Analyst Presentation: The Learning

Showcases

Case studies: 5 selected analyst presentations

February 2014
CONTENTS

 Importance of analyst presentation

 Four steps to best practice presentation

 Samples

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CONTENTS

 Importance of analyst presentation

 Four steps to best practice presentation

 Samples

3
A clear investment thesis/story is important

Product Packaging Customers

COMPANY IR MATERIALS INVESTMENT COMMUNITY

The Investment Thesis  Annual report  Analysts: buy-side and

 Your company’s angle;  Company profile sell-side
a way to differentiate
 Analyst presentation  Equity sales
between investment  Investors: shareholders
choices  News Release
and bondholders
 Similar to good  Website
 Creditors
consumer brand
management

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Key IR communication materials
ANNUAL REPORT
 Most credible
 Most durable
The annual report is part of due
diligence for most analysts before
deciding to follow a stock
WEBSITE
 Most cost effective
 Widest reach
 First point of contact
 Vehicle for other
communications
The IR website is the first place
analysts go to get information on
your company
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PRESENTATIONS
 Interactive
 Instant feedback
 Best source of non-
financial information
 Chance to showcase
management’s
experience and
credibility
Management credibility ranks
highest in factors considered
important when making
investment decisions
Source: Rivel Research 2008
 Presentations are crucial

Which sources of non-financial company Analysts and fund managers rate investor presentations
information do you consider important? as their most used IR website resource
(Survey of U.S. analysts and fund managers)

Management presentations 79% Presentations 100%

Public filings or reports 76%
Webcasts 80%
Sell-side analysis 69%
Email news alerts 72%
Competitors 68%

Business press 65% Calendar synchronization 38%

Investor relations department 65% RSS fees 33%

Customers 65%
Mobile access 24%
Buy-side analysis 65%

Trade press Charting tools 20%

64%

Informal network 61% Excel spreadsheets 20%

Source: Ernst & Young LLP 2008 Source: Rivel Research 2010

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Types of presentation slides
Presentation slides

Identity Performance Event

Events: Events: Events:
 Investment conference  SET’s Opportunity Day  Event analyst meeting
 Non-deal roadshow  Quarterly analyst meeting − New business
 Company visit  Full-year earning presentation − New strategic direction
− Major investment
− M&A or divestment
− Capital increase
 Deal roadshow
 Crisis

Ingredients: Ingredients: Ingredients:

Business Overview
 Industry & company overview
 Core products
 Market-based operations
 Customers
 Competitive advantages
Future direction
 Corporate strategies & objectives
 Growth strategies
 Recap of major event (if any)
 Operational performance
highlights
 Financial performance
highlights
 Analysis of the results
 Outlook
 Executive summary
 Rationale of the transaction
 Transaction information
 Impact
 Timeline
 What happened?
 Impact
 Solution / What’s next?

7
Pitfalls of analyst presentation?

 Lack of convincing storyline

 Not structure and illogical
Story & structure
 Lack of fact and/or rationale
 Sections of document are not clearly linked together

 No clear messages
Management  Inadequate support data
Communication  Just present fact, no “so-what?”

 Not attractive & professional visual appeal

Professional
 Inconsistency in terms & reference
Organization
 Unclear graphs, misaligned text

Source: Adapted from www.thebusinessofmining.com 8

CONTENTS

 Importance of analyst presentation

 Four steps to best practice presentation

 Samples

9
 Four steps to a best practice presentation

1 2 3 4

Define your value Structure Gather Develop

story/thesis presentation information Presentation

 What sets your  Develop logical  Company data  Slide types

company apart? structure  Industry data  Effectively designed
 Core skills and  Storyline & Storyboard  Economic data visual aids
competitive advantages
 Business strategy

10
 Four steps to a best practice presentation

1 2 3 4

Define your value Structure Gather Develop

story/thesis presentation information Presentation

 What sets your  Develop logical  Company data  Slide types

company apart? structure  Industry data  Effectively designed
 Core skills and  Storyline & Storyboard  Economic data visual aids
competitive advantages
 Business strategy

11
Sample of investment story/thesis?

 Player in growth markets

 Extending traditional strengths to new markets
 New business opportunities
 Management competence/credibility
 Sustained financial performance
 Innovation/Industry/Market leadership
 Corporate partnership

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Where do you get your investment thesis/story?

Determine your company value Formulate the investment thesis

 Ascertain what management thinks  Strategy

– Attending board & management meetings – How does your company plans to grow?
– Discussion with top management – How do you do things differently from the
competitors?
 Determine your business
– Strategy map  Strengths
– Business model – What are your qualities that you utilize to
– Financial model achieve target?
– Value drivers – What are your qualities that your
competitors do not have?
 Determine what the analysts and
investors think  Market Position
– Market signals analysis or feedback survey – Where are you positioned in relation to
– Analyst reports your competitors?
– FAQ

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 Four steps to a best practice presentation

1 2 3 4

Define your value Structure Gather Develop

story/thesis presentation information Presentation

 What sets your  Develop logical  Company data  Slide types

company apart? structure  Industry data  Effectively designed
 Core skills and  Storyline & Storyboard  Economic data visual aids
competitive advantages
 Business strategy

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 A pyramid logic structure creating a well-organized
and easy-to-follow presentation
Pyramid Logic Structure

Objective/
Main Point Title

Presentation

Sections
Vertical
Relationships

Sub-sections

Supporting facts

Horizontal
Relationships

Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto

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Sample: presentation structure

1 2 3
Company Financial Business
Overview Performance Expansion

1.1 Overview 2.1 5-yr financial highlights 3.1 Growth strategies

1.2 Milestone
1.3 Shareholder
1.4 Production base
1.5 Business strategies
 Product variety
 Distribution network
 Logistic
 Brand
 Distribution
 Financial flexibility
1.6 Current issue / market
concern
2.2 Quarterly performance 3.2 New project updates
 Sales performance: 3.2 CAPEX
volume & value 3.3 Post-expansion capacity
 Costs
Appendix
 SG&A expenses
 Profitability  Profit & loss summary
2.3 Capital structure  Balance sheet summary
 CSR activities
 Marketing activities

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 Sample: presentation structure

1 2 3 4
Business Financial
Overview Water Situation Growth Direction
Performance

1.1 Overview 2.1 5-yr financial highlights 3.1 Pipelines & reservoirs 4.1 Water demand and
1.2 Shareholder 2.2 Earnings performance 3.2 Water storage updates tariff forecasts
1.3 Steady growth  Revenues & Gross  Group I: Dok Krai, 4.3 Future projects
performance profit summary Nong Pla Lai,and 4.4 CAPEX and timeline
1.4 EASTW businesses  Raw water: financial Klong Yai reservoirs

1.5 Water businesses performance  Group II: Bang Pra

 Nature of business  Tap water: financial and Nong Kho Appendix

 Value chain performance reservoirs  Profit & loss summary
 Market base  EBITDA & net profit  Group III: Prasae  Balance sheet summary
 Volume & tariff  Profitability reservoirs  Detailed concessions
 Concessions 2.3 Capital structure

1.6 Office rental business

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Sample: presentation structure

1 2 3
Company Operational & Financial
Going Forward
Overview Performance

1.1 Overview 2.1 Turnaround performance 3.1 Growth strategies

1.2 Vision & mission
1.3 Milestone
1.4 Business platform
1.5 Success factors
1.6 SINGER Business
 Product segmentation
 Distribution network
 Sales mix
 SINGER Way
1.7 Credit approval
2.2 Financial highlights
2.3 Productivity
2.4 Quarter performance
 Sales performance:
volume & value
 Gross profit & margin
 Profitability
2.5 Credit performance
2.6 Capital structure
3.2 CAPEX
Appendix
 Company structure
 Profit & loss summary
 Balance sheet summary
 Red delinquent
 Terminology &

procedure abbreviations

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Storyboard is the key starting point for structuring
presentation

A storyboard lets you organize your ideas and visualize your final product and lets
you lay out the logic of your presentation in the most effective sequence

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 Four steps to a best practice presentation

1 2 3 4

Define your value Structure Gather Develop

story/thesis presentation information Presentation

 What sets your  Develop logical  Company data  Slide types

company apart? structure  Industry data  Effectively designed
 Core skills and  Storyline & Storyboard  Economic data visual aids
competitive advantages
 Business strategy

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 Gather information
Company Data
 Financial data
Financial statements,
management reports
 Non-financial data
Department statistics,
management reports, minutes
of the Board’s meetings
 Context
Management, department
heads
Industry Data Economic Data
 Industry-specific  Bank of Thailand
publications Financial sector data, interest
rates, exchange rates
 Industry studies
 Ministry of Finance
 Competitors Government income,
budget, public investment
 Suppliers projects
 National Statistical
Office
Employment, population, etc.
 National Economic &
Social Development
Board (NESDB)
Retail sales, direct investment,
etc.
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 Four steps to a best practice presentation

1 2 3 4

Define your value Structure Gather Develop

story/thesis presentation information Presentation

 What sets your  Develop logical  Company data  Slide types

company apart? structure  Industry data  Effectively designed
 Core skills and  Storyline & Storyboard  Economic data visual aids
competitive advantages
 Business strategy

22
 Three basic types of content slides to help develop
this “supporting story”
Text Exhibits Text Exhibits:
_________________________ • Convey specific facts or ideas
_________________________ • Eliminate errors in interpretation
• ______________________ of the information presented
______________________ • Summarize information on
• ______________________ previous or subsequent slides
______________________
_________________________ • Organize large amounts of
_________________________ information

Presentation
Diagrams Diagrams:
• Convey cause / effect, sequential
relationships between
observations
• Organize information
• Explain conceptual ideas

Graphs:
• Summarize numerical data
• Draw attention to specific facts
• Explain trends in underlying data

Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto

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 Text exhibits are useful for organizing large amounts
of information
Text Exhibits
_________________________
_________________________
• ______________________
______________________
• ______________________
______________________
_________________________
_________________________

Outline Matrix Form Table

_________________________
_________________________ High
• ______________________
--------------- ----------------------------------------------------------------------

• ______________________ Med
---------------
--------------------------------------------------------------------------
----------------------------

• ________________
• ________________
---------------
--------------------------------------------------------------
----------

_________________________ Low --------------- --------------------------------------------------

_________________________ --------------- -----------------------------------------

Low Med High

Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto

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 Diagrams are used to demonstrate sequential, cause
and-effect and dependency relationships
Diagrams

Flow Gantt Conceptual Map Organizations

Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto

25
 Graphs help draw attention to underlying trends or
relationships in data series

Source: Recommended Approach to Presentation Writing, Jean-Florent Rérolle & The Pyramid Principle: Logic in Writing and Thinking, Barbara Minto

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CONTENTS

 Importance of analyst presentation

 Four steps to best practice presentation

 Samples
 Identity slide
 Performance slides
 Event slides

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Types of presentation slides
Presentation slides

Identity Performance Event

Events: Events: Events:
 Investment conference  SET’s Opportunity Day  Event analyst meeting
 Non-deal roadshow  Quarterly analyst meeting − New business
 Company visit  Full-year earning presentation − New strategic direction
− Major investment
− M&A or divestment
− Capital increase
 Deal roadshow
 Crisis

Business Overview Ingredients: Ingredients:

 Industry & company overview
 Core products
 Market-based operations
 Customers
 Competitive advantages
Future direction
 Corporate strategies & objectives
 Growth strategies
 Recap of major event (if any)
 Operational performance
highlights
 Financial performance
highlights
 Analysis of the results
 Outlook
 Executive summary
 Rationale of the transaction
 Transaction information
 Impact
 Timeline
 What happened?
 Impact
 Solution / What’s next?

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Sample of business identity slides

DRT is a manufacturer and distributor of roofing tiles, boards and ceilings, siding boards, and other roof accessories and
non roof products as well as the service provider for roof stripping and installation under the trade names of Diamond,
Roof, Adamas, and Jearanai.

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Sample of business identity slides

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Sample of business identity slides

AIT is a leading system integrator and ICT solution provider, supplying ICT products ranging from computer hardware to
software applications over turnkey projects to service contracts and outsourcing schemes in both the private and the
public sector.

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Sample of business identity slides

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Sample of business identity slides

EASTW takes responsible for the development and management of main water pipeline systems in the Eastern Seaboard
by supplying raw water to industrial estates, factories and water works.

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Sample of business identity slides

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Sample of business identity slides

SINGER is the distributor of electrical appliances under the Singer trademark. The Company sells products on both cash
and hire purchase basis, via direct sales channel, its owned branches, and authorized dealers throughout the country
nationwide. Most of products distributed by Singer are purchased with OEMs (Original Equipment Manufacturers).

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Sample of business identity slides

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Types of presentation slides
Presentation slides

Identity Performance Event

Events: Events: Events:
 Investment conference  SET’s Opportunity Day  Event analyst meeting
 Non-deal roadshow  Quarterly analyst meeting − New business
 Company visit  Full-year earning presentation − New strategic direction
− Major investment
− M&A or divestment
− Capital increase
 Deal roadshow
 Crisis

Business Overview Ingredients: Ingredients:

 Industry & company overview
 Core products
 Market-based operations
 Customers
 Competitive advantages
Future direction
 Corporate strategies & objectives
 Growth strategies
 Recap of major event (if any)
 Operational performance
highlights
 Financial performance
highlights
 Analysis of the results
 Outlook
 Executive summary
 Rationale of the transaction
 Transaction information
 Impact
 Timeline
 What happened?
 Impact
 Solution / What’s next?

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Sample of strategy telling slides
Corporate objective should be communicated with guidance on how to achieve it.

AIT – which is a project-based business – communicates its qualitative corporate

objectives with its business strategies and operational framework.

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Sample of strategy telling slides

DRT – one of companies having quantitative targets – clearly communicates its 5-year
financial objectives with strategies and supporting data.

39
Sample of strategy telling slides
SINGER begins its strategy telling section with linkage between vision and strategies.
Each strategy is afterwards clearly communicated with execution plans and supporting
data.

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Sample of strategy telling slides

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CONTENTS

 Importance of analyst presentation

 Four steps to best practice presentation

 Samples
 Identity slide
 Performance slides
 Event slides

42
Types of presentation slides
Presentation slides

Identity Performance Event

Events: Events: Events:
 Investment conference  SET’s Opportunity Day  Event analyst meeting
 Non-deal roadshow  Quarterly analyst meeting − New business
 Company visit  Full-year earning presentation − New strategic direction
− Major investment
− M&A or divestment
− Capital increase
 Deal roadshow
 Crisis

Business Overview Ingredients: Ingredients:

 Industry & company overview
 Core products
 Market-based operations
 Customers
 Competitive advantages
Future direction
 Corporate strategies & objectives
 Growth strategies
 Recap of major event (if any)
 Operational performance
highlights
 Financial performance
highlights
 Analysis of the results
 Outlook
 Executive summary
 Rationale of the transaction
 Transaction information
 Impact
 Timeline
 What happened?
 Impact
 Solution / What’s next?

43
 Sample of performance slides
DRT’s sales performance partly depends upon season. DRT uses stacked
column matrix and quarterly basis presentation to illustrate its financial
performance. Dotted lead lines are used to pinpoint seasonality of underlining
product.

44
 Sample of performance slides
EASTW’s water distribution and water pipeline management are known as
stable and defensive businesses. EASTW begins its financial section with 5-
year financial performance, followed by present year’s performance
presented on a half-year basis.

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 Sample of performance slides
SINGER’s business has turned around since 2009. SINGER underlines this
fact by presenting its previous years’ performance on a yearly basis with
that of present year on a quarterly basis. To ease analysis, sales in volume
term are presented with those in value term, equipped with performance
breakdown by groups of products.

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CONTENTS

 Importance of analyst presentation

 Four steps to best practice presentation

 Samples
 Identity slide
 Performance slides
 Event slides

47
Types of presentation slides
Presentation slides

Identity Performance Event

Events: Events: Events:
 Investment conference  SET’s Opportunity Day  Event analyst meeting
 Non-deal roadshow  Quarterly analyst meeting − New business
 Company visit  Full-year earning presentation − New strategic direction
− Major investment
− M&A or divestment
− Capital increase
 Deal roadshow
 Crisis

Business Overview Ingredients: Ingredients:

 Industry & company overview
 Core products
 Market-based operations
 Customers
 Competitive advantages
Future direction
 Corporate strategies & objectives
 Growth strategies
 Recap of major event (if any)
 Operational performance
highlights
 Financial performance
highlights
 Analysis of the results
 Outlook
 Executive summary
 Rationale of the transaction
 Transaction information
 Impact
 Timeline
 What happened?
 Impact
 Solution / What’s next?

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Sample of event slides: post-merger business
OFM operates as distributor of stationary supplies and office equipment, selling order through catalog, electronic
commercial system (e-Commerce), electric procurement (e-Procurement) and store.

49
Sample of event slides: post-merger business

OFM undertook a business integration – accepting a transfer of the entire business of new shareholders – through
capital increase and share swap with the new shareholders.

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Sample of event slides: post-merger business

After business integration, OFM keeps its investors updated on its business integration activities and business expansions.

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Sample of event slides: post-merger business

For comparative purpose, OFM presents its present year financial results with both actual (audited) and proforma (pre-
merger) financial data of the previous year.

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References Advanced Information Technology (“AIT”)
www.ait.co.th

Diamond Building Products (“DRT”)

www.dbp.co.th

Eastern Water Resources Development and Management

(“EASTW”)
www.eastwater.com

Singer Thailand (“SINGER”)

www.singerthai.co.th

OfficeMate (“OFM”)
www.officemate.co.th

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Contact Us PYI Consulting Company Limited
18th floor, Park Ventures Ecoplex
57 Wireless Road,
Lumpini, Pathumwan,
Bangkok 10330 Thailand
Pathom Yongvanich, Director & Partner:
pathom@pyi.co.th
+6681-866-1449
Sarit Chokchainirand, Director & Partner
sarit@pyi.co.th
+66818552564
Office Tel. +662-116-9982 to 4
www.PYI.co.th

The Stock Exchange of Thailand

Good Governance Development & Alliance Department
62 Ratchadaphisek Road, Klongtoey,
Bangkok 10110 Thailand
Office Tel. +662-229-2606 to 7

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