European IR Benchmarking Wo ist der deutsche Mittelstand? Amani Korayeim Director EMEA Sales and Product Development Institutional Investor Research

11/07/2017

• Background II • Research Methodology • Analysis

o Buy-Side o Sell-Side

• Best Practice • Key take-outs

Agenda

BACKGROUND

• 40 years survey-based rankings and analysis Annual studies of global equities and fixed income markets provide access to leading

investment professionals across the world, accompanied by in depth articles and insight in II

Magazine

o Research Europe o Sales Japan o Trading Asia o Investor Relations LatAm o Hedge Funds U.S.

Institutional Investor Research

Research Methodology 2016

Research Methodology: Triangular Approach

Buy-Side Investors

Corporates

Sell-Side Analysts

• 817 sell-side analysts • 139 firms

→ nominating 1,015 COs → across 31 sectors

• 1,245 buy-siders and PMs • 668 firms

→ nominating 938 COs → across 31 sectors

547 IROs and CFOs giving insight on best practice in investor engagement

Buy-Side Voter Universe

Sell-Side Voter Universe

• Global Voter Universe • Confidential and anonymous • No weighting on AuM • No vote swapping • Unprompted – ‘write-in ballot’

Research Methodology: Key Differentiators

Research Methodology – Write-in Ballot

Research Methodology – 6 Performance Metrics

The Analysis

Football is a simple game; 22 men chase a ball for 90 minutes and at

the end, the Germans win.

—•Gary Lineker[1]

What Buy- and Sell-siders want?

SS 2017 Rating

BS 2017 Rating

0123456789

The companyprovides a timelyand appropriatelevel of financial

disclosure

Senior executivesare accessible

The IR team is wellinformed and

empowered tospeak

authoritatively onthe company's

behalf

Quality ofcorporate

documents andinvestor kitmaterials

The companyresponds quickly

and thoroughly torequests

Hosting the mostconstructive

conference calls

8.35 8.18 7.89 7.72 7.28 7.15

8.39 8.09 7.25 7.35

6.95 6.83

SS 2017 Rating BS 2017 Rating

Overall Ranks and Analysis – IR Programme

1

2

3

4

5

29.13%

25.30%

18.90%

16.33%

10.34%

5

3

4

2

1

12.59%

19.67%

12.90%

25.72%

29.12%

- 10 20 30 40 50 60

United Kingdom

Germany

France

Spain

Italy

BS Rank SS Rank

BS/SS – Financial Disclosure & Transparency

1

2

3

4

5

36.16%

20.94%

17.33%

16.85%

8.72%

4

3

5

2

1

15.99%

17.94%

12.40%

22.68%

31.00%

- 10 20 30 40 50 60 70

United Kingdom

Germany

France

Spain

Italy

BS Rank BS Score SS Rank SS Score

BS/SS- Access to Senior Management

1

2

4

3

5

26.35%

21.42%

19.75%

19.86%

12.62%

4

3

5

2

1

15.83%

17.69%

13.12%

22.97%

30.39%

- 10 20 30 40 50 60

United Kingdom

Germany

France

Spain

Italy

BS Rank BS Score SS Rank SS Score

BS/SS: Credible and authoritative IR Team

2

1

3

4

5

25.48%

28.47%

23.40%

13.26%

9.39%

5

3

4

1

2

9.39%

23.40%

13.26%

28.47%

25.48%

- 10 20 30 40 50 60

United Kingdom

Germany

France

Spain

Italy

BS Rank BS Score SS Rank SS Score

1

2

3

4

5

34.04%

25.44%

17.26%

14.39%

8.87%

4

3

5

2

1

14.64%

20.23%

11.84%

22.86%

8.87%

- 10 20 30 40 50 60

United Kingdom

Germany

France

Spain

Italy

BS Rank BS Score SS Rank SS Score

Quality of Corporate Documents

2

1

4

3

5

23.49%

30.12%

17.18%

17.37%

11.84%

4

3

5

1

2

13.83%

21.58%

13.22%

26.90%

24.47%

- 10 20 30 40 50 60

United Kingdom

Germany

France

Spain

Italy

BS Rank BS Score SS Rank SS Score

BS/SS Responsiveness of IR Team

Filling in the blanks…Best Practice

5%

19%

26%

17%

33%

13%

25% 25%

13%

25%

-% -%

43%

14%

43%

%5%

10%15%20%25%30%35%40%45%

Less than 1year

1-3 years 4-7 years 8-10 years More than 10years

All Respondents UK companies German Companies

IR Experience & Professional Background

43% of German companies have more than 10 years experience

Average number in IR Team is 3 – German IR Teams have 4

35%

26%

14%

10%

8%

4%

3%

38%

50%

-%

-%

13%

-%

-%

38%

38%

25%

-%

-%

-%

-%

-% 10% 20% 30% 40% 50% 60%

Finance

Sell Side

Comms/Marketing/PR

Strategic Planning & Ops

Buy Side

Other

German Companies UK companies All Respondents

IR Programme activities

83%

36% 36%

9%

80%

100%

40%

80%

100%

57%

43%

14%

0%

20%

40%

60%

80%

100%

120%

Shareholder ID Investor/analyst perceptionresearch

Invesestor targeting Road Show Management

All respondents UK Companies German Companies

The Buy-Side

Buy-Side: Allocation of Time

39% 37%

16%

5% 3%

33%

38%

23%

5% 2%

44% 43%

9%

2% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Buy-side analysts andportfolio managers

(excluding hedge funds)

Sell-side analysts Hedge fund managersand analysts

Retail investors Other

All Respondents UK Companies German Companies

31%

23% 22%

16%

9%

50%

25% 25%

57%

14% 14% 14%

0%

10%

20%

30%

40%

50%

60%

Annually Every other year Only when we haveimportant changes in

strategy or otherinitiatives

We don’t host analyst/investor days

More than once a year

All Respondents UK companies German Companies

Hosting of Analyst days

74%

51% 46%

38%

16% 16%

7%

75%

13%

50%

88%

13% 13%

0%

43% 43%

71%

43%

29%

0% 0% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Introductions madeby sell-side firm

Investor Days Updates/changes incompany strategy

Industry conferencesnot sponsored by my

company or a sell-side firms

Expansion into newregions

Marketing andpublic relations

Industry conferencessponsored by my

company

All Respondents UK Companies German Companies

Channels of attracting new investors

20

102

53

16

37

0

20

40

60

80

100

120

Germany France Italy Spain UK

No. of new investor targeted over 12 months

Buy-Side : Effective Communication

67%

49% 44%

38%

26% 24% 19% 17%

12%

75%

63%

25% 25%

13%

63%

25%

13%

57%

71%

43%

29%

14%

43%

29%

14%

0% 0%

10%20%30%40%50%60%70%80%

All Respondents UK Companies German Companies

Buy-side: Effective Interaction

How often does the company's executive team initiate contact with the buy side?

Change in executive team's interaction with the buy side

24%

32% 31%

14% 14%

43% 43%

-%

43%

57%

-% -% %

10%

20%

30%

40%

50%

60%

At least once aweek

At least once amonth

At least once aquarter

At least twice ayear

All respondents UK Companies German Companies

68%

29%

2%

71%

29%

-%

86%

14%

-% -%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Our level of interactionis about the same as it

was a year ago

We reach out to thebuy-side morefrequently now

We reach out to thebuy-side less frequently

now

All respondents UK Companies German Companies

Buy-side: Effective Interaction

One-on-one meetings with analysts or portfolio managers Events sponsored by a sell-side firmTotal UK 234 90Total German 328 71CEO UK 124 30CEO German 63 39CFO UK 110 40CFO Germany 232 28

234

90

328

71

124

30

63 39

110

40

232

28

0

50

100

150

200

250

300

350

Total UK Total German CEO UK CEO German CFO UK CFO Germany

Quantity of meetings with Executive Management

The Sell-Side

Sell-side: Effective Research

An average of 24 sell-side analysts cover German companies versus

19 in other European countries

Change in published research by brokerage firms

57%

14%

29% 25%

50%

25%

43%

29% 29%

-%

10%

20%

30%

40%

50%

60%

Increased Decreased It has not changed

Spanish Companies UK Companies German Companies

German Companies read an average of 16 analysts research

consistently versus 14 in other European countries

100%

71%

43%

29%

43%

14%

88%

50%

63%

38%

63%

0%

86% 86%

43%

0%

14% 14%

0%

20%

40%

60%

80%

100%

120%

Earnings calls and Q&A Personal contact byphone or email

Company publications(financial

announcements,annual reports, etc.)

One-on-one meetings Group analyst briefingsand site visits

Nondeal road shows

Spanish Companies UK Companies German Companies

Sell-side: Effective Interaction

Change in executive team interaction with the sell side

33%

50%

17%

88%

13%

-%

86%

14%

-% -%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our level ofinteraction is aboutthe same as it was a

year ago

We reach out to thesell-side more

frequently now

We reach out to thesell-side less

frequently now

Spanish Companies UK Companies German Companies

Sell-Side: Effective Interaction

How often does your executive team initiate contact with the sell side?

69%

19%

10%

2%

50%

13%

25%

13%

57%

29%

14%

-% 0%

10%

20%

30%

40%

50%

60%

70%

80%

At least once aweek

At least once amonth

At least once aquarter

At least twice ayear

Spanish Companies UK Companies German Companies

• Fresh blood

• Stay close to investors

• More active road show management, with broker and

independently

• Regular workshop based analyst/investor days

• Relevant industry conferences to attract more new investors

• Increase sell-side interaction with one-on-one meetings

Key take outs

Thank you for your time