Primer on the Case for Investor Relations, the function and the requirements for best practice.

1. The Case for InvestorThe Case for Investor
RelationsRelations
IR in the Business CycleIR in the Business Cycle
Gerard Francis CorbettGerard Francis Corbett
Redphlag LLCRedphlag LLC
Copyright, 2009, 2014, Redphlag LLC

2. What is IR
 The strategic management responsibility to
communicate the state of the company and its affairs to
stakeholders
 Integrates finance, communications, marketing and
securities law to effect open two-way communications
between the company and its stockholders.
 Ultimately is responsible for assuring fair valuation by the
public markets
 The function that provides the information gateway to a
company’s constituencies

3. The Value of IR
 Provides the best opportunity for a fair valuation
of the company’s stock
 Contributes to brand value through higher
market value
 Greater market visibility through analyst and
media communities
 Thought leader positioning

4. The Benefits of IR
 Higher market value
 Greater brand value
 Command premium pricing on products and services
 Sales cycle is easier and more efficient
 Easier to recruit and retain talent
 Weather crises more readily
 Competitive edge
 Better access to further capital and a lower cost of
borrowing

5. Who is the audience for IR
 Investors
 Shareholders
 Customers
 Market analysts
 Employees
 Bankers
 Regulators
 Government officials
 The financial community at large

6. IR Information Sources
 The company itself
 Web site
 News Announcements
 Speeches/Presentations
 One-one Interactions
 Annual and Quarterly Reports
 Trade shows/exhibits
 SEC
 Newswires
 Analysts/Analyst Reports
 Industry Forums
 Trade Shows
 Customers
 Competitors
 News Media
 Social Media/Platforms – Blogs, Online Groups and Web Networks

7. Disclosure Requirements
 Items with a material impact on
 Financial conditions
 Operating performance
 Includes trends, events, demands, commitments
and uncertainties

8. IR Reporting Relationships
 Corporate Communications/Public Relations
 Finance
 Legal
 Corporate Secretary
 Human Resources
 Marketing

9. The Case for Single Reporting
Relationship
 Cost efficiency (one function/one department)
 Unified messaging
 Consistency to all constituencies
 Greater message control
 Strong message management
 Tighter Brand Management

10. Ideal Reporting Relationship*
*How Corporate Communications Works, Argenti & Forman

11. Required Infrastructure for IR
 Computing/Communications equipment
 Video/audio recording equipment
 Web site
 News distribution network
 Mobile smart phone

12. Characteristics of an IR Specialist
 Adept communicator
 Good writer
 Understanding of accounting and finance
 Presentation skills
 Team player
 Speech giver
 Diplomatic
 Grace under pressure
 Short learning curve
 Patient
 Trend/Industry follower
 Jack of all trades

13. IR Specialist Skills
Hard Skills
 Financial communications
 Public relations
 Media relations
 Strategic planning
 Accounting
 Administration
 Banking (general knowledge)
 Legal
 Marketing
 Equity trading
 Ratings
 Corporate finance
 Financial analysis and
modeling
 Economics
Soft Skills
 Writing
 Credibility and integrity
 Flexibility
 Persuasive appearance
 Articulate speaker
 Analytical skills
 Strong Networking capabilities
 Loyalty
 Team work
 Organizational knowledge
 Objectivity
 Diplomacy
 Selling skills
 Think strategically

14. Fortune 200 – Sample Titles (Corp Comm. and IR)
 Thomas & Betts – VP, Investor and Corporate Relations
 Cisco Systems – SVP, Corporate Communications and Investor
Relations
 Aecom Technology Corp. – SVP, IR and Corp. Comms.
 ONEOK – VP, IR & Public Affairs
 Grainger – SVP, Communications and Investor Relations
 IBM – SVP, Marketing & Comms.
 FedEx – VP, Global Communications and Investor Relations
 L-3 – VP, Corp. Comms. And IR
 Tellabs, VP, Corp. Comms.
 AT&T – SVP, Corp. Comms.