Public Relations Management Session 6 Investor Relations


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Session on Investor Relations as to how a PR professional should be aware about his target audience and the tools that are available with him

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  • Process by which a company communicates with its shareholders and the investment community.
  • Typically the investor relations department is a department or person reporting to the Chief Financial Officer or Treasurer . In some companies, investor relations is managed by the public relations or corporate communications departments, and can also be referred to as "financial public relations" or "financial communications".
  • ICAI competition on the designing of annual report
  • ICAI competition on the designing of annual report
  • Public Relations Management Session 6 Investor Relations

    1. 1. Investors Relations
    2. 2. Investor Relations <ul><li>Definition </li></ul><ul><li>Organization Structure </li></ul><ul><li>Tools for Investor Relations </li></ul>Moksh Juneja
    3. 3. <ul><li>Investor Relations </li></ul>Moksh Juneja
    4. 4. Definition… <ul><li>Investor relations is a set of activities which relate to the ways in which a company discloses information required for regulatory compliance and good investment judgment to bond and/or shareholders and the wider financial markets. Source: Wikipedia </li></ul>Moksh Juneja
    5. 5. … Definition <ul><li>to maintain a strong share price, your public company must develop and implement a strong stock support plan. The costs of implementing your stock support plan are among the major disadvantages of being a public company. ... Source: going-global </li></ul>Moksh Juneja
    6. 6. Investor Relations part of the organization <ul><li>Board of Directors </li></ul><ul><li>CEO </li></ul><ul><li>Chief Financial Officer (CFO) </li></ul>Controller Accounting/Reporting Budgeting/Forecasting Tax Planning Asset Management Treasurer Financing Risk Management Investor Relations
    7. 7. Investor Relations Officer (IRO) <ul><li>Profile </li></ul><ul><li>Publics </li></ul><ul><li>Functions </li></ul><ul><li>Tools </li></ul>
    8. 8. Profile - IRO <ul><li>Plans and directs all aspects of an organization's investor relations policies, objectives, and initiatives. </li></ul><ul><li>Maintains and improves relations between an organization and its shareholders and/or the general financial community. </li></ul><ul><li>Ensures that the organization's relationship with its shareholders reflects positively on the company's stock price. </li></ul><ul><li>Demonstrates expertise in a variety of the field's concepts, practices, and procedures. </li></ul><ul><li>Relies on extensive experience and judgment to plan and accomplish goals. </li></ul><ul><li>Typically reports to top management. </li></ul>
    9. 9. The Publics Customer’s brokers Employees Stockholders Investment Bankers Commercial Bankers Mutual Funds Managers Investment Councilors IRO Media
    10. 10. Investor Relations Officer (IRO) <ul><li>Functions </li></ul><ul><ul><li>Communication : IRO oversees all communication to the potential venture capitalists, potential & existing investors, potential & existing shareholders and Financial Analysts. </li></ul></ul><ul><ul><li>Intangible information : The investor relations function often includes the transmission of information relating to intangible values such as the company's policy on corporate governance or corporate social responsibility . </li></ul></ul><ul><ul><li>Crisis Preparedness : The investor relations function must be aware of current and upcoming issues that an organization or issuer may face, particularly those that relate to fiduciary duty and organizational impact. </li></ul></ul>
    11. 11. Investor Relations Officer (IRO) <ul><li>Functions </li></ul><ul><ul><li>Shareholder Behaviour : IRO must be able to assess the various patterns of stock-trading that a public company may experience, often as the result of a public disclosure (or any research reports issued by financial analysts). </li></ul></ul><ul><ul><li>Responsibility sharing: By definition, the field most closely relates to the duties of a Corporate Secretary , but also shares responsibilities with the Chief Financial Officer as needed. </li></ul></ul><ul><ul><li>Managing Crisis: Due to the potential impact of legal liability claims awarded by courts, and the consequential impact on the company's share price, IR often has a role in crisis management of, for example, corporate downsizing, changes in management or internal structure, product liability issues and industrial disasters. </li></ul></ul>
    12. 12. Tools <ul><li>Results press release </li></ul><ul><li>Company annual reports </li></ul><ul><li>Annual General meetings / Press conferences </li></ul><ul><li>Private meetings with investors (known as &quot;one-on-one&quot; briefings) </li></ul><ul><li>Meeting with Analysts </li></ul><ul><li>Investor relations sections of company websites </li></ul>
    13. 13. Under the Private Securities Litigation Act of 1995 This document contains forward looking information which is subject to risks and uncertainties, including, but not limited to, changes in the utility regulatory environment, the impact of competition from other energy suppliers, industrial, commercial and residential growth in the Company’s service territory, the results of financing efforts, the effect of the Company’s accounting policies, growth in opportunities for the Company’s subsidiaries and diversified operations, and other risks described in the Company’s Securities and Exchange Commission filings. Inquiries concerning this publication should be directed to: Greg Ebel Julie Dill Mary Ann Arico Vice President Vice President Director Investor and Shareholder Relations Investor and Shareholder Relations Investor Relations (through Dec 31, 2004) (effective Jan 1, 2004) 704.382.1438 704.382.8118 704.373.4332 Joe Crapster Jennifer Traylor Director Senior Financial Analyst Investor Relations Investor Relations 704.382.5290 704.382.7554
    14. 14. Annual Report <ul><li>Producing annual report is largely an exercise in underplaying the problems and highlighting the prospects. </li></ul><ul><li>Contents of the report </li></ul><ul><ul><li>Director’s report </li></ul></ul><ul><ul><li>Balance Sheet </li></ul></ul><ul><ul><li>Profit and loss account </li></ul></ul><ul><ul><li>Auditor’s report </li></ul></ul><ul><ul><li>Corporate development </li></ul></ul>
    15. 15. Meeting with Analysts <ul><li>President’s speech </li></ul><ul><li>Special report to analysts </li></ul><ul><li>Tours of main plants </li></ul><ul><li>Dissemination of financial information to analysts first </li></ul><ul><li>Meeting specific requests </li></ul><ul><li>Personal visits to analysts – brokerage firms </li></ul>
    16. 16. Website <ul><li>Website </li></ul><ul><li>Management </li></ul><ul><li>Ownership structure </li></ul><ul><li>Supervisory Board </li></ul><ul><li>Company history & profile </li></ul><ul><li>Share price </li></ul><ul><li>News, contact information </li></ul><ul><li>Financial performance </li></ul>Investors are looking for -
    17. 17. Trends <ul><li>XBRL ( Extensible Business Reporting Language ) is an XML-based format to define and exchange business and financial performance information. </li></ul><ul><li>Verification of Digital Signatures </li></ul>
    18. 18. Thank you <ul><li>Contact </li></ul><ul><li>Moksh Juneja </li></ul><ul><li>Social Media Catalyst </li></ul><ul><li>Avignyata Inc. </li></ul><ul><li>Mobile: +91 9322121170 </li></ul><ul><li>Email: [email_address] </li></ul>Moksh Juneja