Strategic IR: Tangible Outcomes from Top Performing TSX Companies

TMX Group Client Success
September 2024

By: Roy Wefuan, Head, Client Success

The role of Investor relations (IR) continues to evolve, helping to build trust and engagement with investors, reinforcing relationships with capital markets and communicating value to stakeholders. In speaking with this year's TSX30™ winners (https://money.tmx.com/en/tsx30) we identified several common elements that were critical to their success. Here are some valuable, actionable insights to enhance your IR strategy.

Transparent & Timely Communication

Across industries, companies emphasize the importance of providing accurate and timely information to investors. Clear and consistent communication fosters transparency and builds trust with stakeholders, enabling investors to make informed decisions. Companies like International Petroleum Corporation, Alamos Gold and Bombardier demonstrate strong commitment to delivering reliable updates on financial performance and strategic initiatives. International Petroleum Corporation, for example, relies on its IR program to disseminate timely and accurate information about the global oil company's operations not only to connect with its worldwide stakeholders but also to expand its community of potential investors.

Stakeholder Engagement & Feedback

Regular engagement with investors, analysts, and other stakeholders is a cornerstone of successful investor relations (IR) programs. Companies like Cenovus, Celestica, and NuVista utilize direct meetings, roadshows, and conferences to strengthen relationships and receive valuable feedback. At Celestica, the IR team provides management with more than 500 individual investor touch points every year. These include meetings, conferences and non-deal roadshows, all of which help to build trust and credibility with investors, while increasing their awareness of and interest in the company and its stock. Ongoing dialogue ensures alignment between corporate objectives and investor expectations, aiding in refining strategies and fostering long-term trust.

Strategic Messaging & Value Proposition

Companies emphasize clear messaging around their value proposition, strategic growth plans, and competitive advantages. Hammond Power Solutions, Cameco, and Mattr stress how their unique market positions, innovative technologies, and industry trends contribute to their success. Cameco relies on its IR team to build credibility, trust and understanding of the company's unique identity as one of the only listed companies with assets and investments across the nuclear fuel and reactor life cycles. Cameco's IR program goes even further, educating external stakeholders about uranium as a unique commodity, the nuclear fuel cycle, and nuclear power as a low-carbon energy source.

Building Credibility & Trust

The success of IR programs often stems from building credibility within capital markets. Imperial Oil, Hammond Power Solutions, and Bombardier illustrate the importance of fostering investor confidence through consistent messaging, financial transparency, and highlighting company strengths. IR programs help build a strong foundation of trust, enhancing a company's reputation and ability to raise capital. Bombardier has built a strong foundation of credibility by communicating consistently and clearly its strategic vision, financial performance, and operational progress. This approach has empowered investors with the information needed to make informed decisions, boosting their confidence in the company's leadership.

Proactive Investor Relations Approach

Proactive communication and strategic engagement are key pillars for IR success. Companies like Cenovus and NuVista highlight the importance of being responsive to market needs and
staying ahead of industry trends. Through proactive efforts such as investor perception surveys or Investor Days, companies collect valuable insights from the buy and sell sides about their businesses, which help to shape their strategic plans. Stakeholders remain informed about the company's strategic direction, and actively participate in any iterations, thereby enhancing shareholder value. In 2024, for example, Cenovus held an Investor Day that was an important catalyst for the investment community to understand the company's growth plans and disciplined investment into the business over the next five years.

Sustainability & Long-Term Growth

Many companies stress the importance of sustainability and long-term shareholder value. Hammond Power Solutions, Mattr, and Cameco focus on industry megatrends, such as energy transition and infrastructure renewal, positioning themselves for growth and resilience. Companies often communicate their long-term commitment to financial discipline, operational efficiency, and environmental stewardship. Hammond Power Solutions has been in operation for over a century, and publicly traded for more than two decades. With a long history of custom design capabilities and service excellence, they are able to capitalize on industry trends of increasing demand for energy efficient solutions to grow their business.

Our TSX30 winners have achieved continuing, long-term success by emphasizing two-way, transparent and timely communication in their IR programs to engage with stakeholders and encourage valuable feedback. Through strategic messaging that conveys their value proposition, they have established a distinct identity while enhancing their market reputation. They have built credibility and trust in capital markets through proactive communication and strategic engagement, stressing the importance of sustainability and long-term shareholder value. By applying these strategies in their IR programs, companies can distinguish themselves in the investor community, attracting the support and resources they need for long-term success.

The Company Services team is committed to supporting TSX and TSXV issuers with a broad suite of complimentary services. By leveraging a deep understanding of Canadian capital markets, the team provides solutions through education and mentorship, actionable insights and market intelligence that facilitate the funding, profile and success of listed issuers. We are committed to helping issuers with their IR programs through in-depth conversations on Effective Investor Targeting, IR Material and Website Best Practices, as well as facilitating introductions with global pools of capital. Please visit www.tsx.com/companyservices for more details.