Presentations: an undervalued

Poland, Autumn 2013

investorrelationstool

Piotr Biernacki

#investor relations

#presentations

#design

Founder @

We’ve done a study of 140 companies listed on the Warsaw Stock ExchangeAll companies of the WIG20, mWIG40 and sWIG80 indices (of over a total of 400+ companies listed on the WSE) The study and analysis were executed by Piotr Biernacki and Marcin Piechota (see last slide for further detail)

Half of companies doesn’t publish presentations in English...

4

WIG20 mWIG40 sWIG80

35%70%

90%53%

What percentage of companies publishes investor presentations in English on their websites?

... neither in Polish

5

WIG20 mWIG40 sWIG80

38%68%

85%53%

What percentage of companies publishes investor presentations in Polish on their websites?

If we somehow publish any presentations, then...

We prepare presentations only at financial results disclosure

7

WIG20 mWIG40 sWIG80

3,53,1

4,0

0,21,10,6

4,14,6

4,23,7

3,5

0,6

Fin. results presentations

Other presentations

All presentations

How many presentations has a company published in 2012? How many of them related to financial results and how many to other corporate issues?

Large caps prepare longer, but lighter presentations

8

WIG20 mWIG40 sWIG80

232632

26

max: 58

1,40MB 1,59MB 1,89MB

1,67MB

max: 16,20MB

How many slides counts the latest financial results presentations and how much does it weight (in MB)?

We try not to get sued...

9

WIG20 mWIG40 sWIG80

42%62%67%

55%

Does the presentations include a legal disclaimer slide?

... and we definitely don’t want to introduce ourselves...

10

WIG20 mWIG40 sWIG80

9%14%22%14%

Are the presenters introduced or mentioned in the presentation?

... because an investor might want to ask us some questions

11

WIG20 mWIG40 sWIG80

18%41%56%

35%

Does the presentation include a personal contact to any of the presenters or the company’s IR officer?

In case of questions, someone may probably answer them (anonimously)

12

WIG20 mWIG40 sWIG80

46%52%83%

56%

Are there in the presentation any contact details at all?

Sometimes we try to help investors to navigate through the presentation...

13

WIG20 mWIG40 sWIG80

70%

28%

67%

54%

Does the presentation include agenda / content’s summary / tracker slides?

... but usually we don’t know how to structure information

14

WIG20 mWIG40 sWIG80

21%31%

72% 36%

96911

max: 33

Does the presentation include a separated appendix / back-up section and how many slides does this section count?

We know how to synthesize information...

15

WIG20 mWIG40 sWIG80

70%76%78%

74%

Does the presentation include an executive summary slide / summary of most important facts&figuers?

... but the presentation still doesn’t communicate the company’s equity story

16

WIG20 mWIG40 sWIG80

9%31%33%

22%

Do the slides’ titles communicate the equity story (do they tell any story or are they merely descriptions of what is shown on the slide)?

Large caps assume that everybody knows what is their business

17

WIG20 mWIG40 sWIG80

67%62%

11%

52%

Is a business model / company profile included in the presentation?

Usually we try to explain what is our market...

18

WIG20 mWIG40 sWIG80

55%79%89%

71%

Does the presentation include an overview of the market?

... and what has influenced our latest financial results

19

WIG20 mWIG40 sWIG80

61%59%89%

66%

Does the presentation include a commentary to the company’s latest financial results?

We don’t want to or know how to predict where the market is heading

20

WIG20 mWIG40 sWIG80

21%14%39%

22%

Does the presentation include any forecast of market trends?

We are afraid to talk about factors influencing our future financial results

21

WIG20 mWIG40 sWIG80

18%14%22%17%

Does the presentation include a financial results forecast / guidelines or any information on factors that may influence these results in future?

The corporate language doesn’t include the word „risk”...

22

WIG20 mWIG40 sWIG80

5%

Are risk factors covered or mentioned in the presentation?

11% 3% 3%

... but we like to talk in general about our plans and intentions

23

WIG20 mWIG40 sWIG80

46%66%72%

59%

Does the presentation include information about the company’s strategy, operating goals or planned investments?

We (especially large caps) use many difficult words...

24

WIG20 mWIG40 sWIG80

36%35%

78%45%

Are there in the presentation any industry terms or any other commonly unknown indices that aren’t explained (in a glossary or footnotes)?

... and we assume that investors understand them all

25

WIG20 mWIG40 sWIG80

9%

Does the presentation include a glossary or are difficult industry terms and unpopular indices explained in any other way?

22%7% 3%

We’re sure that everyone knows who is our CEO...

26

WIG20 mWIG40 sWIG80

9%

Does the presentation include a slide on the management / supervisory board and/or structure of the capital group?

6% 7% 12%

... and what is the shareholders’ structure of every company listed in Warsaw

27

WIG20 mWIG40 sWIG80

15%31%

11%

20%

Does the presentation include information on shareholders’ structure?

We don’t comment on our company’s stock price...

28

WIG20 mWIG40 sWIG80

15%10%11%12%

Does the presentation include a stock price and shares turnover chart?

... but large caps help investors to assess the company’s situation

29

WIG20 mWIG40 sWIG80

14%

Does the presentation include any capital market indices or any other information helping investors to assess the company’s situation (for example a list of sell side analysts)?

39% 7% 6%

In a 1-5 school grade scale we get a (subjective) three minus (C-)

30

WIG20 mWIG40 sWIG80

2,62,83,2

2,8

General subjective evaluation of the presentation content: (in a Polish school grade scale of 1 (lowest) to 5 (highest))

And what about the presentations’ design?

Although not everyone remembers about their logo...

32

WIG20 mWIG40 sWIG80

100%97%100%

99%

Does the presentation include the company’s logo?

... it is usually the only graphical element in the entire presentation

33

WIG20 mWIG40 sWIG80

39%52%28%

41%

Does the presentation include any logos of child companies or the company’s product or service brands?

Lack of any pictures of persons related to the company

34

WIG20 mWIG40 sWIG80

6%

Does the presentation include any pictures of employees or representatives (other than stock photos)?

11%3% 6%

Half of companies try to illustrate what they do

35

WIG20 mWIG40 sWIG80

53%55%50%

53%

Does the presentation include pictures of its products, headquarters, factories, instalations or any other pictures related to its operational activities?

Few companies use pictures not related to its operational activity

36

WIG20 mWIG40 sWIG80

27%48%

33%

36%

Does the presentation include any other pictures (also stock photos not related to its operational activity)?

Generally we try to stick to our corporate identity quidelines

37

WIG20 mWIG40 sWIG80

3,03,53,2

3,2

General subjective evaluation of the presentation’s consistency with its corporate identity system: (in a Polish school grade scale of 1 (lowest) to 5 (highest))

Most companies don’t use such basic tools as hyperlinks…

38

WIG20 mWIG40 sWIG80

39%35%61%

42%

Does the presentation include active hyperlinks (directing to content in the internet or other slides inside the presentation)?

... not speaking of more convenient file formats or display tools

39

WIG20 mWIG40 sWIG80

11%

Is the presentation available in any other format than pdf?

17% 14% 6%

In a 1-5 school grade scale we get a (subjective) three minus (C-)

40

WIG20 mWIG40 sWIG80

2,52,92,2

2,6

General subjective evaluation of the presentation’s design: (in a Polish school grade scale of 1 (lowest) to 5 (highest))

How can we prepare presentations?

Turn of the computer.

Read about what the presentation is supposed to be about.∎

Start with an idea

IT IS THE BACKBONE OF THE PRESENTATION

Having the presentation flow in your head (and on the wall), you can draw all the slides

to prepare a digital version of the presentation

Onlythen

it’s

time

www.theideacraft.com

THANK YOU!

© PIOTR BIERNACKI, MARCIN PIECHOTA

Graphical content of several authors is used in this presentation.

No part of this presentation can be duplicated or used in any aim without the author’s consent, except for your own education.

The presentation includes results of the study on presentations conducted in July 2013 by Piotr Biernacki and Marcin Piechota (CEO and Senior Specialist at NOBILI PARTNERS Sp. z o.o. at that time) among 140 public companies of the WIG20, mWIG40 and sWIG80 indices listed on the Warsaw Stock Exchange.

www.marcinpiechota.pl