2. Table of Contents
1. All markets behave the same: Myths
2. Developing trust in key relationships (which ones?): More than a tea party
3. Marketing to institutional and retail investors
4. A process
5. Considerations
6. Case Studies: Sands China Ltd; United Company Rusal
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3. All markets behave the same: Myths
Myths:
• Great financial performance always translates to stock price growth
• Expensive PR equals uptick in stock price
• Building sell side analysts coverage is essential to stock price growth
Most important myth of all: Asia market regs are the same as North American, UK, or Europe
.
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4. An Orwellian paraphrase: Not all investors are equal
A mating ritual: You have to know what turns your investor on and off
Giving good phone: Beyond good communication skills, exceptional communication skills
No two mates communicate the same way (we’re not talking about loud or soft)
Accept PR is limited in outreach
Advice: Parties, events, shows, are nice but doesn’t get you across the finishing line.
:
Marketing to Institutional & Retail Investors
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5. Fundamentals
Strategic IR is more than giving a good AR, half year, goodies to commercial reporters and nice events
Knowing who your investor base is fundamental: More than the standard pie chart
Who are the key relationships?
Good relationships with regulators beyond submitting timely reports, forms and notices
A strong regional outreach program works to relevant stakeholder base, takes advantage of various
stakeholder behaviors, and market mechanisms unique to the market and investor type.
All communications need to be tied in: PR, brand marketing, corporate communications and compliance
so the story is consistent and timing is consistent with the various regulatory requirements for the equity
Internal partnerships must be developed with business development and long term corporate strategy
teams. This supports effective and timely use of key stakeholders and relevant information.
External partnerships must be built to take advantages of short and long term equity growth targets.
:
Developing trust in key relationships: More than a tea party
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6. A Process
Preliminary Timetable (1)
(1) The timetable is a sampler and generic
Next TargetsExecutionCoordinationStakeholder Base TargetsPlanning
Outline objectives
Identify investors and
specific targets
Develop Next Equity Price
Targets
Senior Management
Participation
Team Roles and
responsibilities
Internal Roles and
Responsibilities
Internal Approval
Adapt and continue roll
out
Internal Approval
Regulatory review if
required
Management Goals MD&A review
Premier and Premium
Stakeholder Meetings
Hold Kick-Off Meeting
Marketing Strategy
Development
Analysts Communications
Calendar Coordination
Internal Approval
Legal and compliance
Coordination
Test Metrics
Metrics and budget
*** *** *** ******
Adjust Strategy
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7. Strategy and Considerations
Subject to the specific equity, industry and market conditions, a good IR program can see effect in 2 fiscal quarters. Indications
of traction and growth can be identified with price growth, volume and shareholder types that participate.
The process consists of five (5) components: Management objectives, Market conditions, Stakeholder base Objectives,
regulatory time frame and Media Participation. A sampler is below:
Strategy Plan Objectives
Management objectives
Market Conditions
Stakeholder Base Objectives
Regulatory Time Frame
Media Participation
Identify key management goals and time line
What key goals
Stake holders needed to achieve key goals
What are the barriers to achieve these goals
Time line and results metrics
Identify Stakeholder base and objectives: Who, When and What
Regulatory requirements, potential litigation, customer insights
Develop financial and product marketing information
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8. Case Studies
Case studies during the author’s advisory period:
Sands China Ltd: HK1928, grew equity from HKD 29.85 to 60.00, within 12 months grew from 29.85 to
40.05.
Sands China continued to grow with 24 mos. with soft support to 64.00. Currently SCL trading at
30.85-31.95 (3rd quarter ‘16).
During the period of advisement, SCL was under investigation for fraud, FCPA violation and a
lawsuit against the chairman initiated by a former CEO Steve Jacobs.
UC Rusal HK: 486, first Russian listing on SEHK, raised USD 2.2Bn, from IPO price 10.80 within 12
mos. grew to 12.96
UC Rusal is trading at HKD 2.81-2.88 (3rd quarter ‘16) range began downward drive following ACA’s
departure
.
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9. Equity Growth Initiatives: 2012-2014
Source: Bloomberg
.Case Study: Sands China Ltd and UC Rusal during the period managed by ACA
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10. Equity Growth Initiatives: 2010-2011
Source: Bloomberg
.Case Study: Sands China Ltd and UC Rusal during the period managed by ACA
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11. Disclaimer
This for discussion purpose only presentation and information contained in this document does not constitute an offer to sell, or
solicitation of an offer to buy any securities. The information in this document is intended to be used for discussion purposes only.
Any reproduction of this document, in whole or in part, without the author’s prior approval is prohibited. Charts includes are from
Bloomberg.
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