CIRI QC – April 14, 2011

IR with Leading Edge Technology

Presented by:Darrell HeapsCo-Founder and CEOQ4 Web Systems

The World Today

“If you look at what’s happening today with communications and disclosure, we’re moving from a world where it was very paper based into a world where it’s very much based in the Internet and on social media. 

We have to recognize that those changes are happening and we need to embrace that change and drive it forward and do it in a way that’s efficient.”

Rob Williams, VP IR at Dell

March 23, 2011

Are Investors Using Social Media?

49% of

institutional investors read financial blogs. 33% at least weekly*

*Rivel Research – 257 Institutional Investors in the US

27% pro investors use YouTube. 9% at least weekly*

3 out of 5 financial bloggers use Twitter as a primary news source***

***Financial Media Conference, NYC, Feb 2011

63%pro investors agree that social media will increase in importance over the next year**

**Brunswick Group, Sept 2009

StockTwits Growing Rapidly

StockTwits grown more than 100% since Nov 2010. Now more than 500,000 investors.

Financial Blogging is Mainstream

SeekingAlpha to almost 5M investors a month. Increased from 3.2M in just 3 months (Jan 2011).

Website

Social Media for Investor Relations

IR Website

EmailRSS

Social Networks

Updates and monitoring

Social MediaPublish and embed

65%

37%

18%

10%

29%

10%

Q4 Whitepaper Research 2010

Social Media Integrated with IR Websites

EXAMPLESIR Websites / Twitter / Facebook / YouTube / Flickr / SlideShare

Example Links

1. http://content.dell.com/us/en/corp/about-dell-investor.aspx?c=us&l=en&s=corp

2. http://en.community.dell.com/dell-blogs/dell-shares/b/dell-shares/archive/2011/03/18/vp-of-storage-business-shares-dell-s-storage-strategy-part-ii.aspx

3. http://stocktwits.com/symbol/DEL

4. http://www.agnico-eagle.com/English/Investor-Centre/Multimedia-Gallery/default.aspx

5. http://www.agnico-eagle.com/English/Investor-Centre/Financial-Reporting/Latest-Quarterly-Report/default.aspx

6. http://twitter.com/#!/agnicoeagle

7. http://tvipacific.com/Investors/Investor-Connect/Facebook/default.aspx

8. http://www.facebook.com/tvipacific

9. http://twitter.com/#!/tvipacific

10. http://irwebreport.com/20110414/social-media-investor-relations-reaches-tipping-point/

11. http://alcoa.com/global/en/investment/info_page/home.asp

12. http://www.facebook.com/alcoa?sk=wall

13. http://www.slideshare.net/alcoa/alcoa-1q11-earnings-presentation

14. http://www.northgateminerals.com/Home/default.aspx

15. http://twitter.com/#!/northgate_NGX

RETURN ON INVESTMENTImproved Liquidity / Expanded Reach /

Conversation Quality / Time Saving

Improved Liquidity

Research from Ross School of Business at the University of Michigan found a direct correlation between company Tweets around news events and tighter bid/ask spreads in the company’s shares.

This correlation was found to be most significant with small cap firms that typically do not receive news coverage.

Improved Liquidity Evidence

Social Media Results

Website visits increased 100/mth to 4,000/mth

Average daily trading increase of 55%

Share price increased $0.06 to $0.11 over 6 months

Expanded Reach

Enhanced Conversation Quality

“IROs spend a lot of their time talking about their company on the phone with securities analysts and portfolio managers.

Establishing this one-to-many medium made it a much more efficient way for us to get that information out there to the investor and analyst community.

It actually enhanced the conversations that we were having on a follow-up basis because we knew that we had established a base level of understanding about a particular topic.”

Rob Williams, VP IR at Dell

March 23, 2011

Time Savings

Before Social Media After Social Media

TVI Pacific - Calls to Investor Relations / Week

Discussion

More on Q4:www.q4websystems.com

Thought leadership:www.q4blog.com

Contact: Darrell Heaps1-877-426-7829 ext. 222darrellh@q4websystems.com twitter.com/darrellheaps