CASE STUDY: Investor Relations Roadmap How a major brand developed a data-driven IR strategy www.ipreo.com
IDENTIFYING THE OBJECTIVE From start to finish, the roadmap allows for a clear path toward achieving carefully aligned objectives; both in terms of investor prioritization, and allocation of management time. The total package generated by Ipreo provides a lot of firepower for us to internally promote the company s overall investment community outreach strategy. SECTOR: Consumer EXCHANGE: NYSE MARKET CAP: Mega Cap The Company identified two key goals prior to engagement. They were looking for a way to: 01 02 Reshape the way the team approached annual investor relations strategic planning Establish metrics to report on and measure IR efficacy The Company s objective was to ensure all decision making on the cornerstones of an annual IR program non-deal roadshow schedule, conference attendance, corporate access involvement, management access and prioritization, event planning and messaging derived from data-driven conclusions. Moreover, the Company wanted to increase team-wide efficiencies through the use of a common platform to establish and monitor this plan in real-time to meet these objectives. The Company engaged the Ipreo IR Roadmap team to perform an IR audit and, based on the findings of the analysis, originate a global annual targeting plan complete with IR and management goals, clear IR KPIs and metrics, and a team-wide CRM strategy, utilizing Ipreo s BD Corporate platform. 1
BUILDING THE IR ROADMAP In order to best form a forward looking strategy, the Client, with the help from the Ipreo team, first looked backwards and engaged in an analysis on vital components of historical trading and IR activity. This 10-year retrospective analysis included: Long-term Institutional & Mutual Fund Trend Spotlight Long-Term Sell-Side Sentiment Trending Competitive Stock Performance Analysis Investor Relations Activity Audit Short Interest Breakdown 2
BUILDING THE IR ROADMAP (continued) With the goal of covering the most salient factors driving current valuation, and highlighting areas for increased IR and senior management efficiency and impact, the Client engaged the Ipreo team to answer key tactical questions:? How has the Company performed in regards to investor returns and valuation against the market and performance peer group on a ten year basis?? How does the Company s IR engagement strategy stack up, when benchmarked against sector and market cap peers?? Who are the key investors driving the current valuation in the story and sector, and what capital has the team missed out on against the peer group?? Historically, has the Company partnered with optimal corporate access teams for non-deal roadshows and conference attendance? What were the initial opportunities presented and what was the return on this time? Moreover, with the findings of this initial retrospective analysis, the Client was able to engage in an annual shareholder targeting initiative covering: Top Shareholder Maintenance Domestic & International Roadshows HQ IR Events Company Site Visits Recommended Conference Attendance Recommended and Prioritized Management Inclusion Non-traditional Investor Engagement (SWF, Retail, ESG) 3
STUDY RESULTS Retrospective Analysis & IR Audit After analyzing the Client s history, the study revealed: 1 2 3 4 5 6 The Client was underperforming the peer group on a five-year basis, due to an exodus of GARP and Growth-biased capital The Client was not benefiting from bullish moves into the sector by numerous key mutual fund stock pickers The rising interest rate environment presented a key risk to shareholder weightings from Yield-focused mutual funds, which were holding the client at historical highs The scope of company IR outreach was inline or outperforming the peer group on most metrics, aside from conference attendance, while Global NDRs were also below the benchmark Increased management time with prioritized targets remained the key additive consideration going forward and especially aligning the most appropriate team member with marketing to investors based on their stated hurdles for investing There remained room for increased focus on HQ visits and on-site investor tours for key targets and holders, as well as sell-side analysts 4
ANNUAL SHAREHOLDER TARGETING & ENGAGEMENT STRATEGY The Client implemented an annual plan to ensure engagement with each shareholder and target in vestors in the most advantageous manner, with the most appropriate team member, to facilitate understanding of the investment story and full appreciation of the future of that investment. Prioritized senior management domestic Non-Deal Roadshow to Northeast (Boston/New York) and West Coast (San Francisco/LA), broken down on a fund and individual decision maker basis Offered IR Non-Deal Roadshow recommendations for Kansas City, Chicago, Milwaukee, Denver, Dallas and Baltimore/ Philadelphia Formed a Global Non-Deal Roadshow strategy for Europe (London, Frankfurt, Zurich, Amsterdam) and Asia-Pacific (Tokyo, Beijing, Singapore, Hong Kong, Australia) Provided recommendations for which conferences should involve management, which should be IR-only, and which events should be dropped from the annual schedule Identified and prioritized current shareholders and targets that should be invited to HQ meetings with management Provided situational targeting for both Growth and Valuebiased shareholders in the event of a company-specific event such as an earnings surprise or change to the fundamental investment story 5
IMPLEMENTATION Held an initial workshop at the Client s HQ, where the Ipreo team presented key findings and applied them to the forward looking calendar The Client implemented recommend KPIs and goals and utilized BD Goal Tracker to align CRM activity with measurement of larger strategic initiatives With the help of Ipreo s BD Account Manager, the Client executed best practices for meeting preparation through Outlook Sync functionality and mobile entry of notes during meetings, to effectively and efficiently align a Global IR team The Client was able to make their outreach initiative more efficient, by prioritizing time with more meaningful decision makers The Client was able to track ahead of stated goals by identifying key investors and locations to prioritize during outreach There was a 50% increase in conference attendance, due to strategic IR-only attendance Regional Client Presidents were strategically utilized during select conferences to further highlight the leadership bench and provide unique perspective to the investment community The Client shifted senior management time prioritization and exhibited a 217% increase in HQ-hosted meetings, compared to the prior year 63% of management investor engagement was focused on ranked targeted holders and non-holding targets, and this group led 65% of active institutional buying during the first half of the year Five prioritized targets made significant initiations in the name 6
CLIENT TESTIMONIAL We have found the Ipreo IR Roadmap service to be very beneficial in aiding our strategic investor relations practices. From start to finish, the roadmap allows for a clear path toward achieving carefully aligned objectives; both in terms of investor prioritization, and allocation of management time. By supplementing the roadmap with Ipreo s trading analysis, we are able to clearly demonstrate ways in which our IR efforts have benefited the stock. The total package generated by Ipreo provides a lot of firepower for us to internally promote the company s overall investment community outreach strategy. All of the above is supported by a dedicated team of Ipreo associates, who demonstrate the utmost professionalism, dedication, and flexibility in supporting our mission. The team is proactive; they frequently provide us with information even before we realize we need it. They do a great job of taking our ideas and/or concepts and translating them into deliverables actual outputs that allow us to advance the agenda. In short, their efforts make our lives a whole lot easier. IPREO SERVICES USED FOR MORE INFORMATION ABOUT THIS STUDY CONTACT IR Roadmap BD Corporate Premium Targeting Global Markets Intelligence Ari Davies Director, IR Advisory +1 (919) 615-4186 ari.davies@ipreo.com 7