Is It Time For Your Next Capital Markets Day?

If you’re a CEO or lead an investor relations team at a company, chances are you’ve thought about hosting an event for investors and analysts to showcase your company’s expertise and update them on your latest strategic developments in the to keep up to date. And then maybe you got discouraged. A capital market day? For real? Won’t that be too time consuming or too expensive? How about we wait until we have big news to announce?

Actually, these are restrictive views: Investors always value insight into how a company operates, and they will always give credit to a company if it has established a touchpoint with them outside of the imposed calendar.

Which approach can help with the decision?

In fact, the first thing you need for Capital Markets Days is a mind shift. Stop looking at her as a place to defend your leadership. Instead, try to put yourself in the shoes of an investor. When was the last time you heard your most important strategic messages? Don’t you feel you would appreciate an update on your equity story?

Of course, your schedule is tight and your budget limited. Of course, financial disclosures are becoming increasingly regulated and that doesn’t make your life any easier. But the opportunity to build a consistent narrative around your overall strategy shouldn’t be overlooked. Also, the chance to bring together key contributors to your equity story shouldn’t be enough. Especially after the pandemic, when we have all learned the value of engaging in informal dialogue.

With this in mind, ask yourself a few important questions first:

  • How long has it been since you last contacted your investors informally? If it’s been more than two years, it’s time to think about it.
  • Has the regulation or economic climate in your industry changed in the last two years? Have you recently made a purchase? If so, an update would be very valuable.
  • How long is the end date of your current strategic plan? An update using the plan as a framework is always very useful and there is always something to say.
  • Is there a part of your business that isn’t getting the recognition it deserves? A key market that investors find difficult to assess correctly? Bringing light into the darkness is a good idea.

Make the most of your capital markets day by following a few simple rules

  • Determine the scope of your event before you start planning. how much do you have to say What “signals” do you want to send or receive?
  • Define your SOCO (Single Overriding Communications Objective) carefully and from there apply Barbara Minto’s Pyramid Principle to communicate your key messages effectively. Make sure your presentations are designed for impact: state your main points first, then develop your main arguments, followed by supporting examples and stories.
  • Allocate the right resources to event preparation: A single leader should be responsible and authorized to make decisions about the event agenda. In parallel, a junior person can solve logistical problems as they develop.
  • Plan it right: Plan at least 2 months. Make sure this doesn’t conflict with quiet times or important announcements.
  • Engage the right partner to help you choose and structure your key messages.
  • After the event, ask for feedback from everyone involved (investors, contributors, organization team). Make sure you allow respondents to insert verbatim in their answers. Analyze the feedback carefully to understand where your areas of improvement lie. You’ll do even better next time!

Still wondering if you need a Capital Markets Day? … If so, the answer is probably yes.

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