Telling Our Story, Transparently
In a volatile stock market environment, some companies choose to take cover. At PotashCorp, we continue to take to the road.
In 2008, PotashCorp's senior executives spoke at 15 major conferences across North America, hosted a gathering of investment analysts in London, met with shareholders at our annual meeting in Saskatoon and discussed each quarter's performance during conference calls from our office in Northbrook.
Anyone with an interest in PotashCorp was able to listen to these presentations online or continue the discussion with our investor relations department.
"We believe transparency creates trust," said Tim Herrod, Manager, Investor Relations. "By keeping people informed about our strategies, opportunities and – in tough times – challenges, we attempt to reduce uncertainty. While there is much out of our control in this difficult environment, we believe our engagement efforts build loyalty, which is important when investors are feeling the impact of the economic downturn."
Transparency and strong corporate reporting have long been PotashCorp hallmarks, as the company's communications are consistently recognized as among the best in the world. In 2008, this included Awards of Excellence from the Canadian Institute of Chartered Accountants for best corporate reporting in the mining sector and best electronic disclosure of any company in Canada.
At the heart of this is one of the company's core values: "We are accessible, accountable and transparent." This foundation is supported by internal systems designed to ensure accurate, clear and timely disclosure.
The commitment to this value doesn't waver, regardless of market conditions.
"We have an incredible story to tell – today and especially over the long term," said Herrod. "In an uncertain market, we try to ensure people understand the defensive strategies that give us a unique ability to minimize volatility. More importantly, we want them to have the information that guides our decision-making process. With that, it is easier to understand the foundation that is the basis for our strong long-term outlook."
This commitment to transparency remains an important strategy for achieving the company's goal of maximizing shareholder value.
CFO Wayne Brownlee agrees. "The stock market collapse in late 2008 was primarily a flight to cash. Unfortunately, PotashCorp's stock got caught in this massive outflow of capital despite the favorable long-term supply/demand fundamentals of our industry and our unmatched potash growth platform. As investor confidence returns, we believe these fundamentals will come back into play, providing superior long-term returns to our shareholders."