ARWIN & PARTNERS Strategic Investor Relations and Financial Communication COMPANY PRESENTATION MAY 2019
«Next to doing the right thing, the most important thing is to let people know you are doing the right thing» J.D. Rockefeller
Introduction to ARWIN & PARTNERS ▪ ARWIN, founded in 2019 by Mr. Piero Munari and Mr. Nicolò Nunziata, is a full-service communications firm providing financial communication advice, special situations and ESG consultancy ▪ The team is comprised of seasoned professionals who have a combined experience of over 50 years in Investment Banking, Trading and Investor Relations ▪ Investor Relations – related personal achievements include a Top 10 European Ranking in 2017 – Runner-Up to 3rd-place across sectors European Large Caps IROs ▪ Investor Relations – related team achievements – heading the IR Department: ▪ Best Corporate Governance & Disclosure across sectors, ▪ Ranking in top position by sector (banking), ▪ Third best European IR team across sectors, ▪ Ranked second in Western Europe across sectors
Why We Believe IR is Important Independent research by the world’s leading universities confirm that investors will pay a premium for companies with outstanding IR practices Harvard Business School Wharton Business School “IR activities play a significant role in helping small and mid- cap “Direct contacts with investors increase management credibility and thus companies overcome their low visibility to attract a wider following by have a greaterimpacton the successof the IRstrategy. ” investors and improve their market valuation ” Gregory S. Miller, professor of accounting Harvard Business School, USA Brian J. Bushee, professor of accounting Wharton Business School, USA University ofZurich University ofEdinburgh “ Firms perceived to have the mosteffective IR strategies earn superior abnormal 1.8% 2.4% returns ” Range of cost of equity advantage for companies with goodIR over Richard Taffler, professor of finance and investment, University of those with poor IR Edinburgh,UK Research from University ofZurich
Our Objectives for Our Clients - Closing the Information Gap Our priorities for our clients are to: Ensure that financial markets accurately value the company’s assets, expectation of ✓ future earnings and cash flows Maintain the ability to raise capital at favourable access to capital markets (equity and ✓ debt) Ensure market liquidity under all conditions ✓ Enhance Management’s understanding of peers’ performance, strengths and strategies ✓ Inform Management and Board of Directors about developments in financial markets ✓ and investor perception
How We Work We Start with a Thorough Understanding of Our Clients’ Business, Industry and Capital Markets Goals Overall Corporate Strategy 1 2 ISSUES ISSUES • Poor Profitability • Low Liquidity • Small MarketCap • Lack of Capital • Credibility of Management • High Gearing • CorporateStructure • ShareholdingStructure Asset Financial Strategy Strategy ACTIONS ACTIONS • Maximize ROA & ROE • Define InvestmentStrategy • Define Growth Strategy • Identify Strategic Partners • Ensure Project Feasibility • Raise Debt and Equity Funding • ImproveOperations • Restructure Debt • Develop the Organization Communication Strategy 3 ISSUES ACTIONS • Lack of ValueStory • Develop Value CreationStory • Ineffective Communication and • Produce Quality & Consistent IR Materials untimely information • Target & Communicate to the right investors • Poor CorporateDisclosure • Monitor & Respond to Market Feedback • No Access to Management
We Offer the Following Services to segmentate company communication among investors and potential investors What we offer: Programmes ▪ For some clients we could act as an outsourced Investor Relations Department ➢ For larger companies with and IR department, we provide an array of support ➢ services: Investor perception and investor targeting services on general basis ▪ ESG policy, ESG Investor perception and targeting, ESG events and presentations (the ▪ technical issues will be addressed by one of our partners) Bondholders Investor perception and targeting, events and presentations ▪ Rating issue (including Q.A) ➢ Projects: ▪ We offer an array of ad hoc services and products which are complementary to IR ➢ activities in the context of equity/bond and rated companies Services and products comprise: perception studies, investor targeting, ➢ Results/Capital Markets Day, Activist counseling, Crisis Management, etc.
IR Programmes Outsourced IR Programme for small cap companies where an internal IR is normally ▪ Service a part time job, if any In such cases, an individual with the full characteristics of an IR ▪ Officer may be too expensive An outsource IR programme can offer best in class services at a ▪ fraction of the cost of an internal hire IRO Support IR are overworked and understaffed, Most are wearing multiple hats, ▪ such as M&A and Planning&Controlling especially in mid caps. Otherwise these are a team of one Our programme has this topic in mind and our service is focused on ▪ taking the company’s IR programme from best effort to best practice We provide both high level strategic services and tactical bottom-up ▪ ones Transaction Given our experience, we can provide a smart and cost efficient ▪ Services alternative to high priced PR firms in situations such as: M&A situations ▪ IPOs ▪ Spin offs and carve outs ▪
IR Projects Investor Targeting ▪ Analysis and review of investor base, underweight and overweight & Management analysis with peer group ▪ Exercise aimed at planning yearly investor marketing trips targeting different types of investors (Value, GARP, Income, Index, Hedge Funds, SWF, etc.) ▪ Peer analysis and industry search ▪ Direct mail & email programme Perception Studies ▪ Based on an agreed number of questions to be made to the analyst and investor community New Strategic ▪ At the start of a new Strategic Plan, positioning a company and Plan: Positioning preparing the future equity story is key and Messaging ▪ Peer Group analysis, benchmarking are useful tools to create a new, crisp investment story for the company Analyst/Capital ▪ Full preparation of Analyst/Capital Markets Day normally jointly with Markets/Results company broker/advisors Day ▪ Advice on presentation materials, Script and Q&As ▪ Collateral material development (industry data, ad hoc presentation for conferences, etc.) Share/Bonds IDs ▪ Share and bond identification exercises to maintain a constant monitoring of the shareholder and bondholder base ▪ Allows more efficient and effective investor targeting
IR Projects (cont.) ESG Policy ▪ Currently a top topic for all institutional investors Review ▪ Approximately 25% of AuMs globally are managed under a responsible investment (or environmental, social, and governance factors (ESG)) strategy ▪ In this context, companies that are not sufficiently communicating their sustainability strategy and performance to investors are missing an opportunity to attract long-term and ESG investors Activist counsel ▪ Often, clients are unprepared when an activist takes on a strong position in a company. Capital deployed in 2017 was more than twice the average amount deployed in 2013-2016 and represents about 25% of activists’ capital deployed global ▪ The average size of companies targeted has been getting larger. Companies with a market capitalization in the range of Euro100-500 million continue to be the most frequently targeted ▪ Investment themes: M&A-related matters, governance, operations or management change, as well as on business strategy and capital allocation or return IR Audits ▪ Review of the IR Department and internal processes involving IR within a Company Measuring IR ▪ Analysis of performance of IR Unit and IRO with ad hoc yardsticks unit
Our Partners – Partnerships to Ensure a Global Reach, Investor Identification and ESG Support IR Consulting Among the leading global IR consultants ▪ NY based providing access to ▪ US/Canada/London Investor base Governance & Proxy Leading global proxy solicitation company ▪ Solicitation Corporate Governance experts ▪ Information Agents and preparatory services ▪ for AGM ESG Policy ERM is a leading global provider of ▪ environmental, health, safety, risk, and social consulting services ERM delivers innovative solutions for industrial ▪ and non-industrial clients every day Media Former financial Two former financial journalists with ▪ Communication journalists communications experience in leading financial press (Bloomberg, etc.)
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