This is one of the key communication events of the financial year for listed companies. As well as disclosing the financial results, this is an opportunity for companies to engage with shareholders, tell their story and share their vision.
There are a number of different communication channels which can be utilised.
Results announcement: Well written commentary to support the regulatory NZX/ASX filings. This should explain the financial results and any anomalies, comment on business performance and the operating environment and provide an outlook and key initiatives for the upcoming financial year. It is also useful to include a list of key dates, particularly for dividend payments, within the announcement.
Results call: Hosted by the CEO and other senior managers and Board members. This provides an opportunity for interested investors and other parties to listen to management's commentary on the results, as well as a Q&A session. It helps to ensure disclosure obligations are met, with all shareholders having equal access to further information on the results.
Results Slide Pack: A slide pack presentation can help to further explain the results and the business' performance. Many companies will issue this with the results announcement and use it as the basis for the results call.
Management video: A new tool being used by some companies is a short management video, discussing the highlights of the year. This is useful as both an internal and external communications tool.
Infographics: There has been growing use of infographics to present financial results and highlights in a simple, easily readable format.
Investor Roadshows: Roadshows remain a staple of results activity, with many companies arranging meeting with key institutional investors and retail brokers. It is important that companies monitor the disclosure of information at these meetings, particularly during the Q&A sessions, to ensure no new material information is disclosed.
Companies should consider their IR philosophies and ensure that communication of their results is appropriate and in line with the overall IR strategy. Other considerations are the size of the shareholder register, the number of analysts covering the company and key institutional investors, and the complexity of the investment story.
Employee communication is also an important part of the results announcement and a good opportunity to thank employees for their hard work and build the culture within an organisation.
For best practice advice and assistance with your next results announcement, please contact Ellis and Co.