DECEMBER 17, 2008 JIRA Japan Investor Relations Association IR Conference 2008 Presented by EDGE INTERNATIONAL 2008 Rittenhouse Rankings Inc. 1 日本 IR 協議会 IR カンファレンス 2008 信頼される IR コミュニケーションの実現に向けて 講師 :Rittenhouse Rankings Inc. 社長 ローラ J リッテンハウス 2008 年 12 月 17 日 ( 水 ) ( 於 ) ウェスティンホテル東京 株式会社エッジ インターナショナル
What is Rittenhouse Rankings? TECHNOLOGY TO MEASURE CEO CANDOR What is Candor? 1. Ability to make judgments free from discrimination or dishonesty. 2. The quality of being honest and straightforward in attitude and speech. 2008 Rittenhouse Rankings Inc. 2 E-2 Warren Buffett s Stewardship Principles REFORMING CORPORATE AMERICA If the CEO doesn t write the shareholder letter, it s a black mark against them for one reason they may not know their business very well. Warren Buffett, Do Business with People You Can Tru$t Berkshire Hathaway Owner s Manual. Treat investors as partners, not patsies. 99% of Buffett s net worth is in Berkshire stock. 2008 Rittenhouse Rankings Inc. 3 E-3
CEO FOG 1. 2. 2008 Rittenhouse Rankings Inc. 2 J-2 CEO CEO CEO 99 2008 Rittenhouse Rankings Inc. 3 J-3
Rittenhouse Rankings Stewardship Model of Success 2008 Rittenhouse Rankings Inc. 4 E-4 Measuring Capital Stewardship 2008 Rittenhouse Rankings Inc. 5 E-5
2008 Rittenhouse Rankings Inc. 4 J-4 2008 Rittenhouse Rankings Inc. 5 J-5
Scoring Operating and Financial Metrics WELLS FARGO 2007 SHAREHOLDER LETTER CEO JOHN STUMPF Too many of our home equity loans had loan-tovalue ratios that were too high the ratio of loans to the fair market value of the property. Our revenue also grew faster than our expenses (up 9.5 percent), which we consider the best long-term measure of a company s efficiency. Our return on equity (after-tax profit for every shareholder dollar) was a very respectable 17.1 percent. Most of our businesses achieved very solid financial results. 2008 Rittenhouse Rankings Inc. 6 E-6 Step I: Candor Scorecard In the 2007 letter, Wells Fargo scored over 600 more Candor points than AIG. Both used just over 4,300 words in their letters. 2008 Rittenhouse Rankings Inc. 7 E-7
2007 CEO CEO 9.5 ROE 17.1 2008 Rittenhouse Rankings Inc. 6 J-6 CEO 2007AIG 600 4,300 Wells Fargo AIG 2008 Rittenhouse Rankings Inc. 7 J-7
Candor is measured by its absence FOG 2008 Rittenhouse Rankings Inc. 8 E-8 AIG Offers Tortured Explanation AIG 2007 SHAREHOLDER LETTER Based upon its most current analysis, AIG believes any losses that are realized over time on the super senior credit default swap portfolio of AIGFP will not be material to AIG s overall financial condition, although it is possible that realized losses could be material to AIG s consolidated results of operations for an individual reporting period. Full year results also include pretax net realized capital losses of $3.59 billion. 30 POINT DEDUCTION Confusion, Jargon, Spin, Grammar and Nonsense 2008 Rittenhouse Rankings Inc. 9 E-9
FOG 2008 Rittenhouse Rankings Inc. 8 J-8 FOG AIG CEO2007 AIGFP AIG 1 AIG 35 9 30 2008 Rittenhouse Rankings Inc. 9 J-9
Step 2: Candor Scorecard AIG scores 670 more FOG points than Wells Fargo and ranks 97 th*. Wells Fargo ranks 4 th* among 100 Fortune 500 companies. * Based on the 2007 Rittenhouse Rankings CEO Candor Survey SM. 2008 Rittenhouse Rankings Inc. 10 E-10 Communication Discount Factor FINDING QUALITY LEADERS: 2007 Shareholder Letters 2008 Rittenhouse Rankings Inc. 11 E-11
AIG FOG 670 FORTUNE50010097 4 Wells Fargo AIG 2007 2008 Rittenhouse Rankings Inc. 10 J-10 IR CEO 2007 Wells Fargo AIG FOG 23% 16% FOG 103% 11% 11% 13% 4,329 14% 12% 13% 16% 26% 4,389 7% 19% 19% 2008 Rittenhouse Rankings Inc. 11 J-11
Year-to-Date Stock Price Performance AIG VS. S&P 500 INDEX 2008 Rittenhouse Rankings Inc. 12 E-12 Candor Rankings* Track Stock Prices (WFC) (AIG) * Based on the 2007 Rittenhouse Rankings CEO Candor Survey SM. 2008 Rittenhouse Rankings Inc. 13 E-13
AIG vs S&P500 2008 Rittenhouse Rankings Inc. 12 J-12 Wells Fargo(WFC) AIG 1 100 2007 2008 Rittenhouse Rankings Inc. 13 J-13
Success in Automotive Industry VISION AND CAPITAL STEWARDSHIP 2008 Rittenhouse Rankings Inc. 14 E-14 Candor Rankings* Track Stock Prices * Based on the 2007 Rittenhouse Rankings CEO Candor Survey SM. 2008 Rittenhouse Rankings Inc. 15 E-15
FOG 18% 19% 9% 50.2% 5.2% 1% 2% 1% 1% 10.2% 92% 2% 3.4% 1% 8.2% 21% 8% 9% 15% 12.0% 10.7% 1,373 FOG 252 12 3,854 799 FOG 401 60 2,570 454 FOG 419 93 1,713 2008 Rittenhouse Rankings Inc. 14 J-14 1 100 2007 2008 Rittenhouse Rankings Inc. 15 J-15
Top-Ranked Companies In Candor Outperform Bottom-Ranked Companies 2008 Rittenhouse Rankings Inc. 16 E-16 Crisis in CEO FOG 2002-2007 2008 Rittenhouse Rankings Inc. 17 E-17
2525 25 25 CEO 2008 Rittenhouse Rankings Inc. 16 J-16 CEO FOG 2002 FOG FOG ) FOG 40CEO ) 2007 CEO 2008 Rittenhouse Rankings Inc. 17 J-17
Why is High Candor Correlated with High Stock Prices? 1. Superior clarity will yield superior results. 2. Time to reflect on past, present and future. 3. Narrative coherence builds confidence in execution. 4. Rich and original vocabulary signals CEO ability to see more risks and opportunities. 5. Ability to engage, motivate and build trust. 2008 Rittenhouse Rankings Inc. 18 E-18 Message to IRO Professionals: FOLLOW THESE EXAMPLES TOP-RANKED COMPANIES IN CANDOR 1. Eaton 2. Entergy 3. Wells Fargo 4. Novartis 5. Target 6. Toyota 7. Williams Companies 8. Sherwin-Williams 9. Charles Schwab 10. Loews BEWARE OF FOG! 2008 Rittenhouse Rankings Inc. 19 E-19
1. 2. 3. 4. CEO 5. 2008 Rittenhouse Rankings Inc. 18 J-18 IR 1. Eaton 2. Entergy 3. Wells Fargo 4. Novartis 5. Target FOG 6. Toyota 7. Williams Companies 8. Sherwin-Williams 9. Charles Schwab 10. Loews 2008 Rittenhouse Rankings Inc. 19 J-19
参考 CEO メッセージ 2007 率直度ランキング : トップ 10 & ワースト 10 トップ 10 ワースト 10 ランク 企業名 ランク 企業名 1 Eaton 100 Humana 2 Entergy 99 ServiceMaster 3 Wells Fargo 98 ExxonMobil 4 Novartis 97 Boeing 5 Target 96 Estée Lauder 6 Toyota 95 News Corp 7 Williams Companies 94 Student Loan 8 Sherwin-Williams 93 Coca-Cola 9 Charles Schwab 92 Dow Jones 10 Loews 91 Merrill Lynch ローラ J リッテンハウス Rittenhouse Rankings Inc.( 本社 : 米国ニューヨーク ) 社長アニュアルレポートの CEO メッセージ ( 社長メッセージ ) の評価 分析を行い 業績 株価パフォーマンスとの相関関係を解明 リッテンハウス モデルという独自の評価指標の確立で 毎年有力米国企業の CEO メッセージのランキングを発表し反響を得ている 同社設立前は有力投資銀行にてインベストバンカーとして活躍 ウォーレン バフェットとの親交も厚い コロンビア大学 MBA 株式会社エッジ インターナショナル (www.edge-intl.co.jp) 1990 年の創業以来 アニュアルレポートや株主通信など IR コミュニケーションツールの企画 制作を主業務に 企業と株主との信頼関係構築に向けた IR 活動を支援 小売 通信 IT 価額 エレクトロニクス 商社 自動車 製薬 不動産 エンターテインメントなど 各業界のリーディングカンパニーを主要顧客に持つ独立系 IR 支援会社 Rittenhouse Rankings Inc. との業務提携の一環で リッテンハウス氏の著書 TRU$T : Do Business with People You Can Tru$t の邦訳版 信頼できる経営者を見分ける法 をシグマベイスキャピタルより 2008 年に出版 リッテンハウスランキングの CEO メッセージ評価 診断サービスについての お問い合せは 下記までお願いいたします 株式会社エッジ インターナショナル ( 担当 : 若月 ) 107-0062 東京都港区南青山 3-1-7 青山コンパルビル 4F TEL: 03-3403-7750 / FAX: 03-3403-7746 E-Mail: rittenhouse@edge-intl.co.jp