IR: A people business
One of the most fulsome comments in this year’s report of the research into which companies are doing the best IR in Europe comes from a sell-sider nominating ASML for best overall IR. This is what she says: ‘ASML’s investor relations team is such high quality. The IROs all worked within the business in operational roles so have incredible knowledge, as well as being super-responsive and just nice people to work with. The firm does a capital markets day every two years to update investors, opens its doors for site visits at regular intervals, is very active on the road, has a great website and gives market guidance. All-round gold-standard IR’.ASML, ranked second for best overall IR, is a Dutch semiconductor company. It was beaten to the gong by top-ranked Novo Nordisk, the Danish pharmaceuticals company, about which one Danish sell-sider says: ‘Novo Nordisk is a massive company with a large IR department. There is power behind the IR and the team is proactive in contacting me: Hello, how are you. Is there anything we can do for you? It also produces very informative reporting.’That comment somehow makes it all sound so easy but good IR is clearly underpinned by a huge amount of knowledge, by an ability to make investors and analysts feel confident in the truth and value of what is being said and by a real understanding of what the investment community wants and needs.
Here’s a comment from a US buy-sider for whom a small-cap IRO seemingly provides an almost personal service: ‘David de la Roz Fernandez, eDreams ODIGEO’s IRO, has always gone above and beyond to help me understand the company and guide my investment process.’ The firm won the awards for best small-cap IRO and best overall IR by a small-cap company, and it would seem de la Roz Fernandez had a lot to do with that success.
Overall, the quality of IR professionals is one of the most important aspects of a company’s IR success. This is borne out by so many comments made by respondents to the research, of which these are just a few examples:‘UniCredit has improved since changes to the IR team. They all now know what they are talking about’ – Italy, sell side‘GSK has been incredibly responsive and engaging since its huge corporate restructuring. IRO Nick Stone has transformed the IR capability’ – UK, sell side‘UniCredit’s disclosure is not the easiest, but the great IR team more than makes up for it!’ – UK, sell side‘Stefanie Wettberg and Lars Budde of BASF are very organized and responsive, and provide good quality information and insight. They are great to work with’ – Germany, sell side.The report contains many more insights into what appeals to investors and analysts, making it a valuable resource for IROs looking to improve. All those individuals mentioned, or whose companies are mentioned, already deserve many congratulations, which we respectfully offer to them all.
