Investor Relations

SEVEN KEYS TO SUCCESSFUL INVESTOR RELATIONS 43familiarity with the company’s products and services, and its competitiveenvironment and growth drivers. By possessing an intimate knowledge ofthe company and its sector/in-depth industry and company knowledge,the IRO will be able to make the company memorable to investors whosee countless numbers of presentations every week. The IRO will be ableto supplement the presentation with stories and anecdotes and make thecompany alive.Medium-sized companies may choose the same person to act as head ofInvestor Relations and director of finance, strategy, or development, or torun both IR department and corporate communications.In all cases, the primary purpose of the executive appointed to handleInvestor Relations will be to give the market ever-deeper insight into thecompany’s businesses and strategy. As a consequence, the IRO’s responsibilitiesare threefold: Interact with top management and the finance division on all aspectsof financial communications and Investor Relations; Act as spokesperson in providing financial analysts and investorswith information about the company. The IRO may also be contacted byor may deal with other audiences, including credit-rating agencies, themedia, and so on; Proactively look for new shareholders and determine whether thereis sufficient interest to justify management’s time on future meetings.The IRO’s name should appear on press releases, together with that of thedeputy IRO if applicable.The IRO is the owner of the drafting process and coordinates theresponses, comments, and corrections offered by the different partiesinvolved in putting together financial and strategic press releases andfinancial presentations. The IRO’s participation is actively involvedin drafting the legal documents required for financial transactions andthe annual report. The IRO may also be fully responsible for theirproduction.IROs help top management anticipate the questions and concerns institutionalinvestors and financial analysts may express, following earningsreleases or strategic announcements such as an acquisition.Messages delivered to financial markets must be consistent among eachother and over time; this is also the IRO’s responsibility. Those in chargeof relations with the media should, therefore, check their answers prior toresponding, if they are asked for explanations or additional information onongoing operations or on a recent financial press release.