看精彩的中欧管理论坛(英文版)18301.docx

中欧管理论论坛Invesstor Relaationns(Exceerptss froom thhe sppeechh. Coontennt riightss resserveed byy thee speeakerr andd CEIIBS. Use of tthe cconteent mmust be wwith the prioor appprovval ffrom CEIBBS.)  Michaael JJacobbi (BBiogrraphyy)CFO of CCiba Speccialtty ChhemiccalsNNov. 29, 20022Good afteernooon. II am pleaased to bbe wiith yyou. Who heree knoows CCiba? I wwouldd likke too verry quuicklly taalk aa litttle abouut Ciiba aand ttalk abouut innvesttor rrelattionss. Ass CFOO of our comppany, I sspendd onee thiird oof myy timme onn invvestoor reelatiions.Let mme giive yyou aa pieece oof addvicee thaat wee usee forr invvestoors. I'lll telll yoou: WWho iis Ciiba? Whatt is inveestorr rellatioons? Whatt doees itt meaan, rreallly? WWho aare oour ccustoomerss? Hoow doo we meett theem? WWhat is tthat thinng caalledd invvestoor reelatiions? Andd somme innvesttor rrelattionss doss andd donn'ts. We arre Ciiba SSpeciialtyy Cheemicaals. We pproduuce sso-caalledd speeciallty cchemiicalss. Itt's ssometthingg youu do not findd in shopps. YYou ccannoot fiind uus. WWe woork pprimaarilyy on thinngs tthat channge tthe ccolouur, pperfoormannce oor loook aand ffeel of ccertaain pproduucts you buy. Youu willl allwayss finnd uss in smalll inngreddientts inn sommethiing bbiggeer. IIt's likee spiices in ffood. We are not spicces iin foood, but ingrredieents in ootherr prooductts.Thesee aree thee seggmentts, tthe bbusinness areaas thhat wwe arre inn. I''ll ggive you an eexampple oof ouur prroduccts aas wee go alonng. OOveraall, the comppany has abouut $55 billlionn US dolllars in ssaless. Wee aree in Swittzerlland. Thaat iss whyy we talkk aboout SSwisss fraancs. Ourr heaadquaarterrs iss in Baseel, Swiitzerrlandd. Ouur foour ssegmeents we'rre inn aree aboout tthe ssame sizee, soo it is aa verry baalancced pportffolioo andd we havee verry sttrongg marrket posiitionns. TThat''s onne off thee goood thhingss wheen yoou'ree tallkingg aboout iinvesstor relaationns. WWe arre a largge coompanny, aa billlionn-dolllar induustryy, annd wee havve veery sstronng seegmennts aand lleadiing pposittionss. Itt's mmuch easiier tto exxplaiin yoour ccompaany aand iinvesstor relaationns thhis wway tthan if yyou ccome in aand ssay, "We are a smmall comppany and we ddon'tt parrticuularlly deefinee thee marrket."Whaat arre ouur prroduccts? One is pplasttic aaddittivess. Alll thhese coree bussinessses are abouut $11.5 bbilliion UUS Doollarrs inn sizze. TThey are veryy larrge ccompaaniess thaat arre nuumberr onee in the markket wworldd-widde. TThey are spreead aall oover the worlld, oobvioouslyy alsso inn Chiina. Beinng a Euroopeann-bassed ccompaany, for us, the bigggest markket iis thhe Unnitedd Staates. Thee seccond bigggest is GGermaany. The thirrd biiggesst maarkett is Chinna. FFor uus, CChinaa is veryy impportaant iin teerms of ppreseence. We havee a vvery largge prresennce hhere. We havee a llot oof faactorries, sevverall in Shannghaii andd Qinngdaoo. Itt's rreallly a veryy impportaant mmarkeet.Whhat ddo wee prooducee herre? YYou hhave plasstic, pollyethhylenne. YYou ccan'tt usee pollyethhylenne-pllastiic baags aand wwrappping-anymmore withhout usinng addditiives thatt staabiliise aagainnst llightt. Ottherwwise it ffallss apaart. In oorderr to stabbilisse itt, wee prooducee theese aaddittivess forr thee plaasticc inddustrry. WWe prroducce thhem hhere, amoong ootherrs, iin Shhanghhai. It'ss onee of our mostt reccent plannts, righht heere iin Puudongg. Iff youu wannt too seee thee plaant, we'dd be happpy too shoow yoou arroundd. Juust gget iin toouch withh us. It''s a veryy nicce pllant, deffinittely an eexpennsivee plaant. We allso mmake coatting effeects. Theese aare vvery exciitingg thiings. Wheere ddo yoou fiind uus? YYou ffind us bbasiccallyy on carss. Iff anyyone has a reed caar. RRed ccars, theey ussed tto tuurn kkind of bbrownnish. Thee neww carrs doon't anymmore and thatt's bbecauuse tthey use someethinng thhat ccomess froom ouur coompanny. TThe rred ccolouur coomes fromm us. You aalso findd thiis wiith CCDRs. It''s ann intteresstingg exaamplee. CDDRs, recoordabble CCDs, if yyou llook fromm thee sidde, yyou ssee ssome greeen shhade. It''s ussuallly siilverry orr golld, tthen a grreen shadde. TThat is aa piggmentt. Wee makke thhat ppigmeent. We hhave a moodestt marrket sharre. IIt's the regiistraationn on whicch thhe laaser burnns. IIt reegistters the infoormattion on tthe ccolouur, tthe ppigmeent. The pigmment comees frrom uus, pprimaarilyy solld inn Taiiwan. Thesee aree typpicall thiings we hhave heree. Allessii, tyypicaal kiitcheenwarre inn Eurrope. Theese ccolouurs aall ccome fromm us. We makee moddern papeer trreatmment prodductss, whhich go iinto papeer prroducctionn. I see somee of you havee whiite ppaperr. Thhe addditiive tthat makees thhe paaper lookk whiite, two-thirrds wworldd-widde coomes fromm us. In wateer trreatmment, cleeaninng waater, we are quitte sttrongg. Inn oill triimminng-seeparaatingg thee oill andd watter-tthe cchemiicalss useed inn thee exttracttion induustryy aree cheemicaals wwe prroducce. WWe arre noot soo larrge, but stilll quuite commmon iin thhe inndusttry. Textiile cchemiicalss, dyyes aand sspeciial eeffeccts ffor ttextiiles. We are the worlld's numbber oone pproduucer of cchemiicalss forr thee texxtilee inddustrry. AAll tthe ccolouurs ccome fromm us. By the way, in the typiical busiinesss suiit, ttheree aree 60 chemmicalls inn a ssuit. Anootherr thiing tthat comees frrom uus iss alll kinnds oof sppeciaal efffectts foor thhe faashioon inndusttry. We hhave one prodduct, to prottect clotthes. Youu cann spiill bbeer and foodd andd anyythinng onn cloothess andd it doessn't get dirtty. TThis is aa prooductt we prodduce and selll in the induustryy. Thhis iis, ffor uus, aan immporttant thinng foor yoou too seee us, comming intoo theese iindusstriees.Last but not leasst iss homme annd peersonnal ccare. Whiiteneers ffor tthe ddeterrgentts too cleean tthe wwash, or micrrobiaal aggentss. Thhese are prodductss we prodduce. Thaat giives you an iidea of wwhat the comppany is aall aaboutt in termms off bussinesss.Inn terrms oof prrofittabillity, youu seee it is aa commpanyy witth prrofittabillity. Ourr salles aare vvery muchh on tracck. WWe wiill rreachh ourr $5 billlion in UUS Doollarrs att yeaar-ennd, eeasyggoingg. Annd wee havve veery ggood marggins. It''s onne off thee mosst prrofittablee commpaniies iin thhe inndusttry. At tthe mmomennt wee aree proobablly onne off thee mosst suuccesssfull onees. II sayy thaat noot beecausse I workk at Cibaa butt beccausee ourr invvestoors ttell us wwe arre onne thhat tthey regaard aas a bencchmarrk inn thee inddustrry. IIt's a veery sstronng coompanny prrofitt-wisse ass welll.So thhat iis onne off thee jobbs off invvestoor reelatiions, proovidee reggularr infformaationn on the comppany, prooductts, aand wwhat theyy do to, to tthe ffinannciall marrketss. Thhe seecondd jobb is whenn anyyone has a quuestiion, you havee to givee an answwer. You can''t juust ssoundd goood; yyou hhave to kknow whatt youu're talkking abouut. You ccan nnot ggo ouut annd sttrugggle. You havee to knoww aboout oour sstockk; yoou haave tto reead uup. IIf yoou doon't, theey doon't calll youu up agaiin. WWe moonitoor thhe deeveloopmennt inn thee finnanciial iinvesstmennt maarketts; wwe knnow wwhat is ggoingg on. Thaat's a taask wwe haave tto doo. Fiind oout wwheree an inveestorr hass prooblemms, wwheree theere'ss chaange. We moniitor thatt. Wee havve too do thatt verry caarefuully. So thhat iis geettinng innformmatioon. AAnd tthe ootherr hannd, wwe feeed tthinggs (ssend out infoormattion). Itt is not a onne waay sttreett. Yoou haave tto liistenn verry muuch tto whhat hhappeens iin thhe maarkett, whhat iinvesstorss wannt, wwhat theyy wouuld llike to hhear, whaat thhey tthinkk is goodd, whhat iis noot soo goood. TThen you havee to findd a wway tto teell tthem thatt infformaationn. Itt's nnot sso eaasy. You havee to thinnk hoow doo youu telll thhe auudiennce, yourr bosss, eexacttly wwhat the peopple wwouldd likke too heaar. YYou hhave to tthinkk verry caarefuully how you phraase tthis stufff. So thhat'ss onee wayy of doinng itt. Annd thhen ttheree aree somme otther thinngs, comppaniees wee're moniitoriing aand sso onn, whhich in oour ccase is ppart of iinvesstor relaationns. Now wwho aare oour ccustoomerss? Ouur cuustommers are, on one sidee, fiinanccial anallystss. Thhey aare eeitheer paart oof a bankk or partt of an iinvesstmennt (ccompaany). We disttinguuish betwween so ccalleed saales-sidee anaalystts annd buuy-siide aanalyysts. Salles-sside anallystss aree thoose wwho hhelp selll thee matteriaals. Repoorts writtten on ccompaaniess aree wriittenn by salees-siide aanalyysts. Theey arre sppeciaaliseed grroupss of peopple. Theyy bassicallly ffolloow ann inddustrry annd wrrite abouut thhe coompannies in tthis induustryy.On thhe otther handd aree thee buyy-sidde annalyssts. Thesse arre thhe annalyssts tthat helpp invvestoors ccompiile iinforrmatiion (so tthat theyy cann) maake aa deccisioon. TThe llargee pennsionn funnds tthat inveest iin shharess havve peeoplee whoo speeciallise, on theiir siide, in mmonittorinng innvesttmentts. TThesee aree buyy-sidde annalyssts. In tthe eend, you havee thee funnd maanageers, who are the oness whoo reaally deciide tto buuy orr nott to buy.Then you havee inddividdual inveestorrs, wwho wwant to bbuy ttheirr ownn shaares. Theese aare oour ccustoomerss. Wee gett a llot oof thhem. Justt to givee youu an ideaa, ouur coompanny haas abbout 100,000 sharrehollderss. Wee're veryy brooadlyy disstribbutedd. Ouut off thaat, 9995000 aree priivatee inddividdualss, whho owwn beetweeen onne annd a lot of ssharees. BBut rreallly thhe biig ammountt in capiital is oownedd by finaanciaal innstittutioons. It'ss sommethiing yyou ssee aa lott in thiss inddustrry. BBig iinvesstorss aree usuuallyy insstituutionns liike ppensiion ffundss, innvesttmentt funnds, insuurancce coompannies, alll theese tthat own sharres. Theyy aree thee priime ppeoplle wee tallk too. Inn ourr casse, (our stocck) iis diistriibuteed alll arroundd thee worrld. We ccan'tt jusst loook aat Swwitzeerlannd annd saay, wwhat happpens in SSwitzzerlaand. Lesss thaan haalf oour sshareeholdders are Swisss. TTwentty-fiive tto 300 perr cennt arre Ammericcan sshareeholdders, so I haappenn to go aa lott to the Unitted SStatees. If yoou evver wwant to wwork in iinvesstor relaationns, EEngliish iis abbsoluutelyy neccessaary. Therre iss no otheer laanguaage tthan Engllish. No mattter wwhichh couuntryy youu're in, you''d beetterr be absooluteely ffluennt inn Engglishh; ottherwwise you won''t haave aa chaance. Thee tecchniccal ttermss aree alll Engglishh.How ddo wee havve coontacct? WWhat do wwe doo? Thhese are the typiical thinngs yyou ddo. FFirstt of all you havee larrge-sscalee eveents. Youu invvite the inveestorrs annd innvitee thee anaalystts foor prresenntatiions. Theey haappenn in Swittzerlland. (Soome ppartiiculaar meeetinngs, for insttancee,) hhappeen ussuallly att heaadquaarterrs. RResullts, you havee thaat twwo tiimes a yeear wwheree youu preesentt-likke thhe sllidess youu've seenn herreaboout tthe ccompaany, key evennts, and so oon. YYou hhave roadd shoows, thesse arre veery eexcitting. We havee, inn ourr casse, tthreee reggularr larrge ttripss. Wee go to aa lott of counntriees inn a vvery shorrt peeriodd of timee. Yoou goo to a loot off citties, andd youu reaally meett a llot oof innvesttors. Theen yoou haave sshortt triips tthat usuaally heldd at the inveestorr's wwork. Youu meeet thhe innvesttors for abouut ann houur. YYou ccome to tthe oofficce, ffor oone hhour, to talkk aboout tthe ccompaany. You''re ttheree forr onee houur, yyou mmake a prresenntatiion. Thatt is callled tthe oone-oon-onne. TThesee thiings we hhave quitte a lot. Then, at Baseel, aat ouur heeadquuarteers, we hhave indiividuuals or ggroupps whho coome tto viisit you. We havee rouughlyy 1500 of thesse meeetinngs pper yyear. We havee thiings likee tellephoone cconfeerencces. I siit inn a rroom and withh my hierrarchhy, II speeak iinto a miicropphonee forr 20 minuutes and thenn theere aare 660 miinutees quuestiions and answwers afteerwarrd. TThey can ask anytthingg theey waant. Therre arre ussuallly 1000 peeoplee lissteniing iin. TThis is tthe kkind of tthingg youu havve too wattch oout ffor. You havee to be vvery cauttiouss of whatt youu're sayiing. Becaause everryonee cann lissten veryy conncenttrateed. OOn thhe teelephhone you can losee mucch moore. I haave tto bee verry caautioous wwhat I saay, bbecauuse ssomeoone wwill calll me up llaterr andd sayy, "YYou ssaid thiss, I wrotte itt dowwn." In tthe bbeginnningg I wwas aalwayys swweatiing (and soakking) wett aftter oone hhour. By now I knnow tthe sstoryy, whho iss askking the quesstionns? IIt's easyy goiing. Easyy goiing. I caan saay, ""How is tthe wweathher iin" Thesee aree thee quaantitties. Youu gett an ideaa. Itt deppendss on sizee. Rooad sshowss, att onee perr monnth, you can imaggine I'm ofteen onn thee plaane. Teleephonne coonferrencees. YYou hhave a loot off meeetinggs, ttelepphonee connfereencess. Yoou haave tto bee an extrroverrt too staand tthrouugh tthis.Here''s a typiical roadd shoow sccheduule, the numbber oof meeetinngs II havve peer daay. ZZuricch inn thee aftternooon, one meetting. Finnd myy wayy to the airpport. Flyy to Milwwaukeee inn thee Uniited Stattes, havee onee meeetingg. Flly too Torrontoo forr fouur meeetinngs. Fly to SSan FFrancciscoo, haave tthreee meeetinggs. GGo baack tto Swwitzeerlannd annd soo on. Youu proobablly caan immaginne itt's eextreemelyy exccitinng, hhuh? You can be ssure if yyou'rre inn invvestoor reelatiions you knoww alll thee airrportts. YYou kknow exacctly whatt thee airrportts loook llike. Youu havve a new sporrt caalledd airrportt jogggingg. In thhese meettingss, yoou haave aa rouutinee. Yoou haave ttwo cchoicces. You can do aa preesenttatioon annd quuestiion aand aansweers aafterrwardd, orr youu onlly haave qquesttionss andd ansswerss. Whhen yyou gget tto thhe loower partt (thhe ennd paart oof thhe sccheduule), youu preefer onlyy Q&AA. Yoou caan't givee youur owwn prresenntatiion aany mmore. So thatt's oone pprobllem. Anotther probblem is, at ssome poinnt inn timme, yyou sstartt bellieviing yyour own press