Introduction to Investor Relations

1. Introduction to Investor Relations A Presentation to Anycap Company Laura Bergells

2. Why Investor Relations? • Direct means to inform existing and potential investors • Essential communications function for a publicly traded company to • educate investment community • shape investor perception • Indirect means to impact shareholder value

3. Investor Relations Rationale • Stock Price reflects expectations of future returns on capital employed • Lack of information creates uncertainty and a discount to stock price • Institutional investors largely influence stock price movement • The financial community is an integral part of a company’s many publics

4. Investor Relations Rationale Image Stock Price Public Perception

5. What is Investor Relations? • Key element driving a company’s business communications strategy • Outreach program for key publics • primary focus: financial audiences • analysts / financial institutions / investment bankers • secondary focus: external / internal audiences • media / government / suppliers / customers • management / employees

6. The I.R. Message • Company performance & objectives • Business strategy • Markets / Products • Growth strategy • Future vision • Financing Policy • Operations controls and risk management • Compensation philosophy: management and employment practices

7. Intangibles Enhance shareholder value Support fair valuation of common stock Minimize stock price risk due to uncertainty over performance Shape / enhance perception of company commitment to growth Tangibles Maximize analyst coverage sell- and buy- side Develop / maintain balanced investor base Target financial institutions domestic / international Track stock valuation What are the objectives of I.R.?

8. Build I. R. Team Senior Management Finance Communications Legal Outside expert help Appoint I.R. point person How is I.R. practiced?

9. Establish / implement disclosure guidelines legal regulatory SEC compliance Identify company spokesperson(s) financial issues business / product issues How is I.R. practiced?

10. How is I.R. practiced? • Define company’s business strategy and develop matching I.R. strategy: • written communication • news releases • quarterly / annual report • interviews / conference calls • visits / one-on-one meetings • road shows / management presentations • personalized contacts • special events

11. Build I.R. contacts database / research firms Mailing list (e-mail!) institutions / analysts / financial media Establish an I.R. communication schedule regular news: products, markets, business financial reports How is I.R. practiced?

12. Keep management informed and involved analysts reports stock valuation perception on Street stock price behavior in context of industry competition I.R. activities How is I.R. practiced?

13. Keys to Success in I.R. • CEO commitment, involvement, support • Sense of urgency from Senior Management • Consistent and credible public reporting & communications • Clearly articulated, credible business strategies • Articulate, creative vision of the future • Open discussion of financial results & expectations • Regular & frequent contact with investment community • I.R. backup through a pro-active, creative, strategic communications strategy

14. Follow the Laws of Disclosure! Know Your Investors and Your Analysts Manage Your Investors’ Expectations & Gather Feedback Communicate Openly in Good Times and Bad Limit Yourself to a Few Key Messages Do not Hype Do not Deliver Negative Earnings Surprises Do not Covet Peer P/E Multiples Always Monitor the Competition Monitor Investor Sentiment & Market Trends The Ten I.R. Commandments

15. I.R. Relationship Structure Executive Management Buy-Side Analysts Sell Side Analysts Chief Financial Officer Portfolio Managers Investor Relations Financial Reporting & Treasury Business Groups Corporate Secretary Staff Groups

16. Take stock of current and ongoing I.R. efforts Identify areas in need of improvement or strengthening Match existing data base / analyst coverage with available universe Analyze communications channels Practical Steps to Take

17. Plan one or two creative events for immediate implementation road show (institutionally sponsored) investor meeting (New York, Boston, West Coast or at company facility) Get On-Line Establish an internet presence keep web site active and relevant Practical Steps to Take

18. NIRI National Investor Relations Institute 703-506-3570 Stock Exchange Specialist and Communications Executive First Call On-Line database to track analysts / news reports 800-347-7822 Technimetrics On-Line database to track institutions, investment strategies etc. 212-509-5100 Stockwatch Quick tracking service for stock moves: highly personalized service (Chemical Mellon is one) Useful Resources for I.R. Practice

19. Vickers Institutional Directory Detailed listing of all investing institutions, domestic and international Bloomberg / Dow Jones News Wire News tracking and stock movement service Zacks Investment Research & corporate analyst watch Bullseye Institutional investor tracking service -- monthly update based on public registration Useful Resources for I.R. Practice

20. For a Public Company -- Investor Relations & Corporate Communications must be synonymous: One cannot thrive without the other ! CEO involvement and open, consistent, credible communications are a must Image Public Perception Stock Price Strategic Investor Relations: Summary

21. Laura has over 14 years’ experience in corporate communication and marketing for major corporations. As an internet marketing consultant, she plans & executes internet marketing strategies for over 50 firms. Laura's internet marketing articles are featured in international magazines. Her writing and research serves as the knowledge base for the Inc.com and Small Business Assoc-iation sponsored site for Internet Marketing. Laura granted Sybex Computer Books rights to distribute her work "PowerPoint Presentations and Templates" on the CD-ROM accompanying their book Mastering Office 2000 Premium Editionby Gini Courter and Annette Marquis. About the Speaker