Why your Capital Markets Day is an important IR tool

Posted in Reporting, Presentations on 21 May 2019 By Chris Jones, Client Director

Capital Markets Days are a great opportunity to showcase your company and drive investor engagement.

We worked with HomeServe to create a Capital Markets Day to communicate a deeper understanding of their future prospects, clearly and confidently.

Capital Markets Days are not a new investor relations tool but they may play an increasingly influential role in a post-MiFID II world shaped by a lack of research and corporate access, often shifting the burden of engagement onto companies themselves.

Traditionally considered to be a deeper dive than your normal ‘results day’ presentation, the drivers for a CMD tend to be:

  • promoting strategic change or new leadership;
  • product development and innovation;
  • step-changes in business operation, such as new capability;
  • territory or transformational acquisition, or
  • ‘we haven’t done one for four or five years’.

While there is typically no new market information to be shared, it is an opportunity for the audience to better understand the company proposition and those leading it from an executive committee or divisional level. Indeed, demonstrating depth of talent and succession planning can be a core part of the strategy for the event and it can help tick the stakeholder engagement box too.

CMDs often range in complexity and impact, from those who just add a few slides to a standard roadshow deck, to those companies who create a more immersive experience, transporting analysts and investors (virtually if not physically) into their operations through the creation of promotional video, animation and other dynamic content.

Key to success is:

  1. Setting the ambition for the event and developing a core theme
  2. Ensuring all the content drives towards a clear strategic goal, endorsed by supporting presentations
  3. Hold breakout sessions to focus on operational developments, so it’s not just a single format presentation
  4. Encourage Q&A opportunities throughout the day to avoid having the same people speaking all day

We created an animation to showcase the Hotel Chocolat story so far for their recent Capital Markets Day.

Companies can also measure pre and post-event engagement through digital marketing, including Investor Day trailers, webcasts and transcriptions of the session, providing the audience with an important record of the event and management with key indicators of engagement.

We are seeing multiple examples across the FTSE, with former AIM-listed Manx Telecom informing investors of its new technology, GoCompare driving new product awareness amongst the small-caps and FTSE 250 Bodycote promoting its investment in capacity and capability, all in the past few months.

As the stakeholder landscape broadens, it’s clear that traditional investor relations maintains its central appeal to companies. Investing real time and energy into your Capital Markets Day, helping to elevate it beyond the more humdrum and uninspired presentations will help foster meaningful engagement with your stakeholders.

For advice on approaching your CMD planning, contact [email protected].

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