Global and U.S. Trends in Information Disclosure, Annual Reports and Best Practices Mary Beth Kissane Friday, November 19, 2010 [email protected] S:\Staff\MBK\RTS

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Global and U.S. Trends in Information Disclosure, Annual

Reports and Best Practices

Mary Beth Kissane

Friday, November 19, [email protected]

S:\Staff\MBK\RTS Conference Presentation

Moscow, Balchug Hotel1

2

RTS Annual Workshop with Issuers

– A Bit of History of Investor Relations in the U.S.– What Attracts Investors to Annual Reports– Global Trends in Information Disclosure– U.S. Disclosure Best Practices

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A Bit of History of Investor Relations in the U.S.

– 1929 Market Crash/Great depression– Securities Act of 1933– Securities Exchange Act of 1934– Formation of the SEC

• Watchdog for the retail investor

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What Attracts Investors to Annual Reports

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6


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(National Investor Relations Institute 2008 Annual Report Survey)


7(National Investor Relations Institute

2008 Annual Report Survey)




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Annual Report Format Trends



Page Count Trends



Unit Cost Trends












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AR Narrative Responsibility



MD&A Involvement Trends



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Public Relations IT/MIS Finance/

Treasury Marketing Graphics/

Design (internal)

Other



AR Challenges












Global Trends in Information Disclosure

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– Greater transparency– Greater use of technology– Need to watch for process, avoid glitches (Disney

problem last week)– Greater appreciation of reputational risk

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– Companies are LISTENING. Investment Community feedback the most important measure of IR effectiveness according to 65% of companies in all regions but North America. North American firms value meeting quality (72%) and sound use of senior management time (69%)

(BNY Mellon: Global trends in Investor Relations – A Survey Analysis of IR Practices Worldwide – 6th edition)

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– IR Priorities: • Ensuring effective disclosure (63%)• Coordinating the public message (51%)• Ensuring management visibility (36%)


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– Investor communications spread between • Current Owners (33%) • Target Investors (25%) • The Sell-side (29%)


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– Average number of one-on-one meetings: • IRO 147• CFO 72• CEO 46

– IRO included in C-Suite meetings 92% of the time


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– U.S. still most frequent destination for non-deal road shows (85%). Followed by:

– UK (75%)– Continental Europe (64%)


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– Continued growth in research coverage– More meetings with hedge funds– More meetings with SWFs (U.S. firms – not as much)


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– Technology – Feedback/dialogue– Web disclosure– Proxy access– Corporate reputation

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Reuters, October 5, 2010 article

Exclusive: Symantec to restore live meeting after criticism

By Ross Kuber Tue Oct 5, 2010

Symantec Corp said it plans to hold part of its 2011 annual shareholders meeting in a live setting after criticism that its online-only 2010 meeting shielded executives from tough questions.

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U.S. Disclosure Best Practices

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– IR has a seat at the table and board access• MDA/CDA/proxy issues

– IR is a member of the disclosure committee– Partners with PR/CS and GC

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– NIRI standards of practice and ethics committee– Invite dialogue– IRO is the Regulation FD compliance officer– Regular Regulation FD training– But Regulation FD is not a block to

communications

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– Ultimately, the best IROs are an important risk mitigation tool. They set and manage appropriate investor expectations. The best IROs speak truth to power when appropriate. They don’t get so tangled in compliance that they forget to anticipate and address investor and public reaction to disclosures.

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KNOWLEDGE. SERVICE. RESULTS.

Walek & Associates is one of the largest and fastest-growing independent, global financial and corporate public relations firms. Founded in 1998 and with offices in New York and Hong Kong, Walek specializes in public relations and investor relations in capital markets, traditional and alternative asset management, professional and financial services, information and financial technology, and public companies in all sectors. From building visibility and brand to financial PR, financial transactions, product and service launches, and managing crises, Walek delivers results that help clients build business. www.walek.com

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®

RTS Annual Workshop with Issuers

Mary Beth Kissane

Friday, November 19, [email protected]

Moscow, Balchug Hotel40

Documents

Global and U.S. Trends in Information Disclosure, Annual Reports and Best Practices Mary Beth Kissane Friday, November 19, 2010 [email protected] S:\Staff\MBK\RTS