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Maximizing Investor and Media Relations. Alexandre Bykov 2008. Investor relations, regulation and compliance. Investor Relations. Irony…. The securities markets = Global The regulations = National. Investor Relations : Two Distinct Functions. Non Regulatory. Regulatory. Disclosure
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Maximizing Investor and Media Relations Alexandre Bykov 2008
Irony…. • The securities markets = Global • The regulations = National
Investor Relations : Two Distinct Functions Non Regulatory Regulatory Disclosure Fulfil the statutory reporting requirements laid down by the various domestic and international regulatory authorities Financial Communications- Investor Network Satisfy the demands of investors for sufficient information to allow them to make an informed investment decision (Other Constituencies)
Minimum disclosure is not enough. • Professor Baruch Lev notes that up to 50% of the of companies’ value does not appear on the balance sheet. What actions can an IRO take to ensure that the market values the company’s shares fully?
Consequencesof providing limited information • Information Deficiencies = Share Undervaluation = Excessive Cost of Capital = Under-investment, Lost Growth, Lost Competitiveness • What’s To Be Done?
Components of best practice • Tell us what you do • Narrative and graphical description of the business • “At a glance” • Front and centre • Consistent use of terms throughout • Easy to grasp information for first time readers • Geographic/major market analysis
Components of best practice Overview of challenges and opportunities In the industry Trends in key demographic/ geographic markets External research Regulatory commentary • Tell us what you do • What’s going on in your sector?
Components of best practice • Identify strategy • Explain and justify • Clear goals and objectives • “Build business” not clear enough! • Back up strategy with measurement • Tell us what you do • What’s going on in your sector? • Where are you taking your business?
Components of best practice Clear definition of KPI’s Linked to strategy Graphical representation Why chosen? • Tell us what you do • What’s going on in your sector? • Where are you taking your business? • How are you measuring progress?
Components of best practice Clear easy to understand risks Priorities behind risk management Future risks and uncretainties Potential impact on value • Tell us what you do • What’s going on in your sector? • Where are you taking your business? • How are you measuring progress? • What are your principal risks?
Components of best practice Forward looking information The future and challenges ahead Targets for future performance • Tell us what you do • What’s going on in your sector? • Where are you taking your business? • How are you measuring progress? • What are your principal risks? • Tell us about the future.
Conclusion. • We have discussed… • Why good communication matters • What information is needed • PR Newswire is happy to discuss “how” this information can be communicated.
2007: Is it time to tell more stories? В.Путин призвал обеспечить привлекательный имидж России Президент отметил, что успехи отечественной экономики и общее улучшение инвестиционного климата РФ открывают новые перспективы для инвестиций в стране. "Об этих возможностях нужно системно и последовательно информировать потенциальных инвесторов: российских и зарубежных", - заявил Владимир Путин. РФ заняла 58-е место в рейтинге конкурентоспособности …слабыми сторонами России на фоне сопоставимых стран являются низкая конкурентоспособность российских компаний и неспособность экономики "впитывать" современные технологии из различных источников, включая прямые иностранные инвестиции. (Всемирный экономический форум (ВЭФ) - доклад, в котором приводится рейтинг конкурентоспособности стран за 2007-2008 годы.)
Contact Details Александр Быков/ Alexandre Bykov Россия и СНГ/ Russia & CIS PR Newswire Europe Phone +44 20 7454 5130 | Mobile + 44 798 940 8347 Fax + 44 20 7454 5331 alexandre.bykov@prnewswire.co.uk