Date post: | 04-Dec-2014 |
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Investor Relations |
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Listed Private Equity
Arne Karlsson
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NIR 17 June 2010www.ratos.se
Definition of Investor RelationsDefinition of Investor Relations
I t l ti i t t i t Investor relations is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the marketing and securities law compliance to enable the most effective two-way communication between a company the financial community and other company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation. company s securities achieving fair valuation.
(Adopted by the NIRI Board of Directors, March 2003)
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Strategic shiftStrategic shift
Listed → Unlisted
Asset management → Holdings
√
√Asset management → Holdings
2-4 years
√
√Retained profitability
S i l ti
√
√Successive revaluation
Tailored organisation
√
√Own deal flow
√
√
√3
Transparency √
Process of change (1)Process of change (1)
Unlisted 10%
Unlisted92%
Listed90%
Listed 8%
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January 1999 June 2001
Process of change (2)Process of change (2)
Holdings44%
Holdings100%
Assetmanagement
56%56%
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January 1999 June 2001
Risk of drowning on the way?Risk of drowning on the way?
Hi hl ti k t d di iHighly negative market and media image- wrong strategy
- no transparency- incompetent management
h f h h f b l- owner with focus other than profitability- and so on
Facts?- totally wrong!
- but…
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Get a grip Ratos!
The market rejects Ratos Ratos must make
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Ratos must make a commitment
Risk of drowning on the way?Risk of drowning on the way?
Hi hl ti k t d di iHighly negative market and media image- wrong strategy
- no transparency- incompetent management
h f h h f b l- owner with focus other than profitability- and so on
Facts?- totally wrong!
- but…
Risk: no opportunity to complete
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pp y p
Info/IRInfo/IR
St t i ll t l t f bl tStrategically central part of problem management- Info/IR first new recruitment!
- straight into group management
Enormous exchange/-d impact- never experienced such strategically central info effort- shift knowledge and perception- recreate confidence- rebuild brand (sauna effect!)
But- multi-year project!
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y p j
Why is Info/IR important? (1)Why is Info/IR important? (1)
C t t i f / i tiCreates accurate image of company/organisationTransparencyCredibilityBuilding the brandgCoherent internal and external imageCorporate cultureCorporate cultureRecruitment Feeler (critical examination)Etc.
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Why is Info/IR important? (2)Why is Info/IR important? (2)
B t t i f lf t !!But: you cannot inform yourself to success!!- reality and profitability always control over time…
d d l h - …and do not always catch up- IR function must not live its own life
Business support- tools/means- strategically central!
Info/IR < deals- form vs. content
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Info/IR vs. CEO (1)Info/IR vs. CEO (1)
For this teamwork to functionFor this teamwork to function- Info/IR must have near and close access to CEO…
d i - …and vice versa- close cooperation with other central functions is also
necessarynecessary
Creates Info/IR unit that is …i th k- in the know
- informed
d I M /E l W i…and can manage Issue Management/Early Warning- interface, several units
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- catalyst!
Info/IR vs. CEO (2)Info/IR vs. CEO (2)
T b MTube Mac- background- tried to make use of Swedish media
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Big blow gthreatens Ratos
Ratos sued for SEK 700mfor SEK 700m
14DI 070813
Info/IR vs CEO (2)Info/IR vs CEO (2)
T b MTube Mac- background
i d k f S di h di- tried to make use of Swedish media- effect the same day: Ratos share price rose…
Keys- knowledge/facts
- preparations (IM)- confidence (long time to build…)
Info/IR integrated part of Ratos’s everyday life- Group management, Q group, Kick-offs, etc.
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p g , Q g p, ,
Good adviser to CEO?Good adviser to CEO?
G tGroup managementManagement – does not “monitor” info interests!Overall viewMust not be too much of a gate keeperg pMost successful when not noticed (outwards)!Long term agenda setter not “media adaptable”Long-term agenda setter, not media adaptable
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Strategic unitStrategic unit
B i lBusiness plan- regard as an operating business area
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