ir whitepaper - leverage sector data for a more compelling ir web site

Leverage Sector-Specific Data for a More Compelling IR Website

2


OverviewA company’s Investor Relations website provides an opportunity for firms to connect with shareholders, potential investors, analysts, the media, and others who may just be interested in learning more about the company. The IR site also offers a vehicle through which companies can tell their story, the way they want it to be told.

Most IR sites attempt to do so by presenting a collection of standard information including SEC filings, press releases, corporate governance information, and stock price data. These are all important pieces of information, and are the necessary components that create the framework of a great investor relations Website. However, if a company really wants to differentiate itself in the eyes of the investment community, it needs to go beyond just these standard elements.

Whether analyzing the company as a potential investment target, or looking for more detail about a company’s strengths and strategies, investors and analysts may walk away unfulfilled if some of their basic questions go un-answered. Questions such as:

• How does this company stack up against its industry peers on key financial measurements?

• What metrics are most important for companies in this industry, and is this firm among the leaders on these key items?

• What % of revenue comes from different geographic areas or from specific product and service lines?

• Where does this company rank in terms of market share in different regions across the country?

• What are the key performance indicators that are most relevant to the company’s strategic and financial objectives?

Answers to these questions might all be found in the company’s financial documents and SEC filings, and experienced, long-term investors won’t make a decision to buy without that knowledge. But, if you have a good story to tell, why make investors and analysts hunt for this type of critical information? And, if your company has a better value proposition than your peers’, why not make sure everyone knows this by putting this material front and center?

The best IR sites don’t settle for only communicating general

company information and news, or even providing high-level, generic financial data. Companies can differentiate themselves and provide a more comprehensive sense of their strategy and results by including content that speaks more directly to their business and their industry. Following are some examples of sector-specific data that can add great value to company IR Websites in different industries.

Banking & Financial ServicesIn the banking sector, investors looking to get a sense of how well a company is performing will want to know detail surrounding deposits, loan composition, and performance metrics like asset quality and capital ratios. By including this detail in the IR Website, the company controls its message rather than leaving analysts to rely on their own models and metrics that may not take into account performance drivers unique to a specific company.

Table 1: Financial Highlights – Balance Sheet/Asset Quality Ratios

Especially following the recent financial and market turmoil, deposit/loan composition is a critical component in evaluating a bank’s financial position. Providing this information in a transparent way helps investors make intelligent and informed decisions fueled by data that has been vetted internally, and adds credibility to your company’s financial disclosure.

3


Table 2: Deposit Loan Composition

While GAAP data found on the income statement and balance sheet tell an important part of any bank’s story, they won’t provide a full 360 degree view of the company’s operations on their own. Showing deposit market share information, based on data filed with the FDIC, adds context to financial performance by illustrating the bank’s geographical footprint as compared to its peers. Investors want to know how the bank compares to other banks of similar size in its markets. Including data like this provides a much more complete picture of how a particular bank stacks up against their peers and the market as a whole.

Table 3: Deposit Market Share

Real Estate Investment Trusts (REITs)For REITs, it’s just as important to leverage the IR Website by highlighting financial metrics critical to their company’s financial performance strategy that go beyond standard GAAP disclosures. For example, adding tables that show FFO and per share ratios, as well as same-store NOI and growth rates (along with the inputs behind those calculations) provides investors with deeper insight than they would find elsewhere, and presents them in a transparent way using calculation methodologies endorsed by the company. This can help alleviate confusion and save time that could otherwise be spent clarifying and validating financial models and templates for investors and analysts.

Table 4: Financial Highlights

Because REITs are legally required to distribute at least 90% of taxable income to shareholders in the form of dividends, their dividend history and yield is naturally top of mind for a REIT investor. By bringing these metrics front and center on the IR Website, as well as offering insight into how they stack up against peers, REITs can provide their potential investors a valuable service.

IR websites should highlight financial metrics critical to a company’s business strategy.

4


Table 5: Peer Analysis & Dividends

Potential REIT investors also want to see detailed property portfolio data – property types (shopping centers, commercial office space, etc.), allocation as a % of the portfolio, geographical exposure and transaction history.

Table 6: Property Portfolio Data

Insurance IndustryMost public companies are required to file quarterly and annual financial results with the SEC, and those filings drive many of the valuable reports and datasets referenced above. For insurance companies, this information is no less important, and investors will always utilize GAAP financials, per share measurements and profitability ratios. Like any

other industry, providing this data adds significant value to any IR Website.

However, the insurance industry carries additional regulations that require companies to report supplemental information that is of critical importance to their business, and is extremely valuable when evaluating overall performance. By including these documents on the Investor Relations Website, companies give investors additional tools to make informed investment decisions by taking them beyond the standard generic financial statements.

Table 7: Insurance Regulatory Filings

Leveraging this data, an insurance company can also supplement their NAIC filings with breakouts of their net premiums written by business line. This gives investors a strong understanding of how their premiums are allocated without having to dig through paper filings and update their models manually.

Table 8: Statutory Business Lines

5


Energy IndustryEnergy companies have a unique opportunity to provide a wealth of information about their operations, taking investors and analysts far beyond the standard financial disclosures. Especially in a highly regulated industry, providing insight into energy throughput, customer counts and plant capacity (among other key business drivers) is extremely valuable to investors and analysts interested in evaluating your company. By not forcing them to hunt through FERC and other regulatory filings for data, you allow them to focus on the numbers themselves, sourced to your IR Website, and in the context of your company’s story.

The Power of ChartsIR sites that allow investors to chart financial information to compare data over time add a completely new dimension to financial tables, providing a unique and interactive experience on the company Website.

Charts are a great way for companies to drive investors to key performance metrics and paint an impactful picture that will assist them in evaluating the company. Whether it’s a bank simply visualizing their Assets/Equity trend of the last four years, a Financial Technology company showing quarterly Sales Revenue vs. Operating Income, or a Media company displaying its Recurring EBITDA against EBITDA Margin, providing powerful charting capabilities on an IR Website has an impact that just can’t be matched by a standard financial table.

Table 9: Financial Charting

SummaryThese are just a few examples of the sector-focused data that can be used to turn a good IR site into a great one. Ultimately, the goal of the IR Website should not just be to comply with regulatory requirements, but to create another channel of communication between an investor or analyst and the company. Leveraging this type of data, while also providing investors and analysts with powerful tools and convenient features such as robust charting capabilities, mobile accessibility, and alternative distribution formats including RSS feeds and social media integration, can help drive traffic to the company’s IR site and position the company more effectively to the public.

Providing powerful charting capabilities on an IR Website has an impact that just can’t be matched by a standard financial table.

One SNL Plaza P.O. Box 2124 Charlottesville, VA 22902

434.951.7781

[email protected]

SNL.com