As one of 3,800 issuers listed on the TSX/TSX-V, how can you distinguish your story? How can you effectively connect with the retail audience? Check out this TMX Equicom webinar and learn how to: - Increase visibility - Diversify your shareholder base - Reduce volatility - Improve liquidity

1. Reaching the
Retail Investor:
Investor Relations

2. Your Presenters
Cameron Davies
Senior Vice President
Crystal Quast
Director, Media Relations
Mark Cohen
Account Executive

3. Agenda
1. About retail
2. Why is retail important
3. Strategies to reach retail
1. Indirect
2. Direct
4. Key tools
5. Q&A

4. Your key audiences
Analysts/Bankers
Institutional Investors
Retail Brokers
Retail Investors
Business Media

5. About Retail Investors
Individual investor
1 in 2 Canadians own stock
Purchase in small amount
$166B in discount brokerages
Average portfolio $60-100k
Average 3-4 trades per Q*

6. About Retail
Tend to take long term approach 5
limited time for investment
decisions 3
Invest in Companies they know 1
4
3800 co’s on TSX/TSX-V
Become loyal investors 2
Wave theory
Investor confidence
(Dent 2004)
*Source: Investor Economics 2009

7. Why Retail is important
Diversify investor base
Generate liquidity
They have capital

8. Challenges
Time consuming
Typically not as knowledgeable
Emotional

9. Strategies and
Tactics:
Attracting
Investors

10. Indirect: Retail Brokers
Two types: Stock picker or Asset
gatherer
Average 2 trades per account
per quarter*
Heavy reliance on analysts
Move towards active
management
Concentrated in large urban
markets
*Source: Investor Economics 2009

11. Indirect: Retail Brokers
% of advisors 10,000 advisors
% of assets
$573B in assets
39.5 42.3
19.1 19 20
16.2 13.1
12.4
5.1 3.8
4.8 4.8
Source: Investor Economics 2009

12. Indirect: Retail Brokers
Targeting is critical
Find champions
Broker Lunches/Branch
Presentations
Don’t forget local market
Gather Feedback
Update regularly – Top 10
Provide succinct and compelling
points

13. Pitching your story: messaging
the right information
rapidly transferred
with high recall

14. the right information

15. it’s about distilled nuggets
mission
product table of
description contents
board values
vision growth
last year’s strategy
results awards
something features
big coming
benefits capabilities
intellectual head shots
property
corporate
governance
media
coverage
value
proposition

16. typically, the big three
need
expressed opportunity
need strategic, core differentiator
addressed (what defines you, guides all you do)
growth
strategy how you are going to stay on top

17. rapidly transferred

19. rapidly transferred

20. Capturing interest + making an impression
photography
maps
diagrams
illustrations
big fonts

21. high recall

22. Ways to Make Them Remember
plot
emotion
images
proprietary language
the unexpected

23. Strategies and
Tactics:
Attracting
Investors

24. Indirect: Sell-Side Analysts
Target key Analysts in the sector
Focus on the growth strategy, Significant influence
Clearly identify milestones
over brokers
Can help facilitate meetings
Quotable for media

25. The broker roadshow
Quarterly
CEO/CFO mandatory
Road new potential investors/
current shareholders
Tips leverage sell side
Gather feedback
Build presence/maintain
visibility

26. Strategies and
Tactics:
Attracting
Investors

27. Direct: Business Media - Working with Journalists
Focus on key messages
Identify sector reporter
Target media carefully
Select a media spokesperson
Media training

28. Direct: Business Media – working with Journalists
Shrinking Newsrooms
Growth of online media
Main source of investor
information is now online
Build plan – getting coverage
takes time
Be realistic

29. Direct: Social Media
Ensure maximum visibility
Build concerted strategy
Make your own news
Amp up Google juice
Crisis communications

30. Strategies and
Tactics:
Key Tools

31. Website
Critical tool – first stop
Include all relevant info
Develop an IR section and
update regularly

32. Virtual Roadshow
Allow investors to see and hear
management
Allow for broad distribution of
story
Integrate with social media

33. Fact Sheet
One page double sided
Effective for introductions
Simple language
Growth strategy & financial
overview

34. Summary
Have a 12 month plan
Keep messages simple Critical
component for
Will help generate liquidity
any IR program
Takes time

35. Reaching the
Retail Investor:
Investor Relations

36. Additional Questions Please
Contact:
Cameron Davies
Senior Vice President
TMX Equicom
416-815-0700 x 260
cdavies@equicomgroup.com