Investor Relations

72INVESTOR RELATIONSenvironmental reports and safety and health performance reports (whichis often termed as non-financial disclosure), are opportunities to adapt themessages and media used in financial communications, with due regard toappropriate frequency and timing. Sectors and countries in which the company does business. Acompany’s Investor Relations will be all the more efficient if the informationit delivers is highly instructive, regardless of whether it operates onwell-known and documented markets, in nascent or polluting industries, orin what are considered to be high-risk countries. Informative communicationis also an excellent way for medium-sized companies to draw attention:Those that do not have market leadership can still set the standard for theirsectors in terms of Investor Relations by providing the public with general,macroeconomic, and technical information that takes time to gather. Thiswill give the impression that the company perfectly masters its businesssector, thereby adding to its credibility. Internal organization. The appointment of a new CEO or directorcan be an opportunity to enrich the company’s news flow. It will focuson the newly appointed person’s reputation in business, track record, orknowledge of the company’s activities. The message will thus depend onwhether the appointee is known for turning around troubled companies, asan heir to a family business (in which case the appointee’s credibility willhave to be established with financial markets), or is appointed following themerger with another company. Expansion policy and strategic priorities. A company that intendsto develop its business in the United States through acquisitions shouldspend a fair amount of time meeting with financial analysts and investorsbased in that country. The questions asked will help the company understandthe environment into which it is venturing by providing informationabout the competition. It can subsequently rework its communication toinclude more relevant performance indicators and a better investment case.This expansion may also lead to a listing on a foreign market, in whichcase Investor Relations will have to be adapted to reflect new regulationsand the specific expectations of domestic investors. If the company decidesto diversify into new areas, or on the contrary, refocus on a core business,it will have to convince the markets that these major transformationsare wise. Financial structure and strategy funding. In the course of itsdevelopment, a company may need to step up its capital expenditure oracquire or dispose of assets. These moves will impact its financial profileand earnings outlook, for better or for worse, over a given period of time.If such developments require a capital increase or debt financing, specificInvestor Relations will be needed. For instance, listed companies that issuebonds will have to deliver specific information to credit analysts to enable