Investor Relations

SEVEN KEYS TO SUCCESSFUL INVESTOR RELATIONS 632.5.1.3 Disclosure of price-sensitiveinformationPress releases (see section 3.6.1) are the only proper way to disclose pricesensitiveor privileged information.Some countries require that press releases be officially registered orfiled with the stock-market authorities for companies to effectively meettheir legal obligations. Internet-based disclosure systems are graduallyimplemented.Knowing that the wording and means of dissemination of press releasesmust meet very specific criteria, and the main points to keep in mind are asfollows: Press releases should be as clear, thorough, and precise as possible.They should include all information that can potentially have a significantimpact on the share price or, according to certain legislations, prompt adecision to buy or sell. When drafting press releases, issuers should bear in mind thatinternational news agencies, especially those whose networks feed directlythrough to market operators’ screens, have very little time (no more thanthree minutes on average) to put the information into their systems. Thejournalists in question should be able to understand, by reading just a fewlines, whether a press release is about a disposal or acquisition, an increaseor decrease in revenues or margins, or other developments. The story willbe elaborated upon in subsequent dispatches. There should be no doubt or ambiguity about the fact that the pressrelease is indeed being issued by the company. The front page, title, andfirst paragraphs should include the full name of the company, and wherepossible show its logo. It should also include the name of an available andauthorized contact person, for instance, the IRO or the press relations manager,with that person’s direct contact information. It is inefficient and inpoor taste to provide no contact, with the press release merely mentioningmerely a Web site address and a main switchboard phone number. Thesemay seem like small details, but they are part of what creates a company’simage. The distribution process should be tightly controlled (choice ofmedium, chronology) to assure that market operators do not hear aboutthe information from a source other than the company. Where the issuer isconcerned, only one person should be authorized to “give the green light.”Market authorities should be at the top of the list of recipients. Technologicalprogress is such that, for a company with proper equipment (specializedservice providers are often used), the information can be spread across theglobe within a few minutes.