What We Celebrated
We celebrated VCP Day at the NYSE, an event that attracted analysts, investors, journalists, and other important constituents of our company. The celebration was a unique opportunity for the senior management of both VCP and VCP’s holding company, Votorantim Group, to share their strategy with the international market.
What We Did
At the beginning of the week, we initiated what we call a “non-deal” international road show. We traveled to London, Boston and New York to begin discussions with investors all over the world and ended the road show with the event at the NYSE.
As part of VCP Day, we set up a nursery outside the Exchange with seedlings and young eucalyptus trees to show investors the beginning of our production chain. We also arranged to have artists paint images and caricatures on pieces of pulp, which is thick, unrefined paper. This way people would have a very personal keepsake of our event. We also hosted other important activities, including interviews with the media, lunch with investors, and a roundtable with international sell-side analysts. We ended the day by ringing The Closing BellSM at the Exchange.
How We Planned It
We came up with the idea for the road show and VCP Day at the end of last year. The road show was our idea, but VCP Day was an idea that came from the NYSE. We decided to combine both ideas because we thought that they would give VCP greater exposure to the international market.
VCP’s strategy focuses on the entire production chain, looking not only at pulp and paper—the end products—but also at the forest, where paper production begins. At first we wanted to have two or three eucalyptus trees outside the Exchange but discovered that it would be very difficult and expensive to do, so we decided to at least display a nursery to demonstrate the first step in the process of producing paper. Our goal was to highlight for investors the importance of the forest for a Brazilian paper and pulp company such as VCP.
Without a doubt, the biggest challenge was the time frame. While we had the idea for the event last year, we only got the go-ahead at the end of September, which left us with only three weeks to plan it. This was very challenging. Without the help of the NYSE, we would never have been able to do it.
The entire experience was unforgettable. But if I had to pick the most memorable moment, I think it was The Closing Bell because it was the climax of all the events and an opportunity to expose VCP to the international markets and media. For example, the photo taken during The Closing Bell was shown on all major Brazilian media outlets and on the Internet. It brought significant investor attention to our road show and our company.
The results were very positive. Apart from significant media coverage in the United States and Brazil, brokers and analysts released reports after attending the meeting at the NYSE. We also saw an increase in the price of our ADRs. I think we hit a 12-month high one or two weeks after the event.
It was also a very good opportunity to foster two-way communication between our company and investors. The VCP Day event not only helped investors learn about our company but it also helped our senior management learn about its investors. The remarks and comments from the investor community were very important to our senior managers.
Votorantim Celulose e Papel S.A. (VCP) is one of the world’s leading pulp and paper manufacturers. The company is based in São Paulo .