Basic Principles of Investor Basic Principles of Investor RelationsRelations

October 21, 2009October 21, 2009Hosted by FGVHosted by FGVRio de JaneiroRio de Janeiro

William F. MahoneyWilliam F. Mahoney

Tying Investor Relations to Value Tying Investor Relations to Value CreationCreation

•• Investor Relations Helps Enable a Investor Relations Helps Enable a Company to Achieve Fair Value.Company to Achieve Fair Value.

•• Providing HighestProviding Highest--Quality Information Is Quality Information Is the Path to Achieving Fair Value.the Path to Achieving Fair Value.the Path to Achieving Fair Value.the Path to Achieving Fair Value.

•• It Makes Sense for the Investor Relations It Makes Sense for the Investor Relations Officer to Lead the Value Creation Team.Officer to Lead the Value Creation Team.

•• Management Must Have Confidence and Management Must Have Confidence and Trust in the IRO to Fill That Vital Role.Trust in the IRO to Fill That Vital Role.

Primary Qualifications of an Primary Qualifications of an Effective IROEffective IRO

•• Be an Expert on Market Behavior.Be an Expert on Market Behavior.

•• Know Your Company, Industry and Competitors Know Your Company, Industry and Competitors Inside and Out.Inside and Out.

•• Have the Training and Capabilities to Have the Training and Capabilities to •• Have the Training and Capabilities to Have the Training and Capabilities to Understand Corporate Finance and Operations Understand Corporate Finance and Operations and Investment Market Process.and Investment Market Process.

•• Be a Good Communicator Be a Good Communicator –– Verbal and Written.Verbal and Written.

•• Have Some Skills of Persuasion.Have Some Skills of Persuasion.

Understand the Investment Process Understand the Investment Process and Marketand Market

•• Market Determines Stock Price.Market Determines Stock Price.

•• Prices Are Based on Market Expectations.Prices Are Based on Market Expectations.

•• Current Price Reflects Analysis of Future.Current Price Reflects Analysis of Future.•• Current Price Reflects Analysis of Future.Current Price Reflects Analysis of Future.

•• Multiple Factors Drive Market Sentiment Multiple Factors Drive Market Sentiment and Expectations:and Expectations:

----Macro Macro ----Industry Industry ----CompanyCompany

----Competition Competition ----Investor Behavior.Investor Behavior.

Market Is Highly ComplexMarket Is Highly Complex

•• Numerous Investing Approaches & StylesNumerous Investing Approaches & Styles

----Passive/Active.Passive/Active.

----Quant/Fundamental.Quant/Fundamental.

----Pattern/Causality.Pattern/Causality.----Pattern/Causality.Pattern/Causality.

----Top Down/Bottom Up.Top Down/Bottom Up.

----Growth/Value.Growth/Value.

----Contrarian.Contrarian.

----MultiMulti--factor.factor.

----Behavioral.Behavioral.

----Trading.Trading.

Three Primary Market MethodsThree Primary Market Methods

•• Calculate Intrinsic Worth.Calculate Intrinsic Worth.

•• Comparables.Comparables.

•• Trading.Trading.•• Trading.Trading.

Foundation: Calculate Intrinsic Foundation: Calculate Intrinsic ValueValue

•• Prime: What Is the Company Worth.Prime: What Is the Company Worth.

•• A Definition of Intrinsic Value: The Present A Definition of Intrinsic Value: The Present Value of Expected Future Cash Flows Over the Value of Expected Future Cash Flows Over the Remaining Life of the Business.Remaining Life of the Business.Remaining Life of the Business.Remaining Life of the Business.

•• This Uses Economic, or Discounted Cash Flow This Uses Economic, or Discounted Cash Flow Methodology.Methodology.

•• Essence: Calculate Cash Flows, Growth Rates, Essence: Calculate Cash Flows, Growth Rates, Discount Rate.Discount Rate.

Calculating Intrinsic Value Is a Calculating Intrinsic Value Is a FoundationFoundation

•• Many Investors Use This as a Foundation.Many Investors Use This as a Foundation.

•• Economic Analysis, or Cash Flow, Is Seen Economic Analysis, or Cash Flow, Is Seen as a Reliable Way to Truly Understand the as a Reliable Way to Truly Understand the Business.Business.Business.Business.

•• Investors Calculate Discount Rate, Want Investors Calculate Discount Rate, Want to Know if Company Is Earning Cash to Know if Company Is Earning Cash Returns on New Investments and Existing Returns on New Investments and Existing Assets Above the Cost of Capital.Assets Above the Cost of Capital.

The Comparables MethodThe Comparables Method

•• Pure (Intrinsic Value) Investors Define It Pure (Intrinsic Value) Investors Define It as a “Shortcut.”as a “Shortcut.”

•• It Is Highly Popular with Investors Today.It Is Highly Popular with Investors Today.•• It Is Highly Popular with Investors Today.It Is Highly Popular with Investors Today.

•• It Depends on Market Behavior.It Depends on Market Behavior.

•• Namely, It Primarily Uses Market Ratios to Namely, It Primarily Uses Market Ratios to Track the Market (Price to Earnings, Sales, Track the Market (Price to Earnings, Sales, Cash Flow, Book Value).Cash Flow, Book Value).

A Definition of the Comparables A Definition of the Comparables MethodMethod

•• The Principle Concept Is to Compute a The Principle Concept Is to Compute a Ratio from a CompanyRatio from a Company--generated Metric generated Metric (earnings) and a Market(earnings) and a Market--generated Metric generated Metric (price of the stock) and then Compare the (price of the stock) and then Compare the (price of the stock) and then Compare the (price of the stock) and then Compare the Result with Other Comparable Companies Result with Other Comparable Companies or Itself.or Itself.

•• Most Popular: Price/Earnings Ratio, Most Popular: Price/Earnings Ratio, Price/EBITDA Ratio, Price/Sales Ratio.Price/EBITDA Ratio, Price/Sales Ratio.

Most Active Investors Use a MultiMost Active Investors Use a Multi--factor Modelfactor Model

•• Models May Use a Handful to Dozens of Models May Use a Handful to Dozens of Factors.Factors.

•• Factors Are Weighted by Their Expected Factors Are Weighted by Their Expected •• Factors Are Weighted by Their Expected Factors Are Weighted by Their Expected Impact.Impact.

•• The Goal Is to Create the Best Possible The Goal Is to Create the Best Possible Predictive Model.Predictive Model.

Among the Leading FactorsAmong the Leading Factors

----Size. Size. ----Cash PlowbackCash Plowback----Historical Earnings to Price.Historical Earnings to Price.----Predicted Earnings to Price.Predicted Earnings to Price.----Yield (Dividend) Yield (Dividend) ----Earnings Momentum.Earnings Momentum.----Yield (Dividend) Yield (Dividend) ----Earnings Momentum.Earnings Momentum.----Growth/Value. Growth/Value. ----Dividend Discount.Dividend Discount.----Neglect. Neglect. ----Trading ActivityTrading Activity----Relative Strength Relative Strength ----Residual ReversalResidual Reversal----Estimate Revisions/Changes.Estimate Revisions/Changes.----Cash Flow to Price. Cash Flow to Price. ----Sector MomentumSector Momentum

Investment Styles Come Into PlayInvestment Styles Come Into Play

•• Every Professional Investor Has a FineEvery Professional Investor Has a Fine--tuned Model, Incorporating Various tuned Model, Incorporating Various Factors. No Two Are Exactly Alike.Factors. No Two Are Exactly Alike.

•• Approaches and Styles Are Highly Diverse.Approaches and Styles Are Highly Diverse.•• Approaches and Styles Are Highly Diverse.Approaches and Styles Are Highly Diverse.

•• Passive (Indexing, Quant).Passive (Indexing, Quant).

•• Active (Growth, Value, GARP, Yield).Active (Growth, Value, GARP, Yield).

•• Technical/Behavioral.Technical/Behavioral.

•• Trading.Trading.

Summary: Investor Behavior Drives Summary: Investor Behavior Drives the Marketthe Market

•• Foundation of Intrinsic Value Analysis, Based on Foundation of Intrinsic Value Analysis, Based on Economics/Cash Flow.Economics/Cash Flow.

•• Daily Action Is Driven by Thousands of Very Daily Action Is Driven by Thousands of Very Bright People Working Their Models to Try to Bright People Working Their Models to Try to Outperform the Market and Each Other.Outperform the Market and Each Other.Outperform the Market and Each Other.Outperform the Market and Each Other.

•• Various Financial Metrics Are Used as Key Various Financial Metrics Are Used as Key Metrics (Earnings, Cash Flow, Revenues, etc.).Metrics (Earnings, Cash Flow, Revenues, etc.).

•• Trading Has Become a Major Investment Trading Has Become a Major Investment Method Thanks to Technology That Allows Method Thanks to Technology That Allows Trading Rapidly and Cheaply. These Investors Trading Rapidly and Cheaply. These Investors Seek to Capture ShortSeek to Capture Short--Term Gains. Term Gains.

Key for Managements: Optimize Key for Managements: Optimize ValueValue

•• The Market Will Respond, Then Anticipate and The Market Will Respond, Then Anticipate and Create a Set of Expectations and Continually Create a Set of Expectations and Continually Update Them.Update Them.

•• The Fundamental Driver for Companies is The Fundamental Driver for Companies is •• The Fundamental Driver for Companies is The Fundamental Driver for Companies is Business Performance.Business Performance.

•• Each Company Has Value Drivers.Each Company Has Value Drivers.

•• It Is Vital to Identify, Understand and Optimize It Is Vital to Identify, Understand and Optimize Their Performance.Their Performance.

•• What Are Your Company’s Value Drivers?What Are Your Company’s Value Drivers?

Investors Also Seek to Quantify Investors Also Seek to Quantify The Intangible Value DriversThe Intangible Value Drivers

•• Key Ones:Key Ones:

•• Vision and Business Strategy;Vision and Business Strategy;

•• Management Quality and Credibility;Management Quality and Credibility;

•• Customer Relationships;Customer Relationships;•• Customer Relationships;Customer Relationships;

•• Market Position (Leadership);Market Position (Leadership);

•• Intellectual Capital;Intellectual Capital;

•• Culture/Reputation; Culture/Reputation;

•• Innovation;Innovation;

•• Employee Productivity;Employee Productivity;

•• Governance Practices.Governance Practices.

Investor Relations RoleInvestor Relations Role

•• Help Management Achieve Fair Value Help Management Achieve Fair Value (Close the Information Gap).(Close the Information Gap).

•• Identify the Information That Is Most Identify the Information That Is Most •• Identify the Information That Is Most Identify the Information That Is Most Important to Investors.Important to Investors.

•• Identify the Company’s Value Drivers.Identify the Company’s Value Drivers.

•• Communicate the Vital Information and Communicate the Vital Information and Value Drivers Behind the Numbers.Value Drivers Behind the Numbers.

IR Function and Role: It Is an IR Function and Role: It Is an Information BusinessInformation Business

•• Role: Serve as Information Conduit Role: Serve as Information Conduit Between Management and the Market.Between Management and the Market.

•• Provide the Best Information Possible to Provide the Best Information Possible to •• Provide the Best Information Possible to Provide the Best Information Possible to Investors.Investors.

•• Bring the Best Information Possible on Bring the Best Information Possible on Market Attitudes and Behavior Toward the Market Attitudes and Behavior Toward the Company to Management and the Board.Company to Management and the Board.

Digging Deeper into the IR RoleDigging Deeper into the IR Role

•• Investor Relations Principles:Investor Relations Principles:

----IR Is an Integral Part of a Company’s IR Is an Integral Part of a Company’s Value Creation Proposition.Value Creation Proposition.

----Its Primary Purpose Is to Help the Its Primary Purpose Is to Help the ----Its Primary Purpose Is to Help the Its Primary Purpose Is to Help the Company Achieve Fair Value.Company Achieve Fair Value.

----At Highest Level, IRO Can Serve as a At Highest Level, IRO Can Serve as a Strategic Advisor to Management and the Strategic Advisor to Management and the Board.Board.

Role of IR as Strategic Advisor to Role of IR as Strategic Advisor to ManagementManagement

•• Resident Expert on How the Market Values Your Resident Expert on How the Market Values Your Company.Company.

•• Advisor on:Advisor on:

----Valuation Methods at Work in the Stock;Valuation Methods at Work in the Stock;----Valuation Methods at Work in the Stock;Valuation Methods at Work in the Stock;

----How the Market is Reacting to the Vision, How the Market is Reacting to the Vision, Business Strategy and Key Initiatives.Business Strategy and Key Initiatives.

IR Feedback Should Influence Management’s IR Feedback Should Influence Management’s Strategies and Initiatives.Strategies and Initiatives.

IR Function Can Be Divided Into IR Function Can Be Divided Into Two GroupsTwo Groups

•• Service.Service.

•• Key Contributor to Company Realizing Intrinsic Key Contributor to Company Realizing Intrinsic Value.Value.

•• Most Companies Focus on Service Activities Most Companies Focus on Service Activities Because They are Basic and Seen as Necessary. Because They are Basic and Seen as Necessary. IRO and Staff Must Perform Them But They Also IRO and Staff Must Perform Them But They Also Should Rise Above Them to Lead Company in Should Rise Above Them to Lead Company in Achieving Fair Value.Achieving Fair Value.

Main Service Function ActivitiesMain Service Function Activities

•• Participate in Preparing Disclosure Materials and Participate in Preparing Disclosure Materials and Filings.Filings.

•• Prepare News Releases on Material and nonPrepare News Releases on Material and non--Material Events.Material Events.

•• Participate in Preparing Annual Report, Fact Participate in Preparing Annual Report, Fact •• Participate in Preparing Annual Report, Fact Participate in Preparing Annual Report, Fact Book and Other Materials.Book and Other Materials.

•• Answer Requests for Information.Answer Requests for Information.•• Provide Market Information to Management and Provide Market Information to Management and

the Board.the Board.•• Maintain IR Website.Maintain IR Website.

Upgrading the Service FunctionUpgrading the Service Function

•• Arrange Meetings with Analysts and Arrange Meetings with Analysts and Investors.Investors.

•• Upgrade Website.Upgrade Website.

•• Prepare Presentations for Management.Prepare Presentations for Management.•• Prepare Presentations for Management.Prepare Presentations for Management.

•• Give the Presentations/Do the Meetings Give the Presentations/Do the Meetings Yourself.Yourself.

•• Advise Management/Board on Advise Management/Board on Analyst/Investor Attitudes.Analyst/Investor Attitudes.

More Detail in Basic IR Activity More Detail in Basic IR Activity AgendaAgenda

•• Build SellBuild Sell--side Relationships (Analysts).side Relationships (Analysts).

•• Build BuyBuild Buy--side Relationships side Relationships (Investors/Portfolio managers).(Investors/Portfolio managers).

•• Manage/Participate in Company’s Manage/Participate in Company’s •• Manage/Participate in Company’s Manage/Participate in Company’s Integrated Communications Effort.Integrated Communications Effort.

•• Manage/Participate in Corporate Manage/Participate in Corporate Governance, Media Relations and Crisis Governance, Media Relations and Crisis Communications Initiatives.Communications Initiatives.

Today’s Standard Best Practices in Today’s Standard Best Practices in Investor RelationsInvestor Relations

•• IR Role in ValueIR Role in Value--Creation Framework.Creation Framework.•• Advisor to Management and the Board.Advisor to Management and the Board.•• Communicating the Value Drivers, Competitive Communicating the Value Drivers, Competitive

Advantage and Intangible Drivers.Advantage and Intangible Drivers.••

Advantage and Intangible Drivers.Advantage and Intangible Drivers.•• Resource to Company and Market.Resource to Company and Market.•• Growing Sell and Buy Side Relationships.Growing Sell and Buy Side Relationships.•• Helping Company Achieve Disclosure and Helping Company Achieve Disclosure and

Transparency.Transparency.•• Role in Implementing Regulations.Role in Implementing Regulations.•• Managing Technology Platform and Vendors.Managing Technology Platform and Vendors.

5 Vital Roles in Value Creation 5 Vital Roles in Value Creation ProcessProcess

•• 1. Help Management Understand Investment 1. Help Management Understand Investment Process and Investor Behavior.Process and Investor Behavior.

•• How: Be the Resident Expert on the Market:How: Be the Resident Expert on the Market:

----Macro Factors Driving the Market;Macro Factors Driving the Market;----Macro Factors Driving the Market;Macro Factors Driving the Market;

----Industry Factors;Industry Factors;

----Company Factors.Company Factors.

What This RequiresWhat This Requires

•• Deep Understanding of the Investment Deep Understanding of the Investment Process.Process.

•• Expertise in the Investing Style of Each Expertise in the Investing Style of Each •• Expertise in the Investing Style of Each Expertise in the Investing Style of Each Institutional Shareholder, Prospect and Institutional Shareholder, Prospect and Analyst.Analyst.

•• Getting Right Down to the Details of Their Getting Right Down to the Details of Their Models.Models.

2. Identify Your Shareholders and 2. Identify Your Shareholders and Analyze Shareholder BaseAnalyze Shareholder Base

•• This is the Basis to Understand Why Each Is a This is the Basis to Understand Why Each Is a Shareholder.Shareholder.

•• It Helps Determine the Information Important to Each.It Helps Determine the Information Important to Each.

•• It Provides the Basis to Compare the Drivers of Value of It Provides the Basis to Compare the Drivers of Value of Their Model with the Drivers of Value Seen by Their Model with the Drivers of Value Seen by Their Model with the Drivers of Value Seen by Their Model with the Drivers of Value Seen by Management.Management.

•• It Enables the Company to Predict Investors Who Will It Enables the Company to Predict Investors Who Will Become Shareholders.Become Shareholders.

•• It Enables Management to Better Understand the It Enables Management to Better Understand the Strategies, Initiatives and Value Drivers the Market Will Strategies, Initiatives and Value Drivers the Market Will Support and Will Not Support.Support and Will Not Support.

3. Identify and Provide the 3. Identify and Provide the Information The Market Needs Information The Market Needs

•• This is the Information That Enables the This is the Information That Enables the Company to Achieve Fair Value.Company to Achieve Fair Value.

•• It is the Quality of Information That Matters.It is the Quality of Information That Matters.•• IR Is a NeverIR Is a Never--ending Pursuit to Determine, ending Pursuit to Determine,

Update and Maintain the Highest Level of Update and Maintain the Highest Level of •• IR Is a NeverIR Is a Never--ending Pursuit to Determine, ending Pursuit to Determine,

Update and Maintain the Highest Level of Update and Maintain the Highest Level of Information Offering the Greatest Value to the Information Offering the Greatest Value to the Highest Number of Investors, Analysts and the Highest Number of Investors, Analysts and the Other Market Players.Other Market Players.

•• The Purpose Is to Optimize the IR Role in The Purpose Is to Optimize the IR Role in Helping the Market Fairly Value the Stock.Helping the Market Fairly Value the Stock.

4. Help Management Understand 4. Help Management Understand How the Market Is Valuing the How the Market Is Valuing the CompanyCompany•• This is the Basis for the Current Stock Price This is the Basis for the Current Stock Price

Indicating Whether the Company Is Under, Indicating Whether the Company Is Under, Fairly, or Over Valued.Fairly, or Over Valued.

•• Help Management Identify the Value Drivers.Help Management Identify the Value Drivers.•• Help Management Identify the Value Drivers.Help Management Identify the Value Drivers.

•• Compare Management View of Value Drivers Compare Management View of Value Drivers with the Market as Basis to Reach Agreement on with the Market as Basis to Reach Agreement on the Key Drivers.the Key Drivers.

•• Helps Each Group Understand the Other Better.Helps Each Group Understand the Other Better.

5. Serve as Key Participant in the 5. Serve as Key Participant in the Value Creation ProcessValue Creation Process

•• IROs Have the Opportunity to Lead the IROs Have the Opportunity to Lead the Analysis and Calculation of the Company’s Analysis and Calculation of the Company’s Intrinsic Value.Intrinsic Value.

•••• Intrinsic Value is the Calculated Worth of Intrinsic Value is the Calculated Worth of ALL the Company’s Assets. This ALL the Company’s Assets. This Incorporates Physical and Intangible Incorporates Physical and Intangible Assets. Most Investors Seek an Economic Assets. Most Investors Seek an Economic Number (Cash Flow, not Earnings).Number (Cash Flow, not Earnings).

Thus, Intrinsic Value IncludesThus, Intrinsic Value Includes

•• Plant, Property, Equipment.Plant, Property, Equipment.

•• Management and Employee Talents.Management and Employee Talents.

•• Scientific/Technology Capabilities.Scientific/Technology Capabilities.

•••• Patents and Licenses.Patents and Licenses.

•• Products, Services and Competitive Positions.Products, Services and Competitive Positions.

•• New Products and Those in the Pipeline.New Products and Those in the Pipeline.

•• Plant and Administrative Productivity and Plant and Administrative Productivity and Efficiencies.Efficiencies.

More Ingredients of Intrinsic ValueMore Ingredients of Intrinsic Value

•• Partnerships.Partnerships.

•• Levels of Creativity and Leadership.Levels of Creativity and Leadership.

•• Social and Environmental Citizenship Social and Environmental Citizenship •• Social and Environmental Citizenship Social and Environmental Citizenship (Governance).(Governance).

•• Financial Assets and Capabilities: Revenue Financial Assets and Capabilities: Revenue and Cash Flow Generation, Profit Margins, and Cash Flow Generation, Profit Margins, Cash Available to Reinvest.Cash Available to Reinvest.

Subtracting from ValueSubtracting from Value

•• Lawsuits.Lawsuits.

•• Regulatory Issues.Regulatory Issues.

•• Environmental and Social Issues.Environmental and Social Issues.•• Environmental and Social Issues.Environmental and Social Issues.

•• Declining Market Positions.Declining Market Positions.

•• Obsolescence.Obsolescence.

•• Fading Markets.Fading Markets.

•• Rising/New Competition.Rising/New Competition.

Study: Half the Companies Are Study: Half the Companies Are Under and Half Are Over Valued Under and Half Are Over Valued

•• Lesson for Companies Is to Understand Where Lesson for Companies Is to Understand Where Your Company Stands.Your Company Stands.

•• Compare Current Price with Your Calculation of Compare Current Price with Your Calculation of Intrinsic Value.Intrinsic Value.Intrinsic Value.Intrinsic Value.

•• That’s What the Market Does.That’s What the Market Does.

•• Smart Investors (and Managements) Try to Smart Investors (and Managements) Try to Determine the Inflection Points, Notably When Determine the Inflection Points, Notably When the Price Is Starting to Move Up Toward Intrinsic the Price Is Starting to Move Up Toward Intrinsic Value or Slide Down from It.Value or Slide Down from It.

What the IRO Can DoWhat the IRO Can Do

•• Focus Information/Communication on Drivers of Focus Information/Communication on Drivers of Value.Value.

•• Also Provide the Quality Information Sought by Also Provide the Quality Information Sought by Investors and Analysts.Investors and Analysts.Investors and Analysts.Investors and Analysts.

•• Advise/Prepare Management for What Is Likely Advise/Prepare Management for What Is Likely to Happen to Stock Price:to Happen to Stock Price:

•• ----Higher if Market Perceives Stock to be Under Higher if Market Perceives Stock to be Under Priced;Priced;

•• ----Lower if Market Sees Stock as Over Priced.Lower if Market Sees Stock as Over Priced.

Ingredients to Function as an IR Ingredients to Function as an IR AllAll--StarStar

•• Ability to Blend Being Persuasive with Being Tactful, Ability to Blend Being Persuasive with Being Tactful, Assertive, Persistent and Personable.Assertive, Persistent and Personable.

•• Ability to Build a Strong Network of Contacts Inside and Ability to Build a Strong Network of Contacts Inside and Outside, at all Levels, and Grow Relationships.Outside, at all Levels, and Grow Relationships.

•• Ability to Remain Positive and Persistent During Difficult Ability to Remain Positive and Persistent During Difficult •• Ability to Remain Positive and Persistent During Difficult Ability to Remain Positive and Persistent During Difficult Times.Times.

•• Blend of Financial, Communications and Operational Blend of Financial, Communications and Operational Knowledge and Skills.Knowledge and Skills.

•• A Host of Personality Characteristics: Enthusiasm, A Host of Personality Characteristics: Enthusiasm, Curiosity, Aggressiveness, Patience, Ego and Humility, Curiosity, Aggressiveness, Patience, Ego and Humility, Executive Presence, Intelligence and High Energy.Executive Presence, Intelligence and High Energy.

It Is the Execution That MattersIt Is the Execution That Matters

•• 2 IR Dimensions: Theory and Practice.2 IR Dimensions: Theory and Practice.

•• Learn the Theory and Keep Up with Learn the Theory and Keep Up with Developments.Developments.

•• Ultimately, the Top IR Professionals Are Ultimately, the Top IR Professionals Are •• Ultimately, the Top IR Professionals Are Ultimately, the Top IR Professionals Are Built on the Basis of Their DayBuilt on the Basis of Their Day--toto--Day Day Performance. It is the Way in Which You Performance. It is the Way in Which You Do Your Job Each Day That Puts You in Do Your Job Each Day That Puts You in the Select Group of Elite IR Allthe Select Group of Elite IR All--Stars.Stars.

There Are Many Practical Realities There Are Many Practical Realities and Challengesand Challenges

•• Lawyers Seeking to Limit Disclosure.Lawyers Seeking to Limit Disclosure.

•• Excess Legal/Accounting Language in Disclosure.Excess Legal/Accounting Language in Disclosure.

•• Turf Issues.Turf Issues.

•••• Management Issues:Management Issues:

----Not Wanting to be Forthcoming;Not Wanting to be Forthcoming;

----Need to Improve Their Communications Skills;Need to Improve Their Communications Skills;

----Wanting to Control Market Relationships;Wanting to Control Market Relationships;

----Overly Aggressive and Promotional.Overly Aggressive and Promotional.

View Them as OpportunitiesView Them as Opportunities

•• These all Are Opportunities to Use Your These all Are Opportunities to Use Your Skills to Continuously Make Progress and Skills to Continuously Make Progress and Eventually Prevail. Staying Enthusiastic, Eventually Prevail. Staying Enthusiastic, Positive and Persistent Will Get You There.Positive and Persistent Will Get You There.Positive and Persistent Will Get You There.Positive and Persistent Will Get You There.