Key Takeaways: Strategies for Successful Offshore NDRs in North America and Europe for Australasian Companies

On October 23, 2024, the Australasian Investor Relations Association (AIRA) hosted a webinar titled Maximizing Impact: Strategies for Successful Offshore NDRs in North America and Europe for Australasian Companies. The session provided valuable insights into how companies can effectively navigate the challenges of engaging offshore investors.

Moderator

• Ian Matheson, Chief Executive Officer, Australasian Investor Relations Association (AIRA)

Panelists

• Simon Rose, Chief Executive Officer, Rose & Company
• Mark Dehring, Head of Investor Relations, CSL Limited
• Marcela Louzada, Vice President Investor Relations, Woodside Energy Group Ltd
• Brian Massey, Head of Investor Relations, Santos Limited

Here are some key insights from their discussions:

Attracting new international investors is strategically important because it can bring fresh perspectives and drive the company’s valuation.

"The buyers in Australia know your company; it's a small community, and they vote on your valuation every day. To find an investor who doesn't know your story and who will vote on your valuation in a differentiated manner is of strategic and tactical importance."

Virtual meetings have become an efficient way to initiate relationships with offshore investors. Panelists agreed that starting with virtual interactions can help gauge interest before committing to more costly in-person meetings.

“If you'd asked me five years ago whether to spend time marketing in the U.S. or Europe, unless you were one of the very largest companies, I'd have said no—it's not worth your time. There were significant friction costs to get here and back, and no real continuity could be achieved.

Additionally, brokers no longer had a salesforce in the U.S. or Europe for Australian equity, making it a poor use of time. However, the pandemic has changed this dynamic, allowing these kinds of conversations to be facilitated digitally in an extraordinarily efficient way.

At Rose & Co., we're an enormous proponent of virtual to begin a relationship with an offshore investor. Rather than flying 10,000 miles to New York, take 45 minutes in your morning or evening to introduce yourself to a high-quality, long-only investor.”

Engaging offshore investors isn’t a one-time effort. Building trust and interest requires consistent follow-up, ensuring that potential investors receive relevant updates and are reminded of the company’s progress.

"Statistically, it takes three meetings with a long-only investor before they'll plow in... continuity and building those touch points are crucial."

Having representatives who understand the local market is a significant advantage. It ensures continuous engagement, allows for better follow-ups, and provides local insights that can shape investor engagement strategies.

“In the very beginning, you can do a lot of stuff from Australia. But once you start building those relationships, you want to have people in-country... to be tuned and connected with the market locally.”

Each market has its unique dynamics, and what works in Australia may not be effective in the U.S. or Europe. Companies need to adjust their strategies, presentations, and engagement methods based on local investor behavior and expectations.

"You need to adjust your pitch... It's a completely different approach when you are engaging new markets versus your home market."

Engaging larger markets and key investors offers significant ROI. Educating the C-suite on proactive, data-driven investor outreach is vital, as it drives growth, enhances valuation, and builds stronger, more resilient investor relationships.

“The U.S. market alone is 33 trillion USD in size... it's a vast market, and you can’t really fathom it until you live it. Companies need to be strategic about how they approach it.

Continuity is key. Stick to it. Be a regular visitor, either virtually or physically. Invest in those relationships. Sometimes it takes years, but when you get capital in your stock, you'll feel it because they’ll own 5 to 15 percent of it, and they’ll be a great, long-term shareholder.”

For further insights, the webinar is available for on-demand viewing here.