4 Q20 SURVEY RE S U LT S

Global IR
Issuer Pulse
Nasdaq Global Perception | 4Q20 IR Issuer Pulse 1
 Contents
0 3 I N T R O D U C T O R Y R E M A R K S 1 0 W E E K LY I R TA S K S & A C T I V I T I E S
0 4  R E S P O N D E N T S U N I V E R S E 1 1 W I T H 1 - 2 H R S O F A D D I T I O N A L T I M E ,
WHERE WOULD IR SPEND IT?
0 5 R E S P O N S I B I L I T I E S O U T S I D E O F I R
1 3 S E E K I N G I R ’ S A D V I C E O N M O S T
0 6 G R E AT E S T C H A L L E N G E S FA C I N G I R
PRESSING ISSUES
0 7 M O S T D I F F I C U LT D E C I S I O N O V E R PA S T
1 4 
M O S T F R E Q U E N T LY A S K E D Q U E S T I O N S
12 MONTHS
BY M A N A G E M E N T
0 8 I R P R I O R I T I E S
1 5 V I R T U A L A N A LY S T / I N V E S T O R D AY
0 9 S H I F T S I N I R P R I O R I T I E S H E A D I N G
INTO 2021

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 2

 Introductory
Remarks
In the final weeks of 2020 (November 9th-December 7th), our Nasdaq Global Perception team
launched our Global IR Issuer Pulse, canvassing hundreds of IR professionals across the Americas,
EMEA, and Asia-Pacific capital markets. We received feedback from 455 IR professionals, with
55% of the pulse universe self-identifying as the most senior IR official at their companies, nearly
one-third self-identifying as mid-level IR, and just over 10% at the Analyst level. We received
perspectives from 11 sectors and across all market capitalizations. While several noteworthy
themes emerged from IR professionals, the following were most prevalent:
•A
 s the evolution of the buy-side accelerates, traditional IR, in terms of leading and managing
various forms of engagement with the financial community and providing ongoing support
to the C-Suite and Board, remains more critical than ever to effectively compete for
investment capital and support a company’s long-term valuation. However, remits for IR
professionals have also expanded considerably, with many (96% of our respondent base)
leaning in as vital stakeholders to drive ESG efforts, strategic planning, FP&A, broader
external and internal communications, corporate development, and other key areas for their
respective organizations
•P
 er our research, the C-Suite and the Board rely heavily on IR to surface investor sentiment
and market perspectives, develop strategic messaging and narrative, shape the company’s
guidance strategy and outlook, benchmark against peers, and navigate ESG matters
Nasdaq Global Perception | 4Q20 IR Issuer Pulse
•F
 rom a societal, regulatory, political, and investment standpoint, ESG has taken center
stage, and IR professionals are diligently working to develop, refine, differentiate, and
amplify their messaging and disclosures around ESG policies and practices, particularly
related to climate change, human capital management, and board oversight and
composition. Not surprisingly, in our pulse, increased focus on ESG is the foremost reason
why IR priorities shifted in 2020 (vs. 2019) and heading into 2021, Enhance ESG Profile
emerged as a top IR priority, Understanding and Navigating ESG Landscape surfaced
as one of the greatest challenges facing IR, and IR professionals on average reported
spending nearly 10% of their time on ESG on a weekly basis
• IR professionals continue to seek out untapped pools of investment capital, and
underscored the challenge in attracting capital from the generalist population and
international markets; as such, IR professionals are focused on elevating their targeting
efforts, with more proactive and data-driven outreach
•T
 he shift to a virtual environment has forced IR professionals to rethink their engagement
strategies and the optimal balance of in-person meetings and events, as senior leadership
teams and investors alike have come to appreciate the ability to cast a wider net with
outreach as well as the meaningful cost savings and improved efficiencies. According to our
pulse, 46% of IR professionals have held a virtual Analyst/Investor Day in 2020 or will hold
such an event in 1H 2021
The subsequent pulse results should provide useful context as IR professionals execute on
priorities within an evolving investment landscape. For existing IR Intelligence clients who
would like to request added granularity from a market cap, sector, and regional perspective,
please click here.
3
 Respondents Universe
45 5 IR PROFE SSIONALS SU R V E Y T I M E L IN E

21 Business Days

Nov 9, 2020 Dec 7, 2020

55% Head of IR + CFO

32% M
 id-Level IR SE C T O R B R E A KD O WN

13% A
 nalyst-Level IR Healthcare/Biotech 19%
Information Technology 13%
Financials 13%

REG IO N AL & M ARKE T CAP BRE AKDOWN Industrials 11%

Energy 9%
Consumer Discretionary 7%
9% 4%
21% Mega Cap
Mega Cap Materials 7%
AMERS
AMERS LargeCap
Large Cap Communication Services 6%
30%
15% 30% Mid
Mid Cap
Cap Consumer Staples
64%
EMEA
EMEA 6%
Small Cap
Small Cap
APAC
APAC
Micro Cap
Utilities 5%
Micro Cap
Real Estate 4%
27%
0% 5% 10% 15% 20% 25%

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 4

 Responsibilities Outside Of IR
The vast majority of IR Professionals canvassed are juggling responsibilities that stretch beyond IR

ESG/Corporate Responsibility comprised 35% 35% 15%

ESG \ Corporate Corporate
(vs. 14% in 2019) of reported responsibilities
outside of IR in our 2020 IR Issuer Pulse
Responsibility \
Corporate
Communications 8%
11% Sustainability Public Relations

Strategy

7%
Only 4% of the IR pulse Other

universe reported having 6%

IR-only responsibilities Treasury

3%
Gov’t Affairs,
Corp Dev/M&A,
Legal

6%
FP&A

5%
Employee
Communications

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 5

 Greatest Challenges Facing IR
In our 4Q20 outreach, relative to 2019, we found that Attracting capital from the generalist population and Messaging around macroeconomic headwinds remained
at the forefront for IR and Messaging around guidance/forecasts and Understanding and Navigating the ESG Landscape garnered elevated focus. Notably,
while Managing Corporate Access was the top challenge on average reported in 2019, it fell out of the top 5 challenges for the majority of IR professionals

Attracting capital from

OVERALL IR
Understanding and navigating
ESG investment landscape
Messaging around generalist population
Attracting capital from guidance/forecasts
Messaging around international markets
macroeconomic headwinds

MEGA/LARGE CAP IR
Managing corporate access
Messaging around
Attracting capital from guidance/forecasts
Understanding and navigating generalist population
Attracting capital from ESG landscape
international markets

Attracting capital from

Messaging around generalist population
MID CAP IR Messaging around guidance/forecasts
Attracting capital from macroeconomic headwinds
Resource/budget constraints international markets

Attracting capital from

MICRO/SMALL CAP IR
Attracting capital from
international markets
Messaging around generalist population
Managing liquidity/volatility guidance/forecasts
Messaging around constraints
macroeconomic headwinds

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 6

 Most Difficult Decision Over Past 12 Months
Suspension of guidance
disclosures
Temporarily expanding
Dividend reduction Framework for withdrawing guidance
Capital allocation due to COVID

Cutting contact with difficult sell-side analyst

Allocation of resources
Investor activism Adjusting IR program
on constrained
budget
Balancing message of near-term headwinds
Balancing management time with investor outreach
vs. long-term opportunities

COVID-related disclosures
Communicating timelines
Management access - who and when

Scheduling corporate access for sell-side coverage

Whether to hold virtual Analyst Day

Consolidation/creation of CSR information website

Migrating to virtual IR events

Reducing headcount Outlook statements

Raising equity
Capturing investor mindshare Integrating ESG in conversation
Tackling ESG
Reinstituting guidance
in a fully Zoom environment
IR budget

IR department
Staffing decisions for the

Cutting IR and PR support

IPO allocation decisions

Communication
of spin-off allocation
Transformation of business model

Whether to preannounce Proactive outreach with

Canceling our annual Investor Day massive fiscal disruption
New strategy Addressing stock How and when to message long-term implications
during pandemic underperformance of strategy given the uncertain environment

Messaging around liquidity concerns

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 7
 IR Priorities
Year-over-year, IR professionals remained fairly consistent with their top priorities,
with the exception of elevated focus on ESG
Micro Cap IR and Small Cap IR
reported increasing sell-side research
coverage as a top priority (#2, #4)

1 2 3
Target new investors Enhance ESG profile Enhance engagement Improve disclosure
with existing shareholders and reporting

4 5 6 7
Host street-facing Increase sell-side Increase international Garner investor
virtual events research coverage share ownership feedback

8 9 10
Increase domestic Provide greater Raise capital
share ownership management accessibility
Nasdaq Global Perception | 4Q20 IR Issuer Pulse 8
 Shifts in IR Priorities Heading into 2021

REASONS FOR CHANGE

Increased focus on ESG
COVID-19 impact
Change in strategy
45% Disclosure enhancements
55% Yes Shifts in targeting approach
No Management/IR turnover

REASONS FOR NO CHANGE

Consistent story/strategy
Same issues/challenges
Recent IPO
Sound approach/gaining traction

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 9

 Weekly IR Tasks & Activities
On average, IR professionals spend 65% of their week supporting senior management, responding
to investor inquiries, keeping their pulse on market and peer developments, and sell-side related activities

Supporting/engaging with the C-Suite

Overall IR Mean Mid Cap IR Mean Responding to investor inquiries

Reviewing market/peer news and events

Engaging with sell-side/reviewing

models

Mega Cap IR Mean Small Cap IR Mean Proactive outreach to existing investors

ESG-focused activities

Other

Micro Cap IR Mean Proactive outreach to prospective

Large Cap IR Mean
investors
Engaging with Board members

0% 5% 10% 15% 20% 25% 30% 0% 5% 10% 15% 20% 25% 30%

Micro and Small Cap IR, which includes CFOs, reported

Mega Cap IR reported spending more time spending more time on Proactive outreach to prospective Regarding ESG-focused activities, EMEA and APAC IR reported
on ESG-focused activities on a weekly basis than investors, Engaging with Board members and Other activities spending more time on ESG-focused activities on a weekly
any other market cap segment on a weekly basis than any other market cap segment basis than AMER IR across all market caps

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 10

 With 1 - 2 Hrs of Additional Time,
Where Would IR Spend It?
O P T I M I Z AT I O N

1 in 5

O R G A N I Z AT I O N

DEVELOPMENT
Heads of IR
15% IR Professionals would

CONTEXT
IR
IRBest
Best Industry
Industry
Practice Trends
spend additional time Practice Trends would like to
on ESG Competitive
dedicate more
Competitive
Macro
Intelligence/
Intelligence/ Macro
Research
Research
time to their IR
EDUCATION Benchmarking
Benchmarking
teams
TARGETING
Proactive outreach to
prospective investors NARRATIVE
INTEGRATION C O L L A B O R AT I O N

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 11

 With 1 - 2 Hrs of Additional Time,
Where Would IR Spend It?

Improving Workflow IR Website Enhancements: Sharpening Messaging, Strengthen

Efficiencies educational content Strategic Planning, Internal Network:
frequency of updates Reviewing product teams
functionality Sell-Side Models commercial organization
operational leaders

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 12

 Seeking IR’s Advice on Most Pressing Issues
CEO SEEKS IR’S ADVICE ON:
• Strategic messaging/narrative
development
• Investor sentiment/reaction
• Peer intelligence
• Share price movement/volatility
• Investor engagement/targeting
• ESG
• Guidance/disclosures
• Valuation
• Earnings call prep
• Sell-side relations
• Shareholder base shifts/composition
Nasdaq Global Perception | 4Q20 IR Issuer Pulse
CFO SEEKS IR’S ADVICE ON:
• Investor sentiment/inquiries
• Sell-side models/expectations
• Guidance strategy/outlook
messaging
• Reporting/disclosures
• Peer benchmarking/analysis
• Investor engagement/meeting prep
• Share price movement/volatility
• Valuation
• ESG
• Capital allocation market
perspectives
• Capital raising
BOARD SEEKS IR’S ADVICE ON:
• ESG
• Investor sentiment/inquiries
• Peer benchmarking/analysis
• Relative valuation
• Relative share price movement/
volatility/trading dynamics
• Capital markets/macro trends
• IR strategy/engagement
• Shareholder activism
• AGM/proxy
• Shareholder base shifts/composition
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 Most Frequently Asked Questions by Management
IR OVERALL
Mega Cap IR reported more frequent questions on Macro
01. 02. 03. Events (#3) and ESG (#5), and less frequent questions on
Competitor News Daily Trading Sell-Side Daily Trading (#7) than IR across other market caps
Estimates
Regarding ESG, EMEA (#4) and APAC (#6) IR reported more
frequent questions relative to Americas IR (#9)
04. 05. 06.
IR from the following sectors reported the most frequent
Ownership Upcoming Conferences Ownership questions on ESG relative to other topics:
Changes & Roadshows Composition
• Real Estate (#3)
• Utilities (#4)
07. 08. 09. • Industrials (#6)
• Consumer Staples (#6)
Institutional Macro Events ESG
Background

10. 11. 12.

Index Rebalance / Shareholder Short Interest
Reconstitution Activism

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 14

 Virtual Analyst / Investor Day
Virtual Analyst/Investor Day in 2020 or 1H2021

Biotech IR 69% 8% 23%

Consumer Staples IR 55% 25% 20%
27% Materials IR 50% 19% 31%
Undecided
Industrials IR 49% 28% 23%

IR 46% Healthcare IR 46% 25% 29%

OVERALL Yes Information Technology IR 44% 27% 29%
Consumer Discretionary IR 42% 32% 26%
Financials IR 39% 39% 22%
27% Real Estate IR 36% 7% 57%
No Energy IR 35% 38% 27%

0% 20% 40% 60% 80% 100% 120%

YES NO UNDECIDED

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 15

 Virtual Analyst / Investor Day
Virtual Analyst/Investor Day Length

Mega Cap IR 63% 12% 25%

29% Large Cap IR 37% 47% 2% 14%

<2 Hrs 34%
2 Hrs Mid Cap IR 35% 33% 11% 21%
IR
OVERALL
Small Cap IR 40% 17% 2% 41%
5%
5-6 Hrs
Micro Cap IR 17% 17% 0% 66%
32%
3-4 Hrs 0% 20% 40% 60% 80% 100% 120%

2 HRS 3-4 HRS 5-6 HRS <2 HRS

Nasdaq Global Perception | 4Q20 IR Issuer Pulse 16

 Nasdaq Global Perception | 4Q20 IR Issuer Pulse
Nasdaq Global Perception 4Q20 IR Issuer Pulse 17
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