CMD in Practice: when, why, and how
Summary
“Our CMD’s goal was to strengthen the market’s understanding of Raisio’s new strategy and its practical implementation. IR Partners’ work in designing the concept and program, as well as refining the presentations and coaching the management team, helped us build a comprehensive package that clearly and credibly communicated the strategy and the path to international growth,” says Raisio’s CFO, Mika Saarinen.
How do you achieve such a result? A CMD, or Capital Markets Day, rarely succeeds simply by creating slides, but rather by building a clear overall picture for the market of the strategy and its executability, as well as the company’s value creation: in which direction the business is being steered and why, where growth and profitability come from, what management measures, and under what conditions the goals will be achieved. When the structure, messages, and evidence are in order, the discussion also stays on point. At the same time, as the CMD clarifies the company’s strategy, it reduces room for interpretation and strengthens management’s credibility, especially when the operating environment or the company’s business is undergoing significant changes.
Why hold a CMD – and when is it worth doing?
A CMD should be held when a company has genuinely significant news to share and the ability to justify it. This is often driven by a strategy update or a shift in focus, new leadership, an investment program, a change in the product portfolio, or an update to long-term goals. What these situations have in common is that the market’s previous understanding is no longer up to date: the company wants to update, reinforce, or deepen the market’s understanding of its own choices. When conducted routinely, a CMD tends to remain at a general level and does not provide the market with new information. In that case, there is a risk that the event will raise more questions rather than answer them.
In principle, a CMD can be held at any time, but the most popular times are late spring/early summer and late fall. The most important factor when considering the timing, however, is that the company actually has something interesting and timely to share with the market.
What are investors looking for from CMD?
CMD’s core mission is to answer the investor’s fundamental question: why should I be interested in this company right now, and how does that translate into expected returns? Investors are looking for a logical chain of reasoning, not adjectives. What is the company doing differently than before? Where is it focusing its efforts, what is it leaving out, and on what timeline will the effects be visible? How do strategic choices translate into results and cash flow, and what metrics does management use to demonstrate progress? A strategy is only useful to an investor when it can be verified through choices, actions, and metrics, and when the company clearly explains what needs to go right.
Evidence and Q&A: the moment when trust is measured
Many CMDs stumble because the “what” and “why” are in order, but the “how” and “what evidence” remain weak. The market does listen to the story, but it prices the ability to execute. That’s why the CMD’s structure should be able to withstand questions: the Q&A section isn’t an afterthought, but a stress test for the entire event. When the toughest questions are identified early on, the focus of the presentations becomes clearer. At the same time, the company can steer the discussion toward what matters most: what management is committed to, how progress will be monitored, and how risks and uncertainties will be addressed. At its best, a CMD makes the company easier to follow even after the event
How do we help our clients at CMD?
Our mission is to ensure that CMD delivers value to both the company and the market
– through content, not just choreography. The work often begins with developing a concept and clarifying the investor story: together, we define the core message of the day and what the market should better understand after the event. We build a framework where strategic claims are tied to actions and metrics, and where evidence supports the message throughout the day. It helps in planning the program if an investor survey is conducted in the same context, in which the company’s key stakeholders – investors and analysts – are interviewed and asked for their views on the company’s strategy and its implementation, as well as their wishes regarding the content of the CMD.
Following this, we support the production of content and materials. We align the speakers’ messages, refine the language, and ensure that information relevant to investors is highlighted without unnecessary softening. Finally, we visualise the presentation into a cohesive and impressive whole. We also prepare the Q&A session and coach management to respond consistently, accurately, and credibly. If necessary, we provide presentation coaching for management and conduct a dress rehearsal to ensure the presentation works in practice, both on schedule and under pressure.
In conclusion: CMD is a promise, not just an event
A good CMD provides the market with a clearer picture of value creation and strategy, strengthens confidence in management’s ability to execute, and offers concrete metrics to track in the coming quarters. When these things come to fruition, the CMD will be remembered for the right reasons and will become a shared tool for the company and the capital markets to track the implementation of the company’s strategy throughout the strategy period.
