Global Trends in Investor Relations

Depositary Receipts Global Trends in Investor Relations - Fifth Edition A Survey Analysis of IR Practices Worldwide January 2009 Table of Contents Foreword by Michael Cole-Fontayn Note from the Global Investor Relations Advisory Team Methodology Respondent Profiles Key Global Findings IR in the Current Climate IR Personnel and Infrastructure Investor Outreach and Approaches to the Sell-side Communications and Disclosure Goals and Benchmarking Appendix 1 2 3 3 5 7 9 18 28 33 35 Foreword by Michael Cole-Fontayn, CEO, Depositary Receipt Division In these uncertain times where investor support and liquidity are at a premium, the role of the investor relations team has never been more important. When it comes to investor relations (IR) best practices, where does your company stand? The Bank of New York Mellon’s Depositary Receipt Division is pleased to present our fifth annual survey of global investor relations trends, a useful tool for benchmarking and enhancing your IR efforts. For the 2008 survey, for the first time, we included the responses of North American companies. As the result of soliciting the input of companies worldwide, we are able to present findings that fully reflect today’s global IR practices. This year’s survey captures global IR trends at a time of market instability, quite a departure from the year before. In 2007, the survey results were presented in the context of a thriving DR market that was experiencing record performance levels. While the 2008 DR market was impacted by the economy and generally declined, it did achieve several notable milestones: • DR liquidity topped 2007’s record levels: more than $4.4 trillion of DRs traded on U.S. and non-U.S. markets and exchanges, an increase of 34% year-over-year • A record $3.7 trillion in DRs traded on U.S. exchanges • Over 700 new DR programs were established At year-end 2008, more than 2,900 DR programs from 80 countries were available to investors. While companies with DR programs span diverse regions, industries and sizes, they share a common goal – elevating demand for their DRs at a time when making a case for investing can be a challenge. Collectively, the survey results: 1) provide insight on which IR program features receive the greatest resources, 2) highlight differences and commonalities in IR approaches and 3) enable us to identify worldwide market trends. As always, the results confirm that no matter their demographics, public companies around the world recognize the importance of dedicating considerable resources to IR initiatives. Michael Cole-Fontayn Chief Executive Officer Depositary Receipt Division The Bank of New York Mellon We share with you the identified trends so that you can readily gauge how your IR practices compare with those of other companies vying for investor attention. In addition, the results can provide ideas for enriching your own IR programs. Recognizing that carefully crafted investor outreach initiatives are essential to the success of any DR program, we maintain a Global Investor Relations Advisory team whose role is to assist DR clients with their IR efforts. Our experts can help you develop and fine-tune your IR plans and assist in making important buy- and sell-side connections in the markets. We hope this paper serves as a useful resource throughout the year. Best wishes for a successful 2009. 1 A Note from the Global Investor Relations Advisory Team Every year, The Bank of New York Mellon’s Global Trends in Investor Relations survey is conducted by the Global Investor Relations Advisory (GIRA) team of our Depositary Receipt Division. Mandated to help clients generate market visibility for their DR programs, the team works with issuers to develop and execute strategic market outreach plans. By advising over 250 clients from 63 countries throughout 2008, our investor relations experts are uniquely positioned to identify evolving global trends and to help companies realize potential value in cross-border financial communications. For the 2008 survey, the GIRA team broadened the survey’s respondent base to include North American companies. As a result, the survey is our most extensive to date, with 270 participating companies from 42 countries. This is a significant expansion from the inaugural 2004 survey that included feedback from 35 companies from 13 countries. The increase in both survey participation and distribution reflects the growing importance that IR plays in maximizing the value of DR programs. Recognizing this significance, we maintain an IR team focused solely on advising issuers on elevating their visibility among investors and financial intermediaries. Our IR team is the largest among depositary banks, with ten regional IR specialists. The purpose of first undertaking this survey in 2004 was to provide issuers with: 1) insights on global IR best practices; and 2) tools for benchmarking their resources and efforts against their global peers. These original objectives are of even more relevance today with the unprecedented events in the capital markets over the last year. Based on a sample of the participating companies, there was an aggregate 51.5% loss in market capitalization during 2008, in line with how global indices fared. This year’s findings are therefore representative of the difficult climate and can be a valuable gauge of how companies are adjusting their IR practices to meet the market’s new requirements. Over the course of 2008, the Global Investor Relations Advisory team consulted with issuers on topics such as the changing landscape of the buy- and sell-sides, vendor selection, and new market developments. We look forward to further strengthening our relationships with clients as we assist them in more effectively competing for capital in what promises to be a challenging 2009. Additionally, we remain committed to building connections with other parties in the IR arena, from buy- and sellside participants and regional IR associations to financial communications, IR and data analytics firms. This lays the foundation for us to support issuers with all available resources and best position them to benefit from capital market opportunities. This guiding mandate continues to be of primacy as we support our clients in navigating the year ahead. We look forward to discussing the survey results with you. Once you have reviewed the findings, we welcome the opportunity to meet with you to discuss how they can be incorporated into your 2009 financial communications strategy. Global Investor Relations Advisory Team Depositary Receipt Division The Bank of New York Mellon 2 Methodology Respondent Profiles The Bank of New York Mellon’s Global Trends in Investor The companies that responded to the survey represent a broad Relations online survey was distributed to a wide range of cross-section of sizes, regions and industries. PR 9 international companies from every region and sector on Market Capitalization October 14, 2008 and was concluded on November 7, 2008. Under $150 million Over $25 billion The survey sample consisted of current and prospective (Micro) (Mega) 11% 7% BNYM DR clients, as well as members of the National Investor Relations Institute (NIRI), a national association of U.S. IR $5 – 25 billion professionals. This year marks the first time the survey included (Large) 25% U.S. and Canadian companies, broadening the respondent base $150 – $999 million and making the survey fully global. (Small) 26% INDUS Industry Fina Indu Consumer Se Techn To collect the data, an invitation to participate in the survey was emailed to 2,040 potential respondents. The survey sample size was 270 respondents — a 57% increase from the 2007 sample size of 172 respondents. All charts included in this report include percentages that are based on the total number of respondents (270), unless otherwise noted. All monetary values noted are based in U.S. dollars. Basic Ma Healt $1 – 4.9 billion (Mid) 31% Consumer U Region Western Europe 24% Asia Pacific 19% Oil Telecommuni Emerging Europe, Middle East and Africa (EEMEA) 16% North America* 31% RESPO Latin America 10% * In this report, North America refers to the U.S. and Canada. PR 9 Market Capitalization Under $150 million (Micro) 11% Over $25 billion (Mega) 7% INDUSTRY Trading Platform Industry Financials OTCQX 3% No established DR program 7% Reg S/144A (LSE 20B/144A LUX) 16% Industrials $5 – 25 billion (Large) 25% $150 – $999 million (Small) 26% Consumer Services OTC 26% Technology NASDAQ 16% Basic Materials Health Care $1 – 4.9 billion (Mid) 31% NYSE Euronext 32% Consumer Goods Respondent Type Utilities Region Western Europe 24% Asia Pacific 19% Oil & Gas Non-BNYM Client 14% RESPO Responde Head of Telecommunication Investor Rela Other Emerging Europe, Middle East and Africa (EEMEA) 16% 0% NIRI Member 30% 10% 20% 30% 40% 50% 60% BNYM Client 70% 80% 90% 56% 100% Chief Finan C North America* 31% RESPONDENT TYPE Latin America 3 Financial Co Health Care North America* Consumer Goods 31% Africa (EEMEA) 16% RESPONDENT TYPE Latin America 10% Utilities Trading Platform Oil & Gas No established DR program 7% Reg S/144A (LSE 20B/144A LUX) 16% Telecommunication OTCQX 3% Other 0% OTC 26% 10% 20% 30% 40% 50% 60% 70% 80% NASDAQ 16% 90% 100% RESPONDENT TYPE NYSE Euronext 32% Respondent Type Non-BNYM Client 14% RESPONDENTS Respondent Title Head of Investor Relations Investor Relations Officer (IRO) Chief Financial Officer (CFO) NIRI Member 30% BNYM Client 56% Corporate Secretary Financial Controller/Director/ Treasurer RESPONDENTS Respondent Title Head of Investor Relations Chairman of the Board 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Investor Relations Officer (IRO) Chief Financial Officer (CFO) Corporate Secretary Financial Controller/Director/ Treasurer Chairman of the Board 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4 Key Global Findings As in past surveys, this year’s findings display the importance that issuers attribute to investor relations in their home markets and abroad. To further the scope and usefulness of the survey, North American companies were included in this year’s sample. With North American companies included, a significant finding is that their approaches to several IR practices differ from those of their global peers. Another trend evident with this year’s survey, as with past surveys, is the correlation between a company’s size and its IR practices. This correlation is notably absent, though, when looking at how companies have adjusted their approaches to communication in response to current market volatility. In light of recent capital market events, companies appear to have a clear regional bias to communications, without the influence of market cap. Globally, the results outline an interesting picture of the IR platform and of IR strategies and tactics. A selection of key findings follows: • Ninety percent of all respondents have increased or maintained the same level of communications with analysts and investors due to financial market volatility in the last 18 months; over half of these respondents have increased their communications activity. • Due to unprecedented events in the equity markets, financial companies led all sectors with regard to increasing their communications (67%) and were the most likely to have changed their outlook horizons (65%). • The most frequent shift in IR messaging prompted by analyst questions in 2008 was related to credit concerns (66%), followed by outlook horizon (50%) and cost-cutting (50%). • North America (73%) was the region with the highest tendency to have shifted IR messaging on credit concerns, followed by Western Europe (70%). Asia Pacific (54%) was the least likely to have shifted messaging on this issue. • In line with 2007’s results (88%), 89% of responding companies proactively meet with hedge funds. Over half of the respondents (52%) that meet with hedge funds reported that the hedge funds introduced to them by brokers are a good mix in terms of size and investment style, while 21% reported that brokers introduced them to too many small funds or aggressive/high-turnover funds. Notably, more than a quarter of respondents (27%) do not know or have enough information to judge the quality of hedge fund managers they meet through brokers. • The majority of respondents (58%) provide earnings guidance; 60% of these companies do so on a quarterly basis. • Only half of the 49 financial sector companies that participated in the survey have a written crisis or transactional communications policy, compared to nearly two-thirds of participating energy companies. Across the regions, 60% of respondents in Latin America, Asia Pacific and EEMEA do not have a written crisis communications policy. Respondents in Western Europe (52%) and North America (46%) are most likely to have written crisis or transactional communications policies in place. • Nearly half of the respondents (47%) reported an annual IR budget between $250,000 and $1 million, with 21% having budgets greater than $1 million. • Excluding North American respondents, on average, companies allocate more than half of their annual IR budget to their home market (56%), followed by a significant allocation to the U.S. (45%). • On average, each respondent’s IR department consists of six staff members, with three playing supporting roles. Comparatively, in 2007, the average IR department consisted of four staff members, with 1.5 playing a supporting role. • Twelve percent of survey respondents reported having IR team members positioned outside their home country. North American companies, however, do not have IR staff abroad even though over half of these respondents expect growth of investor opportunities the U.K. (51%) and in Continental Europe (51%) in 2009. • Globally, the U.S. remains the most frequently visited roadshow destination, with an average of 52% of overall annual IR roadshow time spent there. When North American respondents are excluded, the U.S. still leads as a destination with 36% of all roadshow activity up from 32% in 2007. • U.S. companies are the least likely to conduct roadshows outside their home market, with 93% of respondents devoting their activities to the U.S. Six percent of U.S. respondents tap into the financial center in the U.K. • Western Europe and North American respondents are the most likely to have a secondary media relations programs outside their home market (62% and 44%, respectively). Additionally, outside their home market, North American respondents are more active on the media front than they are with buy-and sell-side outreach initiatives. 5 • In general, over two-thirds of meetings with the investment community involve senior management, with 51% conducted by the IR team and senior management. The IR teams of mega- and large-cap companies participate in nearly all investment meetings, a significant portion of which are conducted by IR alone (65% and 47%, respectively). • Nearly 70% of respondents believe there is a conflict of interest when brokers/equity sales teams arrange non-deal roadshows given their interest in driving trade commissions. Despite this, on average, 73% of all investor introductions are facilitated through the sell-side. • In 2009, mega-cap respondents are looking to increase investor introductions primarily through their internal IR team (40%) and through their depositary bank (35%). • Sixty-six percent of companies reported having one or more analysts outside their home country. With North American companies excluded, 85% of companies reported having sell-side coverage outside their home market. Seventy-eight percent of North American companies indicated they have no analysts based outside their home market. • Forty-five percent of respondents reported that the quality of sell-side research on their companies has remained the same over the last two years, while nearly a quarter of respondents (24%) reported a decrease in quality. • Forty-three percent of respondents publish a Corporate Social Responsibility (CSR) report, as compared to 50% reported in 2007. This decline can be attributed to the inclusion of North American companies in this year’s survey, as only 28% of North American respondents publish a CSR report. • Over half of respondents (54%) target sustainability investors/sell-side analysts as part of their overall IR strategy. The main exception to this trend is observed among North American respondents, with 64% not targeting sustainability investors. • The top three IR goals for 2008/2009 are: 1) to “ensure exercising effective disclosure” (51%); 2) “being a part of strategic decision making” (34%); and 3) “diversification the shareholder base” (33%). • The top three measures for IR department effectiveness are: 1) “informal feedback from the investment community” (55%); 2) “effective use of senior management’s time” (43%); and 3) “number of one-on-one meetings with the investment community” (36%). 6 Significantly decreased 0% Asia Pacific EEMEA 10% 20% 30% 40% 50% 60% Latin America North America Western Europe IR in the Current Climate In the last 18 months, how has the volatility of the financial markets affected your department’s communications activities with analysts and investors? Arguably in 2008, financial markets witnessed the most severe financial crisis in decades. This may explain why nearly 90% of all respondents have maintained at least the same or increased communications with analysts and investors with close to 55% of these respondents increasing their communications activity. C&DSS 45 It is interesting to note that mega-cap firms had the highest share of respondents (75%) that increased their communications activities due to market volatility, while microcap firms were the most likely to maintain the same level (45%) or decrease (23%) communications. Significantly increased Somewhat increased GLOBAL Significantly increased communications Somewhat increased communications 172 Maintained the same level Credit concerns Outlook horizon GLOBAL 172 Somewhat decreased Cost-cutting Rising cost inputs Currency risk Credit concerns Significantly decreased Consumer demand Outlook horizon Country risk Cost-cutting 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small 40% Mid 60% Large 80% Mega 100% Maintained the same level of Significantly increased communications communications Somewhat decreased Somewhat increased communications communications Significantly decreased Maintained the same level of communications communications Somewhat decreased communications Significantly decreased communications 0% 20% 40% 60% 80% 100% Emerging market demand Rising cost inputs Currency risk 0% Consumer demand Country risk Yes Micro 20% No Emerging market demand REGIONAL Due to the relatively recent arrival on the global stage for many 0% 20% 40% 60% 80% 100% companies in REGIONAL the EEMEA region, respondents from this region increased their communications more than any other region (70%), possibly to establish an IR function and best practices in Significantly increased IR communications. Somewhat increased Significantly increased Maintained the same level Somewhat increased Somewhat decreased Maintained the same level Significantly decreased Somewhat decreased Asia Pacific Considering the effects from the sub-prime and credit crisis on financial markets, it is not surprising60% financial companies that 0% 20% 40% 80% 100% led all industries with the highest share (67%) of respondents Yes No that increased communications due to market volatility. Energy and health care companies followed with 59% of respondents, respectively, in these industries increasing their communications. 0% 10% 20% 30% 40% 50% 60% EEMEA Latin America North America Western Europe Significantly decreased 0% Asia Pacific EEMEA 10% 20% 30% 40% 50% 60% Latin America North America Western Europe C&DSS 45 Significantly increased C&DSS 45 Somewhat increased Significantly increased Maintained the same level Somewhat increased Somewhat decreased 7 Given recent market uncertainty has/will your company change(d) its outlook horizon? Respondents were roughly split on whether the market uncertainty had/will change their outlook horizon. Notably, respondents from Asia Pacific, Latin America and EEMEA countries were more likely to have changed their outlook horizon than their Western European or North American counterparts. Financial firms were the most likely (65%) to have changed their outlook horizon due to recent market uncertainty, while health care firms were the least likely (18%) to have changed their outlook. This disparity may be explained by the direct effects of the financial crisis on financial firms as compared to companies in other sectors, such as biotechnology and pharmaceutical, in the second half of 2008. Considering that the global financial crisis started in the U.S., it is not surprising that North America (73%) led all regions with regard to shifting IR messaging on credit concerns, followed by Western Europe (70%). Meanwhile, Asia Pacific (54%) was the least likely to have shifted messaging on this issue. Western European respondents (39%) were the least likely to have adjusted their messaging on outlook horizon due to analyst questions, followed by North American companies (43%). Meanwhile, nearly two-thirds of EEMEA respondents shifted their outlook horizon IR messaging. EEMEA (64%) led all other regions with respect to shifting cost-cutting IR messaging, while Latin American (33%) respondents were the least likely to shift messaging on this issue. Latin American respondents were the most likely (70%) to have shifted their IR messaging on currency risk in 2008. Meanwhile, less than one-third of North American firms adjusted their currency risk IR messaging. In terms of company size and IR messaging shifts, mega-cap firms were overwhelmingly the most likely to have shifted their messaging on credit concerns (90%), while micro-cap firms were the least likely to have adjusted their messaging on this issue (42%). Have any recent analyst questions prompted you to shift your IR communications messaging in any of the following areas? Not surprisingly, the most frequent shift in IR messaging prompted by analyst questions in 2008 was related to credit concerns (66%), followed by outlook horizon (50%) and cost-cutting (50%). 172 Credit concerns Outlook horizon Cost-cutting Rising cost inputs Currency risk Consumer demand Country risk Emerging market demand 0% 100% Yes 20% No 40% 60% 80% 100% 60% rn Europe 8 IO&A 160 IR Personnel and Infrastructure HowSupport employees are in your IR department? How many many are professional versus support personnel? Professional On average, each respondent’s IR department consists of six staff members, with three playing supporting roles. 0 0.5 1 1.5 2 2.5 3 Comparatively, in 2007, the average IR department consisted of Asia Pacific EEMEA Latin America North America Western Europe four staff members, with 1.5 playing a supporting role. IO&A 3 Chief Financial Officer [CFO] Chief Executive Officer [CEO] Financial Controller/ Director/Treasurer Chairman of the Board Not surprisingly, the larger the company, the larger the IR department staff. On average, mega-cap companies reported 4.8 professionals and 2.4 support staff while micro-cap companies reported 1.5 professionals with 1.2 support staff. While micro-cap companies have the fewest professional staff on average, IO&A 4 they reported having more support staff than midand small-cap companies. IO&A 160 Corporate Secretary Support 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small Mid Large Mega IO&A Chief Financ Micro Professional Chief Executiv While most of the survey participants responded that the IRO IO&A 5 0 0.5 1 1.5 2 2.5 3 reports to theEEMEA there were exceptions. For instance, IROs CFO, Asia Pacific Latin America North America Western Europe Head of Investor Relations `5+ at micro-cap companies are more likely to report to the CEO In general, the difference between professional and support staff Investor Relations Officer (39%) than the CFO (32%) and EEMEA and Latin American in small- and micro-cap companies can be attributed to the fact `4 IROs are more likely to work directly under the CEO. Chief Financial Officer that senior management steps in as needed for the IR function, Chief Executive Officer requiring fewer dedicated IR professionals. `3 Who in your company is the primary contact for communicating to and receiving information from the Corporate Secretary On average, all regions have less support staff than they do `2 investment community? Chairman of staff. professionalthe Board Asia Pacific issuers have more support IO&A 4 Financial Controller/ staff than any other region, with an average of 1.6, while North `1 Director/Treasurer American issuers have the least amount of support staff, with Head of Investor Relations 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% `0 an average of 0.7. Investor Relations Officer Fina Di Chairm Cor IO&A `5+ IO&A 160 Support IO&A 3 0% 10% 20% Chief Financial Officer 30% 40% 50% 60% 70% 80% 90% 100% `4 Asia Pacific EEMEA Chief Financial Officer [CFO] Chief Executive Officer Corporate Secretary Chief Executive Officer [CEO] Latin America North America Western Europe `3 IO&A Professional 6 0 U.S. Asia Pacific U.K. 0.5 EEMEA 1 Latin America 1.5 2 North America 2.5 3 IO&A 8 `2 Chairman of the Board Financial Controller/ Daily Financial Controller/ Director/Treasurer Director/Treasurer Monthly 0% Chairman of the Board Weekly 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% `0 0% `1 Western Europe To whom does the IRO report? Continental Europe The largest percentage (59%) of respondents across all market-cap segments and regions indicated that their Investor Latin America Relations Officer (IRO) reports to the Chief Financial Officer (CFO),Middle roughly half as many (28%) reporting directly with IO&A 4 East to the Chief Executive Officer (CEO). Other Head of Investor Relations 0% Investor Relations Officer 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific Asia Pacific EEMEA Chief Financial Officer Chief Executive Officer Corporate Secretary Chairman of the Board Financial Controller/ Director/Treasurer 0% 10% Latin America North America Western Europe Quarterly Eighty-one percent of companies point to the Head of Investor Asia Pacif 0% 10% 20% 30% 40% 50% of 70% 80% 90% 100% Relations or the IRO as the primary point60% contact for the Annually Micro Small Mid Mega investment community. Within this group, the Large of IR is Head Semi-annually IO&Aoften designated as the main contact by three out of four IO&A 8 6 more Only as needed companies. In 2007, 91% of companies pointed to the IRO as Da IO&A 5 U.S. point of contact. This difference is primarily due to the primary Other Month the increase of small- and micro-cap companies in this year’s U.K. `5+ 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% survey. Given the limited internal resources and the lack of a Week Asia Pacific dedicated IR professional, micro-cap CFOs tend to have a dual `4 Quarte role within the company. Consequently, of all the respondents, Continental Europe Annua micro-caps are the most likely to point to the CFO as the `3 primary contact for the investment community (23%). Semi-annua Latin America `2 Middle East `1 Other Corporate Secretary Only as need Oth 20% 30% 40% 50% 60% 70% 80% 90% 100% `0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 9 Investor Relations Officer Chief Financial Officer `4 How many of your IR staff work in countries outside of the company’s [CFO] Chief Financial Officer IO&A 160home country? Twelve percent of the survey respondents reported having IR Chief Executive Officer [CEO] team Support members positioned outside their home country, with an average of 1.5 working abroad. Last year’s average was also Financial Controller/ Director/Treasurer 1.5 Professional specialists outside the home country. Chairman of the Board IO&A 3 Chief Executive Officer `3 Of the IR specialists working outside their home country, the Corporate Secretary majority 3 positioned in the U.S. IO&A are Chairman of the Board Financial Controller/ While mega- and mid-cap issuers are most likely to have staff Director/Treasurer Chief Financial Officer [CFO] located in the U.S. and U.K., only 40% 50% participants from 100% survey 60% 70% 80% 90% the 0% 10% 20% 30% mid-cap segment have IR team members in the Middle East Chief Executive Officer [CEO] (11%). Although multiple issuers have indicated interest in the Financial Controller/ Middle East, they have yet to dedicate resources to the region. Director/Treasurer The U.S. remains the preeminent destination of choice for companies of the Board regions. Chairman in most `2 `1 `0 0% 3 n Europe The market-cap correlation is prevalent again, as the largest 0 0.5 1 1.5 2 2.5 3 percentage of companies with at least one IR team member Asia Pacific Secretary EEMEA Latin America North America Western Europe Corporate abroad are mega-caps (35%), compared to less than 12% for IO&A 6 all other market-cap respondents. 40% 50% an expected90% 100% 0% 10% 20% 30% This is 60% 70% 80% finding N=56 Corporate Secretary since larger companies tend toSmall more financial resources have Micro Mid Large Mega U.S. than their smaller counterparts, which may give them the ability to have a physical presence in multiple locations. U.K. Asia Pacif IO&A 8 Da 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small Mid Large Mega Month IO&A 5 Asia Pacific `5+ IO&A 4 `4Head of Investor Relations Investor Relations Officer `3 Chief Financial Officer `2 Chief Executive Officer Corporate Secretary `2 Chairman of the Board `0 0% Financial Controller/ Director/Treasurer 10% 20% EEMEA 30% 60% 90% 100% 0% 10% 40% 20% 50% 40% 50%70% 30% 60% 80% 80% 90% 100% 70% Latin America North America Western Europe Asia Pacific `1 `4 Middle East Micro Week IO&A 5 Continental Europe `5+ Latin America Quarte Annua Semi-annua Only as need Oth `3 Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% `1 EEMEA Latin America North America Western Europe % 100% Asia Pacific How frequently is the secondary market IR team in touch with `0 the local market IRO? Over half of the secondary market IR teams interact with Europe Asia Pacific EEMEA Latin America North America Western the local market IRO on a daily basis with about one-third interacting with the local team on a weekly or monthly basis. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A percent of Western European companies position Twenty 8 at least one IR team member abroad, with 85% of these Daily individuals located in the U.S. Approximately 15% of companies IO&A 6 Monthly in the Asia Pacific, EEMEA and Latin American regions have U.S. IR team members working outside their home markets. North Weekly American respondents do not position any of their IR team Quarterly U.K. members outside the home market even though over half of Annually Pacific these respondents expect growth of investor opportunities in Asia Continental Europe (51%) and the U.K. (51%) in 2009. Semi-annually Continental Europe Only as needed Latin America Other Middle East 0% 100% Other 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 8 N=56 Daily Monthly Weekly Quarterly Annually Semi-annually Only as needed Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % n Europe 0% Asia Pacific 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% EEMEA Latin America North America Western Europe 10 Two-thirds of mega-cap companies are in touch with the local IRO on a daily basis, while all micro-cap companies are in touch with the local market IRO less frequently. Mid- and small-cap companies are the most likely to interact with the local IRO on a quarterly basis. All Latin American respondents reported that the secondary market IR team communicates with the local market IRO on a daily basis IO&A 10 and 70% of Western European secondary market IR teams do the same. Although most respondents reported being in touch with the local IRO at least on a quarterly basis, 14% Home Market IRO of EEMEA respondents reported doing so only on an as needed basis.CFO To whom does the secondary market IR team report? Chairman of the Board What percentage of time devoted to IR do the CEO and CFO spend on the following? CEOs and CFOs spend, on average, over half of their IR time on existing and new institutional investors (54% and 58% respectively). About one-fifth of their IR time is allocated to sell-side analysts/equity sales and approximately 15% is spent on internal corporate communications. IO&A 163 180 Existing institutional investors New institutional investors Sell side analysts/equity sales Internal corporate communications Financial media IO&A Corporate Secretary 10 N=56 Home Market IRO Other Although the majority of the secondary market IR teams report to the home market IRO, micro-cap respondents reported an even CEO split between the CEO and the home market IRO. This is again Financial Controller/ likelyDirector/Treasurer dual role that senior management often plays in due to the smaller companies where there is no dedicated IR professional. Retail investors IO&A 163 180 Existing institutional investors 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CFO CEO CFO 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Chairman of the Board Large IO&A 163 CEO Existing institutional investors Financial Controller/ Director/Treasurer New institutional investors Sell side Secretary Corporateanalysts/equity sales Internal corporate communications Other Financial Media 0% 10% Retail investors Micro 0 20% 30% Small 5 10 40% 50% Mid 15 20 60% 70% 80% 90% 100% Mega 30 35 40 New institutional investors There is a positive correlation between CEO time devoted to existing investors and market capitalization; the larger Sell side analysts/equity sales the company, the greater the communication with current Internal corporate shareholders, presumably explained by a more expansive communications IO&A 163a shareholder base. This trend holds true of the CFO’s time, with Financial media the exception of those of mid-cap companies where a greater Existing institutional investors proportion investors is devoted to new institutional investors as it of time Retail compares to that of the CEO. Additionally, two-fifths of Western 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% New institutional investors European and North American CEOs devote the most time to CEO CFO existing institutional investors. Sell-side analysts/equity sales Internal corporate communications Large 25 Financial media Sixty-three IO&A 163 percent of Asia Pacific teams report to either the CFO or the Chairman of the Board. While the majority Existing institutional investors of Western European teams report to the home market IRO New institutional report (77%), someinvestors to the Financial Controller. Sell side analysts/equity sales IO&A 163a investors Retail Existing institutional investors 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small Mid Large Mega Micro New institutional investors IO&AInternal corporate 180 communications Financial Media Existing institutional investors Retail investors New institutional investors Sell side analysts/ equity sales Internal corporate communications 0 5 10 15 20 25 30 35 40 Sell-side analysts/equity sales Daily Internal corporate communications Weekly Monthly Financial media Quarterly Bi-annually Annually Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Retail investors IO&A 11 12 11 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Internal corporate communications Financial media IO&A 163a % 100% Mega Financial Media Micro Retail investors Large IO&A 163 CEO IO&A 163a Existing institutional investors Existing institutional investors New institutional investors Sell side analysts/equity sales New institutional investors Internal corporate communications 0 5 10 15 20 25 30 35 40 How frequently does the IR department give counsel to the CEO and CFO? IR teams generally provide information to CFOs more 0% 10% 20% 30% percent of 70% frequently than to CEOs. Fifty-eight40% 50% 60% the 80% New institutional investors Micro Small teams provide information to the CEO on Mid a daily orLarge weekly basis while 76% provide information to the Sell-side analysts/equity sales CFO on a daily or weekly basis. communications Retail investors Existing institutional investors 90% 100% Mega IO&A 180 Sell-side analysts/equity sales Financial Media IO&A 11 12 Internal corporate Daily 0 5 10 15 20 25 30 35 40 Weekly Monthly Quarterly Bi-annually 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small Mid Large Mega Annually Other Financial media Retail investors Internal corporate communications Existing institutional investors 40 Financial media New institutional investors Retail investors Sell side analysts/ equity sales Internal corporate communications Retail investors 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small Mid Large Mega Micro Micro Financial media IO&A 180 CFO IO&A 11 12 Existing institutional Retail investors Dailyinvestors Weekly 10% New institutional 0% investors Monthly Micro Quarterly Sell side analysts/ equity sales Bi-annually Internal corporate Annually communications Other Financial media Never 0% Retail investors CEO 0% 100% Mega 10% 10% 20% 30% CFO 20% 30% Small 40% 50% Mid 60% 70% 80% Large 90% 100% Mega 40% 50% 60% 70% 80% 90% 100% 20% 30% Small 40% 50% Mid 60% 70% 80% Large 90% 100% Mega IO&A 11 12 0% 10% Daily Weekly CEO Never 20% 30% CFO 40% 50% 60% 70% 80% 90% 100% Monthly The greatest percentage of North American (46%) and Quarterly Latin American (37%) respondents advise the CFO daily as compared to North America (27%) and Latin America (11%) Bi-annually forAnnually EEMEA issuers are more likely than issuers in other CEOs. regions to advise the CFO weekly (58%), and Asia Pacific Other issuers are the least likely to advise the CFO (10%) or the CEO Never (12%) at all. In Western Europe, over 70% of respondents 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% advise the CEO at least once a week and over 80% advise the CEO CFO CFO just as frequently. Micro 12 IO&A 13 What type(s) of information does the IR team provide to senior management and how frequently? Sell-side analyst opinions Respondents across all regions surveyed are most likely Stock performance to report sell-side analyst opinions, upcoming and past IR Insight on investor attitudes initiatives towardsstock performance to senior management. and company Insight on largest buyers/sellers Sell-side analyst opinions Stock price trends Upcoming and past IR activities Stock trading volume Stock performance Comparative financials on peers Insight on investor attitudes Industry trends towards company Factors driving investor interest Peer information Insight on largest buyers/sellers Financial performance Insight of investor attitudes Stock price trends towards peers Stock trading volume Intelligence Comparative financials on peers Share of foreign investors Industry trends Media mentions Peer information Other Financial performance None Insight of investor attitudes towards peers Intelligence 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Upcoming and past IR activities IO&A 14 Sell-side analyst opinions Upcoming and past IR activities Stock performance Insight on investor attitudes towards company Factors IO&A 14 driving investor interest Insight on largest buyers/sellers Sell-side analyst opinions Stock price trends Upcoming and past IR activities Comparative financials on peers Insight on 13 company IO&A investor attitudes towardsinformation Peer Factors driving investor interest Financial performance Sell-side analyst opinions Insight on largest buyers/sellers Upcoming and past attitudes towards peers Insight of investor IR activities Stock price trends Stock performance volume Stock trading InsightComparative financials on peers on investor attitudes Intelligence towards company Industry trends Factors driving investor of foreign investors Share interest Peer information Insight on largest buyers/sellers mentions Media StockFinancial performance price trends Other Insight of investor attitudes towards peers Stock trading volume Stock peers Comparative financials on trading volume Only as needed Annually Factors driving IO&A 13 investor interest Stock performance Industry trends IO&A Insight on inve 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterly Monthly Weekly Daily Semi-annually IO&A 15 Yes Share of foreign investors Media mentions Other None IO&A 16 Intelligence Industry trends Share of foreign investors Peer information Does the IR team provide the Board of Directors with market Insight of investor attitudes Sell-side analyst opinions towards intelligence? peers Other Stock performance Financial performance Media mentions 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Insight of The functionalinvestors of investor relations is demonstrated by value Insight Share of foreign on investor attitudes Only as needed Annually Semi-annually Quarterly Monthly Weekly Daily towards company two-thirds of all global survey participants providing market Factors driving investor IO&A 15 IO&A 16Media mentions interest intelligence to the Board of Directors. A similar pattern exists Don’t know Other North American IR teams are more likely to provide information Stock trading volume Stock performance for Western Europe and North America. However, only half of None Insight on largest Yes to senior management on the40% 50%buyers/sellers than 100% largest 60% 70% 80% 90% 0% 10% 20% 30% buyers/sellers Sell-side analyst opinions EEMEA companies reported that30% 40% team provides market 0% 10% 20% the IR 50% 60% 70% 80% 90% 100% Upcoming and past teams Pacific regions. Sell-side analyst opinions are Western Europe provided Asia in other EEMEA Latin America North America IR Stock price trends intelligenceactivities Board. to the to senior management by almost all Western European Industry trends No Insight on investor attitudes IO&A towards company 15 Comparative financials respondents (98%). on peers No Stock priceIntelligence trends 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Only as neede IO&A North American IR teams are the least likely to provide senior Stock performance management 10% 20% 30% 40%on50% 60% investors since 100% with information foreign 70% 80% 90% 0% Sell-side analyst opinions most Pacific Asia of their shareholders America EEMEA Latin are from the domestic market.Europe North America Western IR Stock price trends teams that are most likely to share this information with their Insight on investor attitudes towards company management are from the EEMEA and Latin America regions IO&AandFactors driving investor interest (75% 17 63%, respectively). Stock trading volume Stock performance Insight on largest buyers/sellers Sell-side analyst opinions Upcoming and past IR activities Stock price trends Industry trends Insight on investor attitudes towards company Comparative financials on peers Factors driving investor interest Financial performance Stock trading volume Peer information Insight on largest buyers/sellers Insight of investor attitudes towards peers Upcoming and past IR activities Intelligence Industry trends Share of foreign investors Comparative financials on peers Media mentions Financial performance Other Peer information Insight of investor attitudes towards peers Only as needed Annually IO&A 17 Don’t know Factors driving investor interest Financial performance Yes Stock trading volume Stoc Peer information Insight on largest buyers/sellers Insight of investor attitudes towards peers Upcoming and past No IR activities Intelligence Industry trends Share of foreign investors Comparative financials Don’t know on peers Media mentions Financial performance None 20% 0% 10% 30% 40% 50% 60% 70% 80% 90% 100% Peer information Other Asia Pacific EEMEA Latin America North America Western Europe Insight of investor attitudes towards peers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Intelligence Share of IO&Aforeign investors 17 Media mentions IO&A 18 Stock performance None Sell-side analyst opinions Sell-side a Sto Insight on inv tow Factors Stock In Upc Compar Financi . P Insight of inv Always Other Stock price trends Insight on investor attitudes towards company 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Share of fo As needed Factors driving investor interest Stock trading volume M . IO&A 18 Never Always 0% Insight on largest buyers/sellers Upcoming and past IR activities 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterly Monthly Weekly Daily 10% 20% 30% Small 40% 50% Mid 60% 70% 80% Large 90% 100% Mega Intelligence Semi-annually Industry trends Share of foreign investors As needed Comparative financials on peers Micro 13 Stock trading volume Financial performance Comparative financials on peers Insight of investor attitudes towards peers Industry trends Stock trading volume Peer information Intelligence Financial performance Share of foreign investors Insight of investor attitudes towards peers Media mentions Intelligence Other Share of foreign investors 0% 10% 20% 30% Comparative financials on peers Asia Pacific 40% 50% 60% 70% 80% 90% 100% In EEMEA Latin Industry trends America Peer information North America Western Europe Upc What type(s) of information does the IR team provide to the Board of Directors and how frequently? The most common types of information that IR teams provide the Board of Directors are:0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% stock performance, sell-side analyst Media mentions Only as needed Annually Semi-annually Monthly Weekly Daily opinions and stock price trends. Quarterly Other IO&A 17 Financial performance Compar Insight of investor attitudes towards peers N=169 Stock performance Stock trading volume Sell-side analyst opinions Intelligence Share ofStock price trends foreign investors Insight on investor attitudes towardsmentions Media company Factors driving investor interest Other Financi P Insight of inv % 100% Share of fo IO&A 16 None 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% M 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterly Monthly Weekly Daily N=169 Stock performance Only as needed Stock trading volume Insight on largest buyers/sellers Annually IO&A 15 Sell-side analyst opinions Stock price trends Semi-annually Upcoming IO&A 16 and past IR activities Industry trends Insight on investor attitudes towards company Yes Factors driving investor interest Stock trading volume No Insight on largest buyers/sellers Upcoming and past IR activities Don’t know Industry trends Comparative financials 0% on peers 10% Financial performance Asia Pacific EEMEA Peer information 20% 30% 40% 50% 60% 70% 80% 90% 100% Stock performance Sell-side analyst opinions Comparative financials on peers Financial performance Peer information . IO&A Always Stock price trends 100% Insight on investor attitudes Insighttowards company towards peers of investor attitudes Factors driving investor interest Stock trading volume Intelligence n Europe Share of foreign investors As needed Latin America North America Western Europe Insight on largest buyers/sellersMedia mentions Upcoming and past Other IR activities Industry trends Comparative financials on peers Only as needed Annually Financial performance Peer information 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Semi-annually Quarterly Monthly Weekly Daily Never IO&A 17 Intelligence Insight of investor attitudes towards peers Share of foreign investors Stock performance Media mentions analyst opinions Sell-side NoneStock price trends Other Insight on investor attitudes towards company Factors driving investor 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% interest Stock trading volume How often does the IRO attend executive Intelligence committee meetings? Approximately 70% of IROs attend executive committee Media mentions meetings. Of those that attend, 55% do so on an as needed None basis. Forty percent of small-cap companies reported that the Other IRO never attends executive committee meetings while over 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 50% of all other market-cap segments reported that the IRO attends on an as needed basis. Share of foreign investors Insight of investor attitudes towards peers IO&A 18 The majority of and past IR activities (71%) provide sell-side reports/ respondents Upcoming opinions to the Board of Directors on a monthly or quarterly Industry trends Always basis, less frequently than they do to senior management. Comparative financials on peers . While stock performance updates are reported to senior Financial performance As needed management frequently (more than 40% of the time on a daily Peer information basis), the Board only receives this information on a monthly or Insight of investor attitudes towards peers quarterly basis from Intelligence the majority of the global IR teams. Never Share of foreign investors Insight on largest buyers/sellers IO&A 18 Always As needed 40% 50% Mid 60% 70% 80% Large 90% 100% Mega Never 0% 100% Daily 0% 10% Media mentions 20% 30% Micro Small Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Only as needed Annually Semi-annually Quarterly Monthly Weekly Daily 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% Large 90% 100% Mega Micro 14 How often does the IRO present at board meetings? Sixty-two percent of IROs present at board meetings and of those that present, half do so on an as needed basis. Sixty-eight percent of micro-cap IROs present at board meetings, more than any other market-cap segment. IROs in the Asia Pacific region are most likely to always present at board meetings (17%), while IO&A 19 IROs in Latin America (47%) are most likely to never present at board meetings. EEMEA and Western European respondents allocate none of their IR budgets to Latin America and they dedicate only 5% to the Asia Pacific market. Since most North American IR initiatives take place domestically, North American respondents allocate almost 90% of their IR budgets to the home market. IO&A 183 Home Market (if not IO&A 183 the U.S.) U.S. Home Market (if not the U.S.) U.K. U.S. Asia Pacific U.K. Middle East Asia Pacific Continental Europe IO&AAlways 19 Always As needed As needed Never 0% 10% EEMEA 10% EEMEA 20% 20% 30% 40% 50% 60% 70% 80% 90% 100% Never Asia Pacific IO&A 19 Always Middle East Latin America IO&A 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Latin America 30% 40% 50% North America 60% 70% 80% Western Europe 90% 100% Continental Europe Canada Latin America Canada As needed 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% Asia Pacific Home Market Latin America North America Western Europe IO&A 148 What is the total annual budget in USD for your company’s Home IO&A Market (if not the U.S.) 148 IR program? U.K. Home Market (if percent Thirty-twonot the U.S.) of all respondents reported that their annual U.S. U.K. IR budget is Middle East $250,000, while 47% of respondents less than U.S. reported an annual budget between $250,000 and $1 million. Latin America Middle East The remaining Europe have budgets greater than $1 million. Continental 21% Overall, over the next five years more than 60% of respondents 21 - 40% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20% and under budget allocations to remain the same across all expect60% 41 - IR Asia Pacific EEMEA Latin America North America Western Europe 21 - 40% markets. Where increases are expected, respondents reported 61 - 80% 41 - 60% that81allocations would likely rise for the Continental European - 100% 61 - 80% (35%), U.K. (31%), Asia 30% 40% 50% 60% U.S. (30%) markets. Pacific (30%) and 70% 80% 90% 100% 0% 10% 20% 81 IO&A- 100% 148 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Home Market (if not the U.S.) U.K. U.S. Middle East Latin IO&A 65 America 20% and IO&Aunder 57 In the next five years, how do you foresee your IR budget IO&A 57 allocations changing in the following markets? Never Con The size of a company has a direct correlation with the size Continental Europe Asia Pacific of its annual IR budget, as to be expected. The majority of Canada 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% mega-cap companies (55%) reported a budget of $2+ million. Asia Pacific Will decrease Will remain the same Will increase The majority of mid-, small- and micro-cap60% 70% 80% 90% 100% companies 0% 10% 20% 30% 40% 50% reported budgets ofWill decrease $1 million. the same less than Will remain Will increase What percentage of the IR budget is allocated to the following No IO&A 62markets? Excluding North American companies, on average, companies 0% 10% 20% 30% 40% 50% 60% 70% 80% allocate more than half of their annual IR budget to their home Yes market (56%), followed 30% a significant allocation to70% by the 80% 0% 10% 20% 40% 50% 60% U.S. (45%). IO&A 59 Additionally, on IO&A 59studies average, 20% of IR budgets are allocated to Perception the U.K., 19% to the Asia Pacific region, 16% to the Middle East, and 14% studies Perception to Continental Europe, with less than 10% allocated to Shareholder identification studies Latin America and Canada. Shareholder Targeting studies identification studies Yes No Latin America Canada IO&A 5 20% and und 21 - 40% 41 - 60% 61 - 80% IO&A 62 81 - 100% IO&A 65 Continental Europe Investor feedback/ perception studies Canada Conference call and webcast planning/logistics Asia Pacific Investor feedback/ Shareholder identification/ perception studies stockwatch Conference call and webcast 0% 10% 20% planning/logistics Investor targeting Will decrease Shareholder identification/ stockwatch Event planning Investor earnings/ Distribution oftargeting news releases Event planning Roadshows, meeting planning/logistics Distribution of earnings/ news releases IR message development Roadshows, meeting planning/logistics IR materials development 30% 40% 50% 60% 70% 80% 90% 100% Will increase Will remain the same IO&A 62 No IO&A 6 YesIR message development Market intelligence/ surveillance IR materials development 0% 10% 20% Crisis communications Market intelligence/ surveillance IR strategy Inv pe Conference pl 30% 40% 50% 60% 70% 80% Shareholde In Targeting studies None of the above IO&A 59 IRof annual/ Distribution strategy Crisis communications Analyst tracking/consensus Distribut None of the above Other quarterly reports Analyst tracking/consensus Maintenance of mailing lists/contact databases Distribution of Perception studiesannual/ quarterly reports Peer tracking Maintenance of mailing lists/contact databases IR enquiries Road pl IR messa IR materi Other 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega 90% 100% Micro 0% 10% 20% Large 60% 70% 80% Shareholdertracking Peer identificationRetail IR program studies IR enquiries Other Retail IR program Targeting studies 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Mar 15 Crisis c 30% 40% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Will increase Will decrease Will remain the same IO&A 19 IO&A 62 What percentage of your IR budget is allocated to external IR support? No IO&A 183 Yes IO&A N=88 IO&A 65 Always Home Marke 100% n Europe Home Market not the U.S.) Over half(ifof the respondents (58%) allocate 40% or less of Shareholder identification/ 0% 10% 20% 30% 40% 50% 60% 70% 80% stockwatch U.S. their IR budget to external support, with over one-third (38%) Never Investor targeting allocating 20% U.K. less. Overall, the larger the company’s or Event planning 0% 10% Asia Pacific market capitalization, the smaller the percentage of the total Distribution of earnings/ 20% IO&A 59 news releases Asia Pacific Middle East budget allocated to external support. The greatest percentage Roadshows, EEMEA meeting planning/logistics Continental Europe of respondents from mid-, large- and mega-cap companies Perception studies IR message development Latin America allocate 20% or less, while micro- and small-cap companies are IR materials development Market intelligence/ more likely toCanada allocate more than 20% to external assistance. Shareholder IO&A 148 surveillance identification studies 0% 10% 20% 30% 40% internal resources, Smaller companies tend to have fewer50% 60% 70% 80% 90% 100% Crisis communications possibly due to budget constraints, and so are more likely to rely Home Market (if not IR strategy the U.S.) Targeting studies on external support to fulfill their IR needs. U.K. Analyst tracking/consensus Investor feedback/ perception studies Conference call and webcast As needed planning/logistics Co 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe IO&A 20% and un IO&A of the above 57 None 21 - 40% 41 - 60% 61 - 80% 81 - 100% 0% 21 - 40 Distribution of annual/ U.S. quarterly reports Maintenance of mailing Middle East lists/contact databases 41 - 60 20% and under Other 61 - 80 Peer tracking Latin America IR Europe Continental enquiries 0% 10% 20% 30% Small 30% 40% 50% 40% 50% Mid 60% 70% 60% 70% 80% 90% 100% Mega 90% 100% Retail IRCanada program Other Asia Pacific 0%0%10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% Will decrease Will remain the same Will increase 81 - 100 Micro 10% 20% Large 80% % 100% l increase For which of the following functions do you rely on an external IR firm? One-third of all respondents reported that they use an external IR firm. 65 IO&A Does the IR Department conduct any of the following with IO&A 62 external vendors? If so, how often? Approximately half of the respondents that dedicate a No percentage of their IR budget to external IR support rely on Yes outside vendors to conduct perception50% studies and shareholder 0% 10% 20% 30% 40% 60% 70% 80% identification studies. Almost one-third (29%) use them to conduct targeting studies. IO&A In p Conference p Sharehold 80% Investor feedback/ Respondents using external IR firms rely on them for investor perception studies Conference call and webcast feedback/perception studies (66%), and conference call and planning/logistics IO&A 59 Shareholder identification/ webcast planning/logistics (56%). Following these services stockwatch N=191 Investor targeting were shareholder identification/stock watch (41%), and investor Perception studies targeting Event planning (40%). Distribu Roa p IR mess Overwhelmingly, micro-cap companies tend to use IR firms for roadshows, meeting planning/logistics (75%), event planning IR message development (67%), investor targeting (58%) and development of IR IR materials development Market intelligence/ strategy (42%), relative to other market-cap segments. surveillance Roadshows, meeting planning/logistics Distribution of earnings/ news releases IR mate Shareholder identification studies Ma Crisis Targeting studies Analyst tra None of the above Distri Unlike their regional counterparts, Asia Pacific respondents IR strategy commonly rely on external IR firms for shareholder identification Analyst tracking/consensus and stock watch. Distribution of annual/ quarterly reports Maintenance of mailing lists/contact databases Peer tracking IR enquiries Retail IR program Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Crisis communications Mainte lists/c Other 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large % 100% Mega 16 IO&A 59a N=191 Just over one-third of respondents that conduct perception studies do so on an annual basis (38%) or as needed (35%). The frequency with which shareholder identification studies are conducted varies greatly, ranging from daily to semi-annually, with the greatest percentage conducted on a monthly (20%) or weekly basis (19%). Targeting studies are primarily done on an as needed basis (33%), or on a quarterly basis (29%) by the greatest percentage of respondents. Perception studies Shareholder identification studies Targeting studies Other Do you outsource the management of the IR section of the company’s website, or is it managed by an internal department? For 70% of respondents, the IR section of the company’s website is managed by an internal department. Seventy percent of North American companies reported that the IR website was outsourced to an external firm. It is widely recognized that the company’s IR website is the first port of call for company IO&A 61 information. Due to the time and labor-intensive nature of keeping one’s website up to date, North American IR teams may Internal department have found it to be more efficient to outsource this task. On the other end of the spectrum, 95% of EEMEA companies rely on External/outsourced internal resources. IO&A 59a 0% 20% Semi-annually 40% 60% 80% Monthly 100% Daily IO&A 61 Asia Pacific Internal department 0% EEMEA 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Only as needed Annually Perception studies Shareholder identification studies Quarterly Latin America North America Western Europe Targeting studies Of those respondents that do not conduct perception studies, Other shareholder identification, or targeting studies with external 0% 40% 60% 80% 100% vendors, half or more use the 20% following criteria to target their Only as needed Annually Semi-annually Quarterly Monthly Daily investment audience: industry focus (64%), average holding period (54%), sell-side/broker referrals (52%), investment style (50%) and peer ownership (50%). Most respondents using investment style as a means to target their investment audience target investors that employ Growth at a Reasonable Price (GARP) (80%), Value (72%) and/or Growth (56%) styles. External/outsourced 0% Asia Pacific EEMEA 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe 17 IO&A 20 IO&A Investor Outreach and Approaches to the Sell-side Approximately what percentage of the IR team’s overall time is allocated to institutional investors, sell-side and retail investor outreach? IR teams, on average, noted that they spend the majority of their time conducting outreach to the buy-side (institutional investors) and the sell-side (research analysts/equity sales); 48% and 42% of the time, respectively. Institutional investors (buy-side) (%) Inst Research analysts/equity sales (sell-side) (%) Research ana Retail investors (%) Re 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Small Mid Large Mega Micro Asia Pacifi What is Companies from the Asia Pacific and Latin American regions IO&A 21the approximate annual percentage of company focus on individual investors 18% and 14% of the time, which is roadshows done in the following regions: U.S., Canada, U.K., Continental Europe, Latin America, Asia Pacific, Middle East IO&A 20a more than the global average time allocation of 12%. and “Other.” Institutional investors (buy-side) (%) IO&A IO&A 20 the U.S. remains the most frequently visited Globally, roadshow destination, with an average of 52% of overall U.K. (%): annual IR roadshow time spent there. When North American Institutional investors (buy-side) respondents(%): (%) Continental Europe are excluded, the U.S. still leads as a destination with 36% of all roadshow activity, up 4% from last year. Research analysts/equity sales (sell-side) (%) Additionally, companies from all regions dedicate at least Asia Pacific (%): 26% of their roadshow efforts to the U.S. The U.K. (27%), Retail investors Continental (%): (%) (20%) and Asia Pacific (17%) follow Latin America Europe in frequency. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Middle East (%): U.S. (%): Continental IO&A E Asia Latin Am Research analysts/equity sales (sell-side) (%) Insti Middl C Retail investors (%) Research ana % 100% Mega Asia Pacific EEMEA 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe Re Asia Pacific Micro Small Mid Large North American companies are the least likely to conduct Mega Micro-cap companies allocate similar quantities of time IO&A 21 22 roadshows outside their home market, with 93% of respondents Canada (%): to conducting outreach, with 38% of their time spent on devoting their time to the U.S. Six percent of North American U.S. (%): institutional investor outreach and 39% on sell-side (research IO&A 21 IO&A respondents tap into the financial center in the U.K. U.K. (%): Other analysts/equity sales) outreach. They spend about 30% of their Continental time on Europe (%): retail investor outreach. Similar to the finding from 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific (%): last year’s survey, micro-cap companies may have a greater Asia Pacific U.S. (%): EEMEA Latin America North America Western Europe Continental E Latin America attracting institutional interest, which can challenge in (%): Asia P Middle East (%): account for the proportionally greater amount of time spent U.K. (%): Latin Am Canada (%): with retail investors. Other (%): 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific (%): U.S. 1-30 31-80 Continental Europe Middle East (%): Asia Pacific Canada (%): Middle East 81-160 161-240 241 or more None Other Canada 0% EEMEA 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 22 IO&A 2 Middl Continental Europe (%): Ca Current roadshow activities 2009 potential growth (select all) U.K. Latin America (%): % 100% n Europe Latin America Asia Pacific Latin America North America Western Europe IO&A 23 18 Other 0% Asia Pacific IO&A 22 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% EEMEA Latin America North America Western Europe IO&A 2 U.S. (%): IO&A 20a U.K. (%): Continental Europe IO&A 22 (%): Asia Pacific (%): Latin America (%): U.S. Middle East (%): Canada (%): U.K. Other (%): Continental Europe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1-30 31-80 81-160 161-240 241 or more None Canada U.S. (%): IO&A 2 In which regions do you foresee potential growth of investor U.K. (%): Institutional investors (buy-side) 2009? opportunities in(%) Continental Europe Respondents (%): expect the most growth of potential investor Research analysts/equity sales (sell-side) (%) opportunities in 2009 in the U.S. (69%), the U.K. (51%) and Asia Pacific (%): Continental Europe (51%). Since these are the regions in Retail investors (%) which respondents concentrate their roadshow efforts, their Latin America (%): roadshow plans seem on target. About one-third of companies 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% foresee a potential rise Latininvestor opportunities in the Middle in America Asia Pacific EEMEA North America Western Europe Middle East (%): East (33%) and Canada (32%). Few expect increased investor opportunities in Latin America (9%). Canada (%): IO&A 21 22 U.S. (%): Other U.K. (%): Continental Europe (%): 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % 100% Mega Asia Pacific Current roadshow activities 2009 potential growth (select all) Middle East Latin America Other 0% Asia Pacific 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific EEMEA Asia Pacific (%): Latin America (%): Middle East (%): Latin America North America Western Europe EEMEA Latin America North America Western Europe IO&ACanada (%): 22 Other (%): 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% What is your best estimate as to the number of one-on-one IO&A 23 meetings the following individuals (IRO, CFO, CEO) have with investment professionals in a typical year? Current roadshow activities 2009 potential growth (select all) 1-30 31-80 U.S. U.K. Continental Europe Respondents tend to look at their own region/country as the largest potential growth area for investor opportunities. Asia Asia Pacific Pacific and the Middle East are regarded as potential growth Middle East areas by respondents in all regions except those based in North America. Canada 100% Latin America 81-160 161-240 241 or more None 0% CEO 10% 20% 30% CFO 40% 50% IRO 60% 70% 80% 90% 100% n Europe Other IO&A 23 Asia Pacific 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% EEMEA Latin America North America Western Europe 1-30 31-80 81-160 161-240 241 or more None 0% CEO 10% 20% 30% CFO 40% 50% IRO 60% 70% 80% 90% 100% % 100% n Europe 19 IROs hold a greater number of one-on-one meetings with investment professionals in a given year than CEOs or CFOs. In fact, 67% of IROs meet with 81 or more investors in a typical year, while only 33% of CFOs and 22% of CEOs conduct the same number of meetings. This furthers the notion that the IRO serves as the bridge between the investment community and senior management. There is a positive correlation between a company’s market-cap and the number of one-on-one meetings conducted by a company’s IRO. Sixty percent of large- and mega-cap respondents noted that IROs attend more than 161 meetings in a given year, compared to 0% of CFOs and 20% of CEOs. While IROs might attend one-on-one meetings by themselves or with senior management, it is important to note the trend of greater IRO participation as a company’s market-cap increases. IRO # of meetings Micro Small Mid Large Mega 0-30 52% 15% 6% 3% 0% 31-160 42% 61% 42% 36% 25% >161 6% 19% 49% 60% 75% 0-30 48% 40% 20% 22% 30% CFO 31-160 38% 53% 57% 70% 70% >161 13% 5% 24% 9% 0% 0-30 45% 46% 46% 38% 40% CEO 31-160 35% 42% 50% 56% 60% >161 13% 20% 17% 11% 20% Fifty-nine percent of Western European respondents noted that the IRO attends over 161 one-on-one meetings, while only 28% of their Asia Pacific counterparts do the same. With the exception of Western Europe and North America, CFOs attend significantly more one-on-one meetings than the CEOs. CEOs from Asia Pacific devote the least amount of time, while CEOs from North America and Western Europe devote the most. IRO # of meetings Asia Pacific EEMEA Latin America North America Western Europe 0-30 27% 11% 4% 11% 8% 31-160 40% 36% 67% 54% 32% >161 28% 50% 30% 34% 59% 0-30 46% 25% 30% 35% 14% CFO 31-160 43% 56% 70% 51% 74% >161 12% 19% 0% 13% 13% 0-30 60% 46% 51% 44% 26% CEO 31-160 23% 46% 48% 51% 68% >161 8% 10% 7% 21% 26% 20 What percentage of these meetings are conducted by IR alone, IR with senior management, and senior management alone? Across all regions, over two-thirds of meetings with the investment community involve senior management, 51% conducted by the IR team with senior management, and 16% conducted by senior management alone. Senior management in the Asia Pacific region conducted more meetings IO&A 24 on its own than senior management in other regions. Globally, on average, IR teams conduct meetings alone 41% of the time. Additionally, companies with secondary market IR teams conduct missionary meetings on their own 81% of the time, with micro-cap companies doing so 100% of the time. Latin American respondents with IR officers in the U.S. also hold meetings with potential investors 100% of the time. GDR respondents are the least likely to have their secondary IR team 24a IO&A meet with potential investors, with 40% not conducting meetings, where companies with a DR program that trade overthe-counter in the U.S. do so 86% of the time. Micro Small IO&A operations executive) participate in company non-deal 24 key Mid Asia Pacific EEMEA Latin America North America Western Europe 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Which of the following executives (CEO/President, CFO, roadshows the majority of the time? IO&A Micro Small Mid Large Mega 0% Large Mega IR with senior management (%): IR alone (%): Senior management alone (%): Asia Pacific CEOs and CFOs are more likely than key operations executives EEMEA to participate in company non-deal roadshows, with 0% 10% 20% approximately half30% company CEOs and CFOs participating of 40% 50% 60% 70% 80% 90% 100% Latin America IR with senior management (%): IR Senior management alone sometimes (50% and 47%)alone always (27% and 40%). (%): or (%): North America IO&A 25 investment meetings, a significant portion of which nearly all are conducted by IR alone (65% and 47%, respectively). IO&A 24a CEO/President Micro Small CFO The IR teams of mega- and large-cap companies participate in Western are CFOs Europemore likely to participate in non-deal roadshows in Latin 174 0% 10% 20% 30% (84%), 60% 70% 80% 90% 100% IO&AAmerica (97%), EEMEA40% 50% and Asia Pacific (66%) IR in other regions. IR alone (%): Senior management alone (%): thanwith senior management (%): IR with se CEOs are slightly more likely to participate in non-deal Good mix in terms of size and roadshows in North America (90%) and Western Europe investment style IO&A 25 in other regions. (85%) than Don't know/do not receive enough information to judge IO&A Mid Key Operations Executives Large Mega 100% 0% 10% 20% 30% 40% 50% 60% 70% North America 60% 70% 80% 90% 100% Too many small funds or aggressive/ CEO/President high-turnover funds 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Micro Key Operations Executives Small Mid Large Mega Good % Asia Pacific EEMEA 0% 10% 20% Latin America 30% 40% 50% IR alone (%): Western Europe 80% 90% 100% CFO Don't know one (%): IR with senior management (%): Senior management alone (%): Too many sm IO&A 135 Micro IO&A 135a Asia Pacific Asia Pacific EEMEA 0% EEMEA 10% 20% 30% 40% 50% 60% 70% Latin America North America 80% 90% 100% Western Europe IO&A 174 Mid Small Large Good mix in terms of size and investment style IO&A 135 Latin America North America Micro Western Europe Small 70% 80% 90% 100% Mid 0% 20% Some conflict 40% 60% 80% 100% IO&A 1 Asia Pac Don't know/do not receive enough Mega information to judge 0% 10% 20% 30% 40% 50% 60% Too many small funds or aggressive/ high-turnover funds Little to no conflict Some conflict Significant conflict EEM Latin Ame Don't know/not applicable Little to no conflict Large Mega 0% 10% Significant conflict Don't know/not applicable North Ame % 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% n Europe Western Eur 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 173 IO&A 135a Micro Small Mid Large Mega Little to no conflict Arranging the meeting and travel logistics Providing access to institutions you Asia Pacific would not otherwise see EEMEA Providing access to key decision makers you would not otherwise see Latin America Getting detailed feedback after meetings Some conflict Significant conflict Don't know/not applicable Little to n IO&A 173 Arranging the meeting and travel logistics Providing access to institutions 21 IO&A 25 Does your company meet with hedge funds? How much of a conflict of interest do you think CEO/President brokers/equity sales have in arranging non-deal roadshows given their interest in driving trade commissions? IO&A 24a CFO Over two-thirds of respondents (69%), reported there is a Key Operations conflict ofExecutives when brokers/equity sales arrange non-deal interest Micro roadshows, of which10% 20% 30% 40% 50% “significant conflict” 21% believe there is 60% 70% 80% 90% 100% 0% Small of Asia Pacific interest. EEMEA Latin America North America Western Europe Mid IO&A Good IO&A 24 meet with hedge funds. Seven percent have yet proactively to meet with hedge funds but are considering it for the future (in 2007, this response was 8%). Almost 100% of mega-cap Asia Pacific (95%) and large-cap (99%) companies meet with hedge funds. EEMEA Latin America Of those that already meet with hedge funds, about half reported that hedge funds account for 16% or more North America of their meetings. Western Europe 0% 10% 20% The greatest percentage of 30% 40% 50% in the70% 80% 90% 100% respondents 60% Asia Pacific IR (36%) conduct 6%-10% of their meetings management alone (%): IR alone (%): Senior with hedge regionwith senior management (%): funds, while the greatest percentage of respondents in other regions conduct 16%-25% of their meetings with hedge funds. In line with 2007’s results (88%), 89% of companies Don't know Too many sm More mega-cap companies than any other market-cap segment Large consider the conflict of interest to be significant (30%). IO&A 135 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Micro with senior management (%): IR Small Mid IR alone (%): Senior management alone (%): Mega IO&A 1 Asia Pac EEM Latin Amer How would you rate the quality of hedge funds that brokers introduce you to? Over half CEO/President of the respondents (52%) that meet with hedge funds reported that the quality of hedge funds introduced to them CFO by brokers is a good mix in terms of size and investment style, IO&A 24a them reported that brokers introduce them to too while 21% of Key manyOperations Executives or aggressive/high-turnover funds. Notably, small funds over a quarter of respondents (27%) do not60% 70%or have 100% know 80% 90% Micro 0% 10% 20% 30% 40% 50% enoughPacific information to judge America the quality of hedge fundWestern Europe managers EEMEA Latin North America Small Asia they meet through brokers. Mid IO&A 25 IO&A 174 Large Mega Good 10% of size 30% 0% mix in terms20% and 40% 50% 60% investment style Little to no conflict Some conflict Significant conflict Don't know/do not receive enough information to judge 70% 80% 90% 100% North Amer Western Euro Don't know/not applicable Little to no Eighty-two percent of Too many 173 IO&A small funds or aggressive/Western European companies, 79% of high-turnover funds 100% one (%): Mid-cap companies are most likely (31%) to rate the quality Large IO&A funds of hedge 135 as too small or as high-turnover funds. The Mega majority of micro-cap companies (52%) do not know enough Micro 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% about the quality of hedge funds introduced to them by IR with senior management (%): IR alone (%): Senior management alone (%): Small brokers. Overall, this trend may demonstrate that the smaller the Mid company, the less familiar it is with the hedge fund it is meeting, or it can indicate increased opacity of hedge funds that Large IO&A 174 specialize in smaller companies. Mega North American companies, 67% of Latin American companies 0% and 66%meeting and travel logistics 10% 20% 30% 40% 50% 60%some or90% 100% Arranging the of EEMEA companies stated there is 70% 80% Micro Small Mid Large Mega significant conflict of interest. Only Asia Pacific was divided, Providing access to institutions you would not otherwise see with 37% believing there is some conflict, 31% unsure and 29% believing there is little conflict. Providing access to key decision makers you would IO&A 135a not otherwise see Getting detailed feedback after meetings Asia Pacific EEMEA Providing input and perspective during one-on-one meetings Latin America 0 North America Asia Pacific Western Europe 0% Little to no conflict 20% Some conflict 40% 60% 80% 100% EEMEA 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Latin America North America Western Europe N=239 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Good to no conflict of size and conflict Little mix in terms Some investment style Don't know/do not receive enough information to judge Significant conflict Don't know/not applicable Significant conflict Don't know/not applicable IO&A 173 Too many small funds or aggressive/ high-turnover funds Arranging the meeting and travel logistics 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Providing access to institutions you would not otherwise see Micro Small Mid Large Mega Providing access to key decision makers you would not otherwise see % 100% n Europe IO&A 135a Getting detailed feedback after meetings Asia Pacific Providing input and perspective during one-on-one meetings EEMEA Latin America Asia Pacific 0 EEMEA 0.5 1 1.5 2 2.5 3 3.5 4 4.5 22 America North Latin America North America Western Europe Asia Pacific EEMEA Latin America North America Western Europe Micro Small Mid Large Mega IO&A 135 How would you rate the value of brokers’ contributions in setting Micro up non-deal roadshow meetings outside of your home market? The majority of respondents placed most value on brokers’ Mid ability to arrange meetings and travel logistics and to provide access to institutions and key decision makers. Large Small IO&A 135a Does your company publish a corporate social responsibility Asia Pacific (CSR) report? EEMEA Forty-three percent of respondents publish a CSR report, while Latin America 50% reported doing so the year before. This decline can be attributed to the inclusion of North American companies in this North America year’s survey. Respondents in North America are least likely to Mega Western Europe North American and Western European companies rate the publish a CSR report, (65% have not published a report, 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 20% 40% 60% 80% 100% brokers highly on arranging meeting and travel logistics, while have and 6% have not but plan to do so). Respondents in Latin Little to no conflict Some conflict Significant conflict Don't know/not applicable Little to no conflict from EEMEA andSignificantAmerica findknow/not applicable Some conflict conflict Don't brokers to be respondents Latin America (59%) and Western Europe (58%) are most likely to more valuable in providing access to institutions they would not publish one. otherwise see. IO&A 173 While the majority of issuers in Asia Pacific have not published a CSR report (65%), a quarter of these companies plan on Arranging the meeting publishing one in the future. IO&A 188a IO&A 188 and travel logistics Providing access to institutions you would not otherwise see Yes Providing access to key decision makers you would not otherwise see Yes Getting detailed feedback after meetings No Providing input and perspective during one-on-one meetings No, but we plan to publish a report 0 Asia Pacific EEMEA 10% 0% Micro 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Latin 30% 20% America 40% Small North 60% 50% America 70% Mid Western Europe 80% 90% 100% Mega Asia Pacific No No, but we plan to publish a report 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large EEMEA Latin America North America Western Europe IO&A 137 Yes The majority of mega- and large-cap companies (90% and 69%) publish CSR reports, while the majority of small- and micro-cap companies (50% and 68%) do not publish or plan Yes to publish IO&A 188 one. No Yes IO&A 137a IO&A No 0% Micro 10% 20% 30% Small 40% 50% Mid 60% 70% 80% Large 90% 100% Mega 0% Asia Pacific 10% 20% EEMEA 30% 40% 50% 60% 70% 80% Latin America North America Western Europe No IO&A 29 IO&Awe plan No, but 30 to publish a report No, but we to publish a re 0% More than 20 Sell-side/broker-run roadshows Depositary bank 11-15 Conferences/investor one-on-one meetings Yes Internal company IR team 1-5 5-10 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large Asia Pacifi IO&A 16-20 137 IO&A Yes IR consultant/IR firm No No Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Maintain the same Decrease 0% 010% 0% 20% 10% 30% Small 20% 40% 30% Small 50% 40% 60% 60% 70% 80% 90% 90% 100% Mega 100% Mega 0% Micro Mid 50% Mid Large 70% 80% Large Asia Pacific 23 Increase Micro In the next year, do you think the amount of attention your investors pay to your company’s sustainability efforts will increase, remain the same or decrease? Is targeting sustainability investors and/or sell-side analysts part of your investor relations strategy? Respondents are split down the middle with regard to targeting sustainability investors and/or sell-side analysts as part of their IR strategy; 54% do target them while 46% do not. The main exception to this trend is observed among North American respondents, with 64% not targeting sustainability investors. IO&A 188a Excluding North American companies, 63% of respondents target this segment of the investment community. Over the Yes year, 52% of respondents expect their investors’ next level of attention on their company’s sustainability efforts to No remain the same; 45% expect investors’ level of attention to increase. Despite increased media coverage in the U.S. of No, but we plan sustainable investing, only 36% of North American respondents to publish a report indicated that they expect investors’ level of attention to their company’s sustainability efforts will increase. 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% Respondents in Latin America (70%) and Asia Pacific (69%) are most likely to target and meet with sustainability investors IO&A 137a and sell-side analysts. Asia Pacific EEMEA Latin America North America Western Europe Approximately what percentage of your investor introductions are through the following? Despite reported perceptions of conflict with the brokerage community identified in this survey, on average, 73% of investor introductions are facilitated through the sell-side: sell-side/ broker-run roadshows (40%) and conferences/one-onone meetings (33%). Nearly a quarter of introductions are facilitated by the internal company IR team (24%), while 8% come through external IR consultants/firms. Sell-side/broker-run roadshows and conferences/investor one-on-one meetings represent the largest percentage of investor introductions for all regions and across all market caps. For Western European companies, 50% of their investor introductions are made via sell-side/broker-run roadshows. Companies in EEMEA (41%) and Latin America (36%) rely more heavily on conferences/investor one-on-one meetings. Mega-cap companies are most likely to utilize the resources of their internal IR team (29%), while micro-cap companies are most likely to use an IR consultant/IR firm (23%). % 100% Mega Yes No 100% Mega 0% Asia Pacific 10% 20% EEMEA 30% 40% 50% 60% 70% 80% Latin America North America Western Europe IO&A 30 More than 20 16-20 11-15 5-10 1-5 0 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega % 100% Decrease Micro Large 24 Yes Yes No Yes Yes No No For 2009 are you looking to increase, decrease or No maintain the same level of investor introductions through No, but we plan to publish a report any0% the following? of 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Micro Small Mid Large Mega How many sell-side analysts currently cover your company? No, but we plan Forty-nine percent of respondents reported being covered by to publish a report 0% 10% 20% 30% 40% 50% 60% 70% 80% up to ten analysts, 32% reported coverage by 11 to 20 analysts Asia Pacific EEMEA Latin America North America Western Europe 0% 10% 20% 30% and 19% reported coverage by40% 50% 60%20 analysts. 100% more than 70% 80% 90% For the most 0% 10% 20% 30% are planning to maintain their100% part, companies 40% 50% 60% 70% 80% 90% Micro Small Mid Large Mega Asia Pacific EEMEA Latin America North America Western Europe current levels of investor introductions. Mega-cap respondents Almost half of respondents in Western Europe reported more are looking IO&A 29 to increase investor introductions mainly through IO&A 30 than 20 analysts. Almost half of respondents in Latin American their internal IO&A 137a IO&A 137 IR team (40%) and through their depositary reported 5 to 10. bank (35%). More than 20 YesSell-side/broker-run roadshows Depositary bank Yes # of Asia Pacific 58% 39% 10% 20% EEMEA EEMEA Latin America North America 54% 41% 50% 60% North America Western Europe 17% 83% 70% 80% Western Europe analysts 16-20 No 1-10 No >11 11-15 30% Small 40% 50% Mid 60% 70% 80% Large 90% 100% Mega 0% Asia5-10 Pacific 50% 45% 30% 63% 33% 40% Conferences/investor one-on-one meetings 0% 10% 20% Micro Internal company IR team Latin America IO&A 29 IR consultant/IR firm In line with 2007 results, the size of a company correlates 1-5 with the level of sell-side analyst coverage; as market-cap size IO&A 30so does the number of analysts covering the company. increases 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Maintain the same Decrease 0% More than 20 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Other Increase Sell-side/broker-run roadshows Micro Large 16-20 Depositary IO&A 204 bank Large-cap respondents are looking to increase investor introductions mainly through their internal IR team (40%) and Conferences/investor one-on-one meetings through conferences/investor one-on-one meetings (28%). Fifty-two percent of micro-cap company respondents want to increase investor introductions through their internal IR team. IR consultant/IR firm No, I have too few Yes Internal company IR team 11-15 5-10 1-5 A majority of respondents across regions are not looking Other to change the amount of investor introductions made through No, I have too many 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% sell-side/broker-run roadshows. Eighty percent of respondents Increase Maintain the same Decrease 0% 10% 20% 30% in Western Europe and 78% of40% 50% 60% in Asia Pacific respondents 70% 80% 90% 100% Small Mid Large indicated that Micro want to maintain the same number of Mega they introductions made through this means. IO&A 204 0 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large Yes No, I have too few No, I have too many 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large 25 More than 20 Sell-side/broker-run roadshows Depositary bank How many of these sell-side analysts are based outside your home country? Do you think you have an optimal level of analyst coverage? 16-20 Over half of respondents (54%) stated that their company has optimal level Two-thirds of respondents reported having one or more analysts an Conferences/investor of analyst coverage, while 46% think it is less one-on-one meetings than optimal. Of those that consider the level less than optimal, outside their home country and 35% have five or less. With Internal stated team 36% company IRthat they have too few analysts while 10% noted North American companies excluded, 85% of companies have they have too many. sell-side coverage outside their home market. IR consultant/IR firm 11-15 5-10 1-5 Seventy-eight percent of North American companies do not have any analysts based outside their home market. Sixty-nine percent of Latin American companies, 50% of Asia Pacific companies and 48% of EEMEA companies have 1 to 5 analysts outside their home country. Mega-cap companies have the largest number of analysts covering their company from other countries (20%). The largest percentage of large-, mid- and small-cap companies have coverage from 1 to 5 analysts from non-home countries (35%, 36% and 38%, respectively). Fifty-one percent of small-cap companies and 50% of micro-cap companies have no analyst coverage outside their home country. The majority of mega- and large-cap companies reported Other having an optimal level of analyst coverage (70% and 75%, 0% 10% 20% 30% 40% 50% 60% 70% almost respectively). Mid- and small-cap companies are80% 90% 100% Increase Maintain the same Decrease evenly split with 53% of mid-and 44% of small-cap companies reporting they have optimal coverage. Thirty percent of mega-cap companies stated they have too many analysts while IO&Aof micro-cap companies stated that they have too few. 77% 204 0 Yes No, I have too few No, I have too many 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large Sixty-four percent of Western European respondents stated that they have the optimal level of coverage, 11% of Western European and 20% of North American respondents stated that they have too many analysts. On the other end of the spectrum, 50% of EEMEA, 48% of Latin American, and 40% of Asia Pacific respondents stated that they have insufficient coverage. 26 The quality of sell-side research has decreased for small-cap companies more than it has for any other market-cap segment Forty-five percent of respondents stated that they actively target (29%). For the majority of all market-cap segments, sell-side coverage has remained the same. IO&A 190 IO&A 32analysts for additional coverage, while 55% do not. sell-side Over half of mid-, small- and micro-cap companies actively target sell-side analysts (51%, 56% and 55%, respectively). IO&A 190 IO&A 32 Yes Increased Do you actively target sell-side analysts for additional coverage? N=122 YesNo Remained the same Increased 0% 10% 20% 30% Small 20% 30% Small 40% 50% Mid 40% 50% Mid 60% 70% 60% 70% 80% Large 80% Large 90% 90% 100% Mega 100% Mega Decreased Decreased Remained the same \ No Micro 0% Micro 10% \ 0% 10% 20% 30% Small 20% 30% Small 40% 50% Mid 40% 50% Mid 60% 70% 60% 70% 80% 90% 100% Mega 90% 100% Mega Micro 0% 10% Large 80% Respondents in Western Europe and North America are less likely to actively target sell-side analysts for additional coverage (65% and 56% respectively). More than half of respondents in EEMEA do actively target sell-side analysts (59%). Do you target sell-side analysts based outside of your home market for additional coverage? Of those companies that actively target analysts, 58% target analysts based outside their home markets. On average, non-North American respondents target analysts outside of their home country 72% of the time, while North American respondents do so only 25% of the time. Over the last two years, the level of sell-side coverage has increased for more than half of respondents in EEMEA, Latin America and Western Europe (66%, 56% and 52%, respectively). For 37% of North American companies, sell-side coverage has decreased. Does your company actively pursue coverage among analysts who provide independent research (yes/no/don’t know)? (“Independent research” is defined as sell-side research provided by analysts who work for independent third-party research companies, as opposed to brokerage firms). Micro Large Over the last two years, has your sell-side coverage increased, remained the same or decreased? During the same period, has Respondents from EEMEA (36%), Asia Pacific (31%) and Latin the quality of sell-side research on your company increased, America (30%), who reported insufficient sell-side coverage are remained the same or decreased? more likely to target independent research houses. Over the last two years, the level of sell-side coverage for 49% of respondents has increased while it has remained the same for Does your company pay for research coverage? 31% of the respondents and decreased for 20%. An overwhelming majority of respondents do not pay for Over the same period, 45% of respondents reported that the quality of sell-side research on their companies has remained the same, while 24% reported a decrease in quality. research coverage (97%), up from 94% the prior year. Who pays for the investor/analyst travel and accommodations – the company, investors/analysts or both? While 84% of companies globally host site visits for investors and analysts, a majority (78%) do not pay for investor/analyst travel and accommodations. Most respondents do not pursue coverage among analysts who provide independent research (69%). 27 External media External m None of the above None of the ab Communications and Disclosure Does your company have an internal media department, an external media relations firm, or both? Forty-two percent of respondents only have an internal media department, while 33% rely on both an internal media department and an external media relations firm. Fifteen percent rely solely on an external firm for their media relations needs. There is a trend of increasing market-cap correlating with the Internal media frequency of having internal media departments. This may be due to the need for larger companies to manage their potentially External media increased exposure to the media. None of the above Internal media Both of the above External media Does your company have a proactive media relations program Both of the above outside your home market? One-half of companies that have an internal and/or external Micro Small Large Mega media relations function do not haveMid proactive media relations a program outside their home market. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Both of the ab Asia Pacific C&DSS 42 N=243 Yes C&DS Yes C&DSS 41 No C&DSS 41a Don’t know Internal media 0% External media 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No Don’t know 0 C&DSS 41 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega None of the above Micro Large Western Europe and North American respondents are the most None of the above likely to have non-home market media relations programs Internal media C&DSS 43 respectively), North American respondents are C&DSS (62% and 44%, Both of the above more active on the media front outside of their home market External media Separate with its 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very hel 0% own directors than with other reported outreach initiatives, as noted in the Asia EEMEA Latin America North America Western Europe prior Pacific None of thesection. Companies in Latin America were the least likely above Somewhat hel Integrated with one director to have secondary market media relations programs (68%). Both of the above N=243 C&DSS 41a Asia Pacific C&DSS 42 Both of the above Yes 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega C&DSS 42a Other 0% Yes Not too hel 20% 30% 40% 50% 40% 60% 70% 80% 90% 100% 10% Micro No Large Asia Pacific No Asia Pacific 0% EEMEA EEMEA 10% 20% 30% Latin America Latin America 50% 60% 70% North America North America 80% 90% 100% Western Europe Western Europe Not at all hel C&DSS 42 Don’t know Don’t know Asia Pacific is the region that most frequently has an internal mediaYes 0% 10% (56%). Companies in North America and department 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes 0% 10% 20% EEMEA are more likely than companies in other regions to have C&DSS 45 EEMEA Asia Pacific No No both an internal and external media department (both 41%). C&DSS 42a 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe C&DSS C&DSS 41a Don’t know IR team Don’t know 20% 30% 40% 50% 60% 70% 80% 90% 100% C&DSS 43 Internal media 0% 10% C&DSS 44a Senior management 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very helpful EEMEA Asia Pacific Media team/corporate communications Somewhat helpful Latin America North America Western Europe Media team/c commu Separate with its own directors External media Senior man IR consu Integrated with one director None of the above C&DSS 43 100% Mega Other Both of the above Separate with its own directors 0% 0% 10% Asia Pacific EEMEA Asia Pacific EEMEA Integrated with one director 10% 20% 20% 30% 40% 50% 60% 70% 80% 90% 100% 30% 40% 50% 60% 70% 80% 90% 100% North America North America Western Europe Western Europe C&DSS 44a Not too helpful 0% Very helpful Not at all helpful Somewhat helpful 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large IR consulting firm % Latin America Latin America 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large C&DSS 42a Other C&DSS 45 Yes Asia Pacific No IR team 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not too helpful Not at all helpful C&DSS 46 IR team 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega EEMEA Latin America North America Western Europe Senior Don’t knowmanagement 100% Micro Media team/corporate communications Senior management C&DSS 46 IR consulting firm IR team Large % C&DSS 45 0% 10% 28Media team/corporate communications Asia Pacific EEMEA IR team 20% 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Internal media Asia Pacific 0% EEMEA 10% Asia Pacific EEMEA External media 20% Latin America 30% 40% Latin America 50% North America 60% 70% North America 80% Western100% 90% Europe Western Europe Internal m Micro Large External m C&DSS 43 C&DSS 42 internal investor relations and internal media How are the departments structured? Are they separate, with their own YesSeparate with its directors,own directors integrated with one director, or in another structure? C&DSS 44a C&DSS 42a None of the above N=130 Very helpful Yes Both of the above None of the a Both of the a The overwhelming majority of respondents (78%) with an No Somewhat helpful 0% 10% No Integrated with one director internal media department keep the investor and media Micro Don’t know relations departments separate with their own directors. Not too Don’t know helpful Other Integrating the media and IR 40% 50% 60% 70% 80% 90% is functions under one director 100% 0% 10% 20% 30% C&DSS 42 10% 20% 0% more common among micro-cap companies, possibly due to Not at all helpful 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific EEMEA limitations on resources or headcount. North America Respondents in Western Asia Pacific EEMEA Latin America Western Europe Yes 0% 10% Europe (29%) and Asia Pacific (25%) are more likely to Micro No integrate IR and media departments with one director. 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Large Asia Pacifi 30% 40% 50% 60% 70% 80% 90% 100% C&DS Yes Latin America 20% 30% Small 40% North America 50% Mid 60% 70% Western Europe 80% 90% 100% Mega No Large C&DSS 43 N=203 C&DSS 45 Separate with its own directors IR team C&DSS 44a Don’t know C&DSS 46 Who is responsible for writing the earnings reports/earnings press releases? Somewhat helpful Media team/corporate communications Very helpful 0% 10% IR team 20% 30% 40% 50% 60% 70% 80% 90% 100% Don’t know Integrated with one director Senior management Other Media team/corporate communications Asia Pacific 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% EEMEA Latin America North America Western Europe IR consulting firm The IR team is the primary responsible party for writing earnings Asia Pacifi reports/earnings press releases, as reported by the vast majority Not too ofSeniorhelpful respondents (82%). Thirty-two percent reported that senior management management C&DSS 43 plays a role in this process and 30% reported that C&DSS Not at all helpful firm the IR consultingteam/corporate communications do the same. Only media Separate with its Very he 10% relyown directors10% 10% 20% consulting firm to develop90% 100% on0% 0% 20% IR 30% 40% 50% 60%70% 80% earnings an external 30% 40% 50% 60% 70% 80% 90% 100% reports and releases. Small Micro Mid Large Mega Integrated with one director Somewhat he How helpful have you found your external media relations firm The IR team is responsible for writing the earnings report for Micro Small Mid Large Mega in getting your Not too he the majority C&DSS 45 company media exposure? C&DSS 46 of all market-cap segments. The media/corporate Other communications team also plays a role in the write-up of Of those companies that rely on an external firm to provide IR team IR team Not at all he the earnings report for the majority of mega-cap companies 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% some or all of their media relations functions, the majority (55%). Senior management is most often involved in writing Asia Pacific Latin America North America Western Europe team/corporate (83%) find the services helpful in getting more media exposure. Mediacommunications EEMEA earnings reports for micro-cap companies (61%), which again Senior management Half of mega-cap companies find external media relations Senior management may be due to flatter executive structures and expanded IR Media “very helpful” in gaining media exposure. The majority firmsteam/corporate responsibilities given to senior management. communications IR consulting firm C&DSS 45 C&DSS of micro-cap respondents (77%) find their external media relations firm only “somewhat helpful,” potentially signifying 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IR consulting firm IR team that they may have to work harder to fully capitalize on getting helpful media exposure.20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% Media team/ Forty-six percent of Western European companies find their external media relations firms to be “extremely helpful” in getting media exposure, whereas 29% of Latin American respondents find them “not too helpful.” Micro Small Mid Large Mega Senior management 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% commu Senior man Media team/corporate communications IR consu IR consulting firm 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large 29 No Don’t know 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% WhoPacific writing Asia is responsible for Latin Americathe non-financial content Europe EEMEA North America Western of the annual reports? Two-thirds of respondents (66%) reported that the IR team C&DSS 44a and the media/corporate communications teams (51%) are responsible for writing the non-financial content of the annual Very report. helpful Thirty-two percent rely on senior management and 10% on an external IR consulting firm. The high percentage of media Somewhat helpful team involvement may have to do with the increasing trend for companies C&DSS 48 to add more non-financial data into their annual Not too helpful reports, using it as a corporate branding tool, as opposed to the Yes document being purely of a financial nature. Not at all helpful No Micro-cap respondents are just as likely to rely on their IR 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% team0% their senior management for the non-financial 90% 100% as 10% 20% 30% 40% 50% 60% 70% 80% content Micro Small Mid Large Mega of annual reports (61% for both). This may be due to lesser resource allocation in smaller companies. Putting aside the advertising your company does to promote the corporate brand, does your company advertise for the specific purpose of reaching investors? Thirteen percent of all respondents leverage advertising channels with the specific purpose of reaching and attracting investors. Of those that do use financial media as a channel to reach investors, 65% find advertising to be a helpful vehicle for reaching investors. N=34 C&DSS 139 Very helpful % 100% n Europe Somewhat helpful Not too helpful Not at all helpful 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C&DSS 46 IR team C&DSS 49 Media team/corporate communications Senior management Yes C&DSS 149 The two regions that find it most helpful to advertise as a means to reach investors are Latin America (100%) and Western Monthly Europe (67%). The only region that finds advertising for this purpose to be not at all helpful is North America (20%). Quarterly 0% 10% 20% 30% 40% 40% 50% 50% Mid 60% 60% 70% 80% 80% 90% 100% 90% 100% Mega Annually Semi-annually IR consulting firm No 0% Micro 10% 20% 30% Small 70% % 100% Mega Large How often does your company advertise in the financial media? Almost half (46%) of all respondents advertise in the financial media to raise their visibility. Advertising on a quarterly basis is reported as being most common, followed by monthly frequency. The North American region is least likely to advertise in the C&DSS 50 financial media (77%). In the Asia Pacific and EEMEA regions, companies that do advertise in the financial media most commonly do so on a quarterly basis, while in Latin America, Yes they typically advertise on a monthly basis. The majority of mega-cap companies (30%) advertise in No the financial media on a quarterly basis, 20% advertise on a 0% 10% 20% 30% 40% 50% 60% 70% 80% monthly basis and 25% never advertise in the financial90% 100% media. Asia Pacific EEMEA Latin America North America Western Europe Other 0% Asia Pacific 10% EEMEA 20% 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe C&DSS 52 Yes No Don’t know 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C&DSS 52a C&DSS 53 Yes Yes No No 30 Don’t know Yes Very helpful 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Semi-annuall No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Somewhat helpful Micro Not too helpful Large Does your company give earnings guidance? Does your company host earnings calls? How frequently? Eighty-one percent of respondents reported that their companies host earnings calls, mainly60% a70% 80% 90% 100% on quarterly basis 0% 10% 20% 30% 40% 50% (87%). Nearly all North American respondents host earnings conference calls (98%), of which 99% do so on a quarterly C&DSS 149 least likely to hold earnings conference calls is basis. The region Asia Pacific (54%). Not at all helpful Monthly C&DSS 50 Annuall C&DSS 49 Yes Fifty-eight percent of all respondents reported their companies provide earnings guidance to investors. Of these respondents, 60% give earnings guidance on a quarterly basis while 22% provide guidance on an annual basis. Othe Asia Pacific C&DSS Yes No Quarterly Yes C&DSS 139 0% 10% Very helpful Micro Somewhat helpful 100% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega No Semi-annually No Don’t know Annually 0% 10% Asia Pacific Other 20% EEMEA 30% 40% 50% 60% 70% 80% 90% 100% Large C&DSS 149 C&DSS 50 N=156 Monthly Yes Giving helpful guidance is slightly favored in EEMEA, North America Not too and Western Europe, while Latin American companies tend Not to helpful not at allgive guidance (63%). In terms of timing, the majority of companies in 10% 20% 30% give quarterly guidance. 90% 100% each region 40% 50% 60% 70% 80% Only 0% in EEMEA is it more common to give annual guidance than quarterly guidance. Latin America North America Western Europe With respect to C&DSS 52a frequency, more companies in EEMEA tend to 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific EEMEA Latin America Western Europe host earnings conference calls on a North America semi-annual or annual basis than on a quarterly basis. Yes C&DSS Yes All mega-cap C&DSS 52 respondents host earnings conference calls, compared to only 48% of micro-cap companies. YesNo Don’t know No Quarterly No 100% Mega Asia Pacific Annually EEMEA Latin America North America Western Europe Semi-annually 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No Don’t know Don’t know 0% 0% 10% 10% Micro 20% 20% 30% 30% Small 40% 40% 50% 50% Mid 60% 60% 70% 70% 80% 80% Large 90% 90% 100% 100% Mega C&DSS 52a 0% Asia Pacific Yes 10% EEMEA 20% 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe Other C&DSS 53 Yes No The majority of large-, mid- and small-cap companies C&DSS 52 No provide earnings guidance (69%, 67% and 53%, respectively), whileYes 55% of mega-cap and 71% of micro-cap companies Don’t know do not. Quarterly guidance seems to be the trend regardless No of market cap. 0% Don’t know 100% 10% 20% 30% Small 20% 30% 40% 40% 50% Mid 50% 60% 60% 70% 80% 90% 100% Mega 90% 100% Micro 0% 10% Large 70% 80% Don’t know 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large n Europe C&DSS 53 Yes No 31 Not at all helpful 0% 100% Mega Semi-annually Asia Pacific 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% EEMEA 10% 20% Latin America 30% 40% 50% North America 60% 70% 80% Western 100% 90% Europe Does the IR department have a written disclosure policy C&DSS 4950 C&DSS Annually (i.e., written procedures of what information the company Other is required to release and how and when to release the Yes Yes 0% information)?10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Asia Pacific EEMEA Latin America North written Western Europe Fifty-nine percent of respondents have aAmerica disclosure No No policy, following general industry best practice but reflecting a 0% 10% 20% slight drop from the 30% reported in 60% 2007 survey. 61% 40% 50% the 70% 80% 90% 100% 20% 30% Small 40% 50% Mid 60% 70% 80% Large 90% 100% Mega Does the IR department have a written crisis or transactional C&DSS 149 C&DSS 52 communications policy? Yes Monthly Thirty-nine percent of respondents have a written crisis or transactional communications policy. At least 60% of No Quarterly respondents in Latin America, Asia Pacific and EEMEA do not have a written crisis communications policy. Respondents in Don’t know Semi-annually Western Europe (52%) and North America (46%) are most likely to 0% 10% 20% crisis or transactional70% 80% 90% 100% have written 30% 40% 50% 60% communications Annually policies in place. Small- and micro-cap companies are the least likely to have a written crisis communications policy (61% and 58%, respectively). Other 0% C&DSS10% 52 Micro Asia Pacific Yes EEMEA Latin America North America Western Europe No C&DSS 52a C&DSS 53 0% Yes Asia Pacific 10% EEMEA 20% 30% 40% 50% 60% 70% 80% 90% 100% Don’t know 100% Yes 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Latin America North America Western Europe n Europe No C&DSS 50 No C&DSSdisclosure policy, compared to their counterparts a written 53 Yes Companies in the EEMEA region are least likely (50%) to have in Don’t know America, which are the most likely (67%) to have a North Yes disclosure policy. No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C&DSS 52 Don’t know Yes 0% No Micro Small Mid Large Mega 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% The majority of mega-cap companies (75%) have written Don’t know No Micro Small Mid Large Mega disclosure policies. 30% those companies without written 100% Of 40% 50% 60% 70% 80% 90% 0% 10% 20% 0% 10% disclosure policies, the majority are micro-caps. Ten percent Asia Pacific EEMEA Latin America North America Western Europe Don’t know of the respondents from micro-cap and mega-cap companies do not know 10% 20% or not40% company has a written 100% whether 30% the 50% 60% 70% 80% 90% 0% disclosure policy. C&DSS 52a C&DSS 53 100% Mega Yes No No Don’t know Don’t know Micro Small Mid Large Mega Yes 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega 0% 10% 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Micro Large Micro Large 32 accessibility Increase research coverage Increase number of international shareholders Advise the Board Ensure ma Increa Goals and Benchmarking Please indicate your top 3 goals for the IR function/program for 2008/2009. Following are the most commonly selected goals: ensure exercising effective disclosure (51%) being a part of strategic decision making (34%) and diversification of the shareholder base (33%). Analyze capital market trends How is the effectiveness of the IR department measured? Analyze c B&G 55 The greatest percentage of respondents (55%) use informal Build retail shareholder base feedback from the investment community as one of the top 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% three measures for IR department effectiveness, followed by effective use of senior management’s time (43%), and number of one-on-one meetings with the investment community (36%). % Respondents that included each measure within their top 3 measures used to evaluate IR Grow DR program (non U.S. companies only) Grow D Build re B&G 5 % Respo measurin B&G 54 % Respondents that included each goal within their top 3 goals for the IR function/program for 2008/2009 Ensure effective disclosure Be part of strategic decision making Diversification of shareholder base Maintenance of shareholder base Coordinate IR/PR message Ensure management visibility/ accessibility Increase research coverage Increase number of international shareholders Advise the Board Analyze capital market trends Grow DR program (non U.S. companies only) Build retail shareholder base 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% B&G 54 tg management's time % Respondents choosing each goal as 'Most Important' for 2008-2009 IR function/program Number of 1-to-1 meetings with the investment community Effective use of senior Inform in Ensure effective disclosure Influence of IR insights on management and Board decisions Diversification of shareholder base Relative valuation / making Be part of strategic decision stock price Maintenance of shareholder base Perception study (“formal”) feedback Coordinate IR/PR message New investor targeting effectiveness Increase number of international shareholders Ensure management visibility/ Shareholder composition accessibility Increase research coverage Number of analysts covering the stock Advise the Board 0% Analyze capital market trends Grow DR program (non U.S. companies only) 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Relative v Influ managemen Percep New investor t Number of 1-t in Sha Numbe B&G 66 study feedback, shareholder composition,90% 100% perception 0% 10% 20% 30% 40% 50% 60% 70% 80% and B&G 55 tm informal feedback from the investment community as top National Investor Relations Institute measures of the IR department’s effectiveness. Build retail shareholder base Forty-five percent of mega-cap companies have identified B&G 1 Conferences/ B&G 55 mega-cap companies (35%) reported that increasing Notably, theRespondents internationaleach measure within their top 3 % number of that included shareholders is the top IR goal measures used to As the IR for 2008/2009. evaluate market cap gets smaller, companies pay more attention to increasing research coverage. A Effective use of senior management's time differentiating goal for small-cap companies as compared Number of 1-to-1 meetings with the to otherinvestment community is coordinating the IR/PR message, which companies is priority forIR41% of the small-cap companies. Influence of insights on management and Board decisions Home country IR %Alternatively, a sizable number of micro-cap companies (42%) Respondents choosing each measure as 'Most Important' to organization measuring effectiveness of IR program consider the number of analysts covering their stock as the top Pro orga measure of the IR department’s effectiveness. Effective use of senior Other management's time Informal feedback from the investment community Pub Pee ne None Relative valuation/stock price Influence of IR insights on management and Board decisions Consult 20% 30% Small 40% 50% Mid 60% 70% 80% 90% 100% Mega Ensuring effective disclosure is selected as a top priority by all Relative valuation / stock price regions, excluding Latin America, which rated being a part of Perception study (“formal”) strategic decision making as the top priority. feedback New investor targeting effectiveness 0% 10% Micro Large Perception study (“formal”) feedback New investor targeting effectiveness Number of 1-to-1 meetings with the investment community Shareholder composition Number of analysts covering the stock 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Shareholder composition Number of analysts covering the stock 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% B&G 66 National Investor Relations Institute B&G 151 Conferences/seminars Home country IR organization Professional organizations 33 B&G 55 B&G 55 % Respondents that included each measure within their top 3 % Respondents that included measures used to evaluate IR each measure within their top 3 measures used to evaluate IR Effective use of senior management's time Number of 1-to-1 meetings with the investment community Number of 1-to-1 meetings with the investment community Influence of IR insights on management and Board decisions Influence of IR insights on management and Board decisions % Respondents choosing each measure as 'Most Important' to % Respondents choosing each measure as 'Most Important' to measuring effectiveness of IR program measuring effectiveness of IR program B&G 55 tm B&G 55 tm time In which management'sof senior of the following IR organizations do you participate? Effective use Sixty-five percent of respondents participate in an IR organization. Of those, 41% participate in the National Investor Relations Institute (NIRI) and 30% participate Relative valuation / stock price in a home-countryprice organization. (For this survey, NIRI Relative valuation / stock IR Perception study (“formal”) provided the contact information for the majority of the feedback Perception study (“formal”) feedback U.S.-based respondents). New investor targeting effectiveness In your management'sof which mediums are most effective for finding opinion,time Effective use senior management's time Informal feedback fromIR informationcommunity trends? on the investment Relative valuation/stock price The majority of the respondents believe that conferences/ Relative valuation/stock price seminars of IR insights onprofessional organizations (51%) and Influence (67%), management and Board decisions Influence of (51%) publications IR insights onare effective means of finding information management and Board decisions Perception study (“formal”) on IRPerception study (“formal”) trends. feedback feedback New investor targeting effectiveness Informal feedback from the investment community Effective use of senior B&G 66 B&G 66 The general trend in market cap continues with regard to Shareholder composition participation in IR organizations. As the size of the company Shareholder composition Number of analysts covering increases, so does IR organization participation levels. The the covering Number of analysts stock the largest percentagestock micro-cap respondents (74%) are not part of 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 0% 10% 20% of any IR organization. Mega-cap30% 40% 50% 60% 70% 80% 90% 100% companies (60%) tend to participate in the home-country IR organization more so than in organizations anywhere else. New investor targeting effectiveness Mega-cap companies (60%) value obtaining information on the New investor targeting effectiveness Number of 1-to-1 meetings withthrough publications more than companies in latest IR trends the investment community Number of 1-to-1 meetings with the other market-cap categories. investment community Shareholder composition Shareholder composition Alternatively covering of micro-cap companies do not view 65% Number of analysts the stock Number of analysts covering professional organizations as an effective medium for finding the stock 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% information on the latest IR trends. This finding correlates 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% with the lack of participation of these companies in these organizations. B&G 151 B&G 151 National Investor Relations Institute National Investor Relations Institute Conferences/seminars Conferences/seminars Professional organizations Professional organizations Publications Home country IR organization Home country IR organization Other Other Publications Peer activity networking Peer activity networking Consulting firms 10% 20% 30% 40% 50% 50% Mid Mid 60% 70% 80% 90% 100% Consulting firms Other Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 90% 100% Mega Mega 0% 10% Micro Micro 20% 30% Small Small 40% 60% 70% 80% Large Large 90% 100% Mega Mega None None 0% 0% 10% Micro Micro 20% 30% Small Small 40% 50% Mid Mid 60% 70% 80% Large Large 34 Corporate Secretary 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% P&I 160 Please indicate below how many employees are in your IR department and P&I 4how many are considered "professional" and "support." Appendix Support IR Personnel and Infrastructure P&I 160 P&I P&I 4 3 Please indicate below how many employees are in your IR department To whom does the Investor Relations Officer report? and is the primary contact with the investment community? Whohow many are considered "professional" and "support." P&I 3 P&I 5 To whom P&I 5 Who is the primary contact with the investment community? Head of Professional Investor Relations 2 3 4 5 Chief Financial Officer [CFO] Support How many of your IR Head of Investor Relations Professional Investor Relations Officer (IRO) How man Chief Financ of the com staff work in countries outside of the company's home country? Chief Executive Officer [CEO] To Chief Executi 5+ P&I 160 0 Investor Relations Officer (IRO) 1 Please indicate below how Chief Financial Officer (CFO) Support Corporate Secretary Professional Chief Executive Officer (CEO) 0 1 Financial Controller/Director/ Treasurer many employees are in your IR department and how many are considered "professional" and "support." P&I 3Controller/Director/ Financial 5+ 0 Financial Con Treasurer 1 Chief Financial Officer Investor whom does the(CFO) Relations Officer report? 2 3 4 5 4 Chairman of the Board 4 Corporate Secretary Chief Financial Officer [CFO] Corporate Secretary Chief Executive Officer (CEO) 3 Chief Executive Officer [CEO] Financial Controller/Director/ Financial Controller/Director/ Treasurer 2 Treasurer 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Chairm 3 Cor 2 2 3 4 5 1 rtment P&I43Chairman of the Board P&I 160 1 P&I Chairman of the Board P&I 43 P&I 5 Please indicate below how many employees are in your IR department To whom does the Investor10% 20% 30% 40% 50% 60% 70% 80% 90% Relations Officer report? P&I Chairman of the Board 0% Who is the primary contact with the investment community? and how many are consideredwith the investment "support." "professional" and community? Who is does the Investor Relations Officer report? To whom the primary contact 0% Support Head of Investor Relations Chief Financial Officer [CFO] Professional Investor Relations Officer (IRO) Chief Executive Officer [CEO] 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% P&I 5 0 100% 5 P&I 4 0 1 2 3 4 Chief Financial Officer (CFO) Financial Controller/Director/ Treasurer P&I is the primary contact with the investment community? 6 Who Chief Executive Officer (CEO) Corporate Secretary Investor RelationsU.S. Officer (IRO) Financial Controller/Director/ 0% U.K. Treasurer Chief Financial Officer (CFO) Asia Pacific of the Board Chairman 5 P&I 6 Financial Controller/Director/ Treasurer P&Imembers on your staff that are located outside of the company's 5 4Chief For Financial Officer (CFO) P&I 8 of the Board staff work in countries outside How Chairman of your IR indicate their general location(s). many home country, please Corporate 3 of the frequentlySecretary Secondary Market IR team in touch home How company's is the country? Corporate Secretary U.S. with the local market IRO? Chief Executive Officer (CEO) U.K. 5+ 2 0% Daily Financial Controller/Director/ Asia Pacific Treasurer Weekly 4 1 Continental Europe Monthly of the Board Chairman N=56 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HowCorporateof your IR staff work in countries outside many Secretary 0 Chief the company's home country? of Financial Officer [CFO] 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Head of Investor Relations 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Chief Executive Officer [CEO] 5+ Investor Relations Officer (IRO) How man 0% of the co 5+ P&I 8 4 3 How freq with the l Corporate Secretary ForChairman of theon your staff that are located outside of the company's members Board home of Investor Relations indicate their general location(s). Head country, please Da 2 Wee Mont 1 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarte P&I 4 Corporate Secretary Continental Europe 0% P&I 5 Who is the primary contact10% 20% 30% 40% 50%community? with the investment 60% 70% 80% Chief How Executiveof your IR staff work in countries outside many Officer (CEO) Middle East Head of Investor Relations of the company's home country? Financial Controller/Director/ Other Treasurer Investor Relations Officer (IRO) 0% 5+ Chairman of the Board10% Latin America P&ILatin America 5 Quarterly 3 0 Other Only as needed Other 90% 100% Semi-annually How many of your IR staff work in countries outside Middle East 0% 10% 20% of the company's home30% 40% 50% 60% 70% country? Annually 2 0% 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 80% 90% 100% Semi-annua 0 Annua Only as neede 0% Oth 80% 80% 90% 90% 100% 100% 70% 70% 1 5+ 20% 30% 40% 50% 60% 70% 80% 90% 100% P&I 6 4 P&I 10 home country, please indicate their general location(s). 3 U.S. Chief Executive Officer (CEO) Home market IRO U.K. Chief Financial Officer (CFO) For members on your staff that are located outside70%the company's 0% 10% 20% 30% 40% 50% 60% of 80% 90% 100% Corporate Secretary P&I 6 P&I 8 P&I 10 0 4 3 0% P&I 8 For members on your staff that are located outside of the How frequently is Secondary Market IR IR team in touch company's To whom does the the Secondary Marketteam report? home country, pleaseIRO? with the local 20% 30% 40% their general location(s). 90% 100% market indicate 50% 60% 70% 80% N=56 0% 10% Home market IRO U.S. Daily CFO U.K. Weekly N=56 How freq with the l To whom does the Secondary Market IR team report? N=56 D 2 Wee P&I 6 2 Financial Controller/Director/ CFO Asia Pacific Treasurer Chairman of the Asia Pacific P&I 8MonthlyBoard 1 Quarterly Mont For members on your staff that are located outside of the company's Chairman of Europethe 1 Continental the Board Board Chairman of home country, please indicate their general location(s). Latin America CEO 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% U.S. Middle East Financial Controller/ Director/Treasurer U.K. 20% Other 0% 10% Other Asia Pacific CEO Continental Europe How frequently is the Secondary Market IR team in touch Semi-annually with the local market IRO? Latin America 0 Financial Controller/ Director/Treasurer Annually Middle East Daily Other Only as needed 0% 10% 20% WeeklyOther 0% Other Monthly Quarterly N=56 30% 10% 40% 20% 50% 30% 40% 60% 50% 70% 60% 80% 70% 90% 80% 100% Quarte Semi-annu Annu Only as need 0% 100% 30% 40% 50% 60% 70% 80% 90% 80% 80% 100% 90% 100% Oth 0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70% 90% 100% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0%0% 10% Continental Europe P&I 610 P&I Latin For members P&I 8America on your staff that are located outside of the company's P&I 8 Semi-annually P&I 10 Annually How whom doesis the Secondary Market IR team in touch To frequently the Secondary Market IR team report? with the local market IRO? Only as needed N=56 Home market IRO Other Daily 0% CFO 10% Weekly Chairman of the Board Monthly Quarterly CEO N=56 50% pany's To whom does the Secondary Market IR team report? Middle East home country, is the indicate their general location(s). How frequentlyplease Secondary Market IR team in touch N=56 with Homelocal market IRO? the Other IRO market U.S. 0% CFO Daily U.K. 10% 20% 30% 40% N=56 50% 60% 70% 80% 90% 100% 20% 30% 40% 60% 70% 80% 90% 100% Asia P&I 10 Pacific Monthly Weekly Chairman of the Board To whom does the Secondary Market IR team report? Quarterly Financial Controller/ Latin America Semi-annually Director/Treasurer Home market IRO Middle East Annually Other CFO Other Only as needed 0% N=56 Continental Europe CEO Semi-annually Financial Controller/ Director/Treasurer Annually Only as needed Other 0% 0% 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 70% 80% 90% 100% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100% 100% Other Chairman Other Board0% of the 100% 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 60% 70% 80% 90% % P&I 10 Financial Controller/ To whom does the Secondary Market IR team report? Director/Treasurer 0% CEO 35 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% New institutional investors CEO CFO 0% 10% Weekly CEO Monthly 20% 30% 40% 50% 60% 70% 80% 90% 100% Never 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CFO CEO CFO 0 Sell-side analysts/equity sales Quarterly P&I 13 Internal P&I 163 corporate communications What percentage of time devoted tothedo the CEO and CFO What type(s) of information does IR IR team provide Financial media spend on the following? to senior management? Sell-side analyst opinions Retail investors Existing institutional investors Stock performance Upcoming and past IR activities Insight on investor attitudes towards company New institutional investors Insight on largest buyers/sellers Stock price trends Stock trading volume P&I 14 Bi-annually P&I 11/12 P&IAnnually How frequently are the IR reports provided counsel management? How 13 frequently does these department give to senior toWhat type(s) CFO? the CEO and of information does the IR team provide Sell-side analyst opinions Other to senior Upcoming and past IR activities management? Daily Never Stock performance Sell-side analyst opinions performance Insight on investor attitudes towards company 0% 10%Stock20% 30% Upcoming and past IR activities Factors driving investor interest CEO CFO Monthly investor attitudes towards company Insight on Insight on largest buyers/sellers Factors driving investor interest Insight on largest buyers/sellers Stock price trends Stock price trends Comparative financials on peers Stock trading volume Industry trends Comparative financials on peers P&I 1 How freq 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CFO Weekly 40% 50% 60% 70% 80% 90% 100% CEO Factors driving investor interest Sell-side analysts/equity sales Insight on inv Quarterly Bi-annually Internal P&I corporate communications trends 13 Industry Comparative financials on peers P&I 14 What type(s) of media Financial information does the IR team provide Financial performance toInsight of investor attitudes towards peers senior management? Sell-side analyst opinions Share of foreign investors Stock performance Media 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% mentions Upcoming and past IR activities Other Insight on investor attitudes towards company CEO CFO None Factors driving investor interest 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Insight on largest buyers/sellers Peer information Annually Other How frequently are these reports provided to senior management? Peer information Industry trends Peer information Financial performance Sell-side analyst opinions Financial performance Insight of investor attitudes towards peers Insight Upcoming and towards peers Never of investor attitudespast IR activities Stock trading volume Intelligence Stock performance 0% 10% 20% Intelligence 30% Share of foreign investors 40% Insight on investor attitudes towards company Media CFO CEO Share of foreign mentions investors Factors driving investor interest Other Media mentions None Insight on largest buyers/sellers Retail investors Intelligence Insight of 50% 60% 70% 80% 90% 100% P&I 163 P&I 11/12 P&I 14 What percentage of time devoted to IR do the CEO and CFO Stock price trends P&I 11/12 spend on the following? volume Stock trading How frequently does the on department give counsel P&I 13 Comparative financialsIR peers to the CEO and CFO? Industry trends Existing institutional investors What type(s) of information does the IR team provide Peer information P&I 15 to senior management? Financial performance Daily New institutional investors Does the investor attitudes towards peers Board of Directors Insight of IR team provide the Sell-side analyst opinions Weekly Intelligence with market intelligence? Insight on investor attitudes towards company Other Internal corporate communications interest Quarterly Factors driving investor None No Insight on largest buyers/sellers Share sales Sell-side analysts/equityof foreign investors IR activities Monthly Upcoming and past Media mentions Yes Stock performance How frequently does the IR department give counsel Other Stock to the CEO and CFO? price trends0% 10% 20% 30% 40% 50% 60% Only as needed Daily Annually Semi-annually Quarterly Monthly 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Comparative financials on peers Weekly Daily Industry trends How frequently are these reports provided to senior management? Insight on investor attitudes towards company Intelligence Stock performance Bi-annually YesFactors driving investor interest Share of foreign investors Sell-side analyst opinions 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% the Directors Does the IR team provide the Board ofIR team provide to the Board of Stock performance Directors? Stock trading volume with Quarterly market intelligence? N=169 Weekly P&I 16 P&I 15 Peer information Sell-side analyst opinions Financial performance Only as neede Monthly type(s) and past IRtowards peersdoes What Upcoming of information Insight of investor attitudes activities P&I 16 What typ to the Bo Bi-annually Don't know Annually Other Financial media Stock price trends Annually No Insight on largest buyers/sellers Media trends Stock pricementions Stock trading volume Stock price trends Insight on investor attitudes towards company Other 0% 10% 20% 30% Comparative financials on peers Retail investors trends Industry Peer information 40% 50% 60% 70% 80% 90% 100% Other Comparative financials on interest Don't know Factors driving investor peers Stock trading volume 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Insight on inve Industry trends 0% 20% 30% 40% Neveras needed on10% buyers/sellers Only Annually Semi-annually Insight largest 50% P&I 15 Never 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Financial performance 80% 90% 100% Insight of investor attitudes towards peers 0% 100% CEO CFO Does the IR team provide the Board of Directors Intelligence 0% 10% 20% 30% 40% 50% 60% 70% with market intelligence? Share of foreign investors CEO Media mentions Other None P&I 16 CEO 0% Peer information Upcoming and past IR activities 10% 20% 30% 40% Financial Industry trends performance Quarterly 60% Monthly 70% 80% Weekly 90% 100% Daily 50% 60% 70% 80% 90% 100% CFO P&I 13 No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% What type(s) of information does the IR team provide P&I 14 Don't know to senior management? How frequently are these reports provided to senior70% 80% 90% management? 0% 10% 20% 30% 40% 50% 60% Sell-side analyst opinions Sell-side analyst opinions Stock performance Yes P&I 14 How frequently are these reports provided to senior management? 100% P&I 15 Upcoming and past IR activities Upcoming and past IR activities Insight on investor attitudes towards company Stock performance Factors driving investor interest Insight on investor attitudes towards company Insight on largest buyers/sellers Intelligence N=169 Intelligence Share of foreign investors Stock performance Insight of investor attitudes towards peers Sell-side analyst opinions Media mentions Share of foreign investors Stock price trends Media mentions Other Insight on investor attitudes towards company Other Sell-side analyst opinions 0% Factors driving investor interest 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% None UpcomingAnnually IR activities and Stock trading volume past Only as needed Semi-annually Quarterly Monthly Weekly Daily 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Insight on largest buyers/sellers Stock performance What type(s)Financial performance does the IR team provide of information Stock trading volume to the Board of Directors? Peer information Comparative financials peers Insight of investor attitudes towardson peers CFO Insight of Does the IR team provide the Board of Directors with market intelligence? Yes Factors driving investor interest Stock price trends Insight on Stock trading volume largest buyers/sellers Comparative financials on peers No Stock price trends Industry trends Comparative financials on peers Peer information Upcoming and past IR activities Insight investor company P&Ion16 attitudes towardsIndustry trends Factors What type(s)driving investor interest does the IR team provide of information Comparative financials on peers Insight of largest buyers/sellers Financial performance to the Board on Directors? Stock Peer information price trends N=169 Don't know Financial performance Industry trends 0% 10% 20% 30% Insight of investor attitudes towards peers Peer information Intelligence Financial performance Share of foreign investors Insight of investor attitudes towards peers Media mentions Other Stock trading volume None Intelligence Share of foreign investors Media mentions Other Stock performance Intelligence Comparative financials on peers Sell-side analyst opinions Insight of investor attitudes towards peers Industry trends Stock price trends Share of foreign investors Peer information Insight on investor attitudes towards company Media mentions 40% 50% 60% 70% 80% 90% 100% Financial performance Factors driving investor interest Other Stock towards peers None Insight of investor attitudestrading volume Insight on largest buyers/sellers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Stock trading volume Upcoming and past IR activities Intelligence Industry trends Share financials on peers Comparative of foreign investors Financial performance Media mentions Peer information Other Intelligence Insight of investor attitudes towards peers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterly Monthly Weekly Daily 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 90% 100% P&I 15 36 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Annually Semi-annually Quarterly Monthly Weekly Daily Only as needed Share of foreign investors Annually Semi-annually Media mentions Other None Does the IR team provide the Board of Directors with 16 P&I market intelligence? Only as needed P&I 16 What type(s) of information does the IR team provide Yes to the Board of Directors? What type(s) of information0% 10%the IR team provide does 20% 30% 40% 50% 60% to the Board of Directors? N=169 Stock performance 70% 80% 90% 100% Comparative financials on peers Financial performance Peer information Insight of investor attitudes towards peers . Never 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% P&I 17 Intelligence Share of foreign investors How frequently are Media mentions these reports provided to the Board of Directors? Other Stock performance Sell-side analyst opinions Only as needed Annually P&I 183 P&I 18 What percentage IRO attend executive committee meetings? How often does theof the IR budget is allocated to the P&I 56 Home Market (if not the U.S.) As needed Never P&I 18 $250,000 or under U.S. P&I 14 N=169 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterly Monthly Weekly Daily following markets? What is the total annual budget in USD for your company's Always IR program? In the ne changing Home Marke Stock price trends Semi-annually Insight on P&I 17 investor attitudes towards company Factors driving investor interest How frequently are these reports provided to the Board of Directors? $251,000-$500,000 How often does 0% 10% the IRO 30% 40% 50% committee meetings? attend executive 60% 70% 80% 90% 20% U.K. 100% P&I 19 Stock trading volume Stock performance Insight on largest buyers/sellers N=169 $501,000-$750,000 Always Asia Pacific $751,000-$1Mil. As needed Middle East Never $1- < $2 Mil. Continental Europe 0% 10% 20% $2- < $3 Mil. Latin America $3Mil.+ 30% 40% 50% 60% 70% 80% 90% 100% Sell-side analyst opinions How often does theIR activities IRO present at board meetings? Upcoming and past Insight on investor attitudes towards company Comparative financials on peers Always Stock price trends Industry trends Co As needed Factors driving investor interest Financial performance Stock trading volume Peer information . Never Insight on largest buyers/sellers Insight of investor attitudes towards peers Upcoming and past IR activities 0% 10% 20% 30% Intelligence Industry trends Share of foreign investors Comparative financials on peers Media mentions 40% 50% 60% 70% 80% 90% 100% 0% Canada10% 0% 20% 30% 40% 50% 60% 70% 80% 90% 100% P&I 183 Financial performance Other . 90% 100% Daily P&I 56 P&I 148 What is the total annual budget in USD for your company's $250,000 or under Home Market (if not the U.S.) $251,000-$500,000 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Peer information What percentage of the IR 0% 10% 20%allocated to the 70% 80% budget is 30% 40% 50% 60% Insight of investor attitudes towards peers following markets? Only as needed Annually Semi-annually Quarterly Monthly Weekly IR program? five years, how do you foresee your IR budget allocations In the next changing in the following markets? ctors? ectors? How often does the IRO attend executive committee meetings? How often does the IRO attend executive committee meetings? Media mentions Always P&I 19 Always As needed How often As Only as needed needed Never Always Never 0% As needed0% U.S. Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterly Monthly Weekly Daily P&I 18 P&I 18 (if Sharethe foreign investors Home Market not of U.S.) Intelligence P&I 56 $501,000-$750,000 What is the total annual budget in USD for your company's U.S. U.K. U.K. does the IRO present at board meetings? Annually Semi-annually IR program? $751,000-$1Mil. Asia Pacific 10% 20% 10% Middle20% East 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 100% Middle East $250,000 or under $1- < $2 Mil. Latin America $251,000-$500,000 $2- < $3 Mil. Continental Europe $501,000-$750,000 $3Mil.+ P&I Never 19 Always Continental Europe 0% 10% 20% Latin America 30% 40% 50% 60% 70% 80% 90% 100% How often does the IRO present at board meetings? Canada $751,000-$1Mil. 0% 10% Asia Pacific $1- < $2 Mil. 20% 30% 40% 50% 60% 70% 80% 90% 100% Canada As needed P&I 183 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% P&I $2- < $3 Mil. 148 30% 40% 50% 60% 70% 80% 90% 100% 0% Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% What percentage of the IR budget is allocated to the Never following markets? 0% 10% 20% $3Mil.+ In the next five years, how do you foresee your IR budget allocations Will decrease Will remain the same Will increase changing in the following markets? 90% 100% 90% 100% Daily Daily U.S. What is the P&I 183 total annual budget in USD for your company's What is the total annual budget in USD for your company's IR program? IR program? What percentage of the IR budget is allocated to the U.K. following markets? $250,000 or under $250,000 or under Asia Pacific P&I 56 P&I 56 Home Market (if not the U.S.) P&I 57 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Home Market (if not the U.S.) P&I 6 Yes No 0% What percentage of your IR budget is allocated to external IR support? Do you u U.K. P&I20 percent and under 148 In the next how do you foresee your IR budget allocations changing in the following markets? Middle East 41-60% Home Market (if not the U.S.) Latin America 61-80% U.K. Continental Europe 81-100% U.S. Canada Don’t use external support Middle East Asia Pacific 0% Latin America Other 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% U.S. five years, 21- 40% Home Market (if not $251,000-$500,000 the U.S.) $251,000-$500,000 Middle East $501,000-$750,000 U.S. $501,000-$750,000 Continental Europe $751,000-$1Mil. U.K. $751,000-$1Mil. Latin America $1- < $2 Mil. Asia $1- < $2 Mil. Pacific $2- < $3 Mil. Canada $2- < $3 Mil. Middle East 0% 10% $3Mil.+ $3Mil.+ Continental Europe 0% 10% 20% 0% 10% 20% Latin America 20% 30% 40% 50% 60% 70% 80% 90% 100% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 100% 90% 100% P&I 5 Does the external 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Will remain the same Will increase Shareholder Will decrease Continental Europe 0% P&I 65 % % 100% 100% Canada For which of the following functions do you rely Asia Pacific on an external IR firm? N=88 Investor feedback/perception studies Other Conference call and Webcast planning/logistics P&I 148 Canada 37 P&I 65 Distribution of annual/quarterly reports Maintenance of mailing lists/contact databases 21- 40% Peer tracking IR enquiries 41-60% Retail IR program Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% DoesRoadshows, meeting planning/logistics the IR Department conduct any of the following with No IR message external vendors? development IR materials development N 0% Market 20% 10% intelligence/surveillance 40% 30% 50% N=191 60% 70% 80% 90% 100% upport? For which of61-80% the following functions do you rely P&I 62 on an external IR firm? 81-100% N=88 Do you use an external IR firm? P&I 57 P&I 65 % 100% upport? P&I 59a P&I 60a P&I 65 Event planning No Distribution of earnings/news releases Shareholder identification studies Roadshows, meeting planning/logistics 0% 10% IR message development 40% 20% 30% 50% 60% 70% 80% 90% 100% IR materials development Targeting studies Market intelligence/surveillance Crisis communications 20 percent and under IR strategy Perception studies Analyst tracking/consensus Distribution of annual/quarterly reports 21- 40% Maintenance of mailing lists/contact databases Other Peer tracking N=88 IR enquiries 41-60% Investor feedback/perception studies Retail IR program 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Conference call and Webcast planning/logistics Other 61-80% Shareholder As Needed Never Only identification/stockwatch Annually Semi-annually Quarterly Monthly Daily ("Stockwatch") 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Investor targeting Event planning 81-100% Distribution of earnings/news releases Roadshows, meeting planning/logistics Yes N=191 IR message Don’t use external support development IR materials development Perception studies Market intelligence/surveillance No 0% 10% Crisis communications 20% 30% 40% 50% 60% 70% 80% 90% 100% N=191 IR strategy Shareholder identification studies 0% 10% Analyst tracking/consensus 40% 20% 30% 50% 60% 70% 80% 90% 100% N=25 Shareholder identification studies reports Distribution of annual/quarterly Maintenance of mailing lists/contact databases Targeting studies Investment style - GARP Peer tracking IR enquiries Targeting studies Retail IR program Other Other Investment style - value Don’t use call and Webcast planning/logistics Conference external support Shareholder does the IR department conduct the following? Yes How oftenidentification/stockwatch Investor targeting 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% N=191 P&I Investor feedback/perception studies 59a Crisis communications Perception studies IR strategy Analyst tracking/consensus Distribution of annual/quarterly reports Shareholder identification studies Maintenance of mailing lists/contact databases Peer tracking IR Targeting studiesenquiries Retail IR program Other P&I 60 What criteria does the IR department use to target its investment audience? Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% What percentage of your IR budget is allocated to external IR support? Industry focus P&I 59 None of the above Average holding period P&I the IR Department conduct any of the following with Does 62 external vendors? Sell-side/broker referred P&I 59a an external0% firm?20% 30% 40% 50% 60% 70% 80% Do you use IR 10% N=50 P&I 60 Yes How often does the IR department conduct the following? Investment style Perception studies (value, GARP etc.) Peer ownership N=191 90% 100% What crite its investm N=191 For which of the following functions do you rely on an external IR firm? Shareholder identification studies No Shareholder identification studies 0% Type of investor (mutual fund, pension fund etc.) Investment size 10% 20% assets 30% 40% 50% Total Targeting studiesunder management Targeting studies Regional/Country focus 60% 70% 80% 90% 100% P&I 62 59 Perception studies OtherLocation (city/state) International assets P&I 60 None of the above under management Do you use Department conduct Does the IR an external IR firm? any of the following with external vendors? Type of inv How ofteninvestment style criteria,conduct the following? department Which does the IR department specifically, does the IR use to target new investors? What criteria does the IR department use to target Depositary 0% 0% 10% 20% its investmentReceipt assets under management 30% 40% 50% 60% 70% 80% 90% 100% audience? 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Never Only P&I 59 As Needed Annually Other Semi-annually 0% Theme focus (sustainability, commodities, blue-chip etc.) Other Quarterly N=50 Monthly Daily ("Stockwatch") % 100% N=88 0% P&I Investor feedback/perception studies 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 59 P&IInvestment Webcastequity income / 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 59a Conference call and style - planning/logistics 0% Event planning Investment style – other (Please Distribution of earnings/news releases specify) Roadshows, meeting planning/logistics Shareholder identificationstudies Perception studies IR message development IR materials development Market intelligence/surveillance Shareholder identification studies Targeting studies Crisis communications IR strategy Analyst tracking/consensus Targeting studies Perceptionstudies Distribution of annual/quarterly reports Maintenance of mailing lists/contact databases Peer Other tracking Other Investment style -IR enquiries GARP Retail IR program 0% None of the above Other Perception For whichNone of thestudies of the following functions do30% 40% 50% 0% 10% 20% you rely above on an external IR style - growth Investment firm? Other 60% 70% 80% 90% 100% N=191 P&I 60a Peer ownership Perception studies Which investment style criteria, specifically, does the IR department Investment P&I 61 style (value, GARP etc.) use to target new investors? Does the IR Department conduct any of the following with Average holding period external vendors?Sell-side/broker referred Industry focus 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% In Theme focus (susta Deposit P&I 60 company's website, or is it managed by an internal department? Investment size What criteriaTotal assets underIR department use to target does the management Internal department Regional/Country its investment audience? focus Investment style - value Other Location (city/state) Type of investor (mutual fund, Do you outsourcepension fund etc.) Shareholder identification studies the management of theN=25 IR section of the Investment style - GARP Targeting studies Does ShareholderDepartment conduct any of the following with the IR identification/stockwatch yield Investor How often As Needed IR department conduct the following? Never Only does the targeting external vendors? Annually Semi-annually Quarterly Monthly Daily ("Stockwatch") N=191 N=191 0% N=50 P&I 61 P&I 60a 0% 100% Which investment style criteria, specifically, does the IR department N=25 External/outsourced Industry focus International assets under management None of the above Investment style - growth Average holding period 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Theme focus (sustainability, commodities, blue-chip etc.) 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% Sell-side/broker referred20% 30% 40% 50% 60% 70% 80% 90% 100% Depositary Receipt assets under management Investment style - equity income / yield ownership Peer Other Do you o company Internal dep use to target new investors? P&I 60 Investment style – other (Please specify) Investment style (value, GARP etc.) 0% Type of investor (mutual fund, pension fund etc.) Investment size 0% 10% Total assets under management 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% External/outs What criteria does the IR department use to target its investment audience? Never N=50 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Investment style - value Industry focus10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% Only As Needed Annually Semi-annually Quarterly Monthly Daily ("Stockwatch") 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Average holding period Sell-side/broker referred 20% 30% 40% 50% 60% 70% 80% 90% 100% Investment style - growth Regional/Country focus P&I 61 Do 60 outsource Location (city/state) P&I you International assetsthe management of the IR section of the under management Theme focus (sustainability, commodities, blue-chip etc.) P&I 59a Peer ownership Investment income / P&I 60astyle - equitystyleIR department conduct the following? yield How often does the (value, GARP etc.) Investment Shareholder identification studies Investment size Investment style - GARP Targeting studies N=25 company's website, or is it managed by an internal department? What criteria does the IR department use to target itsInternal department assets under management investment audience? Depositary Receipt N=50 External/outsourced Other Industry focus Average holding period 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Which investor (mutual fund,stylefund etc.) specifically, does the IR department investment pension criteria, N=191 Type of Investment style other (Please use to target–newspecify) investors? Total assets under management 0% 10% Regional/Country focus Location (city/state) 0% 100% 0% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% Sell-side/broker referred 30% Peer ownership 40% 50% 60% 70% 80% 90% 100% kwatch") P&I 60 Theme focus (sustainability, commodities, blue-chip etc.) Other Perception studies Investment style - value What criteria does the IR department use to target International assets under management its investment audience? Investment style - growth N=50 Depositary Receipt assets under management Industry focus Do you outsource the management of the IR section of the Investment size company's website, or is it managed by an internal department? Total assets under management P&Iof61 (mutual fund, pension fund etc.) Type investor Investment style (value, GARP etc.) rtment 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Investment style - equity Average holding Other income / period yield Never Only As Needed Annually Semi-annually Quarterly Monthly Daily ("Stockwatch") Sell-side/broker referred0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Internal department Regional/Country focus Location (city/state) Investment style – other (Please ownership Peer specify) International External/outsourced assets under management Theme focus (sustainability, commodities, blue-chip etc.) Depositary Receipt assets under management Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% P&I 60ainvestor (mutual fund, pension fund etc.) Type of P&I investment style criteria, specifically, does the IR department Which61 Investment size 0% Investment style (value, GARP etc.) 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 100% useyou outsource investors? Do to target new the management of the IR section of the Total assets under management N=25 company's website, or is itfocus managed by an internal department? Regional/Country Investment style - GARP Internal department Location (city/state) International assets under management kwatch") Theme focus (sustainability, commodities, blue-chip etc.) External/outsourced Depositary Receipt assets under management Investment style - value P&I 61 30% 40% 50% 60% 70% 80% 90% 100% 90% 100% rtment 38 Investment style - growth 0% 10% 20% Other Do you outsource the management of the IR section of the company's website, or is it managed by an internal department? Internal department Investment style - equity income / 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other U.S. Institutional investors (buy-side) (sell-side) IO&A 22 Investor Outreach and Approaches to the Sell-side Retail investors Research analysts/equity sales 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 22 Continental Europe IO&A 23 Asia Pacific Latin 21 IO&A America U.S. U.K. IO&A IO&A 20 U.S. U.K. Continental Europe Institutional investors (buy-side) Research analysts/equity sales Asia Pacific (sell-side) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Middle East U.K. 1-30 Canada Continental Europe U.S. Other 31-80 Asia U.K. 0% Pacific Continental Europe 81-160 East Middle Asia Pacific IO&ACanada 23 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1-30 31-80 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 81-160 IO&A Middle Retail investors 22 East Canada Latin IO&A 20 America IO&A 21U.S. Other U.K. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 161-240 161-240 Latin America Latin America 241 or More IO&A 21 Other Canada None 1-30 Other 0% 10% 20% 30% 40% 50% 60% 70% 70% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 10% 20% 30% 40% 50% 60% U.S. 0% IRO CFO CEO 31-80 U.K. 81-160 Continental Europe Asia Pacific 161-240 80% 90% 100% 80% 90% 100% 241 or More East Middle None Continental Europe U.S. Institutional investors (buy-side) IO&A 22 IO&A 24 Asia U.K. Pacific Research analysts/equity sales (sell-side) Middle East Continental Europe Retail investors Asia Pacific Canada Latin America Latin America U.S. Middle East IR with senior management Other U.K. Canada 0% Continental Europe IR alone 10% Other Asia Pacific Senior management alone 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 23 IO&A 24 IO&A 9 IO&A 9 Latin America 241 or More IR with senior management Middle East 1-30 Canada None Yes IR alone 31-80 Other 0% 10% 20% 30% 40% 50% 60% Senior management alone No IRO 0% 10% 20% CFO 30% 40% 50%CEO 60% 81-160 Don't know 0% 10% 70% 70% 80% 80% 90% 100% Yes % 100% No 90% 100% 20% 10% 30% 40% 50% 60% 70% 80% 90% 100% Don't know 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 22 IO&A Canada 24 23 Latin America Middle East 0% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 23 161-240 IO&A 9 0% 241 or More 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Other U.S. IR with senior management 0% 10% U.K. 1-30 Continental Europe IR alone None 20% 30% 40% 50% 60% 70% 80% 90% 100% 1-30 Yes 0% IRO 31-80 No 81-160 10% 20% 30% CFO 40% 50% 60% CEO 70% 80% 90% 100% 31-80 Senior management alone Asia Pacific IO&A 24 81-160 Middle East 161-240Canada Latin America 241 or More management IR with senior Other None 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Don't know IO&A 9 161-240 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 241 or More Yes None IR alone 0% 10% 20% 20% 30% CFO 0% 10% 30% 40% 50% 60% 70% 70% 80% 80% 90% 100% 90% 100% Don't know 0% IO&A 9 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No 0% IRO 10% 20% 30% CFO 40% 50% 60% CEO 70% 80% 90% 100% % 100% 0% 10% Senior management alone IRO 40% 50% 60% CEO 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 24 IO&A 9 IR with senior management Yes Yes IR alone No No Senior management alone Don't know Don't know 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 39 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Over 25 percent Rarely 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Key operations executives CFO CEO/President No, we h funds an IO&A 27 IO&A 25percentage of your meetings are with hedge funds? What N=239 Outisde of IR, which of the following executives participate inLess than 5 percent company non-deal roadshows the majority of the time? introduce youa conflict with hedge funds? How much of to? Does your company meetof interest do you think brokers/equity sales 0% 10% 20% 30% 40% 50% 60% 70% 80% have in arranging non-deal roadshows N=239 their interest 90% 100% given CFO CEO/President in driving trade commissions? Good mixKeyterms of size and in operations executives Yes, we are currentlyinvestment style meeting with hedge funds IO&A 174 Never IO&A 26 you rate the quality of hedge funds that brokers 135 How would IO&A How wo up non-d 6-10 percent Always 11 - 15 percent Sometimes 25 percent 16 - IO&A 27 Little to no receive Don’t know / do not conflict enough information to judge Arranging IO&A N=239 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No, we have not met with hedge funds Some conflict but ARE considering it for the future or Too many small funds What percentage of your meetings are with hedge funds? aggressive / high-turnover funds How wou Providing ac introduce Significant conflict No, we have not met Less than 5 percent with hedge Over 25 percent Rarely 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% funds and ARE NOT considering it for the future w Good m Don't 6-10 percent know / not applicable 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&ANever 25 Outisde of IR, which of the following executives participate IO&A 135 in company non-deal roadshows the majority of the time? How much of a conflict of interest do you60% 70% 80% 90% sales think brokers/equity 100% 0% 10% 20% 30% 40% 50% have in arranging non-deal roadshows given their interest Key operations executives CFO CEO/President in driving trade commissions? Always Does your company meet with hedge funds? Sometimes What percentage of your meetings are with hedge funds? Some conflict N=239 Less than 5 percent hedge funds Significant conflict Rarely 6-10 percent Yes, we are currently meeting with IO&A 173 Does16 - 25 percent your company meet with hedge funds? How would you rate the value of brokers' contributions in setting Over 25 up non-deal Yes, we are percent meeting with IO&A currentlyroadshow meetings outside of your home market? 188 hedge funds IO&A 26 11 - 15 percent 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Don’t know / Providing makers you w To Ge aggressive Does your company publish a corporate social responsibility90% 100% report? 0% 10% 20% 30% 40% 50% 60% 70% 80% Arranging the meeting and travel No, we have not met with hedge funds logistices but ARE considering it for the future Yes Providing during IO&A Little 26 IO&A 27 to no conflict IO&A 174 How would you rate the quality of hedge funds that brokers IO&A 135 introduce you to? No, we have not met with hedge No Providing accessof a conflict to How much NOTinstitutions you of interest do N=239think brokers/equity sales you funds and would not considering ARE otherwise see it for the non-deal roadshows given their interest have in arrangingfuture Good mix in terms of size and No, but we plan to publish a style investment report in driving trade commissions? Don’t know / do not receive enough makers you would not otherwise see Little to no conflictjudge information to Too many small funds or Some conflict aggressive / high-turnover funds Significant conflict IO&A 1 How wou up non-d Don't know / not applicable No, we have not met with hedge funds but ARE considering it for the future 11 - 15 Never percent 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Providing access to key decision 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Arranging 16 25 percent funds and ARE NOT considering Does-your company meet30% 40% 50% 60% with hedge funds? 0% 10% 20% it for the future Key operations executives Over 25 percent 0% IO&A have not met with hedge 26 No, we 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 70% 80% 90% 100% Getting detailed feedback after meetings CFO 10% CEO/President 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Providing acc w Yes, we are IO&A currently meetingfunds 188 hedge with Providing input and perspective 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Don't know / not applicable during one-on-one Does your IO&A 27 company publish a corporate social responsibility report? IO&A 174 meetings No, we have not met with hedge funds but ARE considering it for the future Yes 20% 30% 40% 50% 60% 70% 80% 90% 100% Providing makers you w What percentage of your meetings are with hedge funds? N=239 100% IO&A 135 Less than 5 percent 0% 10% 20% 30% 40% 50% 60% 70% 80% How would you rate the quality of hedge funds that brokers 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% introduce you to? IO&A 173 1 - Very Little 2 3 4 How would you rate the value of brokers' contributions in 5-Significant setting Good mix in terms of size and up non-deal investment stylemeetings outside of your home market? roadshow How much not metconflictNo interest do you think brokers/equity sales of a with hedge of No, we have funds arranging non-deal roadshows given their interest have inand ARE NOT considering 6-10 percent it for the future in driving trade IO&A 174 commissions? No, but we plan to publish a report 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% N=239 Get IO&A 188 How - 15 percent rate the quality of hedge funds that brokers 11 would you Little to no conflict 0% 10% 20% 30% 40% 50% 60% 70% 80% introduce you to? 16 - 25 percent Some conflict Good mix in terms of size and investment style Over 25 percent Significant conflict Don’t know / do not receive enough 0% 10% information to judge 20% Don't know / not applicable 30% 40% N=239 Don’t know / do not receive enough Does your company publish information to judge Arranging the meeting and travel logistices a corporate social responsibility report? Providing during 90% 100% Too many small funds or Yes aggressive / high-turnover funds Providing access to institutions you would not otherwise see No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100% 50% 60% 70% 80% 90% 100% No, but we plan to publish a report Providing access to key decision makers you would not otherwise see IO&AToo/many small funds or 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 174 aggressive high-turnover funds 0% IO&A 135 rate the quality of hedge 40% 50% 60%brokers 90% 100% How would you 0% 10% 20% 30% funds that 70% 80% IO&A 188investment style IO&A 173 introduce youa conflict of interest do you think brokers/equity sales How much of to? N=239 have in arranging non-deal roadshows given their interest Good mix in terms of size and in driving trade commissions? Does Little to company publish your no receive Don’t know / do not conflict enough information to judge 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 173 Getting feedback IO&A 137you rate the value of brokers' contributions in setting How would detailed meetings after up non-deal roadshow meetings outside of your home market? Providing input and perspective Arranging the meeting and travel during one-on-one meetings logistices Yes 0% Providing access to institutions you would not otherwise see 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2 3 4 5-Significant IO&A % 100% a corporate social responsibility report? Incr sales Some conflict Yes How would you rate the value of brokers' contributions in setting Too many small funds or aggressive / high-turnover funds up non-deal roadshow meetings outside of your home market? Significant conflict No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No Remain the s 1 - Very Little 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Decr % 100% Arranging the meeting and travel Don't know / notto publish a report No, but we plan applicable logistices Providing access to key decision makers you would not otherwise see 40 0% 10% 10% 20% 30% 40% 50% 60% 70% 80%90% 100% 0% 20% 30% 40% 50% 60% 70% 80% 90% 100% Getting IO&A 28detailed feedback IO&A would not otherwise see 173 Providing access to institutions you IO&A IO&A 28 Yes IO&A 28 IO&A 29 Increase Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A IO&A 137 IO&A 138 No Sell-side/broker-run roadshows 0% Yes 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Conferences/investor one-on-one meetings Increase Internal company IR team IO&A 138 IO&A 30 roadshows Sell-side/broker-run Remain the same Sell-side/broker-run roadshows Conferences/investor Decrease one-on-one meetings More than 20 Depositary bank Increase 0% 10% Internal company IR team Conferences/investor one-on-one meetings 16-20 Remain the same 40% 50% 60% 70% 80% 90% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A Sell-side/bro Co More than 2 on No IO&A 28 100% Decrease Remain the same IR consultant/IR firm 0% 10% 20% 30% IO&A 29 Internal company IR team IR consultant/IR firm 11-15 Interna 16-2 Depositary bank 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Decrease IR consultant/IR firm 6-10 Depositary bank 0% 1-5 10% 20% Other Other 0% 30% 40% 50% 60% 70% 80% 90% 100% IR 11-1 6-1 IO&A 28 IO&A 29 Conferences/investor one-on-one meetings Internal company IR team IO&A 30 Other Sell-side/broker-run roadshows 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1- IO&A 29 Sell-side/broker-run roadshows 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Decrease Maintain the Same Increase 0 Depositary bank 20% 0% 10% 30% 40% 50% 60% 70% 80% 90% 100% Sell-side/broker-run roadshows IR consultant/IR firm Sell-side/broker-run roadshows Conferences/investor one-on-one meetings More than 20 Depositary bank Depositary bank Internal company IR team 16-20 Conferences/investor one-on-one meetings Increase Other IR 11-15 consultant/IR firm Internal company IR team Remain the same 6-10 IR consultant/IRbank Depositary firm 100% Decrease IO&A 1-5 30 0 More than 20 0% Other Other 10% 20% 40% 50% 60% 70% 80% 10%0% 20% 30% 30% 40% 50% 60% 70% 80% 90% 100% 100% 0% 10% 20% Maintain the 50% 60% Increase 30% 40% Same 70% 80% 90% 100% Decrease 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 138 IO&A 30 IO&A 31 Internal company IO&A 204 IR team Sell-side/broker-run roadshows Conferences/investor one-on-one meetings More than IR consultant/IR firm 20 Depositary bank More Conferences/investor than 20 Other 16-20 one-on-one meetings Yes 16-20 Internal company IR team 11-15 No, I have too few 11-15 IR 6-10 consultant/IR firm No, I have too many 6-10 Other 1-5 0% 1-5 0 0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 3 IO&A 3 More than 20 Yes 16-20 No Decrease Maintain the Same Increase 11-15 0% 6-10 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Decrease Maintain the Same 40% 40% 50% 50% 60% 60% Increase 70% 70% 80% 80% 90% 90% 100% 100% IO&A 31 1-5 0 % 100% 0% 0% 10% 10% 20% 20% 30% 30% IO&A 29 16-20 IO&A 30 IO&A 31 IO&A11-15 204 IO&A 31 IO&A 204 16-20 IO&A 32 11-15 More than 20 6-10 Yes More than 20 IO&A 3 More than 20 6-10 Sell-side/broker-run roadshows 16-20 More than 20 1-5 Yes Depositary bank 16-20 Conferences/investor No,11-15 too few I have 0 one-on-one meetings 11-15 6-10 0% 10% No,Internal company IR team I have too many 20% 30% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 100% Yes Yes No No, No I have too few 11-15 0 0% 10% No, I have too many 6-10 1-5 0 0% 0% 20% 10% 0% 30% 20% 10% 40% 30% 20% 50% 40% 60% 60% 60% 70% 70% 70% 80% 80% 80% 90% 90% 100% 100% 16-20 1-5 50% 50% 6-10 consultant/IR firm 10% 1-5 0% IR 30% 40% 90% 100% 20% 30% 40% 90% 100% IO&A 204 1-5 0 0 0% 0% Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20% Decrease Maintain the Same Increase 30% 40% 50% 60% 70% 80% 90% 100% IO&A 32 0% Yes 10% 10% Yes 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100% 0% 100% IO&A 204 No, I have too few IO&A 32 IO&A 31 No, I have too many Yes No IO&A 32 0% Yes 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No No More have too few No, I than 20 0% 20% 0% 30% 10% 20% 40% 30% 50% 40% 60% 50% 70% 60% 80% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 16-20 0% 10% No, I have too many 11-15 100% 6-10 1-5 90% 100% 41 Increased 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes 0 Remained the same Increased Yes No IO&A 33 Remained the same Decreased Yes 0% No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&ADecreased 36 190 No 0% Yes Don't know Increased 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 3 Don't know 0 Yes 0% No Remained the same 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No IO&A 36 IO&A 3 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% IO&A 33 IO&A 36 IO&A 190 IO&A 175 Increased YesYes No Remained the same No IO&A 190 IO&A 37 0% Yes IO&A 38 Yes IO&A 35 No Company Decreased 0% 10% Yes No Increased 0% 10% Decreased 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No 0% 10% Remained the same 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increased Decreased Remained the same 20% 10% 30% 20% 40% 30% 50% 40% 60% 50% 60% 70% 70% 80% 80% 90% 90% 100% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 38 No Don't know Investors/analysts0% IO&A 190 IO&A 175 Decreased IO&A 38 IO&A 35 Increased Company Increased Investors/analysts IO&A the same Remained 36 100% Decreased No Decreased Both Yes Don't know 100% Remained the same Yes IO&A 35 0% Both Company 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 90% 100% 0% 80% 90% 100% Investors/analysts Yes IO&A 37 No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Don't know Yes 0% No Both 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % No 0% IO&A 35 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% IO&A 36 IO&A 37 Yes IO&ANo 38 Yes No Don't know No 100% 100% 0% Company 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes IO&A 37 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Investors/analysts Both IO&A 37 IO&A 38 0% Yes 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Company No Investors/analysts 100% 0% 10% Both 20% 30% 40% 50% 60% 70% 80% 90% 100% 42 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not at all he Does your company 0% 10% 20% have an: Internal media department 30% 40% 50% 60% 70% 80% 90% 100% Communications and Disclosure How are the internal Investor Relations and internal Both of the above media departments structured? C&DSS 43 firm External media relations N=243 C&DSS 43 Yes C&DSS internal Investor Relations and internal How are the44a C&DSS 45 you found your external Media Relations firm media departments How helpful have structured? 0% 10% Does your company20% 30% 40% 50% 60% 70% program have a proactive media relations 80% 90% outside your home market? 100% C&DS How hel C&DSS in gettin C&DSS 41 of the above None N=203 C&DSS 42 Don't know Somewhat helpful Who is responsible for writing the earnings reports/earnings in getting your company media exposure? N=130 Separate with their own press releases? directors No N=203 Who is re Very h of the an 100% Separate with their own directors Does your company have an: 0% Internal media departmentdirector Integrated with one 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very helpful Does your company have a proactive media relations program 0% 20% 30% 40% 50% 60% 70% 80% 90% Integrated with 10%director one outside your IR team market? home N=243 Other 0% Somewhat h C&DSS 43 External media relations firm Other 80% 90% 100% How Both of the above are the internal Investor Relations 40% 50% 60% 70% 0% 10% 20% 30% and internal media departments structured? None of the above Separate with their own directors 0% 10% N=203 No Media team/corporate How communications helpful have Don't know C&DSS 44a Not too helpful Yes Senior management Media team/ Not too h commu 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% you found your external Media Relations firm in getting your company media exposure? Not at all helpful N=130 IR consulting firm 0% 0% Very helpful10% 10% 20% 0% 20% 30% 10% 30% 40% 40% 50% 60% 70% 80% 90%100% 100% 50% 60% 70% 80% 90% 40% 50% 60% 70% 80% 90% 100% Not at all h Senior man IR consu 20% 30% C&DSS 41 20% 30% 40% 50% 60% 70% 80% 90% 100% C&DSS 42 C&DSS C&DSS 4345 have a proactive media relations program Does your company Internal media department Other Integrated with one director Does your company have an: media departments External media relations firm Yes Who your home market? responsible for writing the earnings reports/earnings outside isthe internal Investor Relations and internal How are press releases? 0% 10% 30% structured? 20% N=243 40% 50% 60% 70% 80% 90% N=203 IR team Both of own directors Separate with theirthe above No None of the above Integrated with one director Senior management Don't know 0% 100% C&DSS 45 have a proactive media relations program Does yourhelpful Somewhat company Who your 46 C&DSS home outside is responsible for writing the earnings reports/earnings C&DSS 44a market? N=243 press releases? Who too helpful HowNot is responsible for writing the non-financial content firm helpful have C&DSS 47a you found your external Media Relations Yes annual reports? in of theyour company advertiseexposure? getting Does your company media in the financial media? IR team Not at all helpful No IR team Very helpful Yes 0% Senior management Don't know N=130 10% 20% 30% 40% 50% 60% 70% 80% C&DSS 42 C&DS C&DSS Who is r of the an How ofte 100% 90% Monthl Media team/ comm % 100% C&DSS 45 Other 30% 40% 50% 60% 70% 80% 90% 100% Media team/corporate 20% 0% 10% communications Who is responsible for writing the earnings reports/earnings C&DSS 42 0% 50% 60% press releases? C&DSS consulting firm have a10% 20% 30% 40% relations70% 80% 90% 100% 43 Does your company proactive media program IR outside your internal Investor Relations and internal How are the44a market? C&DSS home N=243 IR team structured? media departments0% 10% 20% 30% 40% 50% 60% 70% 80% 90% How helpful have you found your external Media Relations firm N=203 Yes in getting your company media exposure? N=130 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Media team/corporate Somewhat helpful communications 0% 10% No Media team/corporate 20% communications 30% 40% 50% 60% 70% 80% 90% 100% C&DSS 46 Quarterl Senior ma for writing the non-financial content of the annual reports? C&DSS 44a Not at all consulting firm IR helpful Senior management Not too helpful 0% 10% 20% Who is responsible IR consulting firm 30% 40% 50% 60% 70% 80% 90% 100% Semi-annuall IR cons 100% 0% 10% 20% 30% 40% 50% How helpful have you found your external Media60% 70% 80% 90% 100% Relations firm IR team 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% in getting your company media exposure? 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% N=130 Annuall Neve C&DSS 45 Very helpful C&DSS 47a Integrated with one director Separate with their own directors Senior management No C&DSS 47a C&DSS 46 Does your 47b C&DSS company advertise in the financial media? Media team/corporate Very helpful communications Somewhat helpful Senior management Who is responsible C&DS Othe How ofte % 100% Somewhat helpful 0% 10% Other 20% 30% 40% 50% 60% 70% 80% 90% 100% IR consulting firm Yes IR team 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Not too helpful 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No C&DSS 44a Senior management Not at all helpful Media responsible Who isteam/corporate writing the Don't knowcommunications foradvertise in earnings reports/earnings Does your company the financial media? press releases? for writing the non-financial content How often does your company advertise in the financial media? of Yes annual reports? the Not too helpful IR consulting firm Monthly IR team No 0% Not at all helpful Quarterly Media team/corporate 0% 10% 20% communications 0% 10% Semi-annually C&DSS 47b Senior management Monthl 10% 20% 30% 40% 50% 60% 70% 70% 70% 80% 90% 100% Quarterl % 100% How helpful10% you found your external Media Relations firm have 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% in getting your company media exposure? 60% 70% 80% 90% 100% Media team/corporate 0% C&DSS 47a10% 20% 30% 40% 50% communications 30% 40% 50% 60% 20% 30% 40% 50% 60% 80% 90% 100% 80% 90% 100% Semi-annuall Does your C&DSS 45company advertise in the financial media? Who is responsible for writing the earnings reports/earnings C&DSS 46 Yes press releases? 0% 10% 20% 30% 40% 50% 60% 70% Somewhat Who is helpful responsible for writing the non-financial content 80% of the annual reports? No IR team Not too helpful 20% 30% 40% 50% 60% 70% 80% 90% 100% Very helpful IR consulting firm N=130 Annuall How often does C&DSS 46 your company advertise in the financial media? Who is responsible for writing the non-financial content of the Monthly reports? annual Never 0% 10% 20% 30% 40% 50% 60% 70% Quarterlyteam IR Other 90% 100% Annually IR consulting firm Neve 90% 100% 80% Othe % 100% team 0% 10% C&DSSIR47a Senior management Not at all helpful Media team/corporate 0% Mediacommunications team/corporate communications Yes Senior management IR consulting firm No IR consulting firm C&DSS 47b Semi-annually Media team/corporate 0% communications Annually Senior management Monthly Never IR consulting firm Quarterly 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Does your company advertise in the financial media? 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% How often does your company advertise in the financial media? C&DSS 46 % 100% 0% 10% 20% 30% 40% 50% 60% 70% Who is responsible for writing the non-financial content80% 90% 0% 10% 20% of the annual reports? 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 100% 100% Other Semi-annually 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C&DSS IR team 47a Does your 47b C&DSS company advertise in the financial media? Media team/corporate How often does your company advertise in the financial media? Yes Senior management communications Annually C&DSS 47b How often does your company advertise in the financial media? Never Monthly Other 43 Yes Yes Very helpful Monthly Othe Monthl No No Somewhat helpful No Quarterly 0% 50 10% Not too helpful C&DSS 139 Semi-annually 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterl C&DSS 0% 48 0% Putting aside the advertising your company does to promote the corporate brand, does your company advertise for the specific purpose of reaching investors? Yes 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 100% Semi-annuall C&DSS Does your have you host earnings calls? How helpful company found advertising as a vehicle for Not at all helpful reaching investors? Annually Yes Very helpful Other No 0% 10% 20% 30% 40% N=34 50% 60% 70% 80% 90% 100% How freq Annuall conferen Othe Quarterl C&DSS 49 No How does your company give earnings guidance? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Somewhat helpful0% C&DSS 149 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100% Semi-annuall 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% How frequently does your company give earnings guidance? Not too helpful C&DSS 50 C&DSS 51 Monthly C&DSS 139 Does your company host earnings calls? N=156 e C&DSS Yes C&DSS 48 50 C&DSS 139advertising your company Does your the Putting asidecompany host earnings calls? does to promote the How helpful have you your advertising as a vehicle corporate brand, does foundcompany advertise for the specific No for reaching investors? purpose of reaching investors? Yes N=34 0% Yes Very helpful No No Somewhat helpful 0% 10% 20% 30% 40% 50% 60% 70% 80% C&DSS Not at allfrequently does senior management How helpful How helpful have you found advertising as a(CEO/CFO) host earnings vehicle conference calls for the for reaching investors? investment community? Yes Quarterly 0% 10% 20% 30% 40% N=220 50% 60% N=34 70% 80% 90% 100% How freq conferen Annuall Other Quarter C&DSS 49 90% 100% C&DSS 149 How frequently Somewhat helpful 10%does your company Annually 0% 20% 30% 40% Semi-annually Quarterly Very helpful Semi-annually No How does your company give earnings guidance? 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 100% 10% Yes 0% Not too helpful C&DSS 52 give earnings70% 80% guidance? 50% 60% N=156 90% 100% C&DSS Semi-annual 100% C&DSS 139 N=34 40% 50% 60% 70% 80% 30% 40% 50% 60% 70% 80% Does the IR department have a written disclosure policy Monthly Not too helpful Other (i.e., written procedures of what information the company is required Annually to release and how and when to release the information)? NotQuarterly at all helpful 0% Other Yes 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Does the Annual communi e How helpful have you found advertising as a vehicle No Not at all helpful for reaching investors? 0% C&DSS 50 Very helpful 0% 10% 20% 10% 30% 20% 90% 90% 100% 100% Othe Yes 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 100% 100% No Semi-annually C&DSS0% 10% 51 0% 90% 100% No How frequently C&DSS 149 does senior management (CEO/CFO) host earnings Annually C&DSS 49 conference calls for the investment community? C&DSS 52 C&DSS 149 Somewhat helpful N=220 How frequently does your company give earnings guidance? C&DSS 53 How does your company give earnings guidance? C&DSS 52 Yes frequently does your company give earnings guidance? Does the IR department have a written disclosure policy How N=156 Don't Other know Does the IR department have a written disclosure policy Doeswrittendepartment have a written crisis or transactionalrequired N=156 (i.e., the IR procedures of what information the company is Quarterly Not too helpful Monthly Yes(i.e., written procedures of what information the company is required communications policy?when to release the information)? to release and how20% 30% 40% 50% 60% 70% 80% 90% 100% and 0% 10% Monthly No 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% to release and how and when to release the information)? Does your company host earnings calls? C&DSS Don't know Does the commun Yes C&DSS 500% 100% No C&DSS 149 Not at all helpful No 0% Quarterly Yes 10% 20% 10% 30% 20% 40% 30% 40% 50% 50% 60% 60% 70% 70% 70% 80% 80% 80% 90% 90% 90% 100% 100% Semi-annually Quarterly Yes Yes 100% C&DSS 51 Semi-annually Annually How frequently No No Annually Other Don't know Don't know Quarterly Other 0% 10% 20% 30% 40% 50% 60% Does your Semi-annually company host earnings calls? does senior management (CEO/CFO) host earnings conference calls for the investment community? N=220 No Annually How frequently does your company give earnings guidance? Don't know No Other Monthly 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 100% 0% 0% 10% 10% 20%20%30% 100% Quarterly N=156 Yes Don't know 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 10% 20% 20% 30% 30% 40% 50% 40% 50% 60% 70% 80% 90% 100% 60% 70% 0% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Semi-annually 0% C&DSS 52 100% C&DSS 53 How frequently does senior management (CEO/CFO) host earnings conference calls for the investment community? Other Yes N=220 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Quarterly No Does the IR department have a written disclosure policy Does the IR department have a written crisis or transactional Annually C&DSS 50 procedures of what information the company is required C&DSS 51 policy? (i.e., written communications Semi-annually C&DSS 51 to your company host when to release Doesrelease and how andearnings calls? the information)? How frequently does senior management (CEO/CFO) host earnings Annually conference calls for the investment community? Yes Yes Other Quarterly No N=220 C&DSS 52 0% Semi-annually 10% 100% No 0% 10% 20% 20% 30% 40% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 100% C&DSS 53 Semi-annually Don't know Does the IR department have a written crisis or transactional communications policy? Annually Yes Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Does the IR department have a written disclosure policy Don't know (i.e., written procedures of what information the company is required C&DSSand how and when to release the information)? to release 51 How conference calls for the investment community? Yes Other Quarterly No 0% Semi-annually C&DSS 52 Don't know C&DSS 53 N=220 Annually 0% 10% frequently does 20% 30% 40% 50% 60% 70% 80% 90% senior management (CEO/CFO) host earnings100% 30% 40% 50% No 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 100% Don't know C&DSS 53 Does 44 the IR department have a written disclosure policy 0% 10% 20% 30% 40% 50% 60% 70% Doeswrittendepartment have a written crisis or transactionalrequired (i.e., the IR procedures of what information the company is Annually 80% 90% 100% Does the IR department have a written crisis or transactional 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% communications policy? 100% B&G 54 What are your top three goals for the IR function/program for 2008/2009? Ensure Goals andeffective disclosure Benchmarking Be part of strategic decision making Diversification B&G 54 of shareholder base Maintenance of shareholder What are your top base three goals for the IR function/program Coordinate IR/PR message for 2008/2009? Ensure management visibility/ accessibility Ensure effective disclosure Increase research coverage Be part of strategic decision making Increase number of international shareholders Diversification of shareholder base Advise the Board Maintenance of shareholder base Analyze capital market trends Coordinate IR/PR message Grow DR program (non U.S. companies only) Ensure management visibility/ accessibility Build retail shareholder base Increase research coverage Increase number of international shareholders Advise the Board Analyze capital B&G 66 market trends B&G 55 Build retail shareholder base What are the three most important measures your company uses to measure the effectiveness of the IR deparment? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% B&G 66 use of senior Effective B&G 55 B&G 1 management's time In which of the following IR organizations do you participate? Number of 1-to-1 meetings with the investment community Influence of IR insights on In your o informat Investor What NationalBoard decisionsmost important measures your company uses are the three management and Relations Institute (NIRI) to measure the effectiveness of the IR deparment? Relative valuation/stock price Effective use of senior Home country IR management's time Perception study (“formal”) organization feedback Number of 1-to-1 meetings with the investment community New investor targeting effectiveness Influence of IR insights on Other management and Board decisions Shareholder composition Relative valuation/stock price Number of analysts covering the stock Conferenc semin Profession organizatio Publicatio Peer activ network Consulting fir 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Perception study (“formal”) feedback None 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Ot New investor targeting0% effectiveness 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% B&G 151 Shareholder composition In your opinion, which mediums are most effective for finding Number of analysts covering the information onstock trends? IR 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% In which of the following IR organizations do you participate? Build retail shareholder base Grow DR program (non U.S. companies only) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% National Investor Relations Institute (NIRI) B&G 55 B&G 66 the three most important measures your company uses What are country IR Home organization to measure the effectiveness of the IR deparment? In which of the following IR organizations do you participate? Effective use of senior management's time Conferences/ seminars Professional B&G 151 organizations In your opinion, which mediums are most effective for finding Publications information on IR trends? Peer activity Conferences/ networking seminars Consulting firms Professional organizations Other Publications Other National Investor Relations Institute (NIRI) Number of 1-to-1 meetings with the investment community Influence of IR insights on Home countryNone IR management and Board decisions organization Relative valuation/stock price 0% Perception study (“formal”) Other feedback New investor targeting effectiveness 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Peer activity networking Consulting firms 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% None Shareholder composition Other Number of analysts covering 0% the stock 10% 20% 30% 10% 20% 30% 40% 40% 50% 60% 50% 60% 70% 80% 70% 80% 90% 100% 0% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % 100% 0% B&G 151 In your opinion, which mediums are most effective for finding information on IR trends? Conferences/ seminars Professional organizations Publications Peer activity networking Consulting firms Other % 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 45 Our Global Investor Relations Advisory Team James T. Green Global Head of Global Capital Markets +44 207 964 6080 james.t.green@bnymellon.com Jason Paltrowitz NY Head of Global Capital Markets +1 212 815 2077 jason.paltrowitz@bnymellon.com Alexis Vasquez Meissner London, Hong Kong Head of Global Capital Markets +44 207 964 6535 alexis.vasquez@bnymellon.com Guy Gresham NY Team Leader GIRA & Asia Pacific Specialist +1 212 815 4693 guy.gresham@bnymellon.com Lauren Puffer GIRA, Latin America Specialist +1 212 815 5822 lauren.puffer@bnymellon.com Katya Rybka GIRA, Global Support Analyst +1 212 815 2051 kateryna.rybka@bnymellon.com Herston Powers GIRA, Global Support Analyst +1 212 815 2557 herston.powers@bnymellon.com Michael Chojnacki GIRA Specialist - London +44 207 964 6241 michael.chojnakci@bnymellon.com Marianna Dimentman GIRA, Western Europe Specialist +1 212 815 3938 marianna.dimentman@bnymellon.com Tanya Amaya Team Leader IIA +1 212 815 2892 tanya.amaya@bnymellon.com Nadja Schliebener London Team Leader GIRA +44 207 964 6358 Nadja.Schliebener@bnymellon.com Michael Ludwig Team Leader FIA +1 212 815 2213 michael.ludwig@bnymellon.com Joseph Oakenfold FIA Specialist - 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