most of products distributed by Singer are purchased with OEMs (Original Equipment Manufacturers). 35

36 Sample of business identity slides 36

37 Types of presentation slides Presentation slides Events: Identity Investment conference Non-deal roadshow Company visit Business Overview Industry & company overview Core products Market-based operations Customers Competitive advantages Future direction Corporate strategies & objectives Growth strategies Events: Performance SET s Opportunity Day Quarterly analyst meeting Full-year earning presentation Ingredients: Recap of major event (if any) Operational performance highlights Financial performance highlights Analysis of the results Outlook Events: Ingredients: Event Event analyst meeting New business New strategic direction Major investment M&A or divestment Capital increase Deal roadshow Crisis Executive summary Rationale of the transaction Transaction information Impact Timeline What happened? Impact Solution / What s next? 37

38 Sample of strategy telling slides Corporate objective should be communicated with guidance on how to achieve it. AIT which is a project-based business communicates its qualitative corporate objectives with its business strategies and operational framework. 38

39 Sample of strategy telling slides DRT one of companies having quantitative targets clearly communicates its 5-year financial objectives with strategies and supporting data. 39

40 Sample of strategy telling slides SINGER begins its strategy telling section with linkage between vision and strategies. Each strategy is afterwards clearly communicated with execution plans and supporting data. 40

41 Sample of strategy telling slides 41

42 CONTENTS Importance of analyst presentation Four steps to best practice presentation Samples Identity slide Performance slides Event slides 42

43 Types of presentation slides Presentation slides Events: Identity Investment conference Non-deal roadshow Company visit Business Overview Industry & company overview Core products Market-based operations Customers Competitive advantages Future direction Corporate strategies & objectives Growth strategies Events: Performance SET s Opportunity Day Quarterly analyst meeting Full-year earning presentation Ingredients: Recap of major event (if any) Operational performance highlights Financial performance highlights Analysis of the results Outlook Events: Ingredients: Event Event analyst meeting New business New strategic direction Major investment M&A or divestment Capital increase Deal roadshow Crisis Executive summary Rationale of the transaction Transaction information Impact Timeline What happened? Impact Solution / What s next? 43

44 Sample of performance slides DRT s sales performance partly depends upon season. DRT uses stacked column matrix and quarterly basis presentation to illustrate its financial performance. Dotted lead lines are used to pinpoint seasonality of underlining product. 44

45 Sample of performance slides EASTW s water distribution and water pipeline management are known as stable and defensive businesses. EASTW begins its financial section with 5- year financial performance, followed by present year s performance presented on a half-year basis. 45

46 Sample of performance slides SINGER s business has turned around since SINGER underlines this fact by presenting its previous years performance on a yearly basis with that of present year on a quarterly basis. To ease analysis, sales in volume term are presented with those in value term, equipped with performance breakdown by groups of products. 46

47 CONTENTS Importance of analyst presentation Four steps to best practice presentation Samples Identity slide Performance slides Event slides 47

48 Types of presentation slides Presentation slides Events: Identity Investment conference Non-deal roadshow Company visit Business Overview Industry & company overview Core products Market-based operations Customers Competitive advantages Future direction Corporate strategies & objectives Growth strategies Events: Performance SET s Opportunity Day Quarterly analyst meeting Full-year earning presentation Ingredients: Recap of major event (if any) Operational performance highlights Financial performance highlights Analysis of the results Outlook Events: Ingredients: Event Event analyst meeting New business New strategic direction Major investment M&A or divestment Capital increase Deal roadshow Crisis Executive summary Rationale of the transaction Transaction information Impact Timeline What happened? Impact Solution / What s next? 48

49 Sample of event slides: post-merger business OFM operates as distributor of stationary supplies and office equipment, selling order through catalog, electronic commercial system (e-commerce), electric procurement (e-procurement) and store. 49

50 Sample of event slides: post-merger business OFM undertook a business integration accepting a transfer of the entire business of new shareholders through capital increase and share swap with the new shareholders. 50

51 Sample of event slides: post-merger business After business integration, OFM keeps its investors updated on its business integration activities and business expansions. 51

52 Sample of event slides: post-merger business For comparative purpose, OFM presents its present year financial results with both actual (audited) and proforma (premerger) financial data of the previous year. 52

53 References Advanced Information Technology ( AIT ) Diamond Building Products ( DRT ) Eastern Water Resources Development and Management ( EASTW ) Singer Thailand ( SINGER ) OfficeMate ( OFM ) 53

54 Contact Us PYI Consulting Company Limited 18th floor, Park Ventures Ecoplex 57 Wireless Road, Lumpini, Pathumwan, Bangkok Thailand Pathom Yongvanich, Director & Partner: Sarit Chokchainirand, Director & Partner Office Tel to 4 The Stock Exchange of Thailand Good Governance Development & Alliance Department 62 Ratchadaphisek Road, Klongtoey, Bangkok Thailand Office Tel to 7 54