The Windy City has much to offer from the beautiful Lake Michigan to the blues bars and stunning architecture. Last month, we had the privilege of participating in a panel on Global Marketing at the NIRI Chicago chapter’s Global Convergence symposium. It was a pleasure to meet such a range of IR professionals and from our many conversations, we would highlight a number of recurring themes that dominated most conversations.

Firstly, why should companies devote resources to a European roadshow? In short, foreigners’ holding of US companies is growing and significant, hence it’s quite a “chunk of change”. In addi-tion, Europeans tend to be much longer-term than their average US counterparts, clearly an attractive attribute for any company.

Shareholder diversification and extending the duration of those holdings is clearly a positive.

Secondly, what’s the best way to set up a trip? It can be sensible to use an advisor or PR company for geogra-phies outside of the US. Generally, US IROs are aware of who to target domestically due to the stringent filing requirements of the US. Outside of the US, that is not neces-sarily the case, mak-ing non-US countries trickier in terms of nailing down the most meaningful investors for companies to meet. Hence, a broker can bridge the knowledge gap and assist with navigating the unfamiliar investor terrain of Europe and Asia.

Thirdly and most importantly, how can companies justify the expenditure of a trip when foreign investors don’t buy immediately? The bottom line is the detailed and

written feedback that you should expect to receive from a road-show. Foreigners are slower to come into the stock but stickier coming out so, to bridge the gap between meeting and buying, the feedback will offer a snapshot

of what the investors are thinking, how to hone your message and possibly what issues they might perceive to be stumbling blocks to owning the shares. “Going global” with your marketing has never been so timely – go get your share!

NIRI Chicago goes globalIunderstand that the

bulk of active money in Europe is in London.

Doesn’t it make sense to spend two days in London?

I t’s true that half the active money in Europe is in the UK, the majority being in

London. It is a critical market for any company coming through London and if companies are coming a couple times a year, it can make sense to visit London on each visit. Having said that, in our experience, London is rarely a full two days for a company as you can see the most interested,

meaningful accounts in one-on-ones and the rest in two group meetings over breakfast and lunch. If companies do choose to stay in London a couple days, they can generally expect a less strenuous schedule, comprising of a day and a half of meetings, potentially dipping into the smaller institutions. It’s best to use the second day for another market where you can pack in a worthwhile day of meetings.

Death and taxes might be certainties but so is tapping more frequently into the health-care system as one gets older.

The US healthcare sector has been in focus over the past few years, particularly with break-throughs in innova-

tion and rapid sector consolidation. Companies will meet global investors for whom it is essential to keep up to date with the latest

developments. The most attractive com-

panies will have sustainable core franchises along with pipeline optionality. Whilst

companies will encounter both specialists and gener-

alists, meeting the generalist PMs is

essential. They will listen keenly to their analysts but they will decide whether a significant holding should or should not be taken.

Quality of management is critical as well as top-line growth, attrac-tive margin profiles and sensible capital deployment. London, Zurich and Geneva are top priorities. A regular check up with European investors will help develop a healthy shareholder base over here, just what the doctor ordered!

EUROPERSPECTIVEUnparalleled local knowledge of the European investment community

SECTOR FOCUS: HEALTHCARE

The right prescription in Europe

Issue No 21 October 2015

IN THE KNOW

AskRupert

Rupert Della-Porta is COO of Atlantic Equities. Before joining AE in 2008, he spent 20 years as a London-based portfolio manager, investing in US companies. He ran some of the larger pools of money in Europe.

www.atlantic-equities.com

PMs are key to a healthy shareholder base, says AE healthcare analyst Steve Chesney

‘Half the active money in Europe is in the UK, the majority being in London.’

‘The bottom line is the detailed

and written feedback that you should expect to receive from a

roadshow’

Rupert Della-Porta and Lisa Traeger participate on a panel about global marketing and answer the most frequently asked questions about European marketing

Pictured above: Elizabeth Allen, FedEx Corporation; Steve Eschbach, Eschbach & Associates; Lisa Traeger and Rupert Della-Porta from AE

Conventional wisdom would have it that once you’ve flown to Europe for your NDR you should spend the whole week seeing investors. With a fragmented asset management industry, companies had to spread the net far and wide to get decent coverage. Nowadays though with industry consolidation and investors better established, it’s much easier to take a more targeted approach. The larger money managers and money centres are well known and there is better data on who owns what (although in Europe only about two thirds of investors file holdings). Also since many US companies

have divisions in Europe, C-suite can now efficiently combine a roadshow with visits to regional offices. This is increasingly becoming the case and investor dedicated trips are shorter. This spares management undue exhaustion and raises the ROI of a trip. Today less is truly more!

How long have you been coming on roadshows in Europe? Roughly 20 years. Why did you decide to use Atlantic Equities? Currently, AE has no sell-side analyst coverage of Haemonetics Corp. and this makes it difficult to allocate non-deal roadshow time to AE and meet the needs of our other analysts. The quality of AE’s roadshows is such that I gradually decided to avail myself of them. Critically, AE understands the capability of experienced IROs, as well as the willingness and often preference of European investors to meet with IR only for the first meeting or two. AE puts forth the identical effort for an IR-only roadshow as they do for a CEO + CFO + IR roadshow. I was treated like a CEO and I enjoyed that! What are your goals in putting together a roadshow in Europe? Important goals include meeting with both existing owners and appropriate potential investors. An equally important goal is to go repeatedly to these investors and establish meaningful business relationships.

How did you work with AE before and after the event?AE and I went down parallel paths - a method I find of tremendous benefit to both. We each identified existing and potential investors and determined which European cities might be best. The AE sales team suggested target investors and I did also.

How would you rate your experience with the investors on the roadshow?The experience was excellent. Each investor was legitimately interested, well prepared and appropriate for our company at this time. How was the execution and logistics during the roadshow?In a word, fantastic. AE is still best-in-class. The car service was great, the meetings were spaced allowing us to arrive at each one on time. The AE sales team accompanied us to all meetings and were as professional and knowledgeable as any with whom I’ve worked. Describe the feedback that you received from investors.Its close relationships with the buy-side enabled AE to provide detailed, candid feedback on a very timely basis.

How would you judge the success of the roadshow?It was the best roadshow we’ve done in two years - all objectives met. What tips would you have for companies considering a roadshow in Europe?Do not think of all of Europe as your focus - i.e. do not market in 10-12 cities with a visit to each one every few years. Better for investors in 4-5 key cities to see you coming back frequently and see that access to your team is regular. Spend time with the AE team identifying 4-5 cities that are key for your company and your industry, then go to 2-3 of these key cities in Europe every 6 months so you can see investors in each city annually. Consider an IRO-only effort in each city for the first introductory meeting; then try to bring CEO or CFO on subsequent trips, as you identify appropriate investors.

What has been your overall experience with AE ?AE knows the European market inside and out. They are good at pointing companies toward good investors, especially small-cap and mid-cap companies. AE appreciates IROs more than most American-based broker firms do, and AE is much more aligned with IR efforts to pursue roadshows without initially committing CEO or CFO. Importantly, it is very clear that European investors appreciate what AE does, the quality of the AE salesforce and the professional approach.

ROADSHOW REPORT

Taking the pulse of EuropeGerry Gould is vice president of investor relations at Haemonetics Corporation, a medical equipment, software and services company in the blood management business. He brings twenty years of experience in investor relations and corporate communications, having previously held VP-IR roles at RSC Equipment Rental, The Stanley Works (now Stanley

Black & Decker) and Wyman-Gordon Company. Gerry has also been a member of NIRI for over 20 years, serving in various roles. He is a member of the Board of Directors and Membership Committee of NIRI’s Boston Chapter

Issue No 21 October 2015

EUROPERSPECTIVEUnparalleled local knowledge of the European investment community

For more information about Atlantic Equities, please contact Lisa Traeger, Corporate Relationship Officer, at l.traeger@atlantic-equities.com or visit www.atlantic-equities.com

‘I was treated like a CEO and I enjoyed that!’

‘C-suite can now efficiently combine a roadshow with visits to regional offices.’

DATA POINT

One day at a time