Local reporting standards among the best in the world
With the pace of corporate SA’s expansion into global markets accelerating in response to a stuttering local economy, so does the need to meet global financial communication standards. The good news is that local standards are already high, making the transition to the global stage relatively seamless.
IAS chair Chris Gilmour is confident in his assessment that “South African companies are among the best in the world” in their reporting and presentations to investors.
The cream of the crop was present at Thursday night’s 2017 IAS Awards, an event that recognises excellence in corporate reporting. While the main objective is to reward companies that embody the IAS’s aim of establishing and maintaining professional standards, the event also sets a bar that other corporates should try to meet.
This goal is evident in the IAS Awards including a category for smaller cap companies that might not have the same resources as those that occupy the JSE Top 40 Index.
Gilmour singles out the likes of Discovery, Steinhoff, Massmart, Aspen and the former SABMiller as some of the mega corporations that easily compare with global companies in the quality of their investor presentations.
He reserves high praise for Discovery CEO Adrian Gore, who he claims to be the best presenter in the market.
STICKLER FOR DETAIL
“Nobody comes remotely close to this guy. Why? Because he practices his presentation at least 40 times. Adrian takes it incredibly seriously and is a stickler for detail. He must have about 100 slides but you never get bored. It’s a masterclass in presentation,” Gilmour says.
He adds that Steinhoff is another company that has always been notable for the standard of its presentations, particularly prior to the Frankfurt listing. Those events were sought after not only for the results presentation, but the high calibre of the entire event and manner in which the investor community was treated. Gilmour says these events may now be toned down slightly to meet European practices, but that the quality of its investor presentations remains of the highest standard.
Turning to comparisons with presentations by global firms, he reflects on his recent attendance at the 70th Annual CFA Conference in Philadelphia, US, taking the opportunity to make some company headquarter visits, including to global food group Campbell’s and telecoms provider Comcast.
“I was surprised at how transparent they were, but the reality is that the quality of their investor report back was no better than what we get here.
“Local companies really are among the best in the world, and the ones that have listed offshore have learnt from that exposure. But even those like Massmart, for example, I’m quite happy to say that Walmart — its parent company — can’t teach them anything about presentations at all.”
This should be comforting news for local companies looking to expand globally, as well as those looking to grow their base of international investors. With such top quality investor-focused talent right on their doorstep, they have easy access to world-class practices.
Companies are encouraged by the IAS to make use of its member base for their presentations and gain access to 1,500 investment professionals. They are sure to get valuable feedback and useful tips from analysts who attend a multitude of presentations every year.
GILMOUR RESERVES HIGH PRAISE FOR DISCOVERY CEO ADRIAN GORE, WHO HE CLAIMS TO BE THE BEST PRESENTER IN THE MARKET