reaching the retail investor

Reaching the Retail Investor:

Investor Relations

Your Presenters

Cameron Davies

Senior Vice President

Crystal Quast

Director, Media Relations

Mark Cohen

Account Executive

Agenda

1. About retail

2. Why is retail important

3. Strategies to reach retail

1. Indirect

2. Direct

4. Key tools

5. Q&A

Your key audiences

Analysts/Bankers

Institutional Investors

Retail Brokers

Retail Investors

Business Media

Individual investor

1 in 2 Canadians own stock

Purchase in small amount

$166B in discount brokerages

Average portfolio $60-100k

Average 3-4 trades per Q*

About Retail Investors

About Retail

(Dent 2004)

1

2

3

4

5Tend to take long term approach

limited time for investment decisions

Invest in Companies they know

� 3800 co’s on TSX/TSX-V

� Become loyal investors

Wave theory

� Investor confidence

*Source: Investor Economics 2009

Diversify investor base

Generate liquidity

They have capital

Why Retail is important

Challenges

Time consuming

Typically not as knowledgeable

Emotional

Strategies and Tactics:

Attracting Investors

Two types: Stock picker or Asset gatherer

Average 2 trades per account per quarter*

Heavy reliance on analysts

Move towards active management

Concentrated in large urban markets

Indirect: Retail Brokers

*Source: Investor Economics 2009

Indirect: Retail Brokers

Source: Investor Economics 2009

% of advisors

% of assets

3.85.1

2019

39.542.3

4.8 4.8

12.413.1

19.116.2

10,000 advisors

$573B in assets

Targeting is critical

Find champions

Broker Lunches/Branch Presentations

Don’t forget local market

Gather Feedback

Update regularly – Top 10

Provide succinct and compelling points

Indirect: Retail Brokers

Pitching your story: messaging

the right information

rapidly transferred

with high recall

the right information

it’s about distilled nuggets

somethingbig coming

valueproposition

growth strategy

board

product description

mission

visionlast year’s

results

intellectualproperty

media coverage

corporategovernance

head shots

awards

table of contents

capabilities

features

benefits

values

typically, the big three

opportunityneed

expressed

strategic, core differentiator(what defines you, guides all you do)

need addressed

how you are going to stay on topgrowth strategy

rapidly transferred

rapidly transferred

photography

maps

diagrams

illustrations

big fonts

Capturing interest + making an impression

high recall

plot

emotion

images

proprietary language

the unexpected

Ways to Make Them Remember

Strategies and Tactics:

Attracting Investors

Target key Analysts in the sector

Focus on the growth strategy,

Clearly identify milestones

Can help facilitate meetings

Quotable for media

Indirect: Sell-Side Analysts

Significant influence over brokers

The broker roadshow

Quarterly

CEO/CFO mandatory

new potential investors/ current shareholders

leverage sell side

Gather feedback

Build presence/maintain visibility

RoadTips

Strategies and Tactics:

Attracting Investors

Focus on key messages

Identify sector reporter

Target media carefully

Select a media spokesperson

Media training

Direct: Business Media - Working with Journalists

Shrinking Newsrooms

Growth of online media

Main source of investor information is now online

Build plan – getting coverage takes time

Be realistic

Direct: Business Media – working with Journalists

Build concerted strategy

Make your own news

Amp up Google juice

Crisis communications

Direct: Social Media

Ensure maximum visibility

Strategies and Tactics:

Key Tools

Critical tool – first stop

Include all relevant info

Develop an IR section and update regularly

Website

Virtual Roadshow

Allow investors to see and hear management

Allow for broad distribution of story

Integrate with social media

Fact Sheet

One page double sided

Effective for introductions

Simple language

Growth strategy & financial overview

Have a 12 month plan

Keep messages simple

Will help generate liquidity

Takes time

Summary

Criticalcomponent for any IR program

Reaching the Retail Investor:

Investor Relations

Additional Questions Please Contact:

Cameron Davies

Senior Vice President

TMX Equicom

416-815-0700 x 260

cdavies@equicomgroup.com