Download THOMSON REUTERS EXTEL SURVEYS

THOMSON REUTERS
EXTEL SURVEYS
Russian Investor Relations
2008
Steve Kelly, Head of Thomson Reuters Extel Surveys
June 2008
The Value of Investor Relations
• Important Elements of IR
• What the Buyside & Sellside Value
• Measuring your IR Effectiveness
• Key Future Trends
Thomson Reuters Extel Survey
• Measuring IR since 2002
• Pan European detail – based on many thousands of responses
• Detailed conversations internationally with the market
• Separate, country-specific
UK and Malaysia
IR
studies
for
• Partnerships with twelve national IR associations
• Major IR reviews and commentaries
Germany,
Seeing ourselves ...
... as others see us
Elements of Investor Relations
• One–On-Ones
• CEO/CFO Proactivity
• Knowledge & Service from IR Teams
• Formal Disclosure
• Consistency & Transparency
• Using Communications Channels Effectively
Elements of Investor Relations
•
One-on-ones - very important
92% of Pan Europe buyside
97 % of Focus CIS buyside
•
Roadshows - very important
73% Pan Europe
64% Focus CIS
•
Site Visits - very important
44% Pan Europe
57% Focus CIS
•
Divisional Directors Meetings - very important
45% Pan Europe
32% Focus CIS
•
Formal Disclosure - very important
24% Pan Europe
17% Focus CIS
•
Webcasts - very important
38% Pan Europe
41% Focus CIS
Programme Execution
Individual meetings – a special
relationship
What The Buyside & Sellside Value
•
One-on-ones at their offices
77% Pan Europe
75% Focus CIS
•
Conferences
65% Pan Europe
71% Focus CIS
•
Reverse Roadshows
46% Pan Europe
31% Focus CIS
•
Field Trips
48% Pan Europe
53% Focus CIS
What The Buyside & Sellside Value
- One-on-ones
•
Q&A Sessions
98% Pan Europe
93% Focus CIS
•
Corporate Presentations
37% Pan Europe
54% Focus CIS
•
CEO/CFO Exposure
61% Pan Europe
74% Focus CIS
Programme Execution
The conference call
Measuring Your IR Effectiveness
•
CEO/CFO Meetings
93% Pan Europe
92% Focus CIS
•
Conference Meetings
72% Pan Europe
63% Focus CIS
•
Meetings with IR Team
19% Pan Europe
32% Focus CIS
Programme Execution
A delicate balance
Measuring Your IR Effectiveness
- One-on-ones
Who attends:
– Portfolio Managers
86%
– Buyside Analysts
89%
– CEO
36%
– CFO
58%
– Brokers
22%
– IR Consultant
13%
One-On-Ones
- How Often?
Pan Europe
73%
100 - 400 per year
Focus CIS
51%
100 - 400 per year
Key Future Trends
- IR Budgets
•
Budgets include AGM and website
•
Budgets still largely relate to in-house costs and resourcing
•
•
•
Pan Europe
Pan Europe
Pan Europe
-
63% spend up to €1 million
36% spend over €1 million
average spend is €600,000
•
•
•
Focus CIS
Focus CIS
Focus CIS
-
72% spend up to €1 million
28% spend over €1 million
average spend is €350,000
Key Future Trends
- IR Salaries
IR Directors
- Pan Europe - Russia/CIS -
29% over €200,000
6% over €200,000
IR Managers
- Pan Europe - Russia/CIS -
38% over €100,000
9% over €100,000
Bonuses
- Pan Europe - Russia/CIS -
34% of IR Director’s remuneration
30% of IR Director’s remuneration
Conclusions
•
IR is more professional
•
IR is increasingly central to the investment community
•
“Good” IR is increasingly expected by fund managers and analysts
•
Transparency, proactively and knowledge really matter
•
Truly effective one-on-ones count for the most
Be regularly available, but
don‘t over communicate