September and the following months in the fourth quarter is a very popular period for Nordic companies to organise Investor Days and Capital Markets Days.
These activities are often very time and capital consuming for IR-teams and senior management. But investors and analysts are more and more prioritising these events, as it is a rare opportunity for them to meet and mingle with senior management. As Ben Maslen, Research Analyst, Bank of America, Merrill Lynch said at the Nordic IR Conference in June:
“Quality face time with management i.e. one-to-ones, CMD’s and other investor activities will be more important in the near future as electronic “noise” increases.”
The issue of best practice were discussed at #irchat a couple of weeks ago (#irchat is a weekly one-hour event held every Thursday at 17.00 CET on Twitter for IR professionals. Sheryl Joyce at Q4 Web Systems has summarised the discussions in a great blog post: Best Practices for Organizing an Investor Day
Below you will find an excerpt of her advices updated with my own thoughts.
1. What do you want to say?
– Just a general update, review a specific business area, site visit or launch a new strategy?
– Specify your purpose with the event in an agenda.
– Set an internal target and objective for your investor day.
2. Decide timing
– Avoid earnings seasons and if possible, the same date or week as your peers.
3. Train and prepare the speakers
– Prepare your speakers for the Q&A session.
– Give them a basic introduction of investor relations and frequently asked questions.
4. Broaden your audience
– Webcasts or audiocasts is a great way for non-attendees to be able to catch up.
– Another less costly alternative is to live-tweet the CMD, but do not forget to use hashtags# as it enables the audience to follow a conversation.
– If your company has a blog, why not summarise the highlights and the Q&A session in a post. It will most probably generate fewer questions from your investors and are also very time efficient for those that don’t have the time to look through the recorded webcast.
5. Do not forget do to a follow up
– A follow up survey conducted by an objective third party supplier will provide strategic feedback about your company as an investment case.
– Information from a feedback survey will enable you to act more proactively; identifying weaknesses and strengths in your investment case.
– Even more important is the fact that the results can be used internally when discussing and planning future IR-activities with management or the board making them prioritising the importance of engaging in dialogue with your investors!
Is there anything you would like to add? Look forward to your feedback.