Assertive Communication in IR Presentations

On March 21, 2024, the Brazilian Institute of Investor Relations (IBRI) hosted a webinar on assertive communication for investor relations. MZ, aiming at always empowering investor relations professionals, brings a summary of the webinar and some additional considerations.

Content

Renato Avanzi began the webinar by discussing how to construct a presentation’s content. The first stage is to define the objective of the presentation and its target audience, aiming for assertiveness. An earnings presentation, for instance, may seem to have an obvious objective: discussing results. But this does not require a presenter, since people can access the content on their own. Therefore, it is necessary to understand the focal points of the presentation and the message you want to convey.

Although the target audience of an Investor Relations team consists commonly of investors and analysts, there is a difference between them. There are individual investors, investors representing a company and sell-side analysts, among others, and the presentation’s objective should change according to the profile of each audience. Past presentations, internet searches and even networking can be very helpful to achieve this.

Presentation time is another important point when preparing a presentation. It’s crucial to prioritize dynamism to prevent content from becoming monotonous and the audience’s attention is lost. For earnings presentations, it is best to spend less time presenting the results, pinpointing only the main highlights, and dedicating more time to the Q&A session. The time for presenting results can be shortened since materials have already been published on the Company’s website, and the audience has probably already seen the numbers. Renato Avanzi gave a tip during the IBRI webinar: start by saying you’ll be brief, and this will increase the audience’s attention to your presentation.

Another tip is to classify the information as essential, important and interesting, as this will help define the content and duration of the presentation. When we talk about a company’s performance, there’s a lot to be said, but things need to be summarized in the presentation. This is when you should evaluate the time available and your audience’s expectations. Focusing on the benefits of what will be presented is crucial, since there’s no better way to capture attention than by highlighting the advantages the audience will gain from listening. Talking about specific topics such as revenue growth, for instance, is important, but this should be done in a humanized way to capture the audience’s attention.

One last important point for a successful presentation is for the presenter to train his/her vocal intonation, study the content and anticipate possible questions. These strategies increase the presenter’s confidence and assertiveness. It is also important to decide who should be the ideal presenter according to the objective of the presentation and the target audience. For instance, the participation of C-Level executives in earning presentations and Investor Days is highly valued by investors and analysts, since this allows the Company’s strategy and prospects to be better understood.

Format 

Robledo Tonelli, a presentation design specialist, also participated in the IBRI webinar and brought up several points of interest. He emphasized that well-structured content is crucial for effective design, clarifying that it is important to understand that a presentation is not merely a text document on slides, but a visually appealing and impactful narrative. He emphasized that presentations prioritize images to engage the audience, and creativity and clarity must be maintained. To avoid a cluttered presentation, it’s essential to maintain visual alignment, condense text to two lines, and use images, icons, and the brand’s design guidelines.  

The choice for the presentation’s background and the font must also be aligned with the environment in which the presentation will be held. Presentations in auditoriums, meeting rooms or online require different formats and fonts. 

Images are highly effective in presentations. The more visual a presentation, the better it will capture and hold the audience’s attention, maintaining it dynamic. PowerPoint offers an image bank and icons, and there are other free image bank sites such as Freepik and Pexels that are compatible with PowerPoint and can help in this process. 

Maintain consistent formatting throughout the presentation, including image styles. If an image’s style needs to be changed, such as removing a border from an image, introduce this change on a different slide to avoid visual disruption. It is important to create a pattern in the presentation, so it sticks to the audience’s memory.

It is also important to pay attention to the presentation file size since, depending on the number of images and videos, the presentation may become very heavy, making it difficult to send and open. To reduce the size of presentations, it is a good idea to check if there are templates not being used and that can be deleted – this can be analyzed in the PowerPoint “master slide”, if the presentation is being done in this format.

The importance of storytelling

Storytelling is a communication technique that uses narratives to convey messages, ideas or experiences that are engaging and appealing. Unlike a mere enumeration of facts or data, storytelling weaves elements like characters, plots, emotions, and conflicts to establish an emotional connection with the target audience. When presenting a story, through words, images, videos or other forms of media, the goal is to capture the audience’s attention, foster empathy and convey a message that is memorable and impactful.

Narratives have great emotional power and can remain in people’s memories for a long time. A well-told story in a presentation can be more memorable than the details of the content itself, as stories tend to linger in people’s minds, leaving a lasting memory.

Aristotle identified four key narrative elements: introduction, complication, climax and outcome, highlighting the importance of a conflicting plot as it is stored in memory and engages the audience. Adapting these concepts to the contemporary context shows that every story requires a conflict or problem to sustain the audience’s interest. This conflict can arise from many sources, such as religious differences, adverse weather conditions or market pressures. Identifying the story’s antagonist, whether a competitor or an external force, is critical to developing an engaging narrative.

However, every story also needs a hero, someone who finds a solution to the dilemma presented. This hero can be an individual, a team or a company, as long as a response is given to the conflict addressed. Thus, through the effective use of storytelling, we can create impactful and lasting narratives that resonate with audiences and inspire actions. But how can this be done for Investor Relations? Position the company as hero, detailing how it was, the problems faced and how it found a solution.

Conclusion

Investor Relations teams and C-Level executives are constantly giving presentations, internally or to investors and analysts. Therefore, they should be aware of certain key points crucial for the success of an event, speech, or presentation. 

To ensure an effective presentation, it is a good idea to use a checklist covering several key points. This includes clearly defining the presentation’s objectives, thoroughly understanding the target audience, effectively managing time for delivering a concise and impactful message and emphasizing the presentation’s key content.

Another crucial aspect is the presenter’s preparedness, who must be dedicated to rehearsing and refining his/her communication and presentation skills. By following these tips, you can create presentations that not only inform but also captivate and leave a lasting impression. 

In terms of earnings presentations, it’s advisable to adequately plan how long it will take, spending less time on presenting results and more time on the Q&A session, giving market analysts and investors the chance to ask questions since they have probably already reviewed the numbers and need to participate in other calls.

Additionally, companies need to carefully evaluate which presenters are best suited for each type of presentation. For instance, if the main goal is to communicate the company’s strategy, objectives and perspectives, the participation of C-Level executives can be crucial. This not only fosters valuable market proximity but also provides an excellent opportunity to clarify any questions that may arise during the presentation.

These insights highlight the strategic value of presentations, both for earnings calls and institutional ones, in conveying a company’s story. We hope this has helped and we are always here, at your service!

External Communications and MZ Research Team

About MZ

MZ (www.mzgroup.com.br) is the largest and leading independent global player in investor relations (IR) solutions.

Founded in 1999, the Company has surpassed the mark of 2,000 websites published, currently serving over 800 companies and investment management firms listed on 12 stock exchanges.

To empower IR strategies, MZ delivers innovative technologies and exceptional customer service, ensuring long-term partnerships.