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How to Prepare
an Effective
Roadshow Presentation
Value of Different Sources of Information
5.54
5.34
4.82
4.77
4.56
4.56
4.55
4.53
4.51
4.27
Management Presentations
Public Filings or Report
Sell-Side Analysis
Competitors
Business Press
Investor Relations Department
Customers
Buy-Side Analysis
Trade Press
Informal Network
0
1
2
3
4
5
6
7
Source: The Ernst & Young LLP
Presentations are the most valued source of investor information
1
Management Presentations
“It’s a chance to make a real impact on
your key audiences – and your share
price.”
“It’s also a chance to really impress the
CEO ”
CEO.”
Source: IR Guide Number 4: Investor Presentation
Management Presentations

The most credible means of communication

Interaction through Q&A

N thi competes
Nothing
t for
f attention
tt ti

An important leave-behind for meeting participants

A stand alone record of your message

A durable channel

Instant feedback
Most important source of non-financial information
2
Agenda for today’s session
1.
Introduction to presentations
2.
Ch
Characteristics
t i ti and
d kkey points
i t off roadshow
d h
presentations
3.
The six message delivery rules
4.
Improving your presentation
IR Presentations
3
Message Communication
C
M
O
A
M
P
IPO
Industry conference
Roadshows (1st contact)
Analyst days
R
K
A
E
N
T
Y
Message Communication
C
M
O
A
M
R
P
IDENTITY
K
A
E
N
T
Y
4
Message Communication
C
M
O
A
M
R
P
IDENTITY
K
A
E
N
T
Y
Message Communication
C
M
O
A
M
R
P
IDENTITY
K
A
E
N
T
Y
5
Just Three Types of Presentations

If your objective is to introduce yourself to the
audience?
Then you must be talking mostly about identity

If your objective is to inform your audience about
your recent earnings?
Then you must be talking mostly about performance

If your objective is to explain your present actions or
explain recent or pending actions.
Then you must be talking mostly about the why’s the how’s
and the when’s of events
Message Communication
C
M
O
A
M
P
IPO
Industry conference
Roadshows
Analyst days
R
IDENTITY
K
A
E
N
T
Y
6
Identity presentations (Roadshows)
The
management of the company,
telling
g the story
y of the company
p y in their
own words, in a way that leaves the
audience with an accurate and lasting
perception of the company.
Common Ingredients of Identity Presentations

Agenda for presentation (So audience knows what to expect)

B2I Brand elements
►
Company’s
Company
s strategy
►
Competitive advantages / strengths
►
Company position in markets

Company overview

Industry overview

Recent performance (summary slides)

Recent events (summary slides)

Conclusion
7
Your B2I Brand
“ A brand is a set of associations linked to
a name, mark or symbol... The difference
between a name and a brand is that a
name doesn’t have associations; it is
simply a name.”
Tim Calkins,
Editor of “Kellogg on Branding”
8
B2I Brand
Foundation
of attitude… investing is not purely
mechanical
Provides
a way to differentiate between
investment choices
More
B2B than B2C
B2C: Heidelberg
9
B2B: Heidelberg
B2I Brand
Foundation
of attitude… investing is not purely
mechanical
Provides
a way to differentiate between
investment choices
More
B2B than B2C
Good
B2I Brand management is similar to
good consumer brand management
10
B2I Brand
Foundation
of attitude… investing is not purely
mechanical
Provides
a way to differentiate between
investment choices
More
B2B than B2C
Good
B2I Brand management is similar to
good consumer brand management
Clear Brand Message
Exercise: Brand Association
Please swap your business card with
someone
What brand associations spring to mind
when y
you see the other p
person’s
company name/logo?
11
Question
When people hear your company
name what do you think are their
current associations?
What would you like their
associations to be?
The B2I Brand Message Model
Management
S
t
r
n
g
th
s
P
o
s
i
n
o
i
t
Churchill Pryce IR
Meaningful & Memorable
12
Strategy
- how do you plan to succeed in the future?
“…deliver value, innovation and
price leadership”
Strategy
- how do you plan to succeed in the future?
“… through strong positioning in
growth markets, acquisitions
in core businesses and
excellent innovation platforms”
13
Positive Brand Associations
Capitalizes on
Strengths
Capitalizes on
Position
Effective
Implementation
STRATEGY
Ignores
Strengths
Ignores
Position
Failure or
Delay
Negative Brand Associations
Strengths
-what advantages set you apart from your
competition?
“…market-leading brands in
all four of our operating
regions and offering our
products through direct and
independent sales channels”
14
Strengths
-what advantages set you apart from your
competition?
“With large low-cost potash
operations, plans to significantly
expand capacity, and strategic global
investments, we have an unmatched
ability to meet the needs of North
America and growing offshore
markets”
Positive Brand Associations
Clear & Evident
Factored into
Strategy
Enduring &
Unchallenged
STRENGTHS
Hidden
Ignored in
Strategy
Threatened
Negative Brand Associations
15
Position
- where do you stand in your markets?
“A global leader in home
appliances and appliances
for professional use, selling
more than 40 million products
each year, in 150 countries.” .
Position
- where do you stand in your markets?
“Wienerberger is the world’s largest
producer of bricks and Nr. 2 in the clay roof
tile market in Europe. We also hold leading
positions in pavers in Europe, with a total of
232 plants in 24 countries
countries.”
16
Positive Brand Associations
Leadership
Good foundation
for Strategy
Defendable &
Enhancable
POSITION
Weakness
Inconsistent
with Strategy
Declining &
Threatened
Negative Brand Associations
Example: B2I Slide (Strategy)
17
Example: B2I Slide (Strengths)
Example: B2I Slide (Position)
18
Performance Slides
How well have you performed, how can you best
explain
l i thi
this performance
f
and
dd
does thi
this performance
f
shed light on your future prospects?
If yes, how so?
If not, why not?
Example: Performance Slides
19
Example: Performance
Example: Performance
20
Example: Performance
Event slides

What happened? Why?

How will y
your company
p y be effected?

In the case of M&A, the rationale behind the
event. If you are the acquirer then also tie it to
the articulated strategy.

In the case of crisis
crisis, what are you going to do
about it?
21
Example: Event slides
Example: Event slides
22
Six message delivery rules
you need to know
The Six Message Delivery Rules
1.
Know your audience
2.
Have clear objectives
j
3.
Get to important points quickly
4.
Understand the strengths and weaknesses of
your message channels
5.
Make the most of market feedback
6.
Resist the temptation to overreach
23
1. Know your audience
“ Designing a presentation without an
audience in mind is like writing a
love letter and addressing it to ‘To
Whom It May Concern”
Ken Haemer
Former Manager of Presentation Research
AT&T
“My first time in front of Wall Street’s analysts as chairman was a bomb.
I had been in the job for eight months when I went to New York City on
December 8, 1981, to deliver my message on the “New GE.” I had
worked on the speech rewriting it, rehearsing it, and desperately wanting
it to be a smash hit.
It was, after all, my first public statement on where I wanted to take GE.
Y kknow, th
You
the vision
i i thing.
thi
However, the analysts arrived that day expecting to hear the financial
results and the successes achieved by the company during the year.
They expected a detailed breakdown of the financial numbers. They
could then plug those numbers into their models and crank out estimates
of our earnings by business segment. They loved this exercise. Over a
20-minute speech, I gave them little of what they wanted and quickly
launched into a qualitative discussion around my vision for the
company….
company
At the end, the reaction in the room made it clear that this crowd thought
they were getting more hot air than substance. One of our staffers
overheard one analyst moan, “we don’t know what the hell he’s talking
about.”
Jack Welch
24
“ I always go along to an investor presentation,
so that I can see the whites of their eyes…I
eyes I
want to see if they are up to the job."
Unidentified Fund Manager
www.presentationhelper.co.uk
What are audience members looking for?

Analysts who are following your company are looking for a ways to value
your company.
To work out the premium to be added to relative measurement (P/E) and its
sustainability

Fund managers who are not be familiar with your company are looking for
a story or an idea.
Don’t forget to include clear identity slide(s) at the beginning before going into
the details

Fund managers who own your shares are looking to confirm their
i
investment
theses.
h
They will be looking for changes that might impact their original assumptions

The media will be looking for newsworthy developments
25
Know the Audience: IR Team Role

IR Team is in regular contact with audience members
and should have a detailed data base

IR Team are arrangers of events and should know
who will be participating
Message refinement
Preparation of executives
Keeping everyone on message

IR Team must be held accountable for knowing the
audience and meeting their needs
2. Have Clear Objectives
One
overall objective (the main takeaway)
Contributing
g
objectives
j
One idea per slide
Don’t
risk confusing or diluting your message
26
3. Get to Important Points Quickly
Audiences
have short attention spans
Let
the main message arouse interest before
going into detail
Be
quick explaining the basics of your
company’s business
It is frustrating to listen to a presentation and have
no clear idea about what the company does
4. Understand IR Product Strengths and
Weaknesses: Presentations

The most credible means of communication

A mechanism for interaction (Questions and Answers)

A attention
An
tt ti grabber
bb (audience
( di
iis th
there tto h
hear you))

An important leave-behind for meeting participants

A stand alone document (if done correctly)

A durable channel (if stored on company’s website)

Remember delivery is important (rehearse and don’t just think
FAQ think TDQ and TOQ)
Most important source of non-financial information
27
5. Make the Most of Market Feedback
To
fine tune your message
To
identifyy disconnects and gaps
g p
gaps in knowledge
gaps in expectations
To
show that you are listening and responsive
6. Resist the Temptation to Overreach
“You will be held accountable”
28
The Six Message Delivery Rules
1.
Know your audience
2.
Have clear objectives
j
3.
Get to important points quickly
4.
Understand the strengths and weaknesses of
your message channels
5.
Make the most of market feedback
6.
Resist the temptation to overreach
The Six Message Delivery Rules
IR Products
6 Rules
Corporate Identity - “B2I Brand”
29
The Six Message Delivery Rules
IR Products
6 Rules
Corporate Identity - “B2I Brand”
The Six Message Delivery Rules
IR Products
6 Rules
Corporate Identity - “B2I Brand”
30
How to improve
your presentations
Presentation Tip #1: Tell a story
A
logical flow makes your presentation easier
to follow and understand
Readers remember facts better in story
y form
than they do as separate items or
disconnected elements
Let the agenda tell your audience what to
expect
Link the details to the big picture (key point)
31
The Communications Staircase
information
add to
context
Source:
Creating Powerful Presentations by
David Fine, Fine Communications
data
The Communications Staircase
information
add to
Earned
$80 M
context
Source:
data
Creating Powerful Presentations by
David Fine, Fine Communications
32
The Communications Staircase
information
Up
25%
Earned
$80 M
add to
context
Source:
Creating Powerful Presentations by
David Fine, Fine Communications
data
The Communications Staircase
Industry
up 18%
Up
25%
Earned
$80 M
information
add to
context
Source:
data
Creating Powerful Presentations by
David Fine, Fine Communications
33
The Communications Staircase
Industry
growth leader
Industry
up 18%
Up
25%
Earned
$80 M
information
add to
context
Source:
Creating Powerful Presentations by
David Fine, Fine Communications
data
The Communications Staircase
Industryy
growth leader
Effective
Slide
Source:
Creating Powerful Presentations by
David Fine, Fine Communications
34
Example - Communication staircase
Presentation Tip #2: Define your objectives
Define
your key message first, and build the
presentation based on this message.
People
will retain only 2 to 3 key take-aways
Even
for your quarterly results, think of what
the numbers should tell investors, and let that
be the theme of your presentation (e.g. “We’re
expanding on schedule”).
35
Presentation Tip #3: One point per slide
Limit
each slide to a single key message
Make
it obvious - Don’t leave audience
second guessing your main point
Use
a submarine or a descriptive heading to
sum up this message
Example: One point per slide
36
Presentation Tip #4: Promote your B2I brand
Put
a few identity slides into every
presentation
Link
facts and figures to strategy
This
helps make your presentations
comparable over time.
Example: Promote your B2I brand
37
Presentation Tip #5: Keep it short
Get
to your important points quickly
Keep
p
Guy
y Kawasaki’s 10:20:30-rule in mind:
10 slides
20 minutes
30 pt font size
Presentation Tip #6: Use graphics wisely to enhance
your message

Pictures should illustrate and explain your text, and
graphs should make your numbers easy to
understand.
d t d

Before using a graphic, ask yourself why is it
necessary. If it doesn’t have a clear purpose, it’s
better to leave the space blank.

Adding unnecessary graphics only serves to annoy
and confuse busy investors and fund managers.
38
Example: Use graphics wisely to enhance your
message
Example: Use graphics wisely to enhance your
message
39
Presentation Tip #7: Converse, don’t perform

Don’t read from a script. Key words on index cards or in the
slides are helpful for inexperienced presenters.

Rehearse until you are confident,
confident and then some.
some

Use 1st and 2nd person voices – people listen more to
communication that feels personal

Anticipate likely and unlikely questions and be prepared to
answer them.

Use the presentation as a vehicle for
f two-way communication.
With the audience in front of you, consider it an opportunity to
tailor your communication and get feedback.
Presentation Tip #8: Don’t clutter
Keep
the slides simple
If
y need to use complicated
you
p
tables, highlight
g g
the main features
If
you need more details, use the appendix
section
40
Bad example: Don’t clutter
Presentation Tip #9: Be clear

Use clear colors
Some color combinations don’t look as
good on the p
g
projector
j
as on yyour screen.
Go for high contrast – yellow on black is the most visible combination

Use big fonts
Make sure the person in the back of the auditorium can see the details.
Make sure everything is readable when printed six slides on a page.

Make keyy messages
g stand out
The main message should jump right at the reader and give him a
reason to pay attention to the rest of the slide.
41
Example: Be clear
Presentation Tip #10: Give context to your figures
For
a slide full of numbers and figures:
Highlight the key figures
Use a submarine to explain how the numbers
relate to your company as an investment.
Put the numbers into perspective - is it high or
low? Growing or declining?
42
Example: Give context to your figures
Presentation Tip #11: Begin and end with the main point

Agenda
Tell them what you will tell them

Body
Tell your story

Conclusion
Tell them what you have just told them
R
Recap and
d reinforce;
i f
d
don’t’t iintroduce
t d
new iinformation
f
ti att th
the
end
Outlook slides should come before the conclusion
43
Example: Begin and end with the main point
Presentation Tip #12: Don’t invite questions if you
don’t want them asked
Unclear
slides raise questions
Go
through
g each slide and look for statements
that invite further questions.
Answer them
44
Bad example: Don’t invite questions if you
don’t want them asked
Bad example: Don’t invite questions if you don’t
want them asked
45
Presentation Tip #13: Leverage your IR products
Include
your website address
Present
your IR team
Give contact details for IR enquiries
Give email addresses, phone numbers and
contact names.
Example: Leverage your IR products
46
Presentation Tip #14: Each slide should stand alone
Make
sure each slide can be understood
without the context of preceding slides
Every
slides should be comprehensible without
the help of the presenter
Many
fund managers send junior staff to
attend presentations and rely on printouts
printouts.
Make sure they get your message.
Example: Each slide should stand alone
47
Bad example: Each slide should stand alone
Bad example: Each slide should stand alone
48
Presentation tips
#1: Tell a story
#2: Define your objectives
#3: One point per slide
#4 Promote
#4:
P
t your B2I brand
b d
#5: Keep it short
#6: Use graphics wisely to enhance your message
#7: Converse, don’t perform
#8: Don’t clutter
#9: Be clear
#10: Give context to your figures
#11: Begin and end with the main point
#12: Don’t invite questions if you don’t want them asked
#13: Leverage your IR products
#14: Each slide should stand alone
How the IRO Adds Value to Presentations

The IRO is uniquely positioned as the link between
management and the audience (stakeholders)

Th IRO iis a source off ffeedback
The
db k on previous
i
presentations
t ti

The IRO can help making sure the company speaks with one
voice

The IRO possesses knowledge about the company,
managementt and
d the
th audience
di

The IRO is indispensable in helping tailor a presentation to
different audiences
49
Features of a Good IR Presentation

Presenters show they have a good understanding of their
audience (know the audience)

P
Presenters
t
and
d the
th audience
di
kknow, att lleastt b
by th
the end
d off th
the
presentation, the objectives of the presentation (well defined
objectives)

The presentation can be read and understood even in the
absence of the presenter
When preparing each slide imagine that someone in the audience just
woke up saw that slide and missed all the rest.

The information provided is factual, unbiased and complete
Many fund managers are turned off by executives touting stock
IR Presentation Checklist

Logical Structure

Is the objective clear?
Does the presentation start with the main point?
Does the presentation end with the main point?
Is each slide limited to one idea?
Is the presentation concise (no superfluous slides)?
Does the presentation leave an accurate perception?
Content

Does your presentation mention your strategy?
Does your presentation mention your strengths?
Does your presentation mention your position?
Does each slide stand alone?
Is there an agenda?
Is there an IR contact page?
Effective Design

Are key points highlighted?
Do you use pictures instead of complicated text?
Do the graphics enhance the message?
Are you using big letters?
Do the letters contrast with the background?
50
Effective Presentations: The Venue
Most important venue
requirements
Least important venue
requirements
1 Convenient location
1.
1 Quality of surroundings
1.
2. Good sound quality
2. Catering
3. Clearly visible presenter /
presentation
“Obviously if a company is trying to hide bad figures they are
going to want to do it in very nice surroundings”
Citigate Dewe Rogerson 1999: Unattributed
51