Getting ready for your investor day

Mar 07, 2016
<p>Top tips for making the most of your event</p>

This article was produced in association with ELITE Connect. It was originally published on the ELITE Connect platform.

Investor days continue to be a rewarding IR tool, offering the opportunity to reach a wide audience base and convey a variety of messages. 

Figures from the IR Magazine Global Roadshow Report 2015 highlight that 54 percent of companies host an investor day, with those in Asia and Europe most keen at 64 percent and 61 percent, respectively. Below, two experienced IR professionals share their top tips for investor days. 

Content: Ensure you have sufficient new content to warrant analysts and investors spending a significant amount of time away from their offices, such as a strategy update or in-depth business segment review, says Sandra Novakov, IR director at Citigate Dewe Rogerson.

Guidance: Provide medium to long-term financial guidance rather than just short-term direction, explains Miguel Viana, head of IR at EDP. ‘As an example, our 2016 event will outline our profile up to 2020,’ he says.

Timing: Hold investor days outside of results season to maximize attendance, recommends Novakov. Ensure your event doesn’t clash with results announcements of your company’s direct investment peers, or major broker-hosted conferences focused on the region/sector. Send out a ‘save the date’ at least two months in advance, she adds.

Frequency: It’s important to gauge the frequency of investor days correctly – holding too many may become onerous for analysts and investors, while holding too few risks falling off their radar, notes Viana. ‘I’d recommend investor days are held every 12-24 months,’ he says.

Rehearsals: Rehearsals are crucial, says Novakov: any management members without prior investor dealings should be briefed on what they can disclose, how they should talk about the company’s future prospects/targets, and what investors are looking to gain from the event. 

Audience: Investor days typically bring together sell-side analysts, buy-side analysts and portfolio managers, as well as any credit analysts following the company, says Novakov. To maximize the effectiveness of the event, send out invitations as widely as possible.

Location: Host investor days on-site to focus less on financial matters and more on local operations, says Viana. This gives IROs the opportunity to showcase the business and is the ideal environment to increase analysts’ and investors’ knowledge in a more relaxed environment. 

Management: Novakov recommends that companies provide access to the wider management team, not just the CEO and CFO, as investors appreciate hearing senior managers discuss their division. Ensure executive teams and divisional management are available for both formal presentations and informal discussions. An industry speaker such as an analyst or economist is worth considering.  

Webcasting and media: Webcasting and a conference call facility give those unable to attend an opportunity to listen to presentations and ask questions, notes Novakov. Webcasts can be made available on-demand for as long as the information is relevant. Disclose any new material information that will be presented in a press release to ensure equal access for all market participants, she concludes.

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