global trends in investor relations a survey analysis … · 2016-02-10 · introductions via the...

A SURVEY ANALYSISOF IR PRACTICESIN WESTERN EUROPE2015

GLOBAL TRENDS IN INVESTOR RELATIONS

BNY MELLON2

BNY MELLON 1

02 Key Findings04 Interaction with Investment Community12 Investor Targeting13 Interaction with the Sell Side15 IR Strategy and Priorities17 IR Team Profile20 IR Services22 Corporate Governance and

Board of Director Involvement27 Environmental, Social and Governance (ESG)29 Outreach Channels31 Company Policies33 Global Capital Markets34 Market Confidence35 Methodology37 Contacts

Contents

BNY MELLON2

INVESTOR OUTREACHIn 2015, the top five non-deal roadshow (NDR) destinations for Western European companies remain largely the same as in 2013 (London 6.8 days, NYC area 3.4 days, Paris 1.8 days, Frankfurt 1.7 days and Boston 1.6 days).¹ Frankfurt has grown in importance, making this top five list for the first time, but time spent across all other destinations has declined noticeably (15.3 days vs. 18.9 in 2013). The New York City area has seen the largest decline (32% down from 2013), although it remains in second place, with Paris and Boston each down by 25%. Germany appears to be gaining in importance beyond NDRs in Frankfurt, with two-thirds of Western European companies naming it among top three capital markets, up from 54% in 2013.

Looking at Western European C-suite (CEOs and CFOs) allocation of their time devoted to IR activities, with both CEOs and CFOs in Western Europe focusing more time on meeting existing and prospective institutional investors than peers in North American and globally. These Western European CEOs spent 75% of their time with this category of investor, compared to 70% by CEOs in North America and 62% globally, while Western European CFOs spent 78% of their time with these investors compared to 66% in North America and 60% globally. As a result, Western European C-suite officers held significantly more meetings in 2015 than the averages for the C-suites of North American companies and companies globally: 59 and 94.7 meetings for Western European CEOs and CFOs respectively compared to 50.3 and 89.2 meetings respectively for North American C-suite officers, and 39.3 and 72.3 meetings respectively, globally.

Western European Investor Relations Officers (IROs) also hold a significantly larger number of meetings (219.8) than their peers in North America and globally (170.7 each). This is particularly interesting as the time allocated to institutional investors by Western European IROs (61%) was lower or the same as that of IROs in North America and globally (68% and 61% respectively).

Not surprisingly, fewer Western European companies than the global average want to increase interaction with investors overall

and across investor segments and slightly more than the global average would even prefer to decrease this interaction. Western European companies are also least likely to want to increase the number of NDRs in North America: 40% plan an increase compared to 48% in North America and 42% globally. However, Emerging Europe and the Middle East appear to be more appealing to the Western European companies than to companies in North America and globally: 9.9% would like to increase NDRs in Emerging Europe and 13% in the Middle East, compared to 3% and 2% respectively for North America and 6% and 10% respectively for companies globally.

Beyond NDRs and one-on-one meetings, two-thirds of Western European companies have held analyst/investor days in 2015 (44% in North America and 59% globally). While open to holding analyst/investor days, fewer companies in Western Europe than in North America and globally organize Headquarter visits (63% vs. 94% and 78% respectively) and offsite location visits (45% vs. 67% and 61% respectively). With more than three-quarters of companies reporting Video conferencing as a way of engaging with investors, Western Europe is ahead of the curve (26% and 41% for North America and companies globally respectively).

Nearly three-quarters of Western European companies report engaging with at least one SWF (54% in North America and 64% globally) in the past 12 months. The SWFs Western European companies engaged with the most were Norges Bank Investment Management of Norway (63%), Government of Singapore Investment Corporation (51%), Temasek Holdings, Singapore (33%) and Abu Dhabi Investment Authority (31%), unchanged from 2013.

ENGAGEMENT WITH THE SELL SIDEWhile an overwhelming majority (nearly 80%) of Western European IROs feel the sell side provides a fair view of their companies’ short-term prospects, fewer than half feel that this holds true for long-term outlook. In this context, perhaps surprisingly, the IR-dedicated time both C-suite and IROs dedicate to interaction with the sell side is noticeably

lower in Western Europe (8% of CEOs’ IR-dedicated time, 12% of such time for CFOs and 27% for IROs) than the time allocated to this by their North American peers (21% of the time of CEOs and CFOs and 28% of IROs time) and the global averages (15%, 18% and 26% respectively). The IR program goal to Increase research coverage is also notably further down the IR priority list for Western European companies than for their peers — only 21% identified it as a priority, slightly up from 20% in 2013 — compared to 32% in North America (up from 26% in 2013) and 32% globally (up from 28% in 2013).

USE OF BROKERSThe importance of sell-side/broker-run roadshows is unquestionable for Western European companies — an overwhelming majority, 97%, report this to be the single most important means of introductions to investment professionals. Investor conferences are second most important for the majority (66%), which is somewhat lower than their importance for North America companies (76%) and globally (75%). Interestingly, less than half of Western European companies (45%) generate investor introductions via the Internal investor relations department (compared to 58% in North American companies and 50% globally).

Western European companies use brokers for running NDRs (94%), a higher percentage than both North America or companies globally (88% and 76%) and an increase from 2013 (89%).

Whilst the top five broker selection criteria used by Western European companies correspond to those globally (Quality of broker’s investor targeting, Geographical presence, Corporate access team, Insight on investor demand and Quality of formal post-meeting feedback), Western European companies chose these criteria at a higher rate. Interestingly, less than one-third of Western European companies (27%) see the broker’s Research recommendation as a factor to be considered for selection (48% in North America and 40% globally).

Companies in Western Europe were invited to more conferences in the past 12 months than companies globally; 51% were invited to 20 or

Key Findings

Note: Capitalized terms correspond to the categories selected by Survey respondents.¹ Note: Year-on-year comparisons for Western European companies use the BNY Mellon Global Trends in Investor Relations; A Survey Analysis of IR Practices in Western Europe 2013 report, August 2014, http://www.globalirsurvey.com/pdfs/IR_Survey_2013_Western_Europe_FINAL_APPROVED_ELECTRONIC.pdf [Accessed October 2, 2015].

BNY MELLON 3

more conferences, while globally 36% received as many invitations. The most Western European companies (27%) participated in 6–9 conferences, slightly higher but generally in line with to the number of conferences attend by the most North American (23%) and companies globally (24%).

PRIORITIESWhile Western European companies’ top three IR priorities remain unchanged from 2013 and in line with those globally — Expand or enhance engagement with existing shareholders, Increase international shareholder ownership and Diversify shareholder base (48%, 46%, 36% of companies respectively) — the number of Western European companies identifying these as priorities dropped significantly from 2013 (57%, 59%, 46%, respectively). It is interesting to note that the goals to Raise IR profile within organization (31% for Western Europe and 24% globally) and More interaction with the board (10% and 8%), although remaining further down the list, have each gained in importance since 2013 when they were chosen by 15% and 3% respectively in Western Europe and 17% and 5% globally.

Interestingly, in 2015 the importance of the quantitative metrics Stock price and Relative valuation of stock used to measure the performance of investor relations teams (31% and 21% respectively) increased over 2013, reversing the trend we have observed over the last five years.1 It is worth noting that Stock price continues to be used as a performance metric by fewer companies in Western Europe (31%) than in North America (45%) or globally (41%).

IR TEAM AND ENGAGEMENT WITH SENIOR MANAGEMENTIR teams in Western Europe are noticeably large, averaging 4.1 people vs. 2.5 in North American companies and 3.2 globally, with both more professionals and support staff on board. They are also usually led by seasoned IROs (11.2 years’ experience on average, 11.3 in North America and 9.5 years globally).

IROs generally report to CFOs (69%, 79% in North America and 64% globally). Their

interaction with their CFO and CEO is frequent (66% and 56% respectively on a daily or weekly basis and 19% each on an as-needed basis), which is similar to North America and IROs in companies globally. Interaction with their Board of Directors (BOD) appears to be slightly less common, particularly when compared to North America (9% of Western European IROs never interact with their BOD compared to 3% in North America and 8% globally), and when it does occur, it occurs less frequently than for North American companies (weekly, monthly and quarterly interaction for Western Europe was 3%, 30% and 28% respectively and for North America 6%, 15% and 56% respectively).

IR messaging strategy, Conference participation and Investor event coordination are the top three functions that Western European companies deal with internally, whereas Surveillance/Shareholder ID, NDRs and Perception studies are the top three functions outsourced to external providers. Although running NDRs made it to the top three of functions outsourced, the majority of Western European companies (51%) take care of this task in-house. Interestingly, an overwhelming majority of Western European companies handle Annual report production in-house (72% vs. 45% in North America and 55% globally). The top three functions Western European companies said were outside the IR remit were Financial media advertising (66%), Media relations (43%) and Proxy solicitation (40%).

Surprisingly, a relatively low number of Western European IROs attend and present to Board of Director meetings; 13% attend and present frequently, 25% attend and present sometimes, with the total of these categories being 38% vs. the 47% total for North American IROs and 49% total for IROs globally). This is also a significant drop from the total attending and presenting to their Board of Directors in 2013 (49%). In addition, more than half of IROs (54%) do not attend BOD meetings at all — compared to 45% in North American companies and 44% globally.

BOARD OF DIRECTOR MEMBER ENGAGEMENT WITH INVESTORSThere has been a noticeable increase in the

number of Western European companies arranging investor meetings involving Board of Director members since in 2013: 55% of companies in 2015 vs. 30%, 26% in North America and 49% globally in 2013. Standard company policy is cited as the reason for these meetings by the majority of companies (51%). Western Europe stands out in that more than two-thirds of companies (68%) involve the lead BOD/Chairman in such meetings (which 59% of North American companies report and only 38% of companies globally), and half of the meetings involving BOD members (vs. 88% in North America and 61% globally) are attended by the IRO. Company strategy and, to a lesser degree, management performance are the main topics addressed during such meetings. Interestingly, only one-quarter of companies report ESG among the subjects discussed (18% reported by North American companies, 28% globally), which is particularly interesting considering that in 2013 nearly half of Western European companies reported this topic was discussed in these meetings.

CORPORATE GOVERNANCE AND ESGNearly half of Western European companies (46%) reported not having in place a strategy to regularly communicate Corporate Governance issues to key investors; surprisingly, this is notably more than 30% in North America and 33% globally. Insufficient interest from investors was named as the main reason for this.

Key corporate governance issues discussed with investors are Remuneration (92%), Board Composition (77%), and Transparency and Disclosure (69%). Remuneration remains by far more important for Western Europeans (92%) than in North America or globally (67% and 60% respectively).

Although ESG appears to come up in a fewer number of meetings than in 2013, this topic continues to be important for the region: nearly half of Western European companies (47%) reach out to ESG investors, compared to 14% in North America and 30% globally. The majority (58%) also monitor their ESG ratings, with most doing so regularly, and more than one-quarter proactively engaging with ratings institutions.

¹ BNY Mellon Global Trends in Investor Relations 2103: A Survey Analysis of IR Practices Worldwide, January 2014, http://www.globalirsurvey.com/pdfs/2013-Global-Trends-in-Investor-Relations.pdf [Accessed October 2, 2015].

BNY MELLON4

Interaction with Investment CommunityCOMPANY'S PRIMARY CONTACT FOR THE INVESTMENT COMMUNITY

Investor Relations Officer

Chief Executive Officer

Chief Financial Officer

Corporate Secretary

Head of Communications

Financial Director

Treasurer

Board of Directors

Other

Global

84%

3%

4%

1%

2%

1%

1%

0%

4%

Developed Markets

85%

3%

3%

0%

3%

1%

1%

0%

4%

North America

95%

0%

2%

0%

0%

0%

2%

0%

2%

Western Europe

93%

1%

3%

0%

1%

1%

0%

0%

0%

COMPANY EVENTS WITH INVESTORS AND ANALYSTS IN THE PAST 12 MONTHS

ANALYST / INVESTOR DAYS

Global Developed Markets

North America

Western Europe

CORPORATE HEADQUARTER VISITS


North America

Western Europe

OFF-SITE LOCATION VISITS


North America

Western Europe

More than 10

6 to 10

1 to 5

None 41%

52%

4%

4%

22%

40%

15%

23%

39%

32%

15%

15%

46%

50%

2%

2%

23%

45%

15%

17%

43%

32%

14%

12%

56%

41%

2%

2%

6%

58%

23%

14%

33%

27%

21%

18%

36%

63%

0%

1%

37%

31%

10%

21%

55%

33%

4%

7%

OPERATING FACILITY VISITS


North America

Western Europe

VIDEO CONFERENCE CALLS


North America

Western Europe

CONFERENCE CALLS / WEBINARS


North America

Western Europe

More than 10

6 to 10

1 to 5

None 46%

38%

10%

6%

59%

30%

6%

5%

28%

31%

12%

28%

51%

36%

8%

5%

65%

27%

6%

2%

32%

32%

13%

22%

53%

32%

11%

5%

73%

23%

5%

0%

26%

35%

18%

21%

48%

43%

6%

3%

34%

48%

12%

6%

34%

28%

10%

27%

IN TERMS OF SENIOR MANAGEMENT'S TIME DEVOTED TO IR-RELATED ACTIVITIES, PERCENTAGE SPENT WITH THE FOLLOWING INVESTOR SEGMENTS

CHIEF EXECUTIVE OFFICER

GLO

BA

LD

EVEL

OPE

D M

AR

KET

SN

OR

TH A

MER

ICA

WES

TER

N E

UR

OPE

0% 10% 20% 30% 40% 50%

41%21%

15%3%

7%14%

123456

45%24%

17%3%

6%6%

123456

44%26%

21%1%

3%6%

123456

47%28%

8%3%

9%5%

123456

CHIEF FINANCIAL OFFICER

0% 10% 20% 30% 40% 50%

37%23%

18%2%

4%15%

123456

39%25%

19%2%

3%13%

123456

39%27%

21%1%2%

10%

123456

48%30%

12%2%

4%4%

123456

INVESTOR RELATIONS OFFICER

0% 10% 20% 30% 40% 50%

35%26%26%

5%4%5%

123456

36%27%

26%4%

3%5%

123456

37%31%

28%2%

2%0%

123456

33%28%

27%6%

2%5%

123456

1 Existing institutional investors 2 Prospective institutional investors 3 Sell-side analysts / Equity sales 4 Retail investors

5 Financial media 6 Does not participate in IR-related activities

BNY MELLON 5

Interaction with Investment CommunityCOMPANY'S PRIMARY CONTACT FOR THE INVESTMENT COMMUNITY




Corporate Secretary

Head of Communications

Financial Director

Treasurer

Board of Directors

Other

Global

84%

3%

4%

1%

2%

1%

1%

0%

4%

Developed Markets

85%

3%

3%

0%

3%

1%

1%

0%

4%

North America

95%

0%

2%

0%

0%

0%

2%

0%

2%

Western Europe

93%

1%

3%

0%

1%

1%

0%

0%

0%

COMPANY EVENTS WITH INVESTORS AND ANALYSTS IN THE PAST 12 MONTHS

ANALYST / INVESTOR DAYS


North America

Western Europe

CORPORATE HEADQUARTER VISITS


North America

Western Europe

OFF-SITE LOCATION VISITS


North America

Western Europe

More than 10

6 to 10

1 to 5

None 41%

52%

4%

4%

22%

40%

15%

23%

39%

32%

15%

15%

46%

50%

2%

2%

23%

45%

15%

17%

43%

32%

14%

12%

56%

41%

2%

2%

6%

58%

23%

14%

33%

27%

21%

18%

36%

63%

0%

1%

37%

31%

10%

21%

55%

33%

4%

7%

OPERATING FACILITY VISITS


North America

Western Europe

VIDEO CONFERENCE CALLS


North America

Western Europe

CONFERENCE CALLS / WEBINARS


North America

Western Europe

More than 10

6 to 10

1 to 5

None 46%

38%

10%

6%

59%

30%

6%

5%

28%

31%

12%

28%

51%

36%

8%

5%

65%

27%

6%

2%

32%

32%

13%

22%

53%

32%

11%

5%

73%

23%

5%

0%

26%

35%

18%

21%

48%

43%

6%

3%

34%

48%

12%

6%

34%

28%

10%

27%

IN TERMS OF SENIOR MANAGEMENT'S TIME DEVOTED TO IR-RELATED ACTIVITIES, PERCENTAGE SPENT WITH THE FOLLOWING INVESTOR SEGMENTS


GLO

BA

LD

EVEL

OPE

D M

AR

KET

SN

OR

TH A

MER

ICA

WES

TER

N E

UR

OPE

0% 10% 20% 30% 40% 50%

41%21%

15%3%

7%14%

123456

45%24%

17%3%

6%6%

123456

44%26%

21%1%

3%6%

123456

47%28%

8%3%

9%5%

123456


0% 10% 20% 30% 40% 50%

37%23%

18%2%

4%15%

123456

39%25%

19%2%

3%13%

123456

39%27%

21%1%2%

10%

123456

48%30%

12%2%

4%4%

123456

INVESTOR RELATIONS OFFICER

0% 10% 20% 30% 40% 50%

35%26%26%

5%4%5%

123456

36%27%

26%4%

3%5%

123456

37%31%

28%2%

2%0%

123456

33%28%

27%6%

2%5%

123456

1 Existing institutional investors 2 Prospective institutional investors 3 Sell-side analysts / Equity sales 4 Retail investors

5 Financial media 6 Does not participate in IR-related activities

BNY MELLON6

PLANS TO INCREASE OR DECREASE INTERACTION WITH THE FOLLOWING INVESTOR SEGMENTS IN THE NEXT 12 MONTHS

Existing shareholders

New institutional equity investors

New institutional debt investors

Financial advisors / Retail brokers

Retail investors

0% 20% 40% 60% 80% 100%

48

61

25

25

20

50

37

72

72

77

2

2

3

3

4

GLOBAL





Retail investors

0% 20% 40% 60% 80% 100%

41

54

18

18

17

56

44

80

79

79

3

2

2

3

4

DEVELOPED MARKETS





Retail investors

0% 20% 40% 60% 80% 100%

47

53

21

14

11

50

45

76

82

85

3

2

3

5

5

NORTH AMERICA





Retail investors

0% 20% 40% 60% 80% 100%

33

58

10

18

10

64

37

87

81

85

3

4

3

1

4

WESTERN EUROPE

Increase

Stay the same

Decrease

NUMBER OF ROADSHOW DAYS IN THE PAST 12 MONTHS, ON AVERAGE

GLOBAL

3.5 New York City Area1

2.5 London, U.K.2

1.5 Boston, MA3

1.3 Tokyo, Japan4

1.0 Hong Kong, China5

DEVELOPED MARKETS


2.5 London, U.K.2

2.0 Tokyo, Japan3

1.9 Boston, MA4

1.1 San Francisco, CA5

NORTH AMERICA


2.6 Boston, MA2


1.2 Chicago, IL4

1.2 Mid-Atlantic4

WESTERN EUROPE

6.8 London, U.K.1


1.8 Paris, France3

1.7 Frankfurt, Germany4

1.6 Boston, MA5

Global Developed Markets North America Western Europe

5

10

15

20

8.7

4.9

3.6

0.5 0.4 0.4 0.2

11.4

5.5

4

0.70 0.2 0.2

16.1

3

0.6 0.70 0 0

8.6

15

1.81.1

0 0.4 00

United States

Europe

Asia-Pacific

Canada

Latin America

EEMEA

Other

BY REGION

BNY MELLON 7

PLANS TO INCREASE OR DECREASE INTERACTION WITH THE FOLLOWING INVESTOR SEGMENTS IN THE NEXT 12 MONTHS





Retail investors

0% 20% 40% 60% 80% 100%

48

61

25

25

20

50

37

72

72

77

2

2

3

3

4

GLOBAL





Retail investors

0% 20% 40% 60% 80% 100%

41

54

18

18

17

56

44

80

79

79

3

2

2

3

4

DEVELOPED MARKETS





Retail investors

0% 20% 40% 60% 80% 100%

47

53

21

14

11

50

45

76

82

85

3

2

3

5

5

NORTH AMERICA





Retail investors

0% 20% 40% 60% 80% 100%

33

58

10

18

10

64

37

87

81

85

3

4

3

1

4

WESTERN EUROPE

Increase

Stay the same

Decrease

NUMBER OF ROADSHOW DAYS IN THE PAST 12 MONTHS, ON AVERAGE

GLOBAL


2.5 London, U.K.2

1.5 Boston, MA3

1.3 Tokyo, Japan4

1.0 Hong Kong, China5

DEVELOPED MARKETS


2.5 London, U.K.2

2.0 Tokyo, Japan3

1.9 Boston, MA4


NORTH AMERICA


2.6 Boston, MA2


1.2 Chicago, IL4

1.2 Mid-Atlantic4

WESTERN EUROPE

6.8 London, U.K.1


1.8 Paris, France3

1.7 Frankfurt, Germany4

1.6 Boston, MA5


5

10

15

20

8.7

4.9

3.6

0.5 0.4 0.4 0.2

11.4

5.5

4

0.70 0.2 0.2

16.1

3

0.6 0.70 0 0

8.6

15

1.81.1

0 0.4 00

United States

Europe

Asia-Pacific

Canada

Latin America

EEMEA

Other

BY REGION

BNY MELLON8

PLANS TO INCREASE OR DECREASE THE NUMBER OF ROADSHOW DAYS IN THE NEXT 12 MONTHS

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

2

22

20

30

6

6

10

42

84

64

63

57

78

78

75

46

1

2

1

3

1

1

2

14

12

16

10

16

15

14

10

GLOBAL

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

2

16

24

27

4

2

6

42

85

71

59

59

81

84

81

48

1

2

2

3

1

13

11

16

10

15

14

13

9

DEVELOPED MARKETS

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

2

9

29

29

3

2

2

48

92

83

56

59

91

92

94

47

2

2

3

5

2

5

6

12

8

6

6

5

3

NORTH AMERICA

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

18

22

25

9

6

13

40

94

72

75

72

82

88

79

52

1

4

9

3

3

9

6

7

7

WESTERN EUROPE

Increase

Stay the same

Decrease

Uncertain

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

NUMBER OF INVESTOR ONE-ON-ONE MEETINGS BY COMPANY PROFESSIONALS IN A YEAR



IRO / Head of IR

Operational Head(s)

Members of Board of Directors

Corporate / Company Secretary

0 50 100 150 200 250

19.6

35.3

96.6

10.8

3

2.2

19.7

37

74.1

7.9

2.7

1.1

GLOBAL



IRO / Head of IR

Operational Head(s)



0 50 100 150 200 250

25.4

38.7

101.8

11.2

2.4

1.4

23.4

38.8

70.6

6.8

2.2

0.7

DEVELOPED MARKETS



IRO / Head of IR

Operational Head(s)



0 50 100 150 200 250

30.4

49.5

109.3

14.5

1.3

1.8

19.9

39.7

61.4

6.8

1.6

0.6

NORTH AMERICA



IRO / Head of IR

Operational Head(s)



0 50 100 150 200 250

21.5

29.9

72.6

5.1

2.3

0.1

37.5

64.8

147.2

14.3

2.6

0.6

WESTERN EUROPE

Inside home market

Outside home market

BNY MELLON 9

PLANS TO INCREASE OR DECREASE THE NUMBER OF ROADSHOW DAYS IN THE NEXT 12 MONTHS

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

2

22

20

30

6

6

10

42

84

64

63

57

78

78

75

46

1

2

1

3

1

1

2

14

12

16

10

16

15

14

10

GLOBAL

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

2

16

24

27

4

2

6

42

85

71

59

59

81

84

81

48

1

2

2

3

1

13

11

16

10

15

14

13

9

DEVELOPED MARKETS

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

2

9

29

29

3

2

2

48

92

83

56

59

91

92

94

47

2

2

3

5

2

5

6

12

8

6

6

5

3

NORTH AMERICA

Africa

Asia-Pacific

Canada

Developed Europe

Emerging Europe

Latin America

Middle East

United States

0% 20% 40% 60% 80% 100%

18

22

25

9

6

13

40

94

72

75

72

82

88

79

52

1

4

9

3

3

9

6

7

7

WESTERN EUROPE

Increase

Stay the same

Decrease

Uncertain

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

NUMBER OF INVESTOR ONE-ON-ONE MEETINGS BY COMPANY PROFESSIONALS IN A YEAR



IRO / Head of IR

Operational Head(s)



0 50 100 150 200 250

19.6

35.3

96.6

10.8

3

2.2

19.7

37

74.1

7.9

2.7

1.1

GLOBAL



IRO / Head of IR

Operational Head(s)



0 50 100 150 200 250

25.4

38.7

101.8

11.2

2.4

1.4

23.4

38.8

70.6

6.8

2.2

0.7

DEVELOPED MARKETS



IRO / Head of IR

Operational Head(s)



0 50 100 150 200 250

30.4

49.5

109.3

14.5

1.3

1.8

19.9

39.7

61.4

6.8

1.6

0.6

NORTH AMERICA



IRO / Head of IR

Operational Head(s)



0 50 100 150 200 250

21.5

29.9

72.6

5.1

2.3

0.1

37.5

64.8

147.2

14.3

2.6

0.6

WESTERN EUROPE

Inside home market

Outside home market

BNY MELLON10

INVITATIONS TO AND PARTICIPATION IN BROKER-SPONSORED CONFERENCES IN THE PAST 12 MONTHS

INVITED TO


North America

Western Europe

PARTICIPATED IN


North America

Western Europe

20 or more conferences

15 - 19

10 - 14

6 - 9

5

4

3

2

1 conference

None

3%

3%

4%

4%

2%

14%

18%

13%

36%

5%

5%

6%

7%

9%

4%

24%

18%

8%

9%

9%

2%

4%

5%

5%

1%

16%

19%

14%

30%

4%

7%

9%

9%

11%

6%

24%

18%

4%

6%

7%

0%

3%

3%

5%

2%

21%

18%

17%

30%

2%

6%

8%

9%

14%

5%

23%

26%

2%

5%

5%

1%

0%

3%

4%

0%

7%

21%

10%

51%

1%

6%

3%

7%

7%

1%

27%

16%

13%

15%

3%

HAS THE NUMBER OF ACTIVE FUND MANAGERS INCREASED OR DECREASED AMONG YOUR TOP 50 SHAREHOLDERS IN THE PAST 12 MONTHS?

36%

41%

9%

13%

Global

30%

48%

10%

12%

Developed Markets

23%

62%

11%

5%

North America

39%

36%

10%

15%

Western Europe

Increased

Remained the same

Decreased

Uncertain

ENGAGEMENT WITH SOVEREIGN WEALTH FUNDS (SWFs) IN THE PAST 12 MONTHS

Abu Dhabi Investment Council (ADIC)

Abu Dhabi Investment Authority

Aabar Investments, Abu Dhabi

Bahrain Mumtalakat Holding Company

China Investment Corporation, LTD (CIC)

Dubai International Capital (DIC)

Government of Singapore Investment Corporation

Hong Kong Monetary Authority

International Petroleum Investment Company

Korean Investment Corporation

Kuwait Investment Authority

Norges Bank Investment Management, Norway

Qatar Investment Authority

Russia Oil Stabilisation Fund

Saudi Arabian Monetary Agency (SABA)

State Administration and Foreign Exchange (SAFE), China

Temasek Holdings, Singapore

None. We are not interested in engagement with SWFs

None. We would be interested in engaging with SWFs

Global

11%

30%

2%

1%

14%

3%

38%

2%

1%

7%

16%

42%

8%

0%

4%

5%

19%

16%

20%

Developed Markets

6%

20%

1%

1%

14%

2%

28%

2%

1%

7%

17%

45%

6%

0%

2%

6%

13%

19%

21%

North America

2%

8%

0%

0%

12%

2%

14%

0%

0%

2%

15%

42%

5%

0%

2%

3%

5%

23%

23%

Western Europe

10%

31%

1%

1%

22%

1%

51%

4%

3%

12%

21%

63%

10%

0%

3%

16%

33%

12%

15%

BNY MELLON 11

INVITATIONS TO AND PARTICIPATION IN BROKER-SPONSORED CONFERENCES IN THE PAST 12 MONTHS

INVITED TO


North America

Western Europe

PARTICIPATED IN


North America

Western Europe

20 or more conferences

15 - 19

10 - 14

6 - 9

5

4

3

2

1 conference

None

3%

3%

4%

4%

2%

14%

18%

13%

36%

5%

5%

6%

7%

9%

4%

24%

18%

8%

9%

9%

2%

4%

5%

5%

1%

16%

19%

14%

30%

4%

7%

9%

9%

11%

6%

24%

18%

4%

6%

7%

0%

3%

3%

5%

2%

21%

18%

17%

30%

2%

6%

8%

9%

14%

5%

23%

26%

2%

5%

5%

1%

0%

3%

4%

0%

7%

21%

10%

51%

1%

6%

3%

7%

7%

1%

27%

16%

13%

15%

3%

HAS THE NUMBER OF ACTIVE FUND MANAGERS INCREASED OR DECREASED AMONG YOUR TOP 50 SHAREHOLDERS IN THE PAST 12 MONTHS?

36%

41%

9%

13%

Global

30%

48%

10%

12%

Developed Markets

23%

62%

11%

5%

North America

39%

36%

10%

15%

Western Europe

Increased

Remained the same

Decreased

Uncertain

ENGAGEMENT WITH SOVEREIGN WEALTH FUNDS (SWFs) IN THE PAST 12 MONTHS

Abu Dhabi Investment Council (ADIC)

Abu Dhabi Investment Authority

Aabar Investments, Abu Dhabi

Bahrain Mumtalakat Holding Company

China Investment Corporation, LTD (CIC)

Dubai International Capital (DIC)

Government of Singapore Investment Corporation

Hong Kong Monetary Authority

International Petroleum Investment Company

Korean Investment Corporation

Kuwait Investment Authority

Norges Bank Investment Management, Norway

Qatar Investment Authority

Russia Oil Stabilisation Fund

Saudi Arabian Monetary Agency (SABA)

State Administration and Foreign Exchange (SAFE), China

Temasek Holdings, Singapore

None. We are not interested in engagement with SWFs

None. We would be interested in engaging with SWFs

Global

11%

30%

2%

1%

14%

3%

38%

2%

1%

7%

16%

42%

8%

0%

4%

5%

19%

16%

20%

Developed Markets

6%

20%

1%

1%

14%

2%

28%

2%

1%

7%

17%

45%

6%

0%

2%

6%

13%

19%

21%

North America

2%

8%

0%

0%

12%

2%

14%

0%

0%

2%

15%

42%

5%

0%

2%

3%

5%

23%

23%

Western Europe

10%

31%

1%

1%

22%

1%

51%

4%

3%

12%

21%

63%

10%

0%

3%

16%

33%

12%

15%

BNY MELLON12

Investor TargetingCRITERIA USED BY INVESTOR RELATIONS DEPARTMENT TO TARGET NEW EQUITY INVESTORS

Investment style

Peer ownership

Type of investor

Sector focus

Size of investor

Equity assets under management

Average holding period

Regional / Country focus

Thematic focus

Depositary receipts under management

Other

Do not target new investors

Global

63%

61%

57%

56%

47%

46%

44%

41%

22%

5%

2%

9%

Developed Markets

75%

67%

61%

57%

49%

53%

52%

32%

24%

4%

2%

5%

North America

85%

77%

68%

62%

55%

55%

67%

24%

18%

2%

2%

3%

Western Europe

63%

67%

54%

64%

37%

55%

28%

45%

37%

7%

0%

6%

MOST IMPORTANT MEANS BY WHICH COMPANIES RECEIVE INTRODUCTIONS TO INVESTMENT PROFESSIONALS


20%

40%

60%

80%

100%

84%

75%

50%

29%

12%7%

1%

85%

71%

52%

24%

12%

3% 2%

83%

76%

58%

26%

9%

0% 2%

97%

66%

45%

24%

10%

3% 1%0%

Sell-side / Broker-run roadshows

Investor conferences

Internal investor relations department

Recommendations from shareholders / investors

External IR firm / consultancy

Depositary bank

Other sources

Interaction with the Sell SideUSE OF BROKERS TO ORGANIZE NON-DEAL ROADSHOWS IN THE PAST 12 MONTHS

76%

24%

Global

82%

18%

Developed Markets

88%

12%

North America

94%

6%

Western Europe

Yes

No

CRITERIA USED TO SELECT A BROKER TO ORGANIZE A NON-DEAL ROADSHOW

Quality of investor targeting provided by broker

Geographic presence

Corporate access team

Insight on current investor demand

Quality of formal post-meeting feedback

Management of logistics

Equity sales capabilities

Research recommendation

Ability to provide own targets to the broker

Reviewing the roadshow schedule ahead of time and providing changes

Investment banking relationship

Financial coverage of logistics

Other

Do not use

Global

64%

49%

48%

47%

44%

43%

42%

40%

35%

35%

23%

13%

3%

10%

Developed Markets

65%

47%

52%

54%

49%

51%

37%

38%

44%

37%

19%

12%

5%

8%

North America

67%

48%

56%

59%

52%

55%

35%

48%

45%

38%

12%

12%

6%

5%

Western Europe

78%

64%

60%

58%

58%

49%

58%

27%

42%

45%

13%

13%

4%

0%

BNY MELLON 13

Investor TargetingCRITERIA USED BY INVESTOR RELATIONS DEPARTMENT TO TARGET NEW EQUITY INVESTORS

Investment style

Peer ownership

Type of investor

Sector focus

Size of investor

Equity assets under management

Average holding period

Regional / Country focus

Thematic focus

Depositary receipts under management

Other

Do not target new investors

Global

63%

61%

57%

56%

47%

46%

44%

41%

22%

5%

2%

9%

Developed Markets

75%

67%

61%

57%

49%

53%

52%

32%

24%

4%

2%

5%

North America

85%

77%

68%

62%

55%

55%

67%

24%

18%

2%

2%

3%

Western Europe

63%

67%

54%

64%

37%

55%

28%

45%

37%

7%

0%

6%

MOST IMPORTANT MEANS BY WHICH COMPANIES RECEIVE INTRODUCTIONS TO INVESTMENT PROFESSIONALS


20%

40%

60%

80%

100%

84%

75%

50%

29%

12%7%

1%

85%

71%

52%

24%

12%

3% 2%

83%

76%

58%

26%

9%

0% 2%

97%

66%

45%

24%

10%

3% 1%0%

Sell-side / Broker-run roadshows

Investor conferences

Internal investor relations department

Recommendations from shareholders / investors

External IR firm / consultancy

Depositary bank

Other sources

Interaction with the Sell SideUSE OF BROKERS TO ORGANIZE NON-DEAL ROADSHOWS IN THE PAST 12 MONTHS

76%

24%

Global

82%

18%

Developed Markets

88%

12%

North America

94%

6%

Western Europe

Yes

No

CRITERIA USED TO SELECT A BROKER TO ORGANIZE A NON-DEAL ROADSHOW

Quality of investor targeting provided by broker

Geographic presence

Corporate access team

Insight on current investor demand

Quality of formal post-meeting feedback

Management of logistics

Equity sales capabilities

Research recommendation

Ability to provide own targets to the broker

Reviewing the roadshow schedule ahead of time and providing changes

Investment banking relationship

Financial coverage of logistics

Other

Do not use

Global

64%

49%

48%

47%

44%

43%

42%

40%

35%

35%

23%

13%

3%

10%

Developed Markets

65%

47%

52%

54%

49%

51%

37%

38%

44%

37%

19%

12%

5%

8%

North America

67%

48%

56%

59%

52%

55%

35%

48%

45%

38%

12%

12%

6%

5%

Western Europe

78%

64%

60%

58%

58%

49%

58%

27%

42%

45%

13%

13%

4%

0%

BNY MELLON14

DOES CURRENT ANALYST COVERAGE CORRECTLY REFLECT THE OUTLOOK OF COMPANY PERFORMANCE IN THE FOLLOWING TIMEFRAMES?

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

72

55

36

11

18

27

17

27

37

GLOBAL

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

72

58

38

10

16

27

18

26

35

DEVELOPED MARKETS

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

71

61

42

9

15

30

20

24

27

NORTH AMERICA

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

79

61

40

10

16

27

10

22

33

WESTERN EUROPE

Yes

No

Uncertain

Short term = Less than 1 year

Medium term = 1–3 years

Long term = 3–5+ years

IR Strategy and PrioritiesTOP GOALS OF INVESTOR RELATIONS PROGRAM FOR 2015

GLOBAL

1 46%

2 37%

3 33%

3 33%

5 32%

6 28%

7 24%

8 22%

9 18%

10 8%

11 6%

11 6%

DEVELOPED MARKETS

1 53%

2 36%

3 34%

4 30%

4 30%

6 29%

7 23%

8 22%

9 14%

10 9%

11 7%

12 6%

NORTH AMERICA

1 61%

2 38%

3 36%

4 32%

5 30%

6 27%

7 26%

8 21%

9 8%

10 6%

11 5%

12 2%

WESTERN EUROPE

1 48%

2 46%

3 36%

4 31%

5 27%

6 25%

7 24%

8 21%

9 13%

10 10%

11 7%

12 4%

Expand or enhance engagement with existing shareholders

Increase international shareholder ownership

Diversify shareholder base

Improve disclosure

Increase research coverage

Greater management visibility / accessibility

Raise IR profile within organization

Increase liquidity

Increase domestic shareholder ownership

More interaction with the board of directors

Build retail ownership

Leveraging media to support IR strategy

METRICS USED IN EVALUATING COMPANY'S IR PROGRAM


20%

40%

60%

80%

100%

62%

48%

41%

25%

69%

63% 61%

41%

58%

40%42%

22%

75%

62%

71%

40%

62%

41%45%

14%

85%

68%

88%

30%

46%

37%

30%

21%

63%

57%

69%

43%

0%

Number of investor one-on-one meetings

Number of analysts covering the stock

Relative valuation of stock Stock price

Quality of investor one-on-one meetings

Quality of information in analyst reports / recommendations

Efficient use of senior management's time

Perception study ("formal") feedback

QUANTITATIVE

QUALITATIVE

BNY MELLON 15

DOES CURRENT ANALYST COVERAGE CORRECTLY REFLECT THE OUTLOOK OF COMPANY PERFORMANCE IN THE FOLLOWING TIMEFRAMES?

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

72

55

36

11

18

27

17

27

37

GLOBAL

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

72

58

38

10

16

27

18

26

35

DEVELOPED MARKETS

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

71

61

42

9

15

30

20

24

27

NORTH AMERICA

Short term

Medium term

Long term

0% 20% 40% 60% 80% 100%

79

61

40

10

16

27

10

22

33

WESTERN EUROPE

Yes

No

Uncertain

Short term = Less than 1 year

Medium term = 1–3 years

Long term = 3–5+ years

IR Strategy and PrioritiesTOP GOALS OF INVESTOR RELATIONS PROGRAM FOR 2015

GLOBAL

1 46%

2 37%

3 33%

3 33%

5 32%

6 28%

7 24%

8 22%

9 18%

10 8%

11 6%

11 6%

DEVELOPED MARKETS

1 53%

2 36%

3 34%

4 30%

4 30%

6 29%

7 23%

8 22%

9 14%

10 9%

11 7%

12 6%

NORTH AMERICA

1 61%

2 38%

3 36%

4 32%

5 30%

6 27%

7 26%

8 21%

9 8%

10 6%

11 5%

12 2%

WESTERN EUROPE

1 48%

2 46%

3 36%

4 31%

5 27%

6 25%

7 24%

8 21%

9 13%

10 10%

11 7%

12 4%

Expand or enhance engagement with existing shareholders

Increase international shareholder ownership

Diversify shareholder base

Improve disclosure

Increase research coverage

Greater management visibility / accessibility

Raise IR profile within organization

Increase liquidity

Increase domestic shareholder ownership

More interaction with the board of directors

Build retail ownership

Leveraging media to support IR strategy

METRICS USED IN EVALUATING COMPANY'S IR PROGRAM


20%

40%

60%

80%

100%

62%

48%

41%

25%

69%

63% 61%

41%

58%

40%42%

22%

75%

62%

71%

40%

62%

41%45%

14%

85%

68%

88%

30%

46%

37%

30%

21%

63%

57%

69%

43%

0%

Number of investor one-on-one meetings

Number of analysts covering the stock

Relative valuation of stock Stock price

Quality of investor one-on-one meetings

Quality of information in analyst reports / recommendations

Efficient use of senior management's time

Perception study ("formal") feedback

QUANTITATIVE

QUALITATIVE

BNY MELLON16

IS COMPENSATION OF INVESTOR RELATIONS PROFESSIONALS DIRECTLY LINKED TO MEASURES OF INVESTOR RELATIONS EFFECTIVENESS?

17%

8%

34%

41%

Global

19%

8%

30%

43%

Developed Markets

21%

9%

30%

39%

North America

27%

9%

30%

34%

Western Europe

Yes, linked to qualitative measures

Yes, linked to quantitative measures

Salary and / or bonus linked to qualitative and quantitative measures

Salary and / or bonus not linked to any measures of IR effectiveness

IR Team Pro�leNUMBER OF PROFESSIONAL AND INVESTOR RELATIONS SUPPORT STAFF

Global

Developed Markets

North America

Western Europe

0 1 2 3 4 5 6

2.1

2

1.7

2.7

1.1

1

0.8

1.4

Professional

Support

MEAN


20%

40%

60%

80%

4%

40%

28%

14%

7%4%

1%1%5%

43%

28%

12%

5%5%2%1% 2%

53%

29%

9%

3%5%

0%0%

9%

36%

18%

15%

6%6%7%3%

0%

10 or more

6–9

5

4

3

2

1

0

PROFESSIONAL


20%

40%

60%

80%

31%

46%

14%

4%2%1%0%1%

31%

50%

12%

3%2%1%0%0%

30%

62%

8%

0%0%0%0%0%

22%

49%

12%

4%6%

4%1%0%0%

10 or more

6–9

5

4

3

2

1

0

SUPPORT

BNY MELLON 17

IS COMPENSATION OF INVESTOR RELATIONS PROFESSIONALS DIRECTLY LINKED TO MEASURES OF INVESTOR RELATIONS EFFECTIVENESS?

17%

8%

34%

41%

Global

19%

8%

30%

43%

Developed Markets

21%

9%

30%

39%

North America

27%

9%

30%

34%

Western Europe

Yes, linked to qualitative measures

Yes, linked to quantitative measures

Salary and / or bonus linked to qualitative and quantitative measures

Salary and / or bonus not linked to any measures of IR effectiveness

IR Team Pro�leNUMBER OF PROFESSIONAL AND INVESTOR RELATIONS SUPPORT STAFF

Global

Developed Markets

North America

Western Europe

0 1 2 3 4 5 6

2.1

2

1.7

2.7

1.1

1

0.8

1.4

Professional

Support

MEAN


20%

40%

60%

80%

4%

40%

28%

14%

7%4%

1%1%5%

43%

28%

12%

5%5%2%1% 2%

53%

29%

9%

3%5%

0%0%

9%

36%

18%

15%

6%6%7%3%

0%

10 or more

6–9

5

4

3

2

1

0

PROFESSIONAL


20%

40%

60%

80%

31%

46%

14%

4%2%1%0%1%

31%

50%

12%

3%2%1%0%0%

30%

62%

8%

0%0%0%0%0%

22%

49%

12%

4%6%

4%1%0%0%

10 or more

6–9

5

4

3

2

1

0

SUPPORT

BNY MELLON18

PERCENTAGE OF ONE-ON-ONE MEETINGS IN A YEAR CONDUCTED BY INVESTOR RELATIONS ALONE

Global

Developed Markets

North America

Western Europe

0% 10% 20% 30% 40% 50%

45.2%

40.3%

30.1%

42.8%

Average

MOST SENIOR INVESTOR RELATIONS PROFESSIONAL REPORTS TO

26%

64%

2%3%

5%

Global

26%

65%

3%2% 4%

Developed Markets

15%

79%

3%

North America

21%

69%

4%

Western Europe



Financial Controller / Director or Treasurer

Chairman of the Board of Directors

Other

2%2%

1%

4%

HOW OFTEN THE INVESTOR RELATIONS DEPARTMENT PROVIDES INFORMATION TO THE FOLLOWING MEMBERS OF SENIOR MANAGEMENT


GLO

BA

LD

EVEL

OPE

D M

AR

KET

SN

OR

TH A

MER

ICA

WES

TER

N E

UR

OPE

0% 20% 40% 60%

22%27%

19%9%

0%0%

22%1%

12345678

24%28%

16%7%

0%0%

24%1%

12345678

30%32%

9%6%

0%0%

23%0%

12345678

28%28%

15%7%

0%0%

19%1%

12345678


0% 20% 40% 60%

32%28%

14%5%

0%1%

18%3%

12345678

29%29%

12%4%

0%0%

22%4%

12345678

33%36%

6%3%

0%0%

20%2%

12345678

42%24%

12%1%

0%0%

19%1%

12345678

BOARD OF DIRECTORS

0% 20% 40% 60%

4%5%

21%38%

2%2%

21%8%

12345678

2%5%

21%41%

3%2%

20%6%

12345678

2%6%

15%56%

3%3%

12%3%

12345678

4%3%

30%28%

1%0%

24%9%

12345678

1 Daily 2 Weekly 3 Monthly 4 Quarterly

5 Semi-annually 6 Annually 7 As needed 8 Never

BNY MELLON 19

PERCENTAGE OF ONE-ON-ONE MEETINGS IN A YEAR CONDUCTED BY INVESTOR RELATIONS ALONE

Global

Developed Markets

North America

Western Europe

0% 10% 20% 30% 40% 50%

45.2%

40.3%

30.1%

42.8%

Average

MOST SENIOR INVESTOR RELATIONS PROFESSIONAL REPORTS TO

26%

64%

2%3%

5%

Global

26%

65%

3%2% 4%

Developed Markets

15%

79%

3%

North America

21%

69%

4%

Western Europe



Financial Controller / Director or Treasurer

Chairman of the Board of Directors

Other

2%2%

1%

4%

HOW OFTEN THE INVESTOR RELATIONS DEPARTMENT PROVIDES INFORMATION TO THE FOLLOWING MEMBERS OF SENIOR MANAGEMENT


GLO

BA

LD

EVEL

OPE

D M

AR

KET

SN

OR

TH A

MER

ICA

WES

TER

N E

UR

OPE

0% 20% 40% 60%

22%27%

19%9%

0%0%

22%1%

12345678

24%28%

16%7%

0%0%

24%1%

12345678

30%32%

9%6%

0%0%

23%0%

12345678

28%28%

15%7%

0%0%

19%1%

12345678


0% 20% 40% 60%

32%28%

14%5%

0%1%

18%3%

12345678

29%29%

12%4%

0%0%

22%4%

12345678

33%36%

6%3%

0%0%

20%2%

12345678

42%24%

12%1%

0%0%

19%1%

12345678

BOARD OF DIRECTORS

0% 20% 40% 60%

4%5%

21%38%

2%2%

21%8%

12345678

2%5%

21%41%

3%2%

20%6%

12345678

2%6%

15%56%

3%3%

12%3%

12345678

4%3%

30%28%

1%0%

24%9%

12345678

1 Daily 2 Weekly 3 Monthly 4 Quarterly

5 Semi-annually 6 Annually 7 As needed 8 Never

BNY MELLON20

TYPE(S) OF MARKET INTELLIGENCE THE INVESTOR RELATIONS DEPARTMENT PROVIDES TO THE FOLLOWING MEMBERS OF SENIOR MANAGEMENT



North America

Western Europe



North America

Western Europe

BOARD OF DIRECTORS


North America

Western Europe

Financial performance

Industry trends

Investment community feedback

Market trends and developments

Media mentions

Peer information

Sell-side analyst opinions

Stock performance

Other

Does not provide market intelligence

54%

61%

83%

51%

40%

74%

78%

74%

4%

2%

83%

81%

78%

77%

58%

57%

65%

39%

4%

2%

46%

47%

35%

52%

31%

20%

27%

15%

3%

4%

51%

64%

91%

52%

38%

80%

85%

79%

4%

1%

86%

83%

79%

77%

50%

54%

64%

34%

4%

2%

53%

56%

36%

54%

29%

21%

25%

17%

3%

1%

56%

76%

97%

59%

32%

89%

88%

86%

5%

0%

92%

86%

91%

85%

55%

61%

79%

30%

5%

2%

64%

64%

44%

62%

32%

26%

27%

12%

5%

0%

39%

48%

85%

52%

30%

75%

79%

73%

1%

0%

85%

90%

79%

79%

40%

60%

55%

31%

1%

0%

33%

43%

27%

46%

21%

15%

21%

10%

1%

0%

IR ServicesHOW COMPANIES PERFORM THE FOLLOWING FUNCTIONS

IN-HOUSE


North America

Western Europe

OUTSOURCED


North America

Western Europe

NONE


North America

Western Europe

Annual report production

Conference participation

Contact management software / services

Financial media advertising

Investor event coordination

IR messaging strategy

Media relations

Non-deal roadshows

Perception studies

Proxy solicitation

Retail IR activities

Surveillance / Shareholder ID

Other

55%

84%

38%

27%

78%

96%

48%

56%

25%

27%

59%

30%

11%

2%

13%

16%

9%

39%

14%

27%

41%

13%

54%

36%

42%

2%

2%

3%

6%

32%

6%

38%

18%

21%

60%

16%

37%

32%

87%

50%

86%

34%

24%

81%

97%

53%

59%

23%

23%

58%

20%

12%

1%

12%

14%

8%

36%

8%

30%

51%

7%

66%

43%

46%

2%

2%

2%

5%

34%

4%

39%

20%

15%

69%

14%

34%

31%

87%

45%

91%

21%

17%

83%

98%

48%

67%

14%

21%

52%

17%

17%

0%

8%

12%

8%

33%

8%

33%

67%

5%

71%

58%

55%

0%

2%

2%

5%

41%

0%

44%

21%

12%

79%

12%

21%

32%

83%

72%

88%

37%

25%

78%

96%

42%

51%

19%

30%

64%

27%

17%

1%

12%

16%

6%

48%

15%

12%

39%

9%

67%

30%

48%

0%

3%

0%

6%

30%

1%

43%

16%

24%

66%

6%

40%

33%

83%

COMPANIES WITH IR STAFF LOCATED OUTSIDE OF HOME MARKET BY HOST REGION


5%

10%

15%

3%

0%

1%

5%

1% 1%

3%

0% 0%

5%

2%

1%

2%

0% 0%

3%

2% 2%

4%

0% 0%

12%

4%

3%

0%

Asia-Pacific

Eastern Europe

Middle East

North America

Western Europe

None of the above

MOST SENIOR IR-DEDICATED PROFESSIONAL'S YEARS OF EXPERIENCE IN INVESTOR RELATIONS

4%

11%

17%

46%

22%

Global

6%

14%

19%

38%

23%

Developed Markets

9%

18%

17%38%

18%

North America

13%

30%42%

12%

Western Europe

More than 20

16–20

11–15

5–10

Less than 5

3%

BNY MELLON 21

TYPE(S) OF MARKET INTELLIGENCE THE INVESTOR RELATIONS DEPARTMENT PROVIDES TO THE FOLLOWING MEMBERS OF SENIOR MANAGEMENT



North America

Western Europe



North America

Western Europe

BOARD OF DIRECTORS


North America

Western Europe

Financial performance

Industry trends

Investment community feedback

Market trends and developments

Media mentions

Peer information

Sell-side analyst opinions

Stock performance

Other

Does not provide market intelligence

54%

61%

83%

51%

40%

74%

78%

74%

4%

2%

83%

81%

78%

77%

58%

57%

65%

39%

4%

2%

46%

47%

35%

52%

31%

20%

27%

15%

3%

4%

51%

64%

91%

52%

38%

80%

85%

79%

4%

1%

86%

83%

79%

77%

50%

54%

64%

34%

4%

2%

53%

56%

36%

54%

29%

21%

25%

17%

3%

1%

56%

76%

97%

59%

32%

89%

88%

86%

5%

0%

92%

86%

91%

85%

55%

61%

79%

30%

5%

2%

64%

64%

44%

62%

32%

26%

27%

12%

5%

0%

39%

48%

85%

52%

30%

75%

79%

73%

1%

0%

85%

90%

79%

79%

40%

60%

55%

31%

1%

0%

33%

43%

27%

46%

21%

15%

21%

10%

1%

0%

IR ServicesHOW COMPANIES PERFORM THE FOLLOWING FUNCTIONS

IN-HOUSE


North America

Western Europe

OUTSOURCED


North America

Western Europe

NONE


North America

Western Europe

Annual report production

Conference participation

Contact management software / services

Financial media advertising

Investor event coordination

IR messaging strategy

Media relations

Non-deal roadshows

Perception studies

Proxy solicitation

Retail IR activities

Surveillance / Shareholder ID

Other

55%

84%

38%

27%

78%

96%

48%

56%

25%

27%

59%

30%

11%

2%

13%

16%

9%

39%

14%

27%

41%

13%

54%

36%

42%

2%

2%

3%

6%

32%

6%

38%

18%

21%

60%

16%

37%

32%

87%

50%

86%

34%

24%

81%

97%

53%

59%

23%

23%

58%

20%

12%

1%

12%

14%

8%

36%

8%

30%

51%

7%

66%

43%

46%

2%

2%

2%

5%

34%

4%

39%

20%

15%

69%

14%

34%

31%

87%

45%

91%

21%

17%

83%

98%

48%

67%

14%

21%

52%

17%

17%

0%

8%

12%

8%

33%

8%

33%

67%

5%

71%

58%

55%

0%

2%

2%

5%

41%

0%

44%

21%

12%

79%

12%

21%

32%

83%

72%

88%

37%

25%

78%

96%

42%

51%

19%

30%

64%

27%

17%

1%

12%

16%

6%

48%

15%

12%

39%

9%

67%

30%

48%

0%

3%

0%

6%

30%

1%

43%

16%

24%

66%

6%

40%

33%

83%

COMPANIES WITH IR STAFF LOCATED OUTSIDE OF HOME MARKET BY HOST REGION


5%

10%

15%

3%

0%

1%

5%

1% 1%

3%

0% 0%

5%

2%

1%

2%

0% 0%

3%

2% 2%

4%

0% 0%

12%

4%

3%

0%

Asia-Pacific

Eastern Europe

Middle East

North America

Western Europe

None of the above

MOST SENIOR IR-DEDICATED PROFESSIONAL'S YEARS OF EXPERIENCE IN INVESTOR RELATIONS

4%

11%

17%

46%

22%

Global

6%

14%

19%

38%

23%

Developed Markets

9%

18%

17%38%

18%

North America

13%

30%42%

12%

Western Europe

More than 20

16–20

11–15

5–10

Less than 5

3%

BNY MELLON22

WHAT IS THE TOTAL ANNUAL BUDGET IN U.S. DOLLARS FOR YOUR COMPANY'S INVESTOR RELATIONS PROGRAM (EXCLUDING SALARY / INCENTIVE REMUNERATION)?

Global

Developed Markets

North America

Western Europe

$0 $200,000 $400,000 $600,000 $800,000

$490,204

$580,600

$658,446

$621,154

Average

ESTIMATED PERCENTAGE OF ANNUAL IR BUDGET DEVOTED TO THE FOLLOWING


10%

20%

30%

7

12.8

23.9

11.711

24.3

9.3

6.3

11.9

26.8

12.111.2

20.8

10.9

5

8.5

29.6

11.2

14.7

19

12

8.9

14.5

23.6

13.8

9.2

22

8.2

0%

Annual general meeting / Extraordinary general meetings

Annual report

External IR services

Formal investor / analyst day presentations

Stock exchange fees

Travel

Other

Corporate Governance and Board of Director InvolvementSENIOR-MOST INVESTOR RELATIONS EXECUTIVE'S INVOLVEMENT AT BOARD OF DIRECTOR MEETINGS

22%

27%

7%

44%

Global

19%

31%

6%

44%

Developed Markets

8%

39%

8%

45%

North America

13%

25%

7%

54%

Western Europe

Attends board meetings and presents frequently

Attends board meetings and presents sometimes

Attends board meetings but does not present

Does not attend board meetings

HAVE ANY BOARD MEMBERS MET WITH INVESTORS IN THE PAST 12 MONTHS?

49%51%

Global

47%

53%

Developed Markets

26%

74%

North America

55%45%

Western Europe

Yes

No

REASONS WHY MEMBER(S) OF BOARD OF DIRECTORS MET/DID NOT MEET WITH INVESTORS


10%

20%

30%

40%

50%

60%

54%

29%

41%

23% 22%

7%

52%

27%

41%

21%

27%

4%

18%

47%

41%

22%

29%

0%

51%

27%

33%

20%

27%

13%

0%

Standard company practice

Special situation

Investors have not requested

No company policy to meet with investors

Company policy is to not meet with investors

Board member preference

MET WITH INVESTORS

DID NOT MEET WITH INVESTORS

BNY MELLON 23

WHAT IS THE TOTAL ANNUAL BUDGET IN U.S. DOLLARS FOR YOUR COMPANY'S INVESTOR RELATIONS PROGRAM (EXCLUDING SALARY / INCENTIVE REMUNERATION)?

Global

Developed Markets

North America

Western Europe

$0 $200,000 $400,000 $600,000 $800,000

$490,204

$580,600

$658,446

$621,154

Average

ESTIMATED PERCENTAGE OF ANNUAL IR BUDGET DEVOTED TO THE FOLLOWING


10%

20%

30%

7

12.8

23.9

11.711

24.3

9.3

6.3

11.9

26.8

12.111.2

20.8

10.9

5

8.5

29.6

11.2

14.7

19

12

8.9

14.5

23.6

13.8

9.2

22

8.2

0%

Annual general meeting / Extraordinary general meetings

Annual report

External IR services

Formal investor / analyst day presentations

Stock exchange fees

Travel

Other

Corporate Governance and Board of Director InvolvementSENIOR-MOST INVESTOR RELATIONS EXECUTIVE'S INVOLVEMENT AT BOARD OF DIRECTOR MEETINGS

22%

27%

7%

44%

Global

19%

31%

6%

44%

Developed Markets

8%

39%

8%

45%

North America

13%

25%

7%

54%

Western Europe

Attends board meetings and presents frequently

Attends board meetings and presents sometimes

Attends board meetings but does not present

Does not attend board meetings

HAVE ANY BOARD MEMBERS MET WITH INVESTORS IN THE PAST 12 MONTHS?

49%51%

Global

47%

53%

Developed Markets

26%

74%

North America

55%45%

Western Europe

Yes

No

REASONS WHY MEMBER(S) OF BOARD OF DIRECTORS MET/DID NOT MEET WITH INVESTORS


10%

20%

30%

40%

50%

60%

54%

29%

41%

23% 22%

7%

52%

27%

41%

21%

27%

4%

18%

47%

41%

22%

29%

0%

51%

27%

33%

20%

27%

13%

0%

Standard company practice

Special situation

Investors have not requested

No company policy to meet with investors

Company policy is to not meet with investors

Board member preference

MET WITH INVESTORS

DID NOT MEET WITH INVESTORS

BNY MELLON24

COMPANY STAFF IN ATTENDANCE WHEN A MEMBER OF THE BOARD OF DIRECTORS MET WITH INVESTORS DURING THE PAST 12 MONTHS


Management (CEO, CFO, etc.)

Lead Board Director / Chairman

Chairman / CEO (combined role)

Individual Board Member


Counsel

Other

Unsure

Global

61%

55%

38%

29%

28%

12%

6%

4%

2%

Developed Markets

62%

46%

47%

25%

32%

14%

7%

7%

0%

North America

88%

35%

59%

29%

47%

29%

18%

12%

0%

Western Europe

51%

38%

68%

24%

27%

0%

3%

3%

0%

TOPICS OF DISCUSSION WHEN MEMBERS OF THE BOARD OF DIRECTORS MET WITH INVESTORS

Company strategy

Management performance

Capital structure

Merger / Acquisition

Environmental, social and governance issues

Risk exposure

Board of Directors evaluation / structure

Potential changes in corporate control

Other

Unsure

Global

82%

50%

29%

28%

25%

24%

22%

7%

7%

4%

Developed Markets

80%

48%

30%

24%

30%

21%

29%

6%

10%

3%

North America

53%

47%

18%

18%

35%

12%

47%

6%

12%

12%

Western Europe

86%

38%

32%

24%

24%

24%

19%

5%

11%

0%

IN YOUR VIEW, WHAT TOPICS SHOULD INVESTORS ADDRESS DIRECTLY WITH THE BOARD OF DIRECTORS?

Company strategy



Capital structure

Risk exposure

Mergers / Acquisitions



Other

Unsure

Do not believe Board of Directors should be in direct contact with investors

Global

49%

39%

33%

23%

23%

23%

21%

20%

2%

9%

21%

Developed Markets

41%

36%

32%

26%

19%

19%

20%

20%

3%

10%

24%

North America

21%

29%

26%

26%

12%

15%

21%

11%

2%

15%

33%

Western Europe

49%

42%

39%

21%

21%

19%

21%

21%

6%

4%

19%

DOES YOUR COMPANY HAVE A STRATEGY TO COMMUNICATE WITH KEY INVESTORS ABOUT CORPORATE GOVERNANCE ISSUES ON A REGULAR BASIS?

46%

33%

21%

Global

47%

36%

17%

Developed Markets

59%

30%

11%

North America

39%

46%

15%

Western Europe

Yes

No

Uncertain

BNY MELLON 25

COMPANY STAFF IN ATTENDANCE WHEN A MEMBER OF THE BOARD OF DIRECTORS MET WITH INVESTORS DURING THE PAST 12 MONTHS


Management (CEO, CFO, etc.)

Lead Board Director / Chairman

Chairman / CEO (combined role)

Individual Board Member


Counsel

Other

Unsure

Global

61%

55%

38%

29%

28%

12%

6%

4%

2%

Developed Markets

62%

46%

47%

25%

32%

14%

7%

7%

0%

North America

88%

35%

59%

29%

47%

29%

18%

12%

0%

Western Europe

51%

38%

68%

24%

27%

0%

3%

3%

0%

TOPICS OF DISCUSSION WHEN MEMBERS OF THE BOARD OF DIRECTORS MET WITH INVESTORS

Company strategy


Capital structure

Merger / Acquisition


Risk exposure



Other

Unsure

Global

82%

50%

29%

28%

25%

24%

22%

7%

7%

4%

Developed Markets

80%

48%

30%

24%

30%

21%

29%

6%

10%

3%

North America

53%

47%

18%

18%

35%

12%

47%

6%

12%

12%

Western Europe

86%

38%

32%

24%

24%

24%

19%

5%

11%

0%

IN YOUR VIEW, WHAT TOPICS SHOULD INVESTORS ADDRESS DIRECTLY WITH THE BOARD OF DIRECTORS?

Company strategy



Capital structure

Risk exposure

Mergers / Acquisitions



Other

Unsure

Do not believe Board of Directors should be in direct contact with investors

Global

49%

39%

33%

23%

23%

23%

21%

20%

2%

9%

21%

Developed Markets

41%

36%

32%

26%

19%

19%

20%

20%

3%

10%

24%

North America

21%

29%

26%

26%

12%

15%

21%

11%

2%

15%

33%

Western Europe

49%

42%

39%

21%

21%

19%

21%

21%

6%

4%

19%

DOES YOUR COMPANY HAVE A STRATEGY TO COMMUNICATE WITH KEY INVESTORS ABOUT CORPORATE GOVERNANCE ISSUES ON A REGULAR BASIS?

46%

33%

21%

Global

47%

36%

17%

Developed Markets

59%

30%

11%

North America

39%

46%

15%

Western Europe

Yes

No

Uncertain

BNY MELLON26

KEY CORPORATE GOVERNANCE ISSUES DISCUSSED WITH KEY INVESTORS


20%

40%

60%

80%

100%

76%71%

60%

30%

21%

11%7%

81%

67%71%

18%

13%10% 10%

85%

62%67%

18%

13%15%

13%

77%

69%

92%

4%8%

0%4%

0%

Board composition

Transparency and disclosure

Remuneration

Related-Party transactions

Minority shareholder rights

Corporate political contributions

Other

REASONS WHY THERE IS NO CORPORATE GOVERNANCE ISSUE COMMUNICATIONS STRATEGY IN PLACE FOR KEY INVESTORS


10%

20%

30%

40%

50%

60%

47%45%

16%

6%

56%

41%

14%

7%

55%

45%

10%

5%

45%

29% 29%

3%

0%

Insufficient interest from investors

No company policy

Management and/or Board not inclined to communicate on these issues

Other

Environmental, Social and Governance (ESG)DOES YOUR COMPANY REACH OUT TO SOCIALLY RESPONSIBLE AND/OR ESG INVESTORS TO TARGET THEM AS POTENTIAL INVESTORS?

26%

1%

3%

53%

18%

Global

23%

1%2%

60%

14%

Developed Markets

14%

77%

9%

North America

39%

37%

16%

Western Europe

Yes, both socially responsible and ESG investors

Yes, but only socially responsible investors

Yes, but only ESG investors

No, this is not part of our investor relations strategy

Uncertain

REASONS COMPANIES REACH OUT TO SOCIALLY RESPONSIBLE AND/OR ESG INVESTORS


20%

40%

60%

80%

51% 51%

45%

16%

10%

4%

50%53%

44%

15%

8%6%

44%

56%

44%

22%

11%11%

61%

55%

42%

19%

6%

0%0%

To reach long-term investors

Company reaches out to shareholders of all types

To diversify the shareholder base

Management priority

Board of Directors priority

Other

3%4%

BNY MELLON 27

KEY CORPORATE GOVERNANCE ISSUES DISCUSSED WITH KEY INVESTORS


20%

40%

60%

80%

100%

76%71%

60%

30%

21%

11%7%

81%

67%71%

18%

13%10% 10%

85%

62%67%

18%

13%15%

13%

77%

69%

92%

4%8%

0%4%

0%

Board composition

Transparency and disclosure

Remuneration

Related-Party transactions

Minority shareholder rights

Corporate political contributions

Other

REASONS WHY THERE IS NO CORPORATE GOVERNANCE ISSUE COMMUNICATIONS STRATEGY IN PLACE FOR KEY INVESTORS


10%

20%

30%

40%

50%

60%

47%45%

16%

6%

56%

41%

14%

7%

55%

45%

10%

5%

45%

29% 29%

3%

0%

Insufficient interest from investors

No company policy

Management and/or Board not inclined to communicate on these issues

Other

Environmental, Social and Governance (ESG)DOES YOUR COMPANY REACH OUT TO SOCIALLY RESPONSIBLE AND/OR ESG INVESTORS TO TARGET THEM AS POTENTIAL INVESTORS?

26%

1%

3%

53%

18%

Global

23%

1%2%

60%

14%

Developed Markets

14%

77%

9%

North America

39%

37%

16%

Western Europe

Yes, both socially responsible and ESG investors

Yes, but only socially responsible investors

Yes, but only ESG investors

No, this is not part of our investor relations strategy

Uncertain

REASONS COMPANIES REACH OUT TO SOCIALLY RESPONSIBLE AND/OR ESG INVESTORS


20%

40%

60%

80%

51% 51%

45%

16%

10%

4%

50%53%

44%

15%

8%6%

44%

56%

44%

22%

11%11%

61%

55%

42%

19%

6%

0%0%

To reach long-term investors

Company reaches out to shareholders of all types

To diversify the shareholder base

Management priority

Board of Directors priority

Other

3%4%

BNY MELLON28

DO YOU MONITOR YOUR ESG RATINGS?

41%

47%

11%

Global

43%

50%

7%

Developed Markets

41%

56%

3%

North America

58%31%

10%

Western Europe

Yes

No

Uncertain

PLEASE INDICATE HOW FREQUENTLY YOU MONITOR YOUR ESG RATINGS

47%

31%

20%

2%

Global

47%

31%

20%

3%

Developed Markets

52%

26%

19%

4%

North America

38%

36%

26%

Western Europe

Occasionally

On a regular basis

On a regular basis, proactively engage with ratings institutions

Other

PLEASE INDICATE REASON WHY YOU DO NOT MONITOR YOUR ESG RATINGS

38%

33%

22%

7%

Global

46%

34%

15%

5%

Developed Markets

65%

22%

8%5%

North America

43%

38%

14%5%

Western Europe

Do not believe impact of ESG ratings sufficient to justify resources required

Do not have resources for this purpose

Not aware of ESG ratings or providers

Other

Outreach ChannelsDOES YOUR COMPANY DISTRIBUTE FINANCIAL RESULTS PRESS RELEASES ON A NEWSWIRE SERVICE OUTSIDE YOUR HOME MARKET?

51%

43%

6%

Global

49%

47%

5%

Developed Markets

53%42%

5%

North America

69%

25%

6%

Western Europe

Yes

No

Uncertain

BNY MELLON 29

DO YOU MONITOR YOUR ESG RATINGS?

41%

47%

11%

Global

43%

50%

7%

Developed Markets

41%

56%

3%

North America

58%31%

10%

Western Europe

Yes

No

Uncertain

PLEASE INDICATE HOW FREQUENTLY YOU MONITOR YOUR ESG RATINGS

47%

31%

20%

2%

Global

47%

31%

20%

3%

Developed Markets

52%

26%

19%

4%

North America

38%

36%

26%

Western Europe

Occasionally

On a regular basis

On a regular basis, proactively engage with ratings institutions

Other

PLEASE INDICATE REASON WHY YOU DO NOT MONITOR YOUR ESG RATINGS

38%

33%

22%

7%

Global

46%

34%

15%

5%

Developed Markets

65%

22%

8%5%

North America

43%

38%

14%5%

Western Europe

Do not believe impact of ESG ratings sufficient to justify resources required

Do not have resources for this purpose

Not aware of ESG ratings or providers

Other

Outreach ChannelsDOES YOUR COMPANY DISTRIBUTE FINANCIAL RESULTS PRESS RELEASES ON A NEWSWIRE SERVICE OUTSIDE YOUR HOME MARKET?

51%

43%

6%

Global

49%

47%

5%

Developed Markets

53%42%

5%

North America

69%

25%

6%

Western Europe

Yes

No

Uncertain

BNY MELLON30

SOCIAL MEDIA TOOLS USED BY COMPANIES FOR IR PURPOSES


10%

20%

30%

40%

16%

11% 11%

7%7%6%

36%

32%

4%

16%

10% 10%

7%6%6%

34%

37%

4%

17%

8%9%

8%

3%5%

35%

38%

3%

25%

19%

22%

10%

13% 13%

25%

31%

3%

0%

Twitter / StockTwits Facebook Mobile phone / tablet IR apps Corporate blog(s)

LinkedIn YouTube Do not use social media but may use it in the future

Do not use social media and do not plan on using it

None of the above, but do use social media tools in this way

REASONS COMPANIES DO NOT USE SOCIAL MEDIA


20%

40%

60%

80%

100%

60%

35%

29% 28%

16%12%

7%

67%

41%

28%33%

15%12%

7%

83%

38%

27%

42%

10%6%4%

61%

34%

5%

24% 24%

13% 11%

0%

Lack of investor demand

Insufficient resources

Unable to control message

Management does not see value

Company policy

Lack of understanding

Other

Company PoliciesCOMPANIES WITH THE FOLLOWING WRITTEN POLICIES CURRENTLY IN PLACE

Disclosure

Crisis communications

Data breach communications

Social media

Analyst and broker interaction

Investor and Board of Director interaction

Employee interaction with expert networks

0% 20% 40% 60% 80% 100%

82

54

44

49

37

24

29

12

30

41

38

49

57

54

6

16

15

13

14

18

17

GLOBAL

Disclosure



Social media




0% 20% 40% 60% 80% 100%

85

62

47

59

42

28

29

10

28

39

34

49

57

58

5

11

13

8

9

15

13

DEVELOPED MARKETS

Disclosure



Social media




0% 20% 40% 60% 80% 100%

94

73

48

76

53

36

39

5

18

36

20

42

48

50

2

9

15

5

5

15

11

NORTH AMERICA

Disclosure



Social media




0% 20% 40% 60% 80% 100%

69

67

55

55

27

21

28

28

24

36

40

63

70

61

3

9

9

4

10

9

10

WESTERN EUROPE

Yes

No

No, but would like / plan to in the future

BNY MELLON 31

SOCIAL MEDIA TOOLS USED BY COMPANIES FOR IR PURPOSES


10%

20%

30%

40%

16%

11% 11%

7%7%6%

36%

32%

4%

16%

10% 10%

7%6%6%

34%

37%

4%

17%

8%9%

8%

3%5%

35%

38%

3%

25%

19%

22%

10%

13% 13%

25%

31%

3%

0%

Twitter / StockTwits Facebook Mobile phone / tablet IR apps Corporate blog(s)

LinkedIn YouTube Do not use social media but may use it in the future

Do not use social media and do not plan on using it

None of the above, but do use social media tools in this way

REASONS COMPANIES DO NOT USE SOCIAL MEDIA


20%

40%

60%

80%

100%

60%

35%

29% 28%

16%12%

7%

67%

41%

28%33%

15%12%

7%

83%

38%

27%

42%

10%6%4%

61%

34%

5%

24% 24%

13% 11%

0%

Lack of investor demand

Insufficient resources

Unable to control message

Management does not see value

Company policy

Lack of understanding

Other

Company PoliciesCOMPANIES WITH THE FOLLOWING WRITTEN POLICIES CURRENTLY IN PLACE

Disclosure



Social media




0% 20% 40% 60% 80% 100%

82

54

44

49

37

24

29

12

30

41

38

49

57

54

6

16

15

13

14

18

17

GLOBAL

Disclosure



Social media




0% 20% 40% 60% 80% 100%

85

62

47

59

42

28

29

10

28

39

34

49

57

58

5

11

13

8

9

15

13

DEVELOPED MARKETS

Disclosure



Social media




0% 20% 40% 60% 80% 100%

94

73

48

76

53

36

39

5

18

36

20

42

48

50

2

9

15

5

5

15

11

NORTH AMERICA

Disclosure



Social media




0% 20% 40% 60% 80% 100%

69

67

55

55

27

21

28

28

24

36

40

63

70

61

3

9

9

4

10

9

10

WESTERN EUROPE

Yes

No

No, but would like / plan to in the future

BNY MELLON32

TYPES OF GUIDANCE PROVIDED BY COMPANIES

QUARTERLY

GLO

BA

LD

EVEL

OPE

D M

AR

KET

SN

OR

TH A

MER

ICA

WES

TER

N E

UR

OPE

0% 20% 40% 60% 80% 100%

27%21%

19%25%

23%23%

17%5%

12345678

28%19%

16%26%

20%23%

14%5%

12345678

24%14%15%

21%14%

18%8%9%

12345678

16%16%16%

13%15%15%

10%3%

12345678

ANNUALLY WITH QUARTERLY UPDATES

0% 20% 40% 60% 80% 100%

20%23%

16%24%

19%15%14%

5%

12345678

24%27%

19%32%

21%18%18%

5%

12345678

21%29%

20%36%

18%12%14%

6%

12345678

28%22%

18%27%

19%16%

10%0%

12345678

ANNUALLY

0% 20% 40% 60% 80% 100%

14%26%

20%12%14%13%13%

5%

12345678

12%26%

19%13%15%

13%16%

4%

12345678

12%27%

11%12%

18%15%17%

0%

12345678

21%30%

16%21%

18%19%

16%7%

12345678

DO NOT GIVE THIS TYPE OF GUIDANCE

0% 20% 40% 60% 80% 100%

39%30%

45%38%

44%49%

57%85%

12345678

36%28%

47%29%

44%46%

52%85%

12345678

42%30%

55%30%

50%55%

62%85%

12345678

34%31%

49%39%

48%49%

63%90%

12345678

1 Revenues 2 Capital expenditures 3 Non-financial goals 4 Earnings

5 Margins 6 Balance sheet metrics 7 Cash flows 8 Other

Global Capital MarketsCOUNTRIES OF MOST STRATEGIC IMPORTANCE AS NEW SOURCES OF INVESTMENT IN THE NEXT FIVE YEARS

GLOBAL

1 91%

2 76%

3 50%

4 45%

5 44%

6 40%

7 37%

8 33%

9 27%

10 18%

DEVELOPED MARKETS

1 93%

2 78%

3 54%

4 51%

4 51%

6 35%

7 33%

8 32%

9 24%

10 17%

NORTH AMERICA

1 95%

2 79%

3 70%

4 55%

5 48%

6 41%

7 30%

8 20%

9 17%

10 12%

WESTERN EUROPE

1 91%

2 78%

3 66%

4 51%

5 36%

6 34%

7 31%

8 27%

9 21%

10 16%

United States

United Kingdom

China

Germany

Singapore

Japan

Hong Kong

Other

Brazil

India

BNY MELLON 33

TYPES OF GUIDANCE PROVIDED BY COMPANIES

QUARTERLY

GLO

BA

LD

EVEL

OPE

D M

AR

KET

SN

OR

TH A

MER

ICA

WES

TER

N E

UR

OPE

0% 20% 40% 60% 80% 100%

27%21%

19%25%

23%23%

17%5%

12345678

28%19%

16%26%

20%23%

14%5%

12345678

24%14%15%

21%14%

18%8%9%

12345678

16%16%16%

13%15%15%

10%3%

12345678

ANNUALLY WITH QUARTERLY UPDATES

0% 20% 40% 60% 80% 100%

20%23%

16%24%

19%15%14%

5%

12345678

24%27%

19%32%

21%18%18%

5%

12345678

21%29%

20%36%

18%12%14%

6%

12345678

28%22%

18%27%

19%16%

10%0%

12345678

ANNUALLY

0% 20% 40% 60% 80% 100%

14%26%

20%12%14%13%13%

5%

12345678

12%26%

19%13%15%

13%16%

4%

12345678

12%27%

11%12%

18%15%17%

0%

12345678

21%30%

16%21%

18%19%

16%7%

12345678

DO NOT GIVE THIS TYPE OF GUIDANCE

0% 20% 40% 60% 80% 100%

39%30%

45%38%

44%49%

57%85%

12345678

36%28%

47%29%

44%46%

52%85%

12345678

42%30%

55%30%

50%55%

62%85%

12345678

34%31%

49%39%

48%49%

63%90%

12345678

1 Revenues 2 Capital expenditures 3 Non-financial goals 4 Earnings

5 Margins 6 Balance sheet metrics 7 Cash flows 8 Other

Global Capital MarketsCOUNTRIES OF MOST STRATEGIC IMPORTANCE AS NEW SOURCES OF INVESTMENT IN THE NEXT FIVE YEARS

GLOBAL

1 91%

2 76%

3 50%

4 45%

5 44%

6 40%

7 37%

8 33%

9 27%

10 18%

DEVELOPED MARKETS

1 93%

2 78%

3 54%

4 51%

4 51%

6 35%

7 33%

8 32%

9 24%

10 17%

NORTH AMERICA

1 95%

2 79%

3 70%

4 55%

5 48%

6 41%

7 30%

8 20%

9 17%

10 12%

WESTERN EUROPE

1 91%

2 78%

3 66%

4 51%

5 36%

6 34%

7 31%

8 27%

9 21%

10 16%

United States

United Kingdom

China

Germany

Singapore

Japan

Hong Kong

Other

Brazil

India

BNY MELLON34

Market Con�denceIMPACT COMPANIES BELIEVE EACH OF THE FOLLOWING ISSUES CURRENTLY HAS ON OVERALL GLOBAL MARKET CONFIDENCE

Regulatory protection for investors

Transparency in trading

Inflation

Commodity prices

Currency exchange rates

Level of government regulation

Sustainability of emerging market growth

Liquidity in the financial markets

Eurozone stability

Uncertainty of new regulatory environment

Political risk

Systemic market risk

Global

3.1

3.1

2.9

2.8

2.5

2.7

2.7

2.7

2.5

2.6

2.3

2.2

Developed Markets

3.3

3.2

3.0

2.9

2.5

2.9

2.9

2.7

2.3

2.8

2.3

2.2

North America

3.3

3.0

3.0

2.9

2.6

2.9

2.9

2.6

2.3

2.7

2.4

2.1

Western Europe

3.6

3.7

3.4

3.0

2.7

3.0

3.1

3.1

2.2

2.8

2.4

2.7

6

5

4

3

2

1 Very important impact

Not at all important

PRIMARY FACTOR(S) INFLUENCING INVESTOR DEMAND FOR YOUR COMPANY IN THE PAST 12 MONTHS


20%

40%

60%

80%

100%

80%

56%

42%

30%

12%

3%

84%

48%

41%

18%

4% 3%

91%

41%

35%

14%

3% 2%

85%

45% 46%

24%

6% 4%

0%

Your company's specific fundamentals

Domestic economic environment

Global economic environment

Domestic government policy

Your company's specific corporate governance practices

Other

BNY MELLON 35

Market Con�denceIMPACT COMPANIES BELIEVE EACH OF THE FOLLOWING ISSUES CURRENTLY HAS ON OVERALL GLOBAL MARKET CONFIDENCE

Regulatory protection for investors

Transparency in trading

Inflation

Commodity prices

Currency exchange rates

Level of government regulation

Sustainability of emerging market growth

Liquidity in the financial markets

Eurozone stability

Uncertainty of new regulatory environment

Political risk

Systemic market risk

Global

3.1

3.1

2.9

2.8

2.5

2.7

2.7

2.7

2.5

2.6

2.3

2.2

Developed Markets

3.3

3.2

3.0

2.9

2.5

2.9

2.9

2.7

2.3

2.8

2.3

2.2

North America

3.3

3.0

3.0

2.9

2.6

2.9

2.9

2.6

2.3

2.7

2.4

2.1

Western Europe

3.6

3.7

3.4

3.0

2.7

3.0

3.1

3.1

2.2

2.8

2.4

2.7

6

5

4

3

2

1 Very important impact

Not at all important

PRIMARY FACTOR(S) INFLUENCING INVESTOR DEMAND FOR YOUR COMPANY IN THE PAST 12 MONTHS


20%

40%

60%

80%

100%

80%

56%

42%

30%

12%

3%

84%

48%

41%

18%

4% 3%

91%

41%

35%

14%

3% 2%

85%

45% 46%

24%

6% 4%

0%

Your company's specific fundamentals

Domestic economic environment

Global economic environment

Domestic government policy

Your company's specific corporate governance practices

Other

BNY Mellon’s Global Trends in Investor Relations Survey Tenth Edition (2015) (the “Survey”) was conducted between February and April 2015. The Survey was distributed to nearly 7,000 companies and captures the online responses of 550 companies from 54 countries. This report, Global Trends in Investor Relations: A Survey Analysis of IR Practices in Western Europe 2015 uses the responses from 67 companies in Western Europe. Global figures used for comparison reflect all survey responses.

Participants were sourced using internal and external sources and span all macroeconomic sectors and economy types, as defined by GICS and MSCI, respectively.

Graphs and tables provided throughout this report may not capture the entire respondent pool due to rounding and participant requests for anonymity. In graphics depicting data sets equaling 100% per category, rounding may cause percentage totals to vary between 99% and 101%.

The most senior IR-dedicated professional of the respondents’ companies had a mean average of 11.2 years of IR experience. The IRO/Head of IR was the primary contact for the investment community for 93% of companies; the primary contact for 3% of companies was the Chief Financial Officer. Of Western European respondents, 72% were the senior-most IR executive at their company.

WESTERN EUROPE RESPONDENT PROFILES

BNY MELLON GLOBAL INVESTOR RELATIONS ADVISORYWith specialists located in New York, London and Hong Kong, BNY Mellon’s Global Investor Relations Advisory team works with clients to assess liquidity and build visibility with the sell side, institutional and retail investors, and the financial media. We partner with our clients, delivering broad market access with a view to fully realizing opportunities in global markets.

DEVELOPED MARKETS (DM)

AustraliaAustriaBelgiumCanadaDenmarkFinlandFranceGermanyHong KongIrelandIsraelItalyNetherlandsNew ZealandNorwayPortugalSingaporeSpainSwedenSwitzerlandUnited KingdomUnited States

NORTH AMERICA

CanadaUnited States

WESTERN EUROPE

AustriaBelgiumDenmarkFinlandFranceGermanyIcelandIrelandItalyLiechtensteinLuxemburgNetherlandsNorwayPortugalSpainSwedenSwitzerlandUnited Kingdom

RESPONDENT CATEGORIES USED IN THIS REPORT ARE DEFINED AS THE FOLLOWING:

Methodology

67companiesresponded

fromWESTERNEUROPE

BNY MELLON36

GLOBAL INVESTOR RELATIONS ADVISORY

Guy Gresham Head, Global IR Advisory +1 212 815 4693 [email protected]

Anja KharlamovaSenior Investor Relations Specialist+44 207 163 7397 [email protected]

Karen BodnerSenior Capital Markets Advisory Specialist+1 212 815 [email protected]

Herston PowersSenior Investor Relations Specialist +65 6432 0281 [email protected]

Lex ZhangInvestor Relations Specialist+852 2840 [email protected]

Parichat CharoenkitnapaInvestor Relations Specialist +1 212 815 [email protected]

Gina DoogueMarket Access Specialist +1 212 298 1640 [email protected]

Laura RileyMarket Access Specialist+1 212 815 [email protected]

Diana SotoMarket Access Specialist+1 212 815 [email protected]

NEW YORK LONDON

SINGAPORE

HONG KONG

Contacts

BNY MELLON 37

WESTERN EUROPE DEPOSITARY RECEIPTS RELATIONSHIP MANAGEMENT

David StueberRelationship Manager+1 212 815 [email protected]

Robert Spinogatti Relationship Manager+1 212 815 [email protected]

Margaret KeyesRelationship Manager+1 212 815 [email protected]

Daniel EganRelationship Manager+1 212 815 [email protected]

Lance MillerRelationship Manager+44 20 7163 [email protected]

Elsa DrebitkoRelationship Manager+44 20 7163 [email protected]

Nadja Schliebener Relationship Manager+44 207 163 7473 [email protected]

Mary GormleyRelationship Manager+44 20 7163 [email protected]

Damaris AlbarranRelationship Manager+44 20 7163 [email protected]

Robert GoadRelationship Manager+1 212 815 [email protected]

Damon RowanRelationship Manager+44 20 7163 [email protected]

Benjamin BrisedouRelationship Manager+33 1 70 71 [email protected]

Peter GotkeRelationship Manager+44 20 7163 [email protected]

NEW YORK

EUROPE

bnymellon.comThis document, which may be considered advertising, is for general information and reference purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter, and is not to be used as such. BNY Mellon does not warrant or guarantee the accuracy or completeness of, nor undertake to update or amend the information or data contained herein. We expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon any of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.

This document is not intended for distribution to, or use by, any person or entity in any jurisdiction in which such distribution or use would be contrary to local law or regulation. Similarly, this brochure may not be distributed or used for the purpose of offers or solicitations in any jurisdiction or in any circumstances in which such offers or solicitations are unlawful or not authorized, or where there would be, by virtue of such distribution, new or additional registration requirements. Persons into whose possession this document comes are required to inform themselves about and to observe any restrictions that apply to the distribution of this document in their jurisdiction. The information contained in this document is for use by wholesale clients only and is not to be relied upon by retail clients. If distributed in the UK or EMEA, this document may be a financial promotion and is for distribution only to persons to whom it may be communicated without breach of applicable law.

Depositary Receipts: NOT FDIC, STATE OR FEDERAL AGENCY INSURED MAY LOSE VALUE NO BANK, STATE OR FEDERAL AGENCY GUARANTEE

Trademarks and logos belong to their respective owners.

©2015 The Bank of New York Mellon Corporation. All rights reserved.

WE ARE BNY MELLONBNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2015, BNY Mellon had $28.6 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.

global trends in investor relations a survey analysis … · 2016-02-10 · introductions via the...

Documents