web-based disclosure: separating fact from fiction
TRANSCRIPT
WEB-BASED DISCLOSURE:SEPARATING FACT FROM FICTION
MEET OUR SPEAKERS
Kristine EissingVP, Investor Relations
Communications ServicesThomson Reuters
Greg RadnerGlobal Head of PR Services
Thomson Reuters
AGENDA
• Background on Web Disclosure
• 3 Emerging Models
• Website as recognized channel of disclosure
• Web Disclosure Checklist
• Q&AYou may submit questions to our panel at any time during the live presentation using the Ask a Question field on your webcast player.
• Tweet about this presentation using #webdisclosure
• Follow us on Twitter: @IRHub
@prservices
WEB TECHNOLOGIES HAVE CHANGED HOW WE COMMUNICATE
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Self-publishing is commonplace:
• Reach global audiences cost-effectively
• Control how & when you communicate
• Get direct feedback on your message
40% of corporate information users Tweet for professional use*
BP used Facebook for crisis mgmt
In 2009, # of Fortune 500 companies with public blogs increased 33% from 2008
88% of corporate information users are on LinkedIn*
* Source: Outsell Inc.
THE SEC HAS ENDORSED WEB TECHNOLOGIES FOR YEARS
5
2008
SEC announces new disclosure guidance
“We have long recognized the vital role of the Internet and electronic communications in modernizing the disclosure system...”
SEC – Commission Guidance on the Use of Company Websites
The IR website can, if certain criteria are met, be used as
the primary source of company information.
2000
Regulation Fair Disclosure
Companies webcast their quarterly earnings calls
2002
Sarbanes-Oxley
Companies leverage IR websites to improve
financial disclosures and corporate governance. NYSE and NASDAQ updated
their listing rules
AND INVESTORS ARE INCREASINGLY GOING TO IR WEBSITES FOR INFORMATION
• 75% of institutional investors access IR websites weekly or more often
• 90% of institutional investors find that a company’s website influences their perception of that company
66
Growth in IR Website Traffic, 2001-2010E
CAGR 26.2%
Normalized using a 2001 Baseline Source: Thomson Reuters
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Third party wire service formats
release and then distributes the final
release
Cost: ~$5000 (per word charge)
News Bureaus
Media and financial sites
Aggregators
Delay in posting to IR website
YESTERDAY’S DISCLOSURE PROCESS
COST: VARIABLE CHANGES: SLOW ANALYTICS: LIMITED
Formatting back and forth Limited
Analytics
Estimated time: HOURS
Fails to make your website a ‘recognized channel of disclosure’
COST: FIXED CHANGES: IMMEDIATE ANALYTICS: ROBUST
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News Bureaus
(eg, Reuters News, Dow Jones, Bloomberg)
Media and financial sites
IR 2.0: TODAY’S DISCLOSURE MODEL
Maintain control of your message & distribution
with self-publishing
Real-time posting to IR Website via Disclosure
Capsule
•Detailed analytics to measure impact of your disclosure
•Better investor experience on IR Website
Estimated time: MINUTES
Helps your website become a ‘recognized channel of disclosure’
WEB DISCLOSURE MYTHS
• Web Disclosure means website distribution only
• Web Disclosure does not provide enough visibility
• Web Disclosure is only for large, well-known brands
3 MODELS HAVE EMERGED
• Website posting only– Google, Sun Microsystems
• Notice of Internet Availability– Microsoft, Netflix
• Full text release with robust website capsule– Marathon Oil, Boston Beer, Sun Communities
WEBSITE ONLY: GOOGLE
NOTICE OF INTERNET AVAILABILITY: MSFT
FULL TEXT RELEASE WITH ROBUST WEBSITE CAPSULE: MRO
“We think the Web disclosure model provides an efficient way for issuers to enhance the disclosure process. This new model shifts the value to issuers from the dissemination of the information to the message analytics around the response to that information.”
NYSE Euronext
GO BEYOND REACH TO GET A 360-DEGREE VIEW
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ESTABLISHING YOUR IR WEBSITE AS RECONGIZED CHANNEL OF DISCLOSURE
Take control of your process: Invest in a secure self-publishing tool that ensures simultaneous distribution to your website
MEASURERAISE
WEBSITE PRIORITY
• Promote your website as source of up-to-date and accurate information
• Make it easy for visitors to find and interact with the information they need
• Alert investors to new postings & updates
• Track visitors to your site and the information they are viewing
• Understand what sources drive investors back to your site
WEB DISCLOSURE CHECKLIST• Make sure you use a secure distribution method
– How are users validated?– Can you schedule distribution in advance? – Are URLs randomly generated?
• Keep investors coming back to your website– Does the solution help establish your IR website as a
recognized channel of disclosure?– Does it include tools (eg, RSS feeds, email alerts, social
media sharing capabilities) so investors can access the information they need, when they need it?
• Consider gathering more robust analytics– Does the solution enable you to measure the impact of your
disclosure?
WHY IS IT TIME FOR WEB DISCLOSURE?
• Control your message and its distribution
• Meet the information needs of investors
• Measure the impact from all angles
All while saving time and money
Q&A
You may submit questions using the Ask a Question field on your webcast player.
Questions not addressed on this webinar will be answered in a post on Greg Radner’s blog: http://prhub.wordpress.com
You may also reach out to our speakers following the presentation:
Kristine Eissing [email protected] Radner [email protected]