IR Global Rankings Event Amsterdam March 23, 2010
Agenda IRGR 2010 Summary Best Ranked Companies Q&A and Closing Remarks 5:00 pm 5:20 pm 5:50 pm 2
IR Global Rankings 2010 Summary
Supporting Entities Brief Overview IR Global Rankings Created in 1999 (currently the 12 th edition) More than 1000 companies evaluated and ranked Evaluations based on technical methodology; conducted by experienced Investor Relations professionals and independently reviewed prior disclose Participants can choose to receive an individual feedback report with the key findings. An individual conf call is held to review any questions. 4
Ranking Categories IR Website Online Annual Report Financial Disclosure Corporate Governance Investors Choice Evaluation Evaluation Evaluation Evaluation Online Voting Content Design & Navigability Interactivity Technology & Data Handling Timeliness Content Design & Navigability Interactivity Technology & Data Handling Operating Information Financial Statements (IS, BS, CF) Guidance Conference Calls Exemplary Disclosure Remuneration and Performance Board Accountability Capital Structure Shareholder Protection Internal Controls Financial Disclosure Best IR Program Best IR Officer 5
Content Design & Navigability Visibility of IR Website vs. Other Sections Link to IR Homepage in English on First Page Navigability Company has a Specific IR Menu All Section of IR Menu Are Seen Without Clicking Documents Can Download Directly Without Opening New Internet Explor Number of Clicks Needed to Find Information Up to 2 Clicks for Any Information From 3 to 4 Clicks for Any Information Links to Other Sections of the Website Home in "Portal" Format Links to Related Topics Interactivity Technology and Data Handling Timeliness Annual Report Request Date Contact Person (email, etc.) Package Shipping Date Contact Information Site has IR contact(s) and/or Request Form Responsiveness Company sent E-mail Informing Package will be Sent Package Posted in 4 Business Days from Request Date Package Posted in 5-15 Business Days from Request Date Updates (Considerei nota max qdo tem preço ação atual) Update Date Information Available Last Website Update - Less Than 1 Week Last Website Update - Less Than 2 Weeks Total Sample of an IRGR Evaluation Spreadsheet 50,0 15,0 1,0 1,0 7,0 2,0 3,0 2,0 5,0 5,0 2,0 2,0 1,0 1,0 10,0 15,0 10,0 1,0 1,0 4,0 1,0 3,0 2,0 5,0 1,0 4,0 3,0 100,0 23,5 13,5 1,0 1,0 5,5 2,0 1,5 2,0 5,0 5,0 2,0 2,0 1,0 1,0 5,5 6,5 8,0 5-Jan-09 relaciones.invers 1,0 1,0 3,0 1,0-2,0 4,0-4,0 3,0 57,00 39,8 9,5 1,0 1,0 3,5 2,0 1,5-3,0 3,0 2,0 2,0 1,0 1,0 8,0 13,0 8,5 5-Jan-09 investor.relations 1,0 1,0 3,0 1,0-2,0 4,5 0,5 4,0 3,0 78,75 36,7 14,0 1,0 1,0 6,0 1,0 3,0 2,0 5,0 5,0 2,0 2,0 1,0 1,0 6,3 11,0 8,5 5-Jan-09 1,0 1,0 3,0 3,0-4,5 0,5 4,0 3,0 76,40 26,5 14,0 1,0 1,0 6,0 1,0 3,0 2,0 5,0 5,0 2,0 2,0 1,0 1,0 1,5 12,0 8,5 5-Jan-09 1,0 1,0 3,0 1,0-2,0 4,5 0,5 4,0 3,0 62,50 43,0 13,0 1,0 1,0 5,0 2,0 3,0-5,0 5,0 2,0 2,0 1,0 1,0 8,0 13,0 9,0 5-Jan-09 ir@all-logistica.c 1,0 1,0 4,0 1,0 3,0 4,0 1,0-3,0 86,00 1,5 13,0 1,0 1,0 6,0 2,0 3,0 1,0 5,0 5,0 2,0 1,0 1,0 - - 2,5 4,0 1,0 1,0-3,0 - - 3,0 21,00 28,5 12,0 1,0 1,0 5,0 2,0 3,0-5,0 5,0 2,0 1,0 1,0-2,3 7,5 6,0 5-Jan-09 1,0 1,0-5,0 1,0 4,0 3,0 56,25 26,5 12,0 1,0 1,0 5,0 2,0 3,0-5,0 5,0 2,0 1,0 1,0-4,8 10,0 9,0 5-Jan-09 gmansur@amil. 1,0 1,0 4,0 1,0 3,0-4,0 1,0 2,0 3,0 62,25 9,5 8,0 - - 2,0 2,0 - - 5,0 5,0 2,0 1,0 1,0-3,3 11,0 6,0 5-Jan-09 AMPServices@c 1,0 1,0 1,0 1,0 - - 4,0 4,0 3,0 37,75 3,0 9,0 - - 3,0 1,0-2,0 5,0 5,0 2,0 1,0 1,0 - - 2,0 1,0 5-Jan-09 1,0 1,0 - - - - - 15,00 24,5 12,0 1,0 1,0 4,0 2,0-2,0 5,0 5,0 2,0 2,0 1,0 1,0 3,3 12,0 8,5 5-Jan-09 corporatecommu 1,0 1,0 3,0 1,0-2,0 4,5 0,5 4,0 3,0 60,25 26,0 8,0 1,0 1,0 2,0 2,0 - - 3,0 3,0 2,0 2,0 1,0 1,0 8,3 13,0 8,0 5-Jan-09 1,0 1,0 3,0 3,0-4,0-4,0 3,0 63,25 28,5 8,5 1,0 1,0 3,5 2,0 1,5-2,0-2,0 2,0 1,0 1,0 2,0 8,5 3,5 5-Jan-09 1,0 1,0-2,5 0,5 2,0 1,5 51,00 8,0 8,0 1,0 1,0 3,0 2,0-1,0 3,0 3,0 2,0 1,0 1,0-2,0 11,0 5,0 8-Jan-09 1,0 1,0-4,0-4,0 3,0 34,00 34,5 12,0 1,0 1,0 5,0 2,0 3,0-5,0 5,0 2,0 1,0 1,0-6,5 13,0 9,0 5-Jan-09 4823.flavia@bra 1,0 1,0 4,0 1,0 3,0 4,0-4,0 3,0 75,00 23,5 12,5 0,5 0,5 5,0 2,0 3,0-5,0 5,0 2,0 2,0 1,0 1,0 2,0 10,0 8,0 5-Jan-09 1,0 1,0 3,0 3,0-4,0 1,0 2,0 3,0 56,00 22,0 7,0 1,0 1,0 2,0 2,0 - - 3,0 3,0 2,0 1,0 1,0 - - 9,0 5,0 5-Jan-09 CATABOTE@B 1,0 1,0 1,0 1,0 3,0-2,0 3,0 43,00 38,3 15,0 1,0 1,0 7,0 2,0 3,0 2,0 5,0 5,0 2,0 2,0 1,0 1,0 8,5 11,0 5,5 5-Jan-09 1,0 1,0-4,5 0,5 4,0 3,0 78,25 43,5 10,0 1,0 1,0 2,0 2,0 - - 5,0 5,0 2,0 2,0 1,0 1,0 7,5 14,0 9,0 5-Jan-09 1,0 1,0 3,0-3,0-5,0 1,0 4,0 3,0 84,00 6
The IR Global Rankings Cycle The IR Global Rankings: an ongoing, year-round process for both Participants and the Rankings team Revision and Update of IRGR IRGR Registration Period Evaluation Process Enhanced IR Programs Continuous Improvement Award Ceremonies Benchmark Report Conference Calls Best Practices & Feedback Reports 7
Key IR Global Ranking Points What Makes IR Global Rankings Unique? Transparency Individual Feedback Reports Global Benchmark Comparisons Unique Evaluation Method and Ranking System A True Global Ranking Recognition 8
Summary of the 2010 Edition 503 Participants from 35 countries and 10 industries 5 Global Ceremonies: Amsterdam, Taipei, Beijing, New York and São Paulo 9
Breakdown of Participants per Region Africa 1% Africa 1% Asia/Pacific Asia/Pacific & 18% Africa 19% Europe 25% 26% North 20% Asia/Pacific 37% Latin 36% 34% North 20% 21% Latin 19% Europe 23% 2009 Edition 163 companies from 32 countries 2010 Edition 503 companies from 35 countries 10
Breakdown of Participants per Industry 2009 Registered Companies by Industry 2010 Registered Companies by Industry Utilities 7% Utilities 5% Telecommunications 12% Telecommunications 8% Technology 10% Technology 17% Oil & Gas 7% Oil & Gas 7% Industrials 17% Industrials 15% Health Care 8% Health Care 9% Financials 17% Financial Institutions 15% Consumer Services 5% Consumer Services 8% Consumer Goods 8% Consumer Goods 9% Basic Materials 9% Basic Materials 7% 2009 Edition 163 companies from 32 countries 2010 Edition 503 companies from 35 countries 11
IR Global Rankings 2010 Main Trends
2010 IRGR Highlights Aftermath of the crisis: improve content Content Disclosure of Corporate Governance information; Investor Days / Meetings information; Audio and transcripts of conference calls. Content Corporate Governance 64% 69% 66% 86% 64% 46% 51% 55% 60% 77% 54% 63% 61% 35% 92% 79% 92% 83% 71% 75% Africa Asia/Pacific Europe Latin North Africa Asia/Pacific Europe Latin North 2010 2009 2010 2009 FOCUS: IR Productivity and Efficiency Differentiate from others through detailed content 13
2010 IRGR Highlights Back to basics: implement simple features Interactivity Financial data in downloadable Excel format; Social networks, Web 2.0. 43% 34% Interactivity 54% 56% 51% 44% 33% 25% 70% 64% Web 2.0 / Social Media 27% 22% 19% 14% 13% 11% 8% 7% 0% 0% Africa Asia/Pacific Europe Latin 2010 2009 North Africa Asia/Pacific Europe Latin North 2010 2009 FOCUS: IR Productivity and Efficiency Facilitate the access to / distribution of existing info 14
Highlights EUROPE Highest / Most Improved Corporate Governance information: Board of Directors / management compensation; Social Responsibility / Environmental information. 100% 80% Social/Environmental 54% 40% 93% 75% Africa Asia/Pacific Europe Latin 2010 2009 82% 88% 83% 61% North 50% 50% Downloads in Excel Format 38% 17% 61% 42% 80% 62% Africa Asia/Pacific Europe Latin 2010 2009 92% 69% North Room for improvement Price charts: event-centric, comparable to peers and indexes; Financial data in downloadable Excel format; Social networks, Web 2.0. 15
Trailing P/E Trailing P/E Trailing P/E IRGR Scores x P/E x Mkt.Cap 25,0 20,0 15,0 5 4 Health Care 3 1 35,0 30,0 25,0 20,0 4 3 Technology 2 1 10,0 5,0 2 15,0 10,0 5,0 5-18,0 16,0 14,0 12,0 10,0 8,0 6,0 4,0 2,0-65,00 70,00 75,00 80,00 85,00 5 IRGR Score - Website 3 Utilities 4 2 67,0 68,0 69,0 70,0 71,0 72,0 73,0 IRGR Score - Website 1 16 Mkt Cap - 68,0 70,0 72,0 74,0 76,0 78,0 80,0 82,0 Source: Bloomberg, March 2010 IRGR Score - Website Small caps, even with smaller budgets, can put together an efficient IR Program with solid results; Global standards convergence is likely to prevail over regional or industry characteristics.
Questions & Answers
Appendix Key Technical Criteria For IRGR 2010
IR Website Ranking Categories for IR Website Content Design & Navigability Interactivity Technology & Data Handling Timeliness Technical evaluations revised by technical independent committee 19
IR Website Ranking Key Themes and Tools Considered for IR Website 50% 15% 10% 15% 10% Content Design & Navigability Interactivity Technology & Data Handling Timeliness Investment & strategy messages Corporate governance Corporate responsibility Industry highlight Filings & releases Remember the rule: less is more Information intuitively found Number of clicks necessary Updated event calendar and FAQ Spreadsheet downloads Interactive price charts E-mail alerts Use of webcasts, podcasts, RSS Mobile access Search tool Site map or site tracking Contact details for IR team Update status of sections Equity research guidance 20
Financial Disclosure Ranking Financial Disclosure Operating Information Income Statement Balance Sheet Cash Flow Statement Guidance Conference Calls Exemplary Disclosure Technical evaluations revised by technical independent committee 21
Financial Disclosure Ranking Key Themes and Tools Considered for Financial Disclosure 15% 60% 10% 5% Operating Information Financial Statements (BS, IS, CF) Guidance Conference Call 10% Exemplary Disclosure Relevant data such as volumes, prices, market shares, etc. Presence of summary tables to facilitate viewing Complete and detailed financial statements MD&A reporting is recommended with detailed explanations for financial results Easy to find Updated Changes or buildup of trends Guidance for operating data is also helpful Actual earnings conference calls Transcripts and earnings presentation Equitable treatment in reporting Conference calls and supporting materials IFRS and USGAAP 22
Corporate Governance Ranking Corporate Governance Remuneration & Performance Board Accountability Capital Structure Shareholder Protection Shareholder Meetings Internal Control Mechanisms Financial Statements & Disclosure Technical evaluations revised by technical independent committee 23
Corporate Governance Ranking Key Themes and Tools Considered for Corporate Governance 29.5% 7.5% 25.5% 17% 15.5% Remuneration & Performance Formal evaluation/com pensation for executive officers Policies that tie management compensation to performance indicators Board Accountability Board composition / independent board members Committees and charters Succession plan Capital Structure Capital held by the controlling group and free float Policies for mandatory offerings Shareholder protection & Shareholder meetings Policies regarding share classes and voting rights Tag-along minority shareholders Policies that regulate crossshareholding Internal Control Mechanisms Disclosure of Policies for related-party transactions Dividend policy Nomination committee 5% Financial Statements & Disclosure IFRS and USGAAP Policy of providing detailed financial statements. Proxy voting at shareholders meetings 24
Investors Choice Ranking Categories: Best IR Program & Best IR Officer Online Voting Period: November 16, 2009 to December 16, 2009 Voting Channels: IR websites (through a specific Investors Choice banner) and the IR Global Rankings homepage Votes counting and validation revised by KPMG 25
Individual Feedback and Best Practices Report Participants who choose to acquire the individual feedback report will receive suggestions for improvements where applicable, as well as a benchmark report with key best practices and examples to follow for each category 26