Investor Relations

SEVEN KEYS TO SUCCESSFUL INVESTOR RELATIONS 39shareholders. In this configuration, the IR department’s mission consists ofthe following:Providing the wider target audience with objective assistance ininterpreting the information disclosed by the listed company, in orderfor all to estimate its future value;Building positive investor understanding and sentiment for thecompany’s strategy for the short, medium, and long terms.2.3.3.4 Keeping management aware ofmarket’s perceptionWhether the interaction with the investment community is via email, onthe telephone or in a one-to-one meeting, the IRO will leverage the valueof these contacts to learn more about the needs and perception of the company’sstrategy and performance by investors and analysts.The IRO should be prepared to report on the market’s perception of thecompany not only to the top levels of management but also to the board ofdirectors. This is an increasingly common standard in corporate governance.In this respect, certain boards of directors require that an independentperception study be conducted at least once a year.The frequency with which this type of information is reported and thecontent of the reports vary from one company to another. In general, thefollowing information is provided:Trends in markets and stock prices for the company and the competition,both in terms of absolute and relative performance;Equity research on the company (recommendations and earningsconsensus);Periodic update on ongoing implementation of the Investor Relationsprogram (participation in conferences, roadshows, meetings with largeshareholders) together with the list of questions asked (by theme) andthe feedback gathered;Changes in the shareholder base;Reminders of upcoming dates on the financial calendar;Findings of perception studies.