INVESTOR DAYS: A STRATEGIC LOOK CLAIRE LAVERY VICE PRESIDENT, RIVEL RESEARCH GROUP JANUARY 30, 2018 2017 Rivel Research Group All rights reserved. No part of this publication may be reproduced in any form or by any means, without permission in writing from the copyright owner.
What s the best venue? A multitude of options Earnings calls Investor Days IR website Site visits Sell-side conferences NDRs Press releases IRO outreach Sell-side research Social media Annual report Proxy materials 2
Where do investor days rank? The case for investor days Where Does the Global Buy-side Prefer to Hear Management Speak? Non-deal roadshow At an investor day During an earnings call During an onsite/facility visit 71% 68% 65% 58% At a sell-side conference 41% 3
Why are they important? 73% of 52% of global buy-side believes investor days should be held annually global buy-side will not invest without first meeting management 4
Why are they important? A singular opportunity to: Explain strategy Earnings calls Foster credibility (setting and meeting goals) Site visits Provide management access Showcase bench strength Differentiate from peers Press releases Sell-side research Communicate competitive advantages Social media Annual report Proxy materials 5
Why do people attend? Primary Reason for Attending an Investor Day (Among Global Buy-side) 22% 10% To learn the strategy and vision To learn the basics Both important Uncertain 65% 3% 6
What do investors value most? Mind the gaps! 7
What needs to be showcased? Importance of Intangibles Effective strategy (74%) Eurozone Debt Management credibility (73%) Strong balance sheet (67%) Attractive EPS growth (63%) Sustainable 21% margins (62%) Reliable cash flow (61%) 15% Prudent capital deployment (59%) 8
Messaging rules of thumb Communicate the strategy and why it s unique Focus on a few key messages Show progress on previously articulated goals There is no substitute for candor Reinforce (remember the 122!) 9
Focus on a few key messages A great example Source: Ralph Lauren Investor Presentation June 2016 10
What to look out for Biggest Mistakes Companies Make Conducting Investor Days* (Among global buy-side) Poor guidance/too promotional Lack of transparency/disclosure/candor 22% 24% Message/not focusing on the right things 15% Too long/not succinct 10% Too short-term oriented Lack of new material Insufficient array of senior executives 6% 5% 5% * Multiple responses 11
Preliminary challenges Time and cost Anticipating the issues Getting management s buy-in Gaining consensus on core messages to stress 12
An investor day must do list Plan six months in advance Involve the bench investors want to see: CEO and CFO (95%) Other C-Suite executives (70%) Business unit/division heads (72%) IRO (52%) Coordinate story across presenters Prepare for extensive Q&A Plan a 3 to 5 hour event Use outside resources 13
Rehearse, Rehearse, Rehearse! 70% of the impression is the delivery, not the slides. DAVID FINE 14
Taking Investor Days to the Next Level Making your day stand out 15
How can my event stand out? Give speaking role to wider array of executives Q&A after every session Bring in respected thought leader, industry expert 16
How can my event stand out? Product showcase/demos One-on-one discussions Facility tours 17
How can my event stand out? Virtual investor days may be an option 53%of global buy-side has attended a virtual investor day 58% 33% of this group find virtual days highly acceptable of this group find virtual days somewhat acceptable 18
What are the key benefits? Showcases credibility setting and meeting goals Showcases bench strength The prep forces deeper think on strategy and helps get management on the same page Showcases management harmony and commitment Clarifies business strategy/ability to master challenges Reassures shareholders Positive differentiation 19
INVESTOR DAYS: A STRATEGIC LOOK CLAIRE LAVERY VICE PRESIDENT, RIVEL RESEARCH GROUP TEL: +44 (0) 20 3356 2791 EMAIL: CLAVERY@RIVEL.COM WWW.RIVEL.COM JANUARY 30, 2018 2017 Rivel Research Group All rights reserved. No part of this publication may be reproduced in any form or by any means, without permission in writing from the copyright owner.