Investor Relations

IMPLEMENTING BEST PRACTICES IN INVESTOR RELATIONS 139 Rule No. 2. Begin the planning process as far ahead of time as possible,bearing in mind that investors are extremely busy during the earningsreporting season, during which it is much better to rely on conference callsand virtual online roadshows. This allows issuers to provide the market withcomplete information in a timely fashion (for instance, by sending your presentationvia e-mail ahead of meetings to familiarize your audience with thecompany’s story) and schedule meetings during quieter periods. It also enablesexecutives to engage in higher-quality dialogue, focusing more on strategy,positioning, and management issues than on yesterday’s numbers. In addition,fund managers tend to be more available outside the reporting season. Rule No. 3. Trips should be planned according to the analysis ofthe shareholder base and the targeting strategy. Decisions about whether tosend the CEO or IRO to meet with a portfolio manager should be based noton the size of the fund but rather on the likelihood that the meeting will leadto the purchase of stock in the company. Cities with the most investmentpower are given top priority, with fewer executives traveling to those withless investment potential. Rule No. 4. Logistics must in all cases be smooth and flawless.Meetings held in the same city should take into account traffic patterns toassure that the team will be on time for each meeting. You may want to meetwith hedge funds first thing as it will provide good training for the rest ofthe day. Rule No. 5. Travel conditions should be comfortable. An experiencedstaff member or outside provider should assure that executives do nothave to worry about logistics, that the schedule is followed, and that debriefingsare possible between meetings. Rule No. 6. Resist any pressure from your investment bankers toplan 10 one-on-one meetings back-to-back as executives are likely to losetheir “punch” and ability to be convincing after five, if not before. It is betterto add a day to the trip, or target the institutions more carefully. Rule No. 7. Brief participating executives ahead of time aboutwho they are going to meet with and why, rather than simply being given thename of the institution and investor. They will need to have the followinginformation at least a week before the show goes on the road: The type and amount of funds managed and investment strategyfollowed; Titles, backgrounds, and job descriptions of the investors theyare meeting with, including information about how much they knowabout the company and sector, what they are most interested in andconcerned about and, where possible, a list of the questions they raisedduring previous meetings;