Managing investor communications

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Managing investor communications

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Introduction

• Simon Rothschild biography
• 30 years in financial public relations/investor
  relations
• Mostly but not exclusively with lt 500m market
  cap clients
• AIM and Main Market
• Not sector specific but with comprehensive recent
  experience in natural resources and real estate
• Some recent transactions

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Banksides market position
Targeting UK/ internationalaudiences
FTSE100 to AIM with strength in small caps
Broad sector coverage
Substantial overseas client base

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The Use of Investor Relations

• Help tell the story but most importantly manage
  expectations amongst investor community
• Recognising regulatory constraints
• Communication is key
• Vital not to hype shares
• - Risk that long term growth/stability
  sacrificed for short term share price performance
• Aim to attract quality investors want people to
  invest NOT gamble
• NB IPO is the beginning of the process of
  gaining a favourable rating/continued capital
  market support for company plan

Carefully manage expectations attract investors
willing to focus on the long term. Remain
supportive and understand the Company

Hype shares unstable share register, share
price suffers as expectations invariably not met
in long term
Time
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To achieve

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Audience matrix

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Overseas Companies/perceived issues
Issues
Solutions

• transparency, relevant facts
• strong positioning, differentiation
• profitable growth story vs peers
• broker research
• simultaneous disclosure, identical information
• website, conference links, meetings
• managed expectations newsflow
• Bankside works closely with other advisers

• perceived quality risk
• investor attention
• valuation
• London vs local disclosure
• lack of access/visibility
• Resistance to Fund Forget
• share price performance
• co-ordination

specific national/ regional issues UK capital
markets specific issues
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The route to a successful IPO

Specialist press
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The tools of investor relations

• Roadshow institutional investors
• Conference calls
• Website
• AGM
• Media relations
• Sellside analysts meetings
• Private client brokers

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IR Delivery Key Audiences
Programme of planned newsflow
Institutions
Sell side analysts
Private Client Brokers
Media
building strong, enduring relationships
Careful targeting sustained communication
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Institutional relationships

• gt 80 per cent of average AIM shareholder register
  institutional investors or company insiders
• Specialist and generalist funds
• Institutional funds drawn to gt50m market cap
  stocks
• Important audience size and ability to support
  growth stocks with secondary capital raisings
• Need
• - access to management particularly at results
  time
• - to be kept informed re performance and
  educated about valuation drivers
• - research
• - third party endorsement
• Therefore roadshows, conference calls, site
  visits, sellside analyst research

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Reaching the buy side through sell side
analysts
Sell side investment analysts
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Achieving positive press coverage

• International media
• National media
• Wire services
• Internet
• Specialist media
• Financial media

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Targeting retail investors
Generalist fund managers
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Summary

• Be committed to building long term relationships
• Harness varied audiences with differing
  information needs/investment strategies and
  horizons
• Educate your audience
• Manage expectations carefully

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Appendix
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Some Bankside clients
Endace Limited Engel East Europe Gladstone
Pacific Nickel Gleeson Group Globo PLC
Grant Thornton UK LLP Havelock Europa
Mercator Gold PLC Minera IRL Nipson Digital
Printing Systems Nordic Land OPD
Group Ormonde Mining Personal Group Holdings
Petro Matad
Photo-Me International Quarto Group Real
Estate Opportunities Rosebys Limited Stilo
International Teleset Networks PCL Tethys Oil
TomCo Energy Union Resources UTEK
Corporation Velti plc Vision Opportunity
China Fund Xaar xG Technology, Inc. Zeehan
Zinc
Accident Exchange Alumasc Group Accuma
Anglo-Eastern Plantations Animalcare Group
Plc Antofagasta Arthro Kinetics Artisan
(UK) Business Direct Cambrian Mining Carrs
Milling Industries China Real Estate
Opportunities Coal International Cobra
Beer Diploma
Full List AIM
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• Contact
• Simon Rothschild
• Tel [phone]
• Fax [phone]
• Email simon.rothschild_at_bankside.com
• Website www.bankside.com
• Address Bankside Consultants
• 1 Fredericks Place
• London EC2R 8AE
• United Kingdom