Maximizing Value through Strategic Investor Relations Anne Guimard, President NORDIC IR Conference Copenhagen, September 20, 2012
WHO WE ARE Established in 1999, we deliver superior, strategic Investor Relations counsel We are independent We are not a financial PR firm We are: Exclusively focused on Investor Relations Hands-on senior experts With comprehensive international capital markets experience And strong financial analytical skills 2 We operate globally from our offices in London, Paris, Johannesburg To date, we have advised and/or trained more than 750 companies spanning 50+ countries
BESPOKE ADVISORY SERVICES Depending on client company s size, structure or area of concern, our capabilities range from project management to long-term consulting Investor Relations for private/pre-ipo companies Messaging for the international investment community Organization of Investor Relations departments Design and implementation of Investor Relations strategies Crisis communications Investor Relations websites Free float strategy and institutional targeting Roadshow and IR event organization Perception studies Investor Relations outsourcing services Investor Relations for private companies Debt Investor Relations IR Training: The School of Investor Relations 3
THE SCHOOL OF INVESTOR RELATIONS Online courses: - Investor Relations & the IPO - The How-To Series - How to write earnings releases and presentations - How to build a financial calendar - How to organize an investor day - Etc. Onsite, company-specific programs Training for Board members Senior management training Investor Relations Book: Featured in: The National Investor Relations Institute's recommended reading list (USA) The Investor Relations Society's Certificate in Investor Relations (UK) Support manual of the Master of Arts in Investor Relations developed by the University of San Francisco (USA) 4
ACHIEVEMENTS Our actions are delivering tangible results and measurable R.O.I. Best practice Investor Relations can allow our clients to lower their cost of capital Rationalization IR budget Optimization of management time Development and diversification of institutional ownership Expansion of stock coverage Increase in valuation 5 Portfolio managers and buy-side analysts attribute a premium of 10% of a company s valuation to good investor communications and a discount of 15% to bad investor communications. Rivel Research
MAXIMIZING VALUE THROUGH STRATEGIC INVESTOR RELATIONS What type of value are we talking about? Why is Investor Relations strategic? 6 How can Investor Relations effectively maximize value?
WHAT TYPE OF VALUE ARE WE TALKING ABOUT? Enjoy broader access to capital to fund development Increase valuation Prevent hostile bids and shareholder activism Limit excessive reaction to adverse news flows Provide liquidity Raise visibility and increase corporate reputation Attract and retain employees Value terms 7 Be better positioned than competitors Issue securities at an attractive price at any time Reduce cost of capital Diversify shareholder base 7
WHY IS INVESTOR RELATIONS STRATEGIC? Question Answer (Please tick the appropriate box) What does 45,953 correspond to? The number of institutional investors in the US The number of listed companies worldwide 8 The average IR salary in Europe 2011 WFE Market Highlights
WHY IS INVESTOR RELATIONS STRATEGIC? Question Answer (Please tick the appropriate box) What does 45,953 correspond to? The number of institutional investors in the US The number of listed companies worldwide 9 The average IR salary in Europe 2011 WFE Market Highlights
HOW CAN INVESTOR RELATIONS EFFECTIVELY MAXIMIZE VALUE CEO with the right mindset Clearly defined goals Importance of senior management commitment Efficient IR organization Quality of information and reporting systems Understanding and complying with legal requirements 10 Anticipating changes in Investor Relations The convergence of Investor Relations and Corporate Communications
OUR PHILOSOPHY Investor Relations The quality of Investor Relations is a key differentiator All things equal, it is a real competitive advantage that can lead to higher valuation
Paris 28, rue La Boétie B.P. 50232 75364 PARIS CEDEX 08 France Tel: + 33 (0) 1 56 33 32 31 Fax: +33 (0) 1 56 33 32 33 London 78 Pall Mall LONDON SW1Y 5ES United Kingdom Tel: +44 20 7129 1141 Johannesburg Suite 5 5 Fricker Road Illovo, Johannesburg, South Africa Tel: +27 83 309 6720