Investor Relations Essentials

Introduction

Investor Relations (IR) is a specialized form of corporate communication that involves relaying critical information to the investment community, enabling investors to make informed evaluations of a company's shares and securities. Over recent years, the practice of IR has evolved significantly, with changes in public relations (PR), advertising strategies, and qualification methods, reflecting the strategic nature of IR activities. This course presents best practices in IR across these facets, including regulatory compliance, effective communication strategies, and engagement with the investment community.

For corporate communication professionals, distinguishing between IR and PR is essential. While IR primarily concerns building relationships with shareholders and investors, PR focuses on maintaining and enhancing the company's image to a broader audience. For example, during an IPO, PR plays a critical role in fostering transparency and consistent messaging, helping the company navigate public scrutiny.

Investor relations strategies employed in marketing the company's shares during IPOs stimulate growth and support the transformation of privately held companies into publicly traded ventures. Effective IR management ensures investors are well-informed about the company’s value and growth potential, a key component in achieving IPO success.

Objectives

Upon successfully completing the course on Investor Relations Essentials, students will be equipped to:

• Understand Core Principles: Grasp the theoretical foundations of investor relations (IR) and public relations (PR), and distinguish these aspects within corporate communication.
• Develop Targeted Communication Strategies: Craft communication approaches tailored to specific investors, ensuring messages are clear, direct, and transparent.
• Build and Strengthen Stakeholder Relationships: Cultivate and enhance relationships with stakeholders, promoting deeper engagement and trust.
• Navigate Financial Reporting and Disclosure: Address legal and practical challenges in reporting and disclosure, with an understanding of basic international standards.
• Master Media Relations: Understand key principles of press relations and organizational dynamics to optimize media engagement.
• Handle Investor Inquiries with Confidence: Improve skills in addressing investor inquiries, enabling more effective and professional interactions.
• Prepare for Crisis Communication: Identify effective crisis communication strategies to protect and uphold the company’s reputation during challenging times.
• Utilize Digital Platforms: Understand the growing role of digital tools and platforms in IR and PR to reach and engage with a broader audience.
• Align PR with Investor Expectations: Develop strategies that synchronize public relations efforts with the expectations and needs of investors.
• Present Information Clearly: Learn how to communicate both financial and non-financial information in a way that resonates with investors and other key stakeholders.

Training Methodology

• Lectures Led by Experts
• Case Study Analysis
• Interactive Workshops
• Group Discussions
• Role-Playing Scenarios
• Hands-On Application Exercises
• Peer Review and Feedback
• Simulated Compliance Regulations
• Corporate Financial Communication Strategy Building

Course Outline

Unit 1: Introduction to Investor Relations

• Key Responsibilities and Internal Stakeholders
• External Audiences for IR
• External IR Advisers

Unit 2: Financial Markets

• Global Financial Markets
• Primary and Secondary Markets
• Equity Market Investors
• Debt Investors
• The Growing Importance of ESG Investing
• Other Market Participants

Unit 3: Corporate Entities and Governance

• Legal Definition of a Company
• Share Capital
• Auditors
• Corporate Governance Codes
• Investor Industry Bodies and Regulatory Reviews

Unit 4: Market Conduct

• Market Regulation
• Market Misconduct
• Regulatory Announcements
• Publication of Announcements
• Sponsors, Prospectus, and Listings Rules
• Classification of Transactions
• Takeover Panel
• The AIM Rules

Unit 5: Reporting

• Periodic Reports and Their Contents
• Annual Report
• Sustainability / ESG Disclosure and Non-Financial Information
  • Appendix I: Leading Global Sustainability/ESG Frameworks
  • Appendix II: Sustainability/ESG Materiality and Data Gathering
  • Appendix III: Additional Information on Non-Financial and Sustainability Regulatory Disclosures

Unit 6: Accounting, Valuations, and Investment Principles

• Accounts
• Key Financial Ratios
• Financial Modelling and Consensus
• Investment Appraisal and Valuation
• Valuing a Company
• Relative Valuation Methodologies
• Absolute Valuation Methodologies
• Portfolio Theory

Unit 7: Effective IR in Practice

• Managing the IR Program and Annual Cycle
• Shareholder Profiling and Targeting
• IR Engagement – Principles in Practice
• Investor Communication