Domtar > Resources > Q1 2014 > Page 5
Telling the Domtar story DANIEL SHAKIBAIAN > Intern, Investor Relations Domtar House
bout 10 times a year, Domtar issues a media advisory announcing that a member of our senior management will be speaking at an investment conference hosted by a financial institution. The audience at most of these conferences consists mainly of portfolio managers and financial analysts who work for so-called institutional investors – financial firms that manage large pools of money for mutual funds, pension plans and the like. You may wonder what goes on at these events and what their value is to Domtar? First of all, the mere fact that Domtar executives are invited is a good thing. It shows that the financial community is interested in our industry and particularly in hearing Domtar’s story. From the company’s perspective, the value
of attending an investment conference goes well beyond the actual presentation by our President and CEO John D. Williams or our Chief Financial Officer Daniel Buron. The presentations usually take 45 minutes to one hour, including a question and answer period. However, there is much more to their day than the time spent doing the actual presentation.
TELLING THE DOMTAR STORY TO AS MANY INVESTORS AS POSSIBLE IS AT THE CORE OF THE INVESTOR RELATIONS MISSION.
PRIVATE MEETINGS When Domtar executives are not presenting to the conference, they are speaking privately with institutional investors who own Domtar stock or those who are potential shareholders. Sometimes the meetings are with a single individual, but usually they are with two or more. These meetings are held in a room at the conference venue. The discussions generally last up to an hour and then it’s quickly on to the next meeting. Before you know it, a full day’s work is done. For institutional investors, these meetings with senior management are a necessary step in their
due diligence process. They are looking to assess Domtar’s corporate strategy, market conditions and future financial performance. Domtar’s executives, for their part, are trying to put the company’s best foot forward while also listening very carefully to what their hosts have to say about Domtar’s positioning and prospects.
RECTIFYING FACTS As appropriate, Mr. Williams and Mr. Buron may be able to rectify errors and misconceptions. These face-to-face discussions may even result in tweaks to Domtar’s message. Arguably, these discussions with portfolio managers and financial analysts may be more important to Domtar than the formal presentations at the conference itself. Following these private meetings, Domtar’s institutional shareholders may decide to buy more stock, hold on to what they have or even to sell. Those who aren’t shareholders may be convinced to invest in Domtar by purchasing stock.
INVESTOR OUTREACH Another benefit of attending investment conferences is that they are held in different cities across North America. This allows Domtar management to expand shareholder outreach and target investors in different financial hubs. Telling the Domtar story to as many investors as possible is at the core of the Investor Relations mission. Presentations to investment conferences and face-to-face meetings with small groups of institutional shareholders and potential investors are key components of successful communication. You can view PowerPoints of Domtar’s investor presentations on our web site in the Investors and Media section. <