The Impact of Investor Day on Investor Relations

The practice of holding Investor Days has become increasingly recurrent among companies because it can bring investors and stakeholders closer through singular and transparent experiences that include results, projects, prospects, targets and everything that is relevant over the course of the event. 

The purpose of this article is to analyze companies that held said event and its consequences for data about access to websites, social media followers, and changes in credit and share prices, in order to present an analytical base of potentially positive or negative impacts on a company’s performance. It is worth noting that during research, preference was given to Investor Days held recently and that many companies end up not holding the event, thus limiting the scope of research – as is the case with a lack of data from companies that held the event based on different research criteria. 

The insurance industry is characterized by conducting insurance policy negotiations, protecting individuals and companies, and providing support in unpredictable losses. The industry is composed of insurance companies, brokers and Insurtechs (companies connecting insurance companies to consumers through their technologies). A large company in the sector held an Investor Day in 2023 and used this strategy to communicate with its investing audience, achieving some results: its IR website, with an average of 841 views per day, received 1,059 views on October 18, increasing its visibility and communication with the target audience. We can also see how the Investor Day had a positive impact on another communication channel – the Company’s social media networks. The company’s Instagram profile, which in September saw a growth of 94 followers, recorded a growth of 128 followers in the month the Investor Day was held. However, the greatest impact was seen on the company’s share value, which increased by 16.58%, compared to the 30 days before and after the event. The Investor Day was an important driver of growth for the company.

The Brazilian pulp and paper industry is a world benchmark, due to the quality of its raw materials and large forest base. Brazil is the world’s largest hardwood pulp producer and the second largest pulp producer. It is also the country with the lowest production costs. Three industry companies also held the Investor Day in 2023, with positive impacts. One of the companies, which recorded an average of 1,474 views to its IR website per day, reached 2,210 views on the day of the event and registered the largest share appreciation, recording a 12.10% difference around 30 days after the Investor Day. Another company, with an average of 2,728 daily views to its IR website, recorded 4,340 views on the day of the event and saw an increase of 3,517 social media followers in the same month – a significant upturn over the previous month that saw a rise of 2,967 followers. In the month it held its Investor Day, a third company also recorded a substantial growth of 2,479 social media followers.

The education industry has been expanding more and more, standing out mainly in the M&A market. According to the Ministry of Education and the Anisio Teixeira National Institute for Educational Studies and Research, in 2020, Brazil was the fifth largest higher education market in the world and the largest in Latin America. The high demand for academic qualification has been increasingly growing, boosting this industry. We analyzed three industry companies. The first recorded 3,035 views to its IR website on the day of the event – a high figure compared to its daily average of 1,806 views. The second company saw a growth of 330 Instagram followers in the month the event was held, proving that the Investor Day is a good option to enhance communication with investors.

The real estate exploration industry is very broad, ranging from the acquisition of off-plan and ready-to-move-in real estate, land, lots, corporate buildings, hospitals, parking lots, shopping malls, hotels, and more. In Brazil, this industry employs 10% of the workforce, accounting for 7% of the Brazilian GDP. A major real estate exploration company held its Investor Day this year to further establish credibility and communication with its investor audience. Its IR website recorded 1,043 views, a positive difference of 50% on the daily average views, with an increase of 201 Instagram followers in the month the event was held.

The Brazilian technology sector has high prospects of growth, according to the Brazilian Association of Software Companies. In 2021, Brazil was the 10th largest technology market in the world and the largest in Latin America, predominantly concentrated in the Southeast region (62.6%). 48% are micro-sized companies, 47% are small-sized, and 4.4% are medium-sized. Large-sized companies, with over 500 employees, account for a share of 0.7% in Brazil. Some of the main industry companies in Brazil held their Investor Day in the past two years. All the companies analyzed recorded a large positive difference in views to their IR websites on the day of the event, compared to the daily average, with emphasis on a company that saw a 100% increase, moving up from 1,115 views to 2,223. Another company reported a very large increase of Instagram followers (3,054 users) in the month of the event.

The Brazilian financial industry is the most developed in Latin America and one of the largest in the world, consisting of commercial and investment banks and credit cooperatives, among others. Large banks dominate this industry, but over the past few years, some Fintechs and digital banks have captured an increasingly larger share of it. The financial industry was the one that held more Investor Day events in recent years (2019-2023), particularly banks. All the analyzed companies recorded substantial increases in daily views to their IR websites on the day of the Investor Day, with increases of 50%, 57% and even 80%. We identified significant growths of social media followers, with figures like 2,810, 2,887 and 5,203 users. The companies analyzed also stood out in terms of growth in share prices, with 2 companies having their shares appreciated by roughly 7%.

The Sanitation, Water and Gas industry is essential to the maintenance of the population’s quality of life and is advancing in terms of infrastructure, with prospects of increased investments in the near future. Ambipar (AMBP3), Sabesp (SBSP3), Copasa (CSMG3), Comgás (CGAS5), Sanepar (SAPR11), and Ocean Pact (OPCT3) are some of the highlights of this industry that does not have a habit of holding Investor Day events. Only one of the companies analyzed held an Investor Day, registering a 329% peak in views to its IR website on the day of the event compared to the daily views of the previous month, in addition to recording a share price appreciation of 20%, considering the 30-day period before and after the event.

The agribusiness industry is largely relevant to the Brazilian economy, directly impacting the country’s GDP. The companies that stand out include Agrogalaxy (AGXY3), Jalles (JALL3), 3 Tentos (TTEN3), Vittia (VITT3), and more. The assessment of the Investor Day’s impacts on views to IR websites of agribusiness companies brought good results, with some companies seeing an increase of 19% to 50% in the number of views in the month following the event. On Instagram, 60% of the mapped companies recorded a peak of new followers in the month of their respective Investor Day, averaging between 32% and 136% over the previous month. The upward trend towards new Instagram followers continued in the subsequent month. The increase in share prices of agribusiness companies was also analyzed, with appreciation between 2.69% and 7.67% for some companies. 

The real estate industry stood out in the market, demonstrating a trend towards stability or growth, in addition to high diversification and rate of return. According to news website G1, the real estate market recorded an increase of 14.4% in transactions in the first half of 2023 over the same period in 2022, with a focus on the affordable homes category. Some of the main real estate companies in Brazil include Trisul (TRIS3), Viver (VIVR3), Moura Dubeux (MDNE3), JHSF (JHSF3), Mitre Realty (MTRE3), Tenda (TEND3), Direcional (DIRR3), and Even (EVEN3).

The analysis indicates a variation in views to the company’s IR website after the Investor Day event, with some fluctuating between 4% and 29% in the month following the event. Considering the number of new Instagram followers during the month the event was held, 66% of the analyzed companies saw a growth of 2% to 104% over the previous month, and one of these companies reached a 164% increase in the number of new Instagram followers. Finally, we observed positive changes in the value of share prices of at least half of the real estate companies assessed based on available data, with increases between 5.36% and 25.24%.

The health care industry is essential to society, and even though there are risks, it stands out due to its innovative spirit and trend towards being more stable than other industries amid crises. Composed of insurance and healthcare companies, social organizations, drug stores and more, some of the companies highlighted in this industry include Blau (BLAU3), Fleury (FLRY3), PagueMenos (PGMN3), Viveo (VVEO3), Hapvida (HAPV3), and RD (RADL3). During our study, we observed that views on the IR websites of the companies increased on the days the Investor Day was held, with growths between 54% and 388% over the daily average of the previous month. Social media networks also played an important role in the analysis of the impact of the Investor Day. According to the analysis, 80% of the healthcare companies considered for the study saw a significant increase in the number of new social media followers during the month the event was held, with growth rates from 10% to 258% over the previous month. 

In the healthcare industry, most of the companies that held the Investor Day recorded an appreciation in share prices. Considering the 30-day period preceding and after the events, at least 33% of the companies experienced growth between 3.19% and 10.85%.

The Vehicle and Machinery Rentals industry has grown in Brazil, due to its high potential of expansion. In the COVID-19 pandemic, this industry experienced a strong negative impact but recovered very well and has good outlooks. We analyzed two companies that held the Investor Day in 2022, and they also recorded a large number of views to their IR websites on the day of the event, reaching 1,000 views above their daily average. This same company stood out on social media, increasing by 5,048 followers in the month the event was held. The other company we analyzed had its credit rating upgraded from A- to A+, according to Moody’s, in addition to its share value appreciated by 21.82% after the Investor Day, which can be an indicative of the positive impact of the event.

This year, the Brazilian Petroleum and Gas Institute published an overview of the Vehicle and Machinery Rentals industry, with an agenda of trends for the future. According to the Institute, this industry plays a very strategic role in the Brazilian market, attracting investments and strengthening the creation of jobs and development of the country through a large source of revenues. This robust sector has already consolidated itself, characterizing Brazil as being very relevant in the international scenario.

Many companies from this industry held their Investor Day in the past two years. For all these companies, the event resulted in a spike in the number of daily views to their IR websites, reaching engagement of over 5,000 views above their daily average, in addition to 313 views to their presentations alone on the day the files were published, which later added up to a total of 5,824 views. Another analyzed company recorded a growth of 2,434 Instagram followers in the month of the event. These are examples of powerful communication between the Investor Relations area and its target audience. We also highlight two other companies for having an increase of over 17% in their share prices up to 30 days after the Investor Day.

According to the São Paulo State Data Analysis System (SEADE) Foundation, the machinery, equipment, vehicles and parts industry has presented itself as very comprehensive and complex due to its many subsectors. The employability of the sector accounts for a share of 46% in the State of São Paulo and around 34% in the south region of Brazil, thereby showing strong concentration in the southeast and south regions of the country. The industry can still be greatly expanded due to its not yet explored potential across Brazil and current low investments in research and development. As a result, it is a very promising sector for the coming years.

The sector has proved to be very dedicated to investor events. In the past two years, more than 7 companies from the industry have held Investor Day events. All these companies experienced strong engagement on their IR websites on the day of the event – one of the companies had a daily average of 137 views to its IR website, but on the day the Investor Day was held, it recorded 1,365 views. This very same company, sometime after the event, had its credit rating upgraded from AA(bra) to AAA(bra). In terms of share price appreciation, two of the companies analyzed had an increase of over 8% roughly 30 days after the event.

The Electric Energy sector in Brazil has become increasingly relevant because it holds sustainable energy matrixes and is constantly investing in innovation. Some of the companies that stand out in the sector include Eneva (ENEV3), Eletrobras (ELET6), Copel (CPLE6), AES Brasil (AESB3), Cemig (CMIG4), and Equatorial (EQTL3), among others. This market has mostly obtained good results from the Investor Day events they held. Considering views on these companies’ websites, 83% recorded a growth of 3% to 112% between one month prior to and after the event. The analysis of rating levels before and after the Investor Day event was important for the study. In this case, 85% of the companies assessed obtained a stable outlook. The share prices for the companies in the sector also changed after Investor Day, 53% had positive variations, with an average increase of 6%.

The Mining and Steel sectors are fundamental to the country’s infrastructure and, even being impacted by external issues, like most sectors, it is recovering steadily after the pandemic with the rise in these commodities in the international market. The companies that stand out in this industry include CSN (CSNA3), CBA (CBAV3), Gerdau (GGBR4), CSN Mineração (CMIN3) and Vale (VALE3), among others. The analysis indicates that companies in the industry tend to have a peak in website views on the day of the Investor Day event, an increase that varied between 80% and 232% from the average daily views of the month prior to the event. One company received at least 2,157 views for its Investor Day presentation during the following two months. We also analyzed the variation in share prices of the companies in the industry after their Investor Day events. Considering the 30-day period preceding and after the events, at least 75% of the companies had growth in share prices, between 3.19% and 10.85%.

The Participations and Investments sector is extremely relevant for portfolio diversification and to reduce risk, gaining increasingly more relevance in the country. The companies that stand out in this industry include Simpar (SIMH3), G2D Investments (G2DI33), Itaúsa (ITSA4), Bradespar (BRADP4), among others. Companies in this industry, however, do not tend to hold Investor Days, reducing the points analyzed by the study.

According to available data, we identified that one of the companies had a peak in new followers on Instagram on the day of the event, 83% higher than the previous month, and we also observed the event’s effect on its ratings, which was increased less than two months after the event to a higher level of investment security. Although no specific information available, we identified that share prices for the companies analyzed appreciated by an average of 2.59%.

The Telecommunications sector is recognized for its stability and high levels of return, in addition to being essential in the globalized and interconnected world of the 21st century. Broadband Internet, according to Anatel, boomed during the pandemic, and is continuing its growth in the post-pandemic period. The companies that stand out in the industry include Desktop (DESK3), Tim (TIMS3), Unifique (FIQE3), Vivo (VIVT3), among others. As in some other sectors, telecommunications companies do not tend to hold Investor Days. In any case, it was possible to map some events, and one of the companies had a 56% growth in the number of website views in the comparison between one month prior and one month after the event. Another company had a 73% increase in new Instagram followers from the month prior to its Investor Day. 

The Logistics and Highways sector is essential for the country’s development in several aspects, in addition to having several business segments. Considering that globalization and global demand remain strong, the sector continues to grow. Several companies stand out in the sector, such as Santos Brasil (STBP3), CCR (CCRO3), Log-in (LOGN3), Sequoia (SEQL3), JSL (JSLG3), among others. Views on these companies’ websites also varied after their respective Investor Days. 75% of companies had more views on their websites, by an average of 6% from the month after and the month following the event. According to available data, rating levels remained stable and even slightly grew after the event.

The Food and Beverage sector is considered stable given its essential nature for society, and many important companies have been building their brand and trust with society for years, such as Ambev (ABEV3), Camil (CAML3), M. Dias Branco (MDIA3), BRF (BRFS3), among others. During the study, we observed variations in Instagram followers for these companies during the month in which they held the Investor Day event, and one of them had a 20% increase in followers compared to the previous month. In terms of changes to ratings, we observed that 66% of these companies improved at the time of the event.

The retail sector is responsible for almost half of Brazil’s GDP and is one of the main job creators in all regions of the country. The sector was very committed to holding Investor Days, and we analyzed the event’s impact on more than 8 companies. On the day of the event, these companies had a peak in views to their IR websites, and one company, which had an average of 2,580 views prior to the event, reached 7,459 views on the date the Investor Day was held, and another company had an average of 805 views per day, compared to 2,253 on the day of the event. A third company increased from 490 views to 1,103. We also identified that, a few months after the Investor Day, one company had a change in its rating, from A-(bra) to AA-(bra). Another company had an 18.31% appreciation in its share price approximately 30 days after the event, and another company in the sector had an appreciation of 7.93%.

Therefore, we found a positive relevance in holding the Investor Day event as a communication strategy between the Investor Relations area and the company’s target audience, for both existing investors and potential audiences. Despite providing data and information proving that the Investor Day event generates a positive impact for companies, we must mention that many of the effects caused by this event are not quantitative, but qualitative. In other words, these benefits are not always seen in numerical data, such as the increase in investor confidence in the company, and the credibility that the company establishes among its customers, employees, distributors, government authorities, and the community. Investor Day is a strategy that goes beyond the Investor Relations ecosystem as it brings a new perspective to the company, strengthening relationships and establishing itself as a trend in the IR world.

Graph showing the number of companies analyzed by sector:

Green Team

Alanis Comparoni, Beatriz Pereira, Danielly Dias, Isabela Nunes, Leonardo Sachetto, Livia Gontijo, Mariana Vignon and Marina Ferreira

–

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.