Maximizing Investor and Media Relations Alexandre Bykov 2008

Investor relations, regulation and compliance

Investor Relations

Irony…. The securities markets = Global The regulations = National

Regulatory Non Regulatory Investor Relations : Two Distinct Functions Disclosure Fulfil the statutory reporting requirements laid down by the various domestic and international regulatory authorities Financial Communications- Investor Network Satisfy the demands of investors for sufficient information to allow them to make an informed investment decision (Other Constituencies)

Minimum disclosure is not enough. Professor Baruch Lev notes that up to 50% of the of companies’ value does not appear on the balance sheet. What actions can an IRO take to ensure that the market values the company’s shares fully?

Consequences of providing limited information Information Deficiencies = Share Undervaluation = Excessive Cost of Capital = Under-investment, Lost Growth, Lost Competitiveness What’s To Be Done?

Components of best practice Tell us what you do Narrative and graphical description of the business “At a glance” Front and centre Consistent use of terms throughout Easy to grasp information for first time readers Geographic/major market analysis Narrative and graphical description of the business “At a glance” Front and centre Consistent use of terms throughout Easy to grasp information for first time readers Geographic/major market analysis

Components of best practice Tell us what you do What’s going on in your sector? Overview of challenges and opportunities In the industry Trends in key demographic/ geographic markets External research Regulatory commentary Overview of challenges and opportunities In the industry Trends in key demographic/ geographic markets External research Regulatory commentary

Components of best practice Tell us what you do What’s going on in your sector? Where are you taking your business? Identify strategy Explain and justify Clear goals and objectives “Build business” not clear enough! Back up strategy with measurement Identify strategy Explain and justify Clear goals and objectives “Build business” not clear enough! Back up strategy with measurement

Components of best practice Tell us what you do What’s going on in your sector? Where are you taking your business? How are you measuring progress? Clear definition of KPI’s Linked to strategy Graphical representation Why chosen? Clear definition of KPI’s Linked to strategy Graphical representation Why chosen?

Components of best practice Tell us what you do What’s going on in your sector? Where are you taking your business? How are you measuring progress? What are your principal risks? Clear easy to understand risks Priorities behind risk management Future risks and uncretainties Potential impact on value Clear easy to understand risks Priorities behind risk management Future risks and uncretainties Potential impact on value

Components of best practice Tell us what you do What’s going on in your sector? Where are you taking your business? How are you measuring progress? What are your principal risks? Tell us about the future. Forward looking information The future and challenges ahead Targets for future performance Forward looking information The future and challenges ahead Targets for future performance

Conclusion. We have discussed… –Why good communication matters –What information is needed PR Newswire is happy to discuss “how” this information can be communicated.

2007: Is it time to tell more stories? В.Путин призвал обеспечить привлекательный имидж России Президент отметил, что успехи отечественной экономики и общее улучшение инвестиционного климата РФ открывают новые перспективы для инвестиций в стране. "Об этих возможностях нужно системно и последовательно информировать потенциальных инвесторов: российских и зарубежных", - заявил Владимир Путин. РФ заняла 58-е место в рейтинге конкурентоспособности …слабыми сторонами России на фоне сопоставимых стран являются низкая конкурентоспособность российских компаний и неспособность экономики "впитывать" современные технологии из различных источников, включая прямые иностранные инвестиции. (Всемирный экономический форум (ВЭФ) - доклад, в котором приводится рейтинг конкурентоспособности стран за годы.)

2008: It is time to tell more stories!

From the Daily News to the Daily Me

Contact Details Александр Быков/ Alexandre Bykov Россия и СНГ/ Russia & CIS PR Newswire Europe Phone | Mobile Fax