The Australasian Investor Relations Association (AIRA) recently held a briefing and Panel discussion on conducting successful results announcements. While Panel members were from large ASX listed companies, many of their comments were relevant to small and medium cap companies as well.
A summary of their comments, as well as our own recommendations for best practice results announcements, is below.
Time is Precious: Fewer analysts and more companies to cover means every minute counts. Phone/web conferences are preferred unless there is a particular event or issue which is of higher interest - then a physical results briefing may be in order.
Simple Presentation + Detailed Data Pack: Keep the results presentation to half hour plus questions. Focus on the topline results and key themes. Provide a detailed data pack with all the financial breakdown and details.
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Access to Briefings: There is a move away from exclusive investor briefings, with more companies allowing open access to investor calls. This ensures transparent, open access to market information for all participants, including media and retail shareholders.
A survey run by Ellis and Co in 2016 determined that while a slightly higher number of analysts preferred investor only calls (no media), the main reason for this was the time taken up by media during the Q&A part of the call. Therefore, our recommendation is:
Media: Invite media to listen to the investor call but hold a separate media briefing or one on one call to answer media questions.
Jenny Ruth at the NBR recently wrote an informative article on providing access to investor results briefings. For those with access to the NBR, the article can be read here.
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Preparation is Critical: Prepare key messages, Q&A documents and scripts for presentations. Rehearse with management, including Q&As.
Audio vs Webcast: While having both audio and webcast options is the optimal goal, for smaller companies a simple audio conference call may be more cost effective and feasible. If webcasting, consider conducting the presentation in front of your executive team – this can help presenters ‘perform’ compared to talking to an empty room.
Disclosure Reminder: Remember to send all presentations and other material information to the NZX and upload it to your website. Review responses provided during Q&As or media/investor calls and, if required, release any additional material information to the market.
For further tips, please see our article Making the Most of Your Results Announcements.