Investor Relations Communication
“An investment in knowledge pays the best interest.”
Benjamin Franklin, one of the Founding Fathers of the United States, a statesman, scientist, writer, inventor, educator and publisher
Investor relations communication, abbreviated as IR, is a series of activities carried out by a public company to inform its shareholders and potential investors about its strategy, business plans, and the results of its operations. Most often, the purpose of investor relations is to present as much information as investors need to decide whether to invest in the company’s securities.
Certain investor relations activities are obligatory in accordance with regulations set by the Securities Authority and the stock exchanges. Among other things, the company must present its shareholders annual and periodic financial reports, announce any material change in its activities or management, report on capital raised, announce dividend distribution, and so on. (Wikipedia)
We work with companies, investor relations managers and CFOs on materials that they must distribute to the press or the capital market. We design investor presentations intended to identify potential investors or to showcase the company at conferences. We design messages ahead of meetings with analysts or for when participating in investor conferences; and of course, we design annual reports addressed to all stakeholders. The goal of all these products is that the messages the company conveys to investors and to the capital markets will be uniform and consistent.
Why is it so important to invest in IR?
How many times have you looked around and seen companies with revenue, with comparative multipliers, cash and good equity, and yet their stock value is extremely low? In contrast, there are other companies that carry losses and show no profits, but have a promising future. This means that every company must present a plan that shows its value, the viability of investing in it, and the messages it conveys to investors in general and institutional investors in particular. Every company needs a message, a presentation, and designed marketing collateral that strengthen its image in the eyes of the capital markets and the press.
And that’s exactly why we’re here.
For more than two decades, we have been designing and producing IR communications such as annual reports, IR websites, and investor presentations. As we have worked on these projects, we have delved into the challenges you face and our goal is to make these tools more effective, for leveraging in communications with investors. By using these tools more effectively, you can reach investors in new markets, and strengthen and improve the impression investors have of your company’s potential.
Annual reports
The annual report is a unique opportunity for the company to publicize its vision and discuss the full range of its activities. It is therefore considered by companies traded around the world as a leading marketing communications tool. While most marcom promotions center on specific product offerings and their technical benefits, the annual report examines the essence of the company – its mission and market position, as well as the intangible benefits of reliability, service and forward-thinking vision – which is often missed in other pieces of marketing. Above all, the annual report conveys a clear message to shareholders as to the reason for their continued belief and investment in the company.
IR websites
As more and more investors look for information on company websites, investor relations sites are taking on greater importance. Investors who are hungry for information want more than an annual report. They want stock information, the latest stock price, roadshow meetings, annual events, and more. How do you keep your IR site up to date? How can you use the internet to create a more personal relationship with your shareholders, your employees, and the financial community? How can the IR department outwardly communicate non-financial characteristics of the company? We believe that investors have the right to receive information from public companies in a way that meets their needs and on time. To this end, we work in full cooperation with our clients to find the right balance between functionality, passion and design.
Investor presentations
No matter where presentations are held, their purpose is the same. Exchanging ideas, presenting information, and persuading the other party to invest. Usually, the problem is that we have more facts and figures than the other party – the audience or the investors – can absorb. What is important to include and what can we give up? What to start with? Should we introduce ourselves at the beginning or at the end? How do you keep your listeners’ attention when not all the slides are so fascinating? How do you convey non-verbal messages? How do you maintain the brand image even when talking finances? To make sure ideas remain in the minds of investors, and not just in the presentation, we have to tell a good story, with a compelling message, but also tailored to the world of investment. The answer to all those questions is found in the right design, a lot of experience in this area, meeting deadlines, and relevant ways of thinking – all of which we are happy to collaborate with you in exploring.