7.4 Capital Markets Days (CMDs)
Author:
- FGS Global
Last updated on December 8th, 2025
Purpose and Overview
Capital Markets Days (CMDs, or: Investor Days) are structured investor communications events designed to provide the capital market with an in-depth understanding of a company’s strategy, business model, operating environment, and medium-term value creation levers. They allow senior management to articulate strategic priorities, demonstrate execution capability, and offer a credible outlook beyond the regular reporting cycle - supporting transparency and strengthening investor trust. CMDs are particularly valuable in helping address business model complexity, or market concerns or misconceptions. CMDs typically outline medium-term ambitions (including financial and non-financial KPIs), clarify capital allocation principles and balance sheet management, and provide enhanced visibility during periods of strategic change, portfolio evolution, or transformation. They also provide an important opportunity for the audience to build relationships with company management and divisional heads. When executed well, CMDs become a strategic asset for the company - not just a one-off event, but a cornerstone for future engagement and a reference point for ongoing investor communications. Research shows that companies which hold regular CMDs see higher valuation multiples and improved share price performance, underlining their value in shaping market perception and reinforcing trust in the equity story.
When to Hold a CMD
CMDs are typically used to communicate material strategic updates, such as a new or refreshed strategy, operational transformation or restructuring, leadership changes (e.g., new CEO/CFO), expansion into new markets or technologies, deeper disclosure needs on business segments or value drivers, or the introduction of long-term financial frameworks and new KPIs. Frequency can be sector dependent: some companies host CMDs as regularly as on an annual basis, while others do so only when there is substantive new content, for example: the unveiling of a new strategic plan every 2-3 years. In all cases, the event should be content-led and held only when meaningful, additive information is available.
Target Audience
CMDs are aimed at buy-side investors (both generalists and specialists), sell-side analysts, ESG/stewardship teams when sustainability is a strategic pillar, and fixed-income investors, particularly when funding strategy or leverage targets are addressed. Media participation is optional and should be aligned with content sensitivity and broader communication goals.
Planning and Preparation
Effective CMDs require early planning and close alignment across investor relations, strategy, finance, and business units. Strong preparation directly drives execution quality. The process typically involves several core phases:
1. Defining Messaging Objectives
Establish clear strategic and communication objectives based on stakeholder needs.
Consider an independent perception study to identify information gaps that the CMD should address.
Align all presenters to a single, coherent narrative.
Clarify the purpose of each session within the overall flow.
Explicitly address the bear case for the equity story - acknowledge key risks and market skepticism, and detail mitigation plans to build credibility and demonstrate preparedness to investors.
2. Speaker Selection
Include the CEO, CFO, and relevant divisional or functional leaders.
Agree who will speak, why, and the specific content they will cover.
Ensure presenters are well-briefed, consistent, and prepared for investor Q&A.
Allocate ample rehearsal time and provide media training where appropriate.
3. Content Development
Aim for investor-focused, capital-market-friendly content.
Provide new or additive information (e.g., strategy updates, new targets, segment deep-dives, new leadership, cost initiatives).
Directly link strategic initiatives to financial outcomes, demonstrating how your strategy drives revenue growth, margin expansion, and capital returns.
Support your equity story with tangible proof points (rather than vague terms), operational KPIs, and scenario analysis to illustrate management’s agility and execution.
Present financials in a format that is simple for investors and analysts to use.
Keep messaging concise, coherent, and clearly linked to the investment case.
4. Agenda Development
Cover strategy, including total addressable markets and ‘right-to-win’, medium-term priorities, and key operational capabilities.
Include deep dives into divisions, products, or technologies.
Execution of the strategic plan, linked to financial performance.
Present the financial framework, KPIs and outline a disciplined capital allocation approach - including organic investment, M&A, and shareholder returns. Clearly link these decisions to long-term strategy and value creation, and provide transparency on metrics for buybacks, dividends, and reinvestment.
Integrate sustainability where it is central to long-term value creation.
Allow sufficient time for Q&A, and consider breakouts, demos, or site visits to reinforce key messages.
5. Format and Logistics
Decide on physical, virtual, or hybrid delivery.
Select a venue suited to investor engagement and technical needs.
Ensure reliable webcasting, replay availability, and timely distribution of materials.
Engage professional technical support where required.
6. Timing
Allow for a preparation period of at least six months.
Send invitations early.
Avoid clashes with industry events or major reporting periods.
Consider the timing needs of the investor base and the financial calendar.
Content Expectations
Investors expect CMDs to be detailed, transparent, and data-driven. Effective events clearly articulate the strategic rationale, outline operational execution plans, disclose medium-term financial parameters/targets, and provide a balanced discussion of risks, headwinds and dependencies. These points should all be supported by case studies or proof points. Avoid promotional or vague messaging and ensure consistent delivery across presenters to avoid signaling misalignment.
Interaction and Q&A
Allowing sufficient time for investor questions is critical. Q&A enables the clarification of key assumptions, tests management’s understanding of issues, and provides insight into market concerns. Prepare speaker scripts and a list of challenging and relevant questions and answers in advance.
Post-Event Follow-Up
After the CMD, companies should promptly publish slides, replays, and transcripts; provide supplementary data where appropriate; engage with investors seeking further detail; and ensure subsequent reporting reflects CMD commitments. Impact should be assessed through structured evaluation - for example, a perception study 12–18 months later - while recognizing that valuation movements may also reflect broader market conditions.
Risks and Pitfalls
Common risks and pitfalls include misalignment between strategy and financial guidance, targets without credible execution plans, inconsistent messaging across presenters, and presentations that rely on excessive technical detail without a clear narrative. CMDs can also be undermined by technical or webcast failures, as well as insufficient preparation and rehearsal.
What Ultimately Matters
Successful CMDs address actual investor information needs - not just what management believes investors want to hear. Due to the complex nature of aligning various workstreams, CMDs require extensive preparation and sufficient lead time, as well as, in selected high-stake situations, the involvement of external advisors. CMDs are most effective when they deliver clarity, strengthen credibility, and provide a structured view of the company’s medium-term value-creation path. Ultimately, a well-executed CMD anchors the equity story, builds lasting credibility, and helps shape investor expectations well beyond the event itself.