presents

Investor
Relations:
How IR Strategies
impact company valuation

29 November - 1 December 2010,

Sandton,
South Africa

Your Course Presenter:

Hamed Behairy, CFA

Leading international financial

trainer and corporate
governance specialist.
CEO of Radix Corporate
Governance (Pty) Ltd and
Radix Training Academy (Pty) Ltd

www.radixcorpgov.co.za +27 (0)82 621 3077 +27 (0)86 750 2833 training@radixcorpgov.co.za
 C
Introduction

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m
itt
This three-day intensive course is divided into two main sections: listed

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company valuations and building an investor relations (IR) strategy. IR

to
strategies are multi-faceted. Planning the optimal shareholder mix and the

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best way to attract and maintain the stability of this mix represents a

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cornerstone of an effective IR strategy. An IR manager must understand the

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various investment requirements of the company and attract investors with

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matching investment philosophies. Additionally, an IR manager must be

e
able to manage the expectations of the financial community in the most
ethical and balanced manner. As an IR manager, you would need to know
how to value a listed company in order to interact with both buy- and sell-
side analysts.
Building a communication program using several available tools and the
three steps of managing a crisis will be discussed in great detail. The IR
manager's role in handling an undervalued stock is widely different from
handling an overvalued stock. For this reason this unique course deals with
listed company valuation in detail. Great Who should attend?
Key obje emphasis is placed on understanding and Ÿ Investor Relations
ctives o
course a f the measuring the valuation inputs. These Managers
Ÿ Und re to: inputs represent the main interrogation Ÿ Investor Relations Staff
erstand
modellin v aluation between financial analysts and IR Ÿ Buy Side Analysts
g
case stu inputs with a full managers. Analysts need to understand Ÿ Sell Side Analysts
dy
Ÿ Cus
tomize th diverse aspects of company valuations in Ÿ Portfolio Managers
your com e IR stra Ÿ Public Relation Officers
pany te g y to order to be in a more informed position to
Ÿ Opti
mize the conditions Ÿ Company Secretaries
mix of a s h are measure these inputs. The valuation
Ÿ Buil company holders section ends with a case study of valuing
Ÿ CEO's
d vigo Ÿ ExCo Members
with all s rous relationship a listed South African company, using a Ÿ Financial Managers
takeh s
Ÿ Eva
luate the olders Microsoft Excel Model. Ÿ Board Members
commun variou
ication to s This course is not only relevant to IR Ÿ Trustees
ols
managers, it will also benefit buy- and Ÿ Journalists
sell-side financial analysts in constant Ÿ Strategic Planners
contact with IR managers. Other Ÿ Compliance Officers
individuals who may benefit from the course include CEO's, board Ÿ Financial Advisors
members, trustees, portfolio managers and many more interested parties. Ÿ Risk Controllers
Ÿ Internal Control
The course will also hold a discussion workshop on forming a South African Specialists
institute of IR managers. This workshop will be held on the last afternoon of
the course.

Attend the course and get your questions answered

Ÿ How to measure the effectiveness of an IR strategy?
Ÿ What are the three categories of information?
Ÿ What are the three steps of managing a crisis?
Ÿ How do analysts value a listed company?
Ÿ How to handle an undervalued stock vs an overvalued stock?
 Day One Day Two
First Section: Valuation Estimating Growth

Course Outline Introduction to Valuation

• Why and to what extent should IR managers understand
valuation inputs
• How do analysts estimate growth rates
• Extrapolation and its danger
• High growth period vs. stable growth period
• Length of the high growth period
• Introduction to Discounted Cash Flow (DCF) • Fundamental growth rate
• The principles and practice of time value for money • Effect of ROC and Reinvestment rate on growth rate
• High growth rate estimation vs. stable growth rate assumption
Risk Parameters and Expected Return • Real vs. nominal growth rates
• What is risk and how to measure it? • The three growth patterns and which to use
• Models of default risk and CAPM • Model the three growth patterns
• Market risk premium meaning and measurement. Case study:
• Risk free rates and market risk premium • Putting It All Together: Full valuation of a listed company
• Estimating risk parameters and cost of financing covering all the previous topics
• What is beta?
• Model regression beta Dividend Discount Models (DDM)
• Model bottom up beta • Gordon growth model
• Using Published Betas • Versions of the model
• Equity risk and expected returns • Issues in using DDM
• Model the cost of equity • Valuing a utility company using DDM
• Model synthetic rating Case study:
• Three ways of calculating cost of debt • Valuing FTSE JSE All Share Index using DDM
• Book value or market value of debt and equity?
• Cost of capital (WACC) modelling Relative Valuation
• Explicit and implicit costs of financing. • Standardized values and multiples
• What happens when a company doesn't meet its cost of capital? • Three different ways to using multiples
• The practice of changing assumptions in the stable growth period • Use regression analysis with multiples
• Some analysts don’t use CAPM. Practical alternatives? • Earnings multiples
Case study: • Book value multiples
• Calculate the cost of capital of a listed company • Sales multiples
• Calculate of terminal value using multiples
Financial Statements Adjustment
• The reasons for adjusting financial statements Second Section: IR Strategy
• Capitalizing operating leases
• The capitalisation rate Key components of investor relations
• Model the adjustment to EBIT and adjustment to total debt • Importance of managing expectations
• Capitalizing R&D • IR role in creating fair value
• Nature of industry and how many years to look back • Undervalued stock
• Overvalued stock
Free Cash Flow to Equity (FCFE) vs. Free Cash Flow to Firm (FCFF) • IR as a marketing function
• Meaning, measurement and modelling • Real purpose: reducing cost of capital
• Normalizing EBIT, capex and working capital
• Why we need the non-cash, non-debt working capital? Different investor, different approach
• Adjustments required if firms have negative working capital • Optimization of shareholder mix
• Marginal vs effective tax rate • Different investment philosophies in South Africa and globally
• Stable debt policy and FCFE • The institutionalization of markets
• FCFE and leverage. Is there a free lunch? • Growth, value and income investors
• Calculation of terminal value (TV) • More about quantitative and tracking managers
• Effect of leverage on firm value • Individuals increasing their investment expertise
• Effect of minority interest on valuation
• Valuing operating and non-operating assets The investor relations strategy
• Effect of contingent claims • Essential components of the strategy
• Maximizing the value of market research
w Market intelligence
w Audience analysis
w Benchmark surveys
• The importance of message and information development
• Three categories of information
• Selecting communications vehicles
w Printed Materials
w Electronic Information Services
w In-Person Meetings
w Telephone Contact
• Administering the IR strategy
• Extending investor relations globally

Staffing the investor relations function

• IR on the organization chart
• Making the investor relations function effective
• Qualities of the investor relations professional
• Essential IR capabilities
• Support from outside resources

Why Radix Corporate Governance (Pty) Ltd

Radix Corporate Governance (Pty) Ltd offers diverse services in ESG (Environmental Governance,
Corporate Social Responsibility and Corporate Governance). Coupled with the most up-to-date
due diligence and compliance packages that it can offer, Radix endeavours to apply and continuously
develop niche governance models that purport to be a first in South Africa. ESG is a way of enriching,
adding insight and perspective to traditional equity analysis and a way of increasing the confidence or forcing
questions about its conclusions. It is no substitute. Radix assists companies with all aspects of governance.
It is a governance "one stop shop." The company's target client base includes institutional investors
asset owners, listed and unlisted companies, financial institutions, SME's, public entities and
parastatals. This is coupled with excellent presentation skills, which the co-founders are renowned for. The
presenter is considered one of the top financial trainers in South Africa and South East Asia.
We promise to provide the highest possible standard of training that will make the three days
journey a worthwhile experience.
Course Outline Day Three
Recent attendees:
Disclosure: The Foundation of Investor Relations
• Economic value of disclosure The presenter has taught delegates on various
• Reasons for voluntary disclosure topics from over 130 companies worldwide including
• Material information: complex but defined the following. Please contact us for the various
• Handling rumours programs that Radix offers
• Avoiding selective disclosure
• Fair disclosure: a communications challenge ABSA
• Expanding role of conference calls Adcock Ingram
• Managing expectations and earnings forecasts Afgri Operations
• Managing forward-looking information Allan Gray
• Merits of having a disclosure policy Astro Media- Malaysia
Banco Commercial De Investimentos- Mozambique
The components of the communications program Blue Financial Services
• Making annual reports powerful Business Connexion
w Letter to shareholders CBZ Bank Holdings- Zimbabwe
w Editorial/operations review Citigroup
w Financial section Department of Public Enterprises
w Management discussion and analysis Ellies Holdings
• Interim reports Eskom Holdings
• Corporate profiles and fact books Exxaro Resources
• Sending and receiving vital information Financial Services Board FSB
• Meetings remain the best forum Gold Fields Group
• Brokerage firm conferences Government Institutions Pension Fund- Namibia
• Company meetings Grindrod Bank
• Telephone conversations Investec Asset Management
• Internet Web sites and more Khazanah (Central Bank)- Malaysia
• E-Mail capabilities Metropolitan Life
• Electronic fulfillment services Munich Reinsurance
National Empowerment Fund (NEF)
Building relationships with analysts, brokers and investors Nedbank
• Role of the sell side Old Mutual
• Types of brokerages RMB
• Getting analysts’ attention Standard Bank
• Reaching retail brokers Symmetry Multi Managers
• Institutions as a prime market group UBS Investment Bank
• Individual investors: an important part of the market Virgin Money
• Attracting market makers
• Contacting market makers
• Growing influence of shareholder activism
• Case study

The Value of a Proactive Media Relations Program

• Organizing a program
• How to relate to the media
• Conducting a planned, proactive program

Managing a Crisis
• Step 1: An early warning system
• Step 2: Put together a crisis team
• Step 3: Determining the message and information
• Role of Investor relations professionals
• Case study

Measuring an investor relations strategy

• Measuring effectiveness with the buy side
• Measuring effectiveness with the sell side
• Value of investment community feedback

Discussion workshop on forming the South African

Society of IR managers Day 1 Schedule
• Ranking of South African Investor Relations function
in Africa and globally Registeration: 08:00
• Setting a progress agenda First session: 08:30 - 11:00
Second Session: 11:10 - 13:10
• Examining the basic principles of the society.
Lunch: 13:10 - 14:10
Third session: 14:10 - 16:00
Fourth session: 16:10 - 17:35

IsED
Day 2 Schedule

S TOM First session: 08:30 - 11:00

Second Session: 11:10 - 13:10

C U In-hours training – we will

Lunch: 13:10 - 14:10
Third session: 14:10 - 16:00
Fourth session: 16:10 - 17:35
come to you!
Day 3 Schedule
If you have 15 or more delegates who are
interested in this course, we can come to you First session: 08:30 - 11:00
Second Session: 11:10 - 13:10
and customise the course content to your Lunch: 13:10 - 14:10
particular needs. Kindly contact us for more details Third session: 14:10 - 16:00
Fourth session: 16:10 - 17:35
 About the presenter
Hamed Behairy, CFA, an internationally renowned financial consultant and trainer over
the past 14 years.
With more than 14 years of experience in the fields of Corporate Governance, financial
analysis, modelling, consultation and training, Hamed has been consistently acclaimed as
one of the top financial consultants in South Africa. He was one of the leading corporate
governance buy-side analysts in South Africa. His involvement in a number of high profile
cases and the articles he wrote assisted in shaping corporate governance practices in the
region. The presenter is widely renowned in different parts of the world as a seasoned
valuation expert. This is coupled with his years of experience in the corporate governance
arena.
Hamed is the founder and CEO of Radix Training Academy (Pty) Ltd and co-founder and
CEO of Radix Corporate Governance (Pty) Ltd based in Cape Town, South Africa. One of
the services of the company includes advising listed companies on building and maintaining
their Investor Relations strategy. Radix Corporate Governance (Pty) Ltd is the product of a
group of people who have common passion and extensive experience in the field of ESG - Environmental Governance,
Corporate Social Responsibility and Corporate Governance. Radix shares the spirit of doing things right, and getting things
done in the most professional way.
He has an extensive training experience. His workshops combine professional knowledge along with excellent presentation
skills. Participants' comments of Hamed's workshops indicate that they leave with deep understanding of the material
covered and conclusive ability to apply these concepts at their workplace upon completion of his courses. He has
substantial experience in training corporate executives on strategic matters including valuation modelling, M&A modelling,
applied corporate finance modelling, financial analysis modelling, attribution analysis modelling and other
modelling courses. Hamed worked as a financial analyst and modeller in an asset management
company. While lecturing accounting and financial analysis at the University of Alexandria, Hamed was awarded the best
teaching talented lecturer.
Hamed is a Chartered Financial Analyst (CFA). He qualified with Bcom (honours) in accounting - cum laude with first class
honour, and Bcom (honours) in Financial Analysis and Portfolio Management - cum laude, with first class honour. Hamed's
hands-on training approach is mixed with energy, humour and continuous interaction with delegates. The systematic build
up of his workshops ensures a bottom-up explanation, leading delegates quickly from the basics through the more
advanced topics.

Other courses by Hamed Behairy, CFA

• Valuation Modelling
• Investment Philosophies
• South African Financial Markets (bond, equity, money, forex, & derivatives)
• Applied Corporate Finance
• Corporate Failures: how and why do companies fail?
• Mergers and Acquisitions Modelling
• Performance Measurement, Attribution Analysis and GIPS Modelling
• Private Equity and Venture Capital Modelling and Structuring
• VBA Financial Programming

Kindly contact us for course brochures and booking.

The price of the Course includes:

Course attendance for three days in a minimum of 4-star Conference Facility

All course notes

CD with all relevant modules For More info

Visit our Website
One month window period after the course to ask any question
HERE
or
Daily breakfast, lunch and two coffee breaks with snacks.
Email us
If needed, we can assist with finding suitable accommodation nearby HERE
the Conference Facility in Sandton
 Special Offer!
Investor
Send 3 Delegates
and get one FREE!
Relations:
How IR Strategies impact
company valuation
29 November - 1 December 2010, Sandton, South Africa

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www.radixcorpgov.co.za +27 (0)82 621 3077 +27 (0)86 750 2833 training@radixcorpgov.co.za