CONFIDENTIAL

Sergei ZhogotaBusiness Development Director, Orient Capital

Non-deal roadshows in Asia:

Investor Targeting

20th March 2015, Gostiny Dvor

CONFIDENTIAL

Trends and Influencing Factors

Economic and Political

Exchange Rates

De-listings

Corporate Governance

Budget cuts & team reductions

Alternative investor outreach and targeting new investors

Technology based solutions

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Targeting

Investor targeting key reasons:

• Marketing your equity to new and underweighted investors

• Vital part of IR process:

Companies cannot rely on standard investor interface model to provide full value/adequatedistribution of investment proposition

• Key to success – understanding investors & markets in terms of:

Size and quality of markets

Fund management strategies

Fund management firms’ internal structures and funds managed

Key to success – understanding investors & markets in terms of

• Targeting must be strategic – but investor retention is equally important

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Shareholder Identification &

Analysis

Investor Targeting

& Roadshow

Roadshow & post

meeting feedback

WHAT SHOULD IT SHOW YOU?

• Identified Holders

• Types & Styles of Investor

• Geographic Positions

TARGETING INTELLIGENCE &

MATCHING INVESTORS TO YOUR STOCK

• Peer group analysis & weightings

• Long list

• Short list

• Interaction with Brokers

Investor Targeting: Roadshow Process

ROADSHOW PLANNING & LOGISTICS

• Roadshow arranged with target investors

• Briefing pack on targets provided which includes

investor profiles & roadshow schedule

FEEDBACK & FUTURE SRA

• Post-meeting calls to targets to obtain feedback

• Has your investor targeting had an impact

on your register?

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Shareholder Identification Analysis

What you should see• Geographical location of fund manager & funds managed (by city)

• Investment style of funds & fund management firm

• Type of fund manager

• Shareholder concentration analysis (% of equity held by Top investors)

• Breakdown of Beneficial Owners

• Commentary on movements

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Investor Targeting Intelligence

Peer Group Analysis / Weightings Data• Non holders based on potential major equity investors • Overweight / Underweight positions v. sector and market• Comparison against selected Russian / International peer group• Size of investors assets under management (total / Russian equities)

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Peer Anlaysis Data

Things to watch out for• Collation methodology • Double counting• Age of data • Coverage• Treatment of stock lending• Non-holders• Discerning irrelevant investors (e.g. stock specific strategic investors / arbitrageurs)• Current & past buying patterns not reflective of future approach

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Quantitative Screening• Share Register Analysis / Peer Group / Weightings Analysis

Underweight and sector investing non-holders

Include institutions not covered above: Specialist sector fund / fund managers Relevant index-orientated funds Relevant investment cycle-orientated funds Smaller overseas institution

Result: “Long List” of target investors which manage funds theoretically relevant for your stock

The Long List

INTE

LLIG

ENC

E G

ATH

ERIN

G

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Decide strategy and position• Institutional or Retail• Specific Asian or overseas investors• Russia, regional outreach? If overseas, which cities?• Prioritisation necessary to gain most efficient use of resource• Tier your targets accordingly• Understand what sort of stock you are: growth / value / yield / deep value• Work out which fund managers could be relevant based on your position within

market / indices / sector• Check your investor meeting notes • Talk to investor to identify level of cognition / perception of stock

Result: “Short List” of carefully targeted investors appropriate for you to getto know better

The Short List

QU

ALI

TATI

VE

SELE

CTI

ON

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Integrating targeting process with Advisors• Companies should understand targeting process & have input on subsequent roadshows

• Investors increasingly want to see companies directly - without broker• Manage your broker led roadshow

- Make sure you see the investors you want too – not “best clients”- Use multiple brokers

• Consider ‘corporate access’ – this means access to corporates for clients of the bank, not access for corporates

• Always know why you are meeting an investor• Managing senior management time important part of targeting process

The Short List

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• Know yourself – what sort of stock are you?• Use best possible tools to understand your shareholders• Apply targeting techniques• Use peer data but don’t forget the things to watch out for!• Use your advisors well• Construct strategic approach – maximise time and resource available• Retain good notes of meetings and conversations for use next time

Summary

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Orient Capital has been providing specialist IR support for over 25 years. With offices in London, New York, Hong Kong, Paris, Madrid, Johannesburg, Dubai, Melbourne, Sydney, we

provide specific expertise in:

Shareholder identification and analysisBond identificationInvestor targeting

Corporate Governance and Targeting RoadshowsPerception studies

WebcastingIR communications management technology - miraqle®

Proxy solicitation & Transaction support (D.F. King)

www.orientcap.com