Weitere ähnliche Inhalte
Ähnlich wie Box IR Financial market survey 2012 summary
Ähnlich wie Box IR Financial market survey 2012 summary (20)
Kürzlich hochgeladen (20)
Box IR Financial market survey 2012 summary
- 2. Financial Market Survey 2012
• A total of 185 respondents have
named listed companies and commented on
their communication and investor relations efforts
answered questions regarding the Swedish equity
market
Approx 90 fund managers and 100 analysts &
brokers participated in the survey
© Box IR 2012
- 3. Survey respondents
Fund managers Investment Banks
3 AP-fonden, 4 AP-fonden, 7 AP-fonden, ABG Sundal Collier
Alcur, Alecta, Alfred Berg, AMF Pension, Carnegie
Brummer & Partners, Capman, Carnegie Credit Suisse
Asset Manangement, Catella Fonder, Danske Bank
Cicero Fonder, Didner & Gerge, DnB Nor, Deutsche bank
Futuris, Granit Fonder, Gustavia Fonder, Erik Penser
Handelsbanken Fonder, HealthInvest, Handelsbanken
Humle Kapitalförvaltning, IKC Fonder, JRS Securities
Kåpan Pensioner, Lannebo Fonder, Nordea
Madrague, Manticore, Meetoo, Nordea Pareto Öhman
Asset Manangement, Norron, Origo Redeye
Capital, PSG Capital, QQM Fund Remium
Management, Scientia, SEB Asset SEB Enskilda
Management, Skandia, Strand Kapital, Swedbank
Swedbank Robur, Svolder, Ture Invest,
Öresund
© Box IR 2012
- 4. Table of content
• The communication impact on valuation
Who is successful and what do they have in common?
What is considered as sub par communication?
• Quartely earnings reports or not?
• Does the market care about CSR?
• Is Capital Markets Days important?
• Appendix
Survey question
© Box IR 2012
- 5. IR – importance to valuation
• The financial pro’s were asked to mention companies
where communication has had an effect on valuation
• 110 companies were named, and of those mentioned
at least twice the respondents consider that
38 companies have created value through communication
35 companies have destroyed value through communication
Is this of any importance?
© Box IR 2012
- 7. Value creating communication
”Clear, straightforward and
continuous communication without
corporate BS and euphemisms have
led to increased confidence ...”
”Higher visibility and creates an understanding
of the company. Educates analysts / investors /
brokers on drivers and continuity creates
comprehension and minor fluctuations of
negative events”
”IR departments of these companies
have a great understanding of the
capital market and are also
extremely familiar with their company
and competitors”
© Box IR 2012
- 8. Mutual characteristics of value creators
Open Clear Transparent
Long-term Consistent Accessible
and
Great understanding of capital markets
© Box IR 2012
- 9. ”Best in class” IR
The three companies that the respondends
considered having created most value through
communications are:
1. Assa Abloy
2. Hexagon
3. Atlas Copco
© Box IR 2012
- 10. Value destructive communication
"Investment companies that appear to
have "dual agendas" or executives that
don’t want to admit bad deals until well
after the fact”
”Lack understanding of (or
ignore) investors' view of the
company and the expectations
in the stock price …”
”Have problems to deliver on
already made promises ”
© Box IR 2012
- 11. And some less flattering…
Manipulative Misleading Arrogant
Overly
Unclear Unaccessible
optimistic
© Box IR 2012
- 12. Companies ambivalent on quartely
reporting
From Box IRs IR survey 2012
based on108 responses from
© Box IR 2012 companies on Nasdaq OMX
- 13. …but how about the investors?
Investors reward long-termism, but would like to keep the
quarterly checkpoints
© Box IR 2012
- 14. Text & numbers tougher than presenting
” Nothing particularly ”It is simply part of the
cumbersome.” job.”
Mid Cap Large Cap
”Extended IFRS
”Nothing. The report It is a time-consuming
requirements in the
creates a natural basis for process, but would not
call any component interim reports.”
dialogue with the market Mid Cap
on performance.” "overly cumbersome."
Small Cap Small Cap From Box IRs IR survey 2012
based on108 responses from
© Box IR 2012 companies on Nasdaq OMX
- 15. CSR – marginally more important
Despite the debate as of lately, but …
© Box IR 2012
- 16. Increased pressure to consider CSR
” More questions
from investors”
” Increased focus
in the media.
Badwill to invest in
companies that
misbehave.”
”Marginally, but maybe
avoiding to a slightly
higher degree "bad"
companies.”
Increased pressure, mainly from the media…
© Box IR 2012
- 17. Important how a CSR incident is managed!
”What happens
next often
overshadows
the event itself.”
”Classic crisis
management
where the
leadership’s
judgement is put
to the test."
To err is human, not handling it (in the media) is
costly!
© Box IR 2012
- 18. 4 out of 10 find CMDs better than before
© Box IR 2012
- 19. Appendix 1
Company questions
1. Which companies do you consider communicate with investors in a way that
affects the valuation?
Which companies created value with good communication?
Which companies destroyed value by poor communication?
2. Name companies associated with regular report disappointments? (that rarely live
up to market expectations)
3. Name companies that routinely "guide" the market lower than the expected
outcome
4. Which companies have an IR person who can "replace" the CEO at investor
meetings/ presentations? (i.e. is at such a high level that investors are OK with or
even prefer meeting the IR person)
5. Which company representatives or companies do you consider to be the best and
worst at investor presentations? Why are these good/bad?
6. Regarding listed companies' shareholder friendliness
Clearly articulated and justifiable dividend policy (best/worst)
Directors who are more loyal to shareholders than the management (best/worst)
Limited and reasonable bonus and stock option plans for management (best/worst)
Open and transparent communication (best/worst)
Shareholder friendliness overall (best/worst)
© Box IR 2012
- 20. Appendix 1
General questions
7. Some companies want to refrain from reporting on a quarterly basis
I want companies to provide comprehensive quarterly reports as before
I think semiannual reports supplemented with simplified quarterly ones in between is sufficient
I think that semiannual reports is enough
8. Regarding companies social responsibility (CSR)
How important is CSR for your investment decision/your assessment of a company? Scale 1-5.
Do you notice any increased pressure to take CSR into account in the assessment of listed
companies?
When a negative CSR incident occurs, such as environmental or ethics, valuation is most affected
by (the incident itself, the management's handling of the incident, don’t know)
9. Regarding listed companies' capital markets days
How important are capital markets day for your assessment of a company? Scale 1-5
Compared to three years ago, the information communicated is (better, worse, not better nor
worse, no opinion)
10. "Say on pay" is high on the shareholders agenda in e.g. the U.S. and Switzerland, but more
and more countries follow
Do you think that high management compensation in Swedish listed companies is a concern for
investors?
Do you think the debate on high compensation levels affects the willingness to invest in a
company?
© Box IR 2012
- 21. Communication rooted in target group
Mikael Zillén +46 762 13 00 40 | mikael@boxir.se
Since 2005 worked with financial communications and investor relations
both as self-employed and as senior consultant at Citigate Stockholm.
Institutional sales at Handelsbanken, Nordea and Danske Bank during
more than 15 years. He also has experience from several IPOs.
Tomas Öqvist +46 705 54 34 40 | tomas@boxir.se
Long experience as top ranked equity analyst at e.g. Carnegie and
Alfred Berg. Speaking partner to large Swedish, European and US
institutions and also participated in a number of IPOs and M&A deals.
Since 2007 he has been a consultamt within financial communication
and investor relations.
Anders Bruzelius +46 703 50 40 88 | anders@boxir.se
With his18 years in the financial markets thorough knowledge of equity
valuation and communications. He has worked as an equity analyst at
Danske Markets and Carnegie, where he held top rankings in the
automotive and engineering sectors. Experience from a number of IPOs
and M&A transactions.
Until recently, Anders worked as head of equity research at Swedbank.
© Box IR 2012
- 22. Box IR
Styckjunkargatan 1
114 35 Stockholm
08-21 41 00
www.boxir.se
© Box IR 2012