Taking it

to heart
Exploring how investor
relations is organized
in companies pre- and
post-IPO
Contents
1. What is IR’s role in your company? 4
2. What do you think determines IR success? 5
3. How important is IR’s seat at the top table? 6
4. Do you have written strategies, manuals and IR audits? 10
5. How well connected is your IR function? 12

Respondent data and methodology Respondent base split by geographical area

Asia-
Asia -
Pacific No answer
This report is the product of a study conducted for EY by IR Pacific No answer
4%
8%
Insights, the research and intelligence unit of IR Magazine. We 8% 4%
analysed answers from 876 IR professionals from around the
world. Although the study was conducted in 2015, the findings
still apply today. Americas
Americas
46%
Respondents were asked a series of questions relating to EMEIA 46%
EMEIA
42%
the structure of their IR function, their formal and informal 42%
relationships with both the board and other departments, and
Asia-
what aspects are important to the practice and assessment Pacific No answer
8% 4%
of investor relations. Each section of this report details our
findings related to one or more of these questions. 5+
18%

Findings are given both as a global figure and broken down Respondent base split byAmericas
market capitalization
46%
according to company region and market capitalization. The EMEIA 3-4
42% 30%
three key regions we use for comparison are the Americas with
76% of the answers coming from the US, EMEIA* with 73%
Mega
Mega - - Small
Small
from Western Europe, and Asia-Pacific with 39% from China, cap
cap cap
cap
including Hong Kong, and 41% from Southeast Asia. The four 17%
17% 22%
22%
market cap size brackets are small cap, mid-cap, large cap and Other
mega-cap: Large
Large
13%
Mega - cap
capSmall Mid-cap
Mid-cap
Small cap <US$1b cap
33%
cap 28% C
17%33% 22% 28% 2

Mid-cap US$1b-US$5b Large

cap Mid-cap CEO
Large cap US$5b-US$30b 33% 28% 62%

Mega-cap >US$30b
Respondent base split by industry sector

Financials
Financials
Financials
Industrials
Industrials
Industrials
Energy
Energy and
and power
Energy and power power
High technology N
High
Consumer products High
technology
technology
and services
47

Consumer
Consumer products
products and
Health and services
services
care
Materials
Health
Health care
care
Automotive and transportation
Materials
Materials
Telecommunications Yes, older than
two years
Real estate
Automotive
Automotive andand transportation
transportation 6%
Retail
Telecommunications
MediaTelecommunications
and entertainment
Real
Real0% estate
estate
5% 10% 15% 20% 25%
www.irmagazine.com Asia-Pacific
Retail
Retail
theMedia
I am Media
main andand entertainment
entertainment
investor EMEIA
relations contact in my 59%
company
0%0% 5%5% 10%
10% 15%
15% 20%
20% 25%
25%
*Europe, the Middle East, India and Africa Americas
I work in the investor
relations department 26%

0% 10%
2 | Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO
Investor relations is one
I am
I am the
ofthe
my main
main
job investor
investor
functions 6%
Executive summary
Investor relations (IR) has been in existence for over half 3. IR strategy and IR manual: a written IR strategy and
a century. For organizations in some regions, it is a well- manual support better preparation for an IPO and help
established function. In other regions, however, it is less mature. ensure regulatory compliance post-IPO. They cover investor
Nonetheless, IR is as indispensable for companies preparing for targeting activities and the processes, infrastructures and
an IPO as it is for listed companies. responsibilities to support departments.
• For companies getting ready for an IPO, financial 4. Interdepartmental connectivity: it’s significant that
communication to regulators, investors and analysts is IR departments in companies of all sizes consider
critical. This would often involve introducing new roles, interdepartmental connectivity to be vital to the good
processes, infrastructure and systems around the IR organization of the IR practice. Of highest importance
function. EY has developed tools and frameworks to help is the cooperation of IR with the accounting and finance
companies that are considering an IPO with the aim of department and with the planning, budgeting and
raising capital to grow. The EY 7 Drivers of Growth, for forecasting department.
example, is a framework of key business drivers companies
5. The size factor: the way IR is internally organized depends
must address to achieve their growth ambitions and think
on the size of the company. The organization of IR is also
broadly about their growth capabilities.
influenced by factors such as the size of the teams and how
• A listed company, on the other hand, may need to improve they are organized according to regional IR ecosystems,
its IR function to support the low cost of capital and a capital market trends, investor activity levels and peer
higher share liquidity in relation to its peer group, and also group best practices.
to mitigate risks in financial communication and disclosure.
We hope you find these inferences — and the regional and
EY, with IR Insights, surveyed 876 IR professionals from around market capitalization-specific findings we’ve covered in the
the world to get to the heart of IR. We asked them questions following pages — help you better understand and manage your
relating to the organization and structure of their IR functions, IR functions. We would be happy to share further information
their relationship with the board and with other internal and insight on request with companies preparing to list and also
departments, and what aspects are important to the IR practice with those already established on the public markets.
and for the assessment of investor relations.
Their responses give us insight into how listed companies
around the world organize their IR functions internally, the
typical role of IR, its tasks and responsibilities, IR strategy,
manuals and audit, and IR’s relationship with the board and with
other departments in the organization.
Here is a summary of the inferences we made on the basis of
the survey responses:
1. Need for strong relationships: IR’s ability to build strong
relationships with investors, and analysts, and the strength
of the executive team, are factors considered most critical
to the success of IR globally.
2. A seat at the top table: IR has a seat at the top table. It plays
the role of a two-way communicator by acting as the voice of
the company to the investment community and as the voice
of the investment community to the management and board.
Although IR is not the decision-maker on strategy,
M&A, messaging or responding to street feedback,
it does provide the C-suite with the required
information, candid feedback from the shareholder’s
point of view and suggestions on overall strategy.
1. What is IR’s role in your company?
We started out by trying to define the most important
contribution the IR department makes to a company. Many of the
IR professionals we surveyed responded by offering descriptions
of the IR function in the form of succinct — and in some cases
very similar — definitions, albeit with differences in emphasis.
On the basis of their definitions, we’ve grouped the respondents
into three.
Response 1: Enabling two-way
communication
Some respondents focused on the two-way nature of the IR’s
role, as in these examples:
• IR acts as the voice of the company to the investment
community. It also acts as the voice of the investment
community to the management and board of directors.
• IR ensures that the management is aware of investor
concerns. It also ensures these concerns are addressed
quickly and accurately.
• IR ensures that management knows how analysts and
investors view the company. It also identifies misconceptions
and tailors the messaging accordingly.
• IR helps establish a corporate-wide understanding of
investor and shareholder concerns and how each colleague
can affect the conversation.
• IR helps bring the CEO’s and the CFO’s attention to discuss
strategy, M&A, messaging and street feedback. While IR
is not the decision-maker on many of these aspects, it
does provide the C-suite with the required information,
candid feedback from the shareholder’s point of view and
suggestions on overall strategy.
4 | Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO
Response 2: Managing the
management
For others, IR’s key contribution is to help manage senior
management’s time and to keep them accessible to investors
and analysts. “Providing access to C-level executives,” one
said, was the department’s key contribution to the company.
“Efficient use of management time while on the road,” said
another. References to the effective use of management time
were plentiful, as were comments about “reducing the burden
of IR on the CEO and CFO” and even the need to educate senior
management and show them in the best light.
According to this category of respondents, IR’s key
responsibilities include:
• Attracting new long-term supportive shareholders and
removing much of the burden of IR from the shoulders of
the CEO and CFO
• Acting as a bridge between investors and senior
management and giving valuable feedback to senior
management
• Bringing discipline and structure in order to get the CEO and
CFO out on non-deal road shows and providing education to
upper-level management and the C-suite about the value of
being proactive with investors and analysts
Response 3: Achieving specific
goals
For the third set of respondents, the IR contribution is all about
achieving specific goals, such as fair valuation or increased
analyst coverage. This set of respondents took a broader
approach, explaining that the IR input involved “diversifying the
investor base with increased focus on long-only institutional
investors, explaining the rationale behind transformational
acquisitions, and managing the information needs of a growing
community of analysts and portfolio managers.”
 2. What do you think determines IR success?
IR practitioners were asked to pick the three factors they Unsurprisingly, building relationships with investors is the
considered most critical to the success of the IR function from most important factor to investor relations practitioners 
the following:
84% Trends 84% IR’s ability to build strong relationships 88%
• IR’s ability to build strong relationships with investors and with investors and analysts
analysts
78% Product strategy 74% Strength of the executive team 68%
• Strength of the executive team
Customer
60% IR having a "seat at the table" 45%
relationships
• IR
71% having a “seat at the table”
Market entries timely, accurate Finance’s ability to produce timely,
• Finance’s ability to produce 54% financial reports
accurate financial reports 33%
66%

• The company’s ability to prepare timely, 51%

Innovations accurate forecasts The company's ability to prepare timely, 29%
accurate forecasts
40%
• IR assisting in driving valuation
IR assisting in driving valuation 20%
Almost 9 in 10 respondents chose IR’s ability to build strong
relationships with investors and analysts as a most critical factor.
Strength
97%
of the executive team came
Marketing next, with over two-thirds74%
initiatives

of the respondents choosing this as a most critical factor.

Media strategy and 48%
70%
One
77% in five selected IR’s corporate
assistance in driving valuation as one of
communication 43%

their top three, the lowest of any of the six. This reinforces other
31%
research indicating that driving
71% valuation
Financial is not deemed to be
press activity a
60%

42%
central function of IR.
Environmental, social and
42%
IR’s ability to build
When the data is governance
broken (ESG), corporate social
down by region and cap size, notable
25%
responsibility (CSR) positioning
differences include more mentions for strength of the executive strong relationships with
team in the Americas and more for IR assisting in driving
valuation in Asia-Pacific. IR having a seat at the table is a
investors and analysts,
Americas EMEIA Asia-Pacific

considerably less importantRisk factor for IR success in Asia-Pacific

disclosures 74% and the strength of the
while, in terms of company size, it becomes more important as
78% market cap increases.
Current risks 65%
executive team, were
However the data is broken down, the top two factors remain the chosen as factors critical
45% 46% 49%

to the success of the IR

71% same: IR’s ability to build strong relationships
Expected risks with investors
60%and 39%

analysts, and the strength of the executive team.

% Risk matrix with risk types 48% function.
Probability of risks 38%

88%
of respondents chose
IR’s ability to build strong small cap mid-cap large cap mega-cap

relationships with investors

Management stock
61%
94% and analysts
option plans as a most
critical factor.
C-suite remuneration 48%
61%

58% Employee share plans 45%

47% Training of internal teams

28%
on capital market issues
Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO | 5
3. How important is IR’s seat at the top table?
In more than three-quarters (77%) of companies, an IR Most IR departments have regular contact with their boards
representative regularly attends board meetings. This is true
in companies of all sizes, although it is a bit more common in 37%

Asia-Pacific and a bit less in EMEIA (90% in Asia-Pacific, 74% 22% 37%
26%
23%
19%
in EMEIA). It makes no difference whether the company has a 14% 26%
17% 17%
22% 23%
two-tiered board structure or a single board. It also makes no 8%
3%
19% 7% 7%
17% 17%
14%
difference whether the board has a high or low ratio of executive 8% 7% 7%
directors to non-executive directors. 3%
Yes, every Yes, monthly Yes, Yes, other Yes, on No
two weeks quarterly frequency demand
In 83% of the companies, the IR function provides a regular Yes, every Yes, monthly Yes, Yes, other Yes, on No
two weeks quarterly
Meetings frequency
Reports demand
written report to the directors. Written reports to the board, on
the other hand, are more likely in EMEIA (85%) and least likely in Meetings Reports
90%
Asia-Pacific (81%). In terms of size, 88% of large-cap companies 79% 83% 85% 81%
74%
provide written board reports compared with only 71% of small 85% 90%
79% 83% 81%
cap companies. 74%

Written reports to the boards seem to be more frequent than

personal appearances. Thirty-seven percent of IR departments
Americas EMEIA Asia-Pacific
provide a quarterly written report and 19% provide one monthly.
However, IR representation at board meetings is more likely to Americas Meetings
EMEIA Reports Asia-Pacific

be on an ad hoc or on-demand basis. This is the case in 26% of Meetings Reports

companies globally, with 22% having quarterly IR attendance at
board meetings and 14% monthly attendance. Market and investor sentiment and feedback 85%
86%

The frequency with which IR provides a written report to the Market and Investor
investor movements
sentiment and
andfeedback
activity 62% 85%
86%
79%
board or sends an IR representative to board meetings increases 62%
58%
Investor
Most movements
frequently askedand activity
questions
with market cap size. A quarter of mega-cap companies has an 48% 79%
58%
IR representative attending board meetings on a quarterly basis Most frequently
Liquidityasked questions
of share trading 28%
48%
49%
and one-fifth on a monthly basis.
Our survey also found that small cap IR representatives are
Small cap IR Liquidity of shareactivism
Shareholder trading 28%
23% 49%

representatives are likely

Shareholder engagement including
Shareholder proxy
activism 28%
22%
23%
more likely to attend board meetings than provide a written advisory firms 17%
Shareholder engagement including proxy 22%

to attend board meetings.

report. This could be because there is greater likelihood that IR Recent regulatory changes
advisory firms
17%
17%
13%
representatives from smaller companies are often members of Recent regulatory changes 17%
10%

This could be because

Other 13%
senior management. 11%

Don'tOther
know 2% 10%

there is greater likelihood

0% 11% Planni

Don't know 2%
Meetings 0%Reports Plannin

that IR representatives Meetings Reports

80%
from smaller companies

77%
70%
of companies have an IR 80%
60%
70% are often members of Risk
representative attending 50%

board meetings.
60%
40%
50%
30%
senior management. Risk

40%
20%
30%
10%
20%
0%
10% Small cap Mid-cap Large cap Mega-cap
0%
Liquidity of share trading
Small cap Mid-cap Large cap Mega-cap
Most frequently asked questions
Liquidity of share trading
Shareholder activism
6 | Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO Most frequently asked questions
Shareholder engagement including proxy advisory firms
Shareholder activism
 37%

Company size determines both 22%

26%
23%

the content of meetings and

19% 17% 17%
14% 37%
8% 7% 7%

reports required.
3% 26%
22% 23%
19% 17% 17%
14%
Yes, every Yes, monthly Yes, Yes, other Yes, on No
8%weeks
two quarterly 7% 7%
frequency demand
3%
Meetings Reports
Yes, every Yes, monthly Yes, Yes, other Yes, on No
two weeks quarterly frequency demand

85% 90%
79% 83% Meetings Reports 81%
74%

85% 90%
79% 83% 81%
74%

Americas EMEIA Asia-Pacific

What’s discussed with the board? Market sentiment and activity

Meetings are the top subjects for
Reports
discussion
Americas EMEIA Asia-Pacific
Both in writing and in person, stock market and investor Meetings Reports
C

sentiment is the topic covered most in the interactions between Market and investor sentiment and feedback 85%
86%
IR and the board. This topic is discussed in 85% of meetings and 62%
Investor movements and activity
86% of reports. Actual investor movements are covered more 79%
Market and investor sentiment and feedback 85%
often in written reports (79%) than in meetings (62%). However, Most frequently asked questions
48%
58% 86%
market liquidity of companies’ shares trading is more likely to be Investor movements and activity 28%
62%
Liquidity of share trading 79%
covered in a report than at a meeting. 49%
Most frequently asked questions 58%
Shareholder activism 28% 48%
From a regional perspective, IR representatives are more likely 23%
Liquidity of share trading 28%
to discuss shareholder activism and shareholder engagement Shareholder engagement including proxy
advisory firms
22%
17%
49%

in board meetings in the Americas than elsewhere. That’s Shareholder activism 17%
28%
Recent regulatory changes 23%
not surprising, given the levels of activism in the US and the 13%
Shareholder engagement including proxy 22%
growing tendency for companies to increase shareholder advisoryOther
firms 10%17%
11%
C
engagement in response. What is actually surprising is that Recent regulatory changes 2% 13%
17%
Don't know
0% Planning,
the IR representatives and boards from the Americas are less 10%
Other C
likely to discuss recent regulatory changes in the region. This, Meetings
11%
Reports
however, may be because such matters are more often handled Don't know 2%
0% Planning,
by the general counsel or the corporate secretary’s department,
80%
especially in the US and Canada. Asia-Pacific IR departments are Meetings Reports
Depending
70% on market cap, different topics are discussed
more likely to cover the most frequently asked questions and 60%
recent regulatory changes in their written reports to the board; 80%
50%
Risk and

they are less likely to cover investor movements and activity. 70%
40%
60%
30%
Company size is a large factor in determining the content covered 50%
20%
Risk and

at meetings and in reports. For instance, because liquidity is a 40%

10%
more important issue for smaller companies, it is less likely to 30%
0%
be covered in reports as company size increases. Shareholder 20% Small cap Mid-cap Large cap Mega-cap
10%
engagement and most frequently asked investor questions are Liquidity of share trading
0% Most frequently asked questions
more commonly discussed in meetings as companies get larger; Small cap Mid-cap Large cap Mega-cap
Shareholder activism
and market and investor sentiment is more commonly covered
Liquidity of share
Shareholder trading including proxy advisory firms
engagement
in reports. Shareholder activism is more likely to be discussed Most frequently asked questions
at mega-cap companies than at those of any other size and also Shareholder activism
more likely to be covered in reports than in meetings (although to Shareholder engagement including proxy advisory firms
a lesser degree).

83%
of the companies have
a regular written report
provided by the IR function.

Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO | 7
The IR-board symbiosis How can the IR function provide
We also asked respondents both how boards could give IR more more direction to the board?
direction and how IR could give more direction to the board.
When asked what additional direction IR could give to the board,
These were open comment questions, so respondents could
44% said they think the board would like more investor feedback.
answer in any way they saw fit.
This was far and away the most popular answer in every region
and across all market cap sizes.
How can the board provide more In addition to feedback, which IR departments typically gather
direction to the IR function? via either formal or informal perception studies, or through
corporate brokers, 18% believe IR could provide the board with
Overall, a third (33%) of respondents said they’d like more
more insight into wider investment market sentiment. This would
direction from the board on insight into the company strategy.
include how the market feels about the stock, demonstrated, for
Not far behind, at 29%, is the group of respondents who
instance, by sell-side forecasts and written research, as well as in
specifically said there were no areas where the board could
their conversations with the the investor relations officer (IRO).
provide more direction. The third largest group (20%) felt the
The third-largest group, with 17% of respondents, believes there
board could provide more guidance on IR goals, including ideal
is no additional direction the IR function can give to the board.
shareholder structure and engagement. After these three,
there is a considerable drop, with just 6% of respondents citing Smaller companies are less likely to think IR can’t provide the
company performance issues as the area on which IR needs more board with more direction; they are more likely to mention
direction from the board. governance as an area where IR could offer more direction to
the board.
There is little regional variation in the answers to this question,
the exception being the Americas, where 40% want no additional
direction from the board. Issues relating to IR goals is the second
most common response in the Americas. Strategy and message
development came at the third and fourth positions, respectively.
When the responses are grouped by company size, the number
of respondents who do not require any more direction from the
board falls to 10% for small cap companies, and issues relating to
M&A becomes the fourth most common response for mega-caps.

33% 44%
of respondents said they’d like think the board would like
more direction from the board more investor feedback.
on company strategy.

8 | Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO
 Investor feedback 44% Treasury
Market sentiment 18%
Corporate Finance
No more direction necessary 17%
Strategy 13% Corporate communications
Governance and disclosure 8% HR
Valuation 7%
Strategy monthly
Shareholder evolution 5%
Shareholder value 4% Sales & Operations bi-monthly
Peer benchmarking 4%
M&A quarterly
Financial guidance 3%
Communication 3% Marketing only on request
Competetive landscape 3%
Legal/Tax other
IR value 3%
Understanding of business 2% Risk & Compliance management
Equity story 2% Planning/Budgeting/Forecasting
Risk assessment 2%
M&A 1% Accounting/Finance

0% 20% 40% 60% 80% 100%

IR wants more insight into strategy from the board

Strategy 33%
No more direction necessary 29%
IR goals 20%
Company performance, understanding
business and key issues 6%
5% Governance 5%
6%

Investor feedback is
Senior management's time and
attention to IR 4%
M&A 4%
Message development and
communication
Market intelligence
4%
3%
valuable information for
Information access and feedback 2% the board and gives an
insight into the way a
Risk assessment 1%
Sector trends 1%

company is perceived in
Accounting and finance
IRCorporate
wants to give the board more investor feedback
communications
the market.
Corporate finance
Planning, budgeting Investor
and forecasting
feedback 44% Treasury
Market
Legal sentiment
and tax 18%
Corporate Finance
No more directionStrategy
necessary 17%
Strategy 13% Corporate communications
Treasury
Governance and disclosure 8%
M&A HR
Valuation 7%
Sales and operations Strategy monthly
Shareholder evolution 5%
Shareholder value
Marketing 4% Sales & Operations bi-monthly
Peermanagement
Risk and compliance benchmarking 4%
M&A quarterly
Financial guidance 3%
HR
Communication 3% Marketing only on request
Competetive landscape 0% 3%
20% 40% 60% 80% 100% Legal/Tax other
IR value 3%
Understanding of business 2% Risk & Compliance management
Formal contact Informal
Equity story 2% Planning/Budgeting/Forecasting
Risk assessment 2%
M&A 1% Accounting/Finance

0% 20% 40% 60% 80% 100%

Strategy 33%
No more direction necessary 29%
IR goals 20%
Company performance, understanding
business and key issues 6%
Governance 5%
Senior management's time and
attention to IR 4%
M&A 4%
Message development and
communication 4%
Market intelligence 3%
Information access and feedback 2%
Risk assessment 1%
Sector trends 1%

Accounting and finance

Corporate communications
Corporate finance
Planning, budgeting and forecasting
 Mid-cap

Small cap

“The IR function is still relatively new in Asia-Pacific and Other

13%

Japan, and is taken very seriously, hence the need for a

0% 10% 20% 30%
Mega - Small
cap cap CFO
17% 25%

more formal IR strategy and IR manuals than may exist

22%

Large

in some other areas.”

cap Mid-cap CEO
33% 28% 62% Yes
17%

Ringo Choi, EY Asia-Pacific IPO Leader, and Shinichiro Suzuki, EY Japan IPO Leader
No
83%

Financials
Industrials
Yes,
Energy and power
updated
High technology No annually
47% 40%
Consumer products and services

4. Do you have written strategies, manuals and IR audits?

Health care
Materials Asia-Pacific
Automotive and transportation
Telecommunications Yes, older than Yes, two
The existence
two yearsof IR strategyyears
papers
old by geography, and their
Written IR strategies Real estate
Retail
availability6%by market cap 7%
EMEIA

As part of the survey, weand

Media asked companies whether they had a
entertainment
Americas
written IR strategy. Globally, just more than
0% half 10%
5% of the Mega-cap
companies
15% 20% 25%
Asia-Pacific
5+
said they do. However, this figure rises to nearly two-thirds in
0-1
Asia-Pacific and18%
drops to exactly
25% half in the Americas.
I am the main investor EMEIA
relations contact in my 59% Important internal proc
So why might this be? Thecompany intuitive answer is that US companies,
Large cap
which are the3-4largest group of respondents
I work in the investor
in the Americas, Americas Disclosure
30%IR
have been doing 2 – in some cases,
for sodepartment
relations long
26%
since the early
27% Corporate calenda
1950s – that they simply don’t see the need. At the other end 0% 10% 20% 30% 40% 50% 60% 70% disclosure p
Investor relations is one
of the scale, IR is a ofrelatively new function
my job functions 6% in Asia-Pacific, so it’sMid-cap
reassuring to have things written down. That way, there’s less Internal supporting stru
The investor relations
likely to be uncertainty or misunderstanding
function reports to me 9% about what the
Sign-off p
a-
company is seeking from its IR department.
ific No answer Small cap
% Geography
4% isn’t the only determinant of the propensity for an IR Mega-cap
Compet
Other
strategy. An essential finding is that the5+larger the
13% 0-1
company, the
18%
more likely it is to have a written IR strategy. Only 25% 44% of small 0% 10% 20% 30% 40% 50% 60%
Americas
cap companies have a written
46% CFO strategy. This figure rises steadily Large cap
MEIA 3-4
2% with company size, reaching 25%a peak at30%
mega-caps 2 where 61% do.
27%
We also found from our survey that three out of four with a Mid-cap

written IR strategy review them on a yearly basis, while just an

CEOnot reviewed their IR strategy for more than
eighth of them have Asia-Pacific
62% Small cap Yes
two years. 17%
Other
13% EMEIA
0% 10% 20% 30% 40% 50% 60% 70%
ega - Small
ap cap In CFO
7% 22%
a fast-changing capital market environment,
25% strategies Americas
need to be updated regularly No
83%
Formal IR manuals and audits
ge
p Mid-cap CEO
% 28% Asia-Pacific
62% Yes
17%
Formal IR manuals are much less common than written EMEIA
Yes, strategies. Just 17 % of companies globally have manuals. In
Americas
updated the Americas, the figure
No is lower still, at 12%; it rises to 19% in
No annually 83%
47% EMEIA; and in Asia-Pacific, the region with the least developed
nancials 40%
dustrials
IR, the figure is 29%.
Yes,
nd power
updated The same pattern is evident with internal audits of the IR
chnology No annually Asia-Pacific Meg
services
47% 40% function. Globally, 32% conduct these audits, but this figure
alth care varies between 24% for American companies and 44% for those
Materials Yes, older than Yes, two in Asia-Pacific. The key difference between EMEIA and Asia- 29%
Asia-Pacific Larg
two years years old
portation
6% Pacific is that, inEMEIA
the former, half the IR audits are unscheduled 19%
nications Yes, older than7% Yes, two
two years years old while, in the latter, EMEIA
most are scheduled annually. 19% Mid
al estate 6% 7%
Retail While company size does not appear to impact the likelihood of a
ainment Americas 12% Sma
company having Americas
a formal IR manual, it does affect the likelihood
12%
5% 0% 5% 10% 15% 20% 25% of it having internal IR audits. The larger the company’s market
Asia-Pacific Asia-Pacific
cap, the more likely it is to have an internal audit of the IR
r EMEIA function.
y 59% Important internal processes 90%
y EMEIA
10 | Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO Important internal processes
r Americas Disclosure policy 72%
t 26%
 3%

Small cap

0% 10% 20% 30% 40% 50% 60% 70%

With the growing importance of

Yes
17%
Asia-Pacific
financial communication, IR is 44%

also part of internal audits.

EMEIA 39%

Americas 24%
No
83%

Mega-cap 45%

Asia-Pacific 29% Large cap 33%

, two
s old
What do IR manuals cover? Ad hoc disclosure processes are more likely to be the subject of
audits as company size increases. Small cap31%
companies that audit
EMEIA 19% Mid-cap
% Ninety percent of formal IR manuals cover important internal their IR function internally are more likely to make IR strategy,
Mega-cap
processes. Other important topics include disclosure policy IRSmall
effectiveness and the corporate calendar the subjectYes,
of their
Americas 12% cap 24% annually
and the corporate calendar, setting out the disclosure periods. audits than bigger companies. 11% Yes, every
Companies in the Americas place less emphasis on competencies two years
and disclosure policy in their formal manuals than those in the Disclosure is the most scrutinized issue 4%
Large cap
other two regions. Larger companies are more likely than smaller
Important internal processes 90% Ad hoc disclosure Yes, no
ap
ones to cover competencies, sign-off policies and disclosure processes 73%
schedule
cap Yes,
policy in their manuals. Disclosure policy 72%
Yes,
annually 14%
11%Statutory
annually reporting
Yes, every 49%
Mid-cap 11% Yes,years
two every
No
Three quarters of the companies
Corporate calendarassess
with ad hoc disclosure two years
4%
0%
ap 50% 60% 70% disclosure periods 63% IR effectiveness
4% 35% 68% Yes, othe
cap processes during internal IR audits. Almost half assess
Yes, not
Yes, not
3%
statutory reporting,
Internalbut only 15%
supporting assess forecasting.
structures 49% scheduled
IR strategy
scheduled 28%
14%
ap Regionally,
Small cap the IR strategy is audited most in Asia-Pacific No
14%
cap No
while, in EMEIA, it is statutory reporting
Sign-off policies that is most audited. 68%
48%
68%
Corporate
Yes,calendar
Yes,
other 18%
3%other
Like Asia-Pacific, statutory reporting is less commonly audited 3%
Competencies 44% Forecasting 15%
ap
cap in the Americas.
0% 10% 20% 30% 40% 50% 60% 70%

0% 10% 20% 30% 40% 50% 60% 70%

0% 10% 20% 30% 40% 50% 60% 70%
The existence of written IR manuals supporting IR audits Is your IR function internally audited?
Mega-cap Mega-cap Yes, Yes, Yes,
annually
Yes, every annually
5+ annually
0-1 11%
18%
25% Asia-Pacific Asia-Pacific 44% two years 11%
11% Yes, every
Yes,
two every
Yes
Yes Yes
Asia-Pacific 44% years
Large cap 17%
17% Large cap 17%
4% two years
4%
EMEIA 39%
4 EMEIA
EMEIA 39% Yes, not 4%Yes, not 39%
% 2 scheduled
27% scheduled
Americas 24% 14% 14%
No Americas 24%
Mid-capNo
83% Mid-cap No
Yes, not
83% Americas68% No 24%
scheduled
No Yes, other
68% Yes, other
83% 3% 14%
3%

Small cap Small cap No

68% Yes, other
Mega-cap 45%
Mega-cap 45% 3%
By region 0% 10% 20% 30%
0% 40%
10% 50%
20% 60%
30% 70%
40% 50% 60% 70%
CFO
25%Asia-Pacific
Asia-Pacific
29%
29%
Large cap
Large cap
33%
33%
By region
Mega-cap
CEO EMEIA
EMEIA
19%
19% Asia-PacificMid-cap
Mid-cap Asia-Pacific 31%
31% 44% 44%
Yes
0%
62% 10% 20% 30% 17% 40% 50% Yes 60% 70%
17%
EMEIA 39%
Americas
Asia-Pacific Small cap
EMEIA
29%24% Large cap 39%
12% Small cap 24%
Americas 12%
Americas Americas 24% 24%
No No
83% 83%
What does the formal IR manual cover?
EMEIA 19% Mid-cap
Important internal processes Asia-Pacific By size 44%
90% Ad hoc disclosure
Important Yes
Yes,internal processes 90% Ad hoc processes
disclosure 73%
73%
updated processes
No 17%
annuallyDisclosure policy Mega-cap 45%
47% 40% Disclosure policy Americas
72%
72% EMEIA
12%Statutory reporting
Statutory reporting
Mega-capSmall
49% cap 39%
49%
Corporate calendar with
70% Corporate calendar
disclosure with
periods
Asia-Pacific 63% IR effectiveness
70% disclosure periods 63%
Asia-Pacific Americas 29% Large cap
IR effectiveness 29% 35%
35% Large cap 24% 33% 33%
No
,lder
twothan 83%
Internal supporting
Yes, two
Internal supporting
structures
structures 49%
49%
IR strategy
IR strategy 28%
28%
osyears
old years old EMEIA EMEIA 19% Mid-cap
19% Mid-cap 31% 31%
6%% 7%
Sign-off policies 48% Corporate calendar 18%
Sign-off policies 48% Corporate calendar 18%
Important internal processes Small cap 90% 24%
Ad hoc disclosure
Americas Small cap
Competencies 44%
12%
Americas 12%Forecasting
Forecasting 15%
15%
processes 24%
Competencies 44%

Disclosure policy 72% Statutory reporting

Mega-cap
Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO | 11
Important internal processes 90% Ad hoc disclosure
 37%
Investor feedback 44%
26% Market sentiment 18%
22% 23%
19% No more direction necessary 17%
17% 17%
14% Strategy 13%
8% 7% 7% Governance and disclosure 8%
3%
Valuation 7%
Shareholder evolution 5%
Yes, every Yes, monthly Yes, Yes, other Yes, on No Shareholder value 4%
two weeks quarterly frequency demand Peer benchmarking 4%
Financial guidance 3%
Meetings Reports
Communication 3%
Competetive landscape 3%
IR value 3%
85% 90% Understanding of business R
79% 83% 81% 2%
74% Equity story 2% Pl
Risk assessment 2%

5. How well connected is your IR function?

M&A 1%

Americas EMEIA Asia-Pacific

Contact with other departments Meetings Reports
The likelihood of regular contact
among small and mid-cap
No more companies
direction
with strategy is consistent
Strategy
necessary as well as among large- and
33%
29%
A significant 97% of IR teams have regular contact with the mega-cap companies. However, it shows a jump of 15 percentage
IR goals 20%
accounting and finance department, followed by 84% with points from mid
Company tobusiness
large cap.
performance, understanding
and key issues 6%
corporate communications.
Market and This
investor sentiment and is followed by corporate finance85%
feedback Governance 5%
86% Fifty-four percent of the IR departments
Senior management's time and contacting accounting
(75%) and planning, budgeting and forecasting (72%). 62% attention to IR 4%
Investor movements and activity
79% and finance do so formally, whileM&A this is the case for 36% of those
4%
The least likely of the departments listed for IR to have regular58% in regular contact withdevelopment
Message either marketing
and or M&A departments,
Most frequently asked questions communication 4%
contact with are HR, and risk and compliance management. 48%
and 38% of those in contact with HR
Market intelligence departments.
3%
For all other
Fewer than two inLiquidity
five IRofteams have regular contact
share trading 28% with
49%
each of departments, the contact percentage
Information access and feedback is between
2% 40% and 50%.
these departments. 28% Risk assessment 1%
Shareholder activism
23%
Sector
IR is most often in regular trends with
contact 1% the accounting and
The likelihood
Shareholderof IR beingincluding
engagement in regular
proxycontact with
22% accounting
and finance remains the same across
advisory 17% and market cap
firms all regions finance department
sizes. There is, however, considerable 17%
changes variation
13% in the likelihood
Recent regulatory
Accounting and finance
of IR contact with other departments, depending 10% on the size of
Other Corporate communications
the company and where they are based. 11% Corporate finance
Don't know 2%
0% Planning, budgeting and forecasting

Regional specifics
Legal and tax
Meetings Reports Strategy
Treasury
On a regional basis, American IR departments are notably more
M&A
likely80%
to be in contact with marketing, sales and operations, HR
Sales and operations
and 70%
corporate finance. EMEIA IR is more likely to be in contact Marketing
with60%risk and compliance management, but less likely to be in Risk and compliance management
50%
contact with marketing. HR
40%
It is 30%
in Asia-Pacific IR that the interdepartmental contact differs 0% 20% 40% 60% 80% 100%

most20% from the global norm. For all departments listed, the
10% Formal contact Informal
likelihood
0%
of Asian IR having regular contact is lower than the
global average.SmallAside
cap from Mid-cap
accounting and finance,
Large cap there are
Mega-cap
just two other departments — marketing
Liquidity of share trading and strategy — where The best practice of IR contact with various departments is
that drop is less than 10 percentage
Most frequently points. Among Asia-Pacific
asked questions relatively consistent. This can be seen when looking at regional
IR departments, the likelihood
Shareholder of contact with legal and tax is
activism
and cap size differences. In Asia, with the exception of treasury,
39 percentage points lowerengagement
Shareholder than theincluding
global proxy
average while
advisory firmsthe
contact with all departments is more likely to be formal than
contact level with treasury is 30 percentage points lower than in other regions. According to company size, formal contact is
the global average. more likely among small cap and mega-cap companies. With 9
of the 12 departments, formal IR contact is more likely for both
Differences by market cap small and mega-cap companies than it is for mid- and large-cap
companies.
When there are deviations from the global norm according
to company size, the likelihood of regular contact with other When IR is in regular contact with another department, it is most
departments increases as cap size increases. For example, the often on a monthly basis, except in the case of M&A and HR,
likelihood of IR’s contact with the treasury doubles from 41% in where it is more likely to be on request. IR functions are most
small cap IR to 82% in mega-cap IR. This is followed by corporate likely to have quarterly contact with risk and compliance (25%)
communications, which sees an increase from 66% at small caps and sales and operations (22%).
to 96% at mega-caps and planning, budgeting and forecasting,
where there is an increase from 62% to 86%.

12 | Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO
“Implementing the IR function is crucial to getting
ready for an IPO, being regulatory compliant and
ensuring a ‘one voice’ policy post IPO.”
Martin Steinbach, EY Global and EMEIA IPO Leader

Monthly contact is most common in the Americas. In Asia-Pacific, What is most remarkable about the importance of IR
interdepartmental contact is more likely to be on request and, in interdepartmental cooperation, however, is how little it varies
EMEIA, there is a slight trend toward quarterly contact. according to a company’s market cap. Often, what is important
to IR executives at small and large companies differs markedly

Importance of interdepartmental
connectivity
We asked IR functions that had regular contact with
other departments to rate how important they thought
interdepartmental cooperation was to the IR practice. They were
asked to rate on a scale of 0 to 10, where 0 is not at all important
as the nature of the job alters according to company size. So it is
significant that IR departments in companies of all sizes consider
interdepartmental cooperation to be vital to good IR practice.
Frequency of contact with other departments
Treasury

and 10 is extremely important. Corporate finance

Corporate communications
Except in the case of HR, which had an average score of 6.3,
HR
cooperation with all departments was rated as very important Monthly
Strategy
to good IR practice. Accounting and finance scored the highest, Bi-monthly
Sales and operations
with an average of score of 9.3. Seventy-four percent of IR Quarterly
M&A
departments gave it a perfect 10 score (extremely important)
Marketing Only on request
and just 2% gave a score of 5 or less. The importance of
Legal and tax Other
cooperation with planning, budgeting and forecasting was
Risk and compliance management
slightly behind with an average score of 9.1.
Planning, budgeting and forecasting
Marketing had the second-lowest score, after HR, with an Accounting and finance
average score of 7.4. Here, 28% gave marketing a perfect 10, 0% 20% 40% 60% 80% 100%
52% gave it a score of 8 or more and 22% a score of 5 or less.

How important is interdepartmental cooperation to good

Regional specifics IR practice?*
In Asia-Pacific, cooperation with HR (7.1) is rated notably
higher than it is in the Americas and EMEIA; cooperation with
9.1
corporate communications is rated less highly (7.6). There are
two departments with which cooperation is notably more valued
9.3 8.6
and forecasting
Planning, budgeting

in the Americas: legal and tax, with an average of 8.5 against 7.9
y

8.4
Ac d fin

6.3
eg
an
co anc

rat

in EMEIA and 7.7 in Asia-Pacific; and corporate communications,

un

St

HR
tin e

e
with an Americas average of 8.3 compared with 7.8 in EMEIA rat
g

rpo ce
Co nan
and 7.6 in Asia-Pacific. fi

7.4 Marketing
IR Legal and tax
8.2
Differences by market cap
e
nc
plia
com Sa
nd nt op les
k a me era an
The importance of cooperation with HR increases as cap Ris nage tio d
co

a ns
mm

7.5 8.1
Co catio

size increases, from 5.9 at small caps to 6.7 at mega-caps.

un
rpo ns
i
Treasury
A

Cooperation with marketing is notably more important to small-

rat
M&

and mega-cap IR departments (7.6 and 8.0) than it is for mid-

and large caps (7.2 and 7.1). 7.8 8.0
7.9
*on a scale of 0-10

Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO | 13
 Critical accounting policies 46%
Contingency disc

“The US market has the longest history Positioning 65%

of investor relations and is now facing Reputation

management
56%
Corporate

shareholder activism, making the IR Goals 46%

M&A (i.e., what is the

function increasingly important.” Charitable activity 14% Competitor pos

Sponsorship
Jackie Kelley, EY Americas IPO Leader program
12%
Joint ventures (J
cooperations – trans

Shareholder a

Capital strategy and

85%
objectives

Capital markets strategy Liquidity managemen

68%
(i.e., raising funds)

Organic versus inorganic 44% Funding issue

What’s discussed with whom and The key input for IR here is that they receive reliable company
and sector forecasts to build the investor guidance.
how often? New markets or new clients 29% Covenant reportin

The typical content and agenda of meetings with the

planning, budgeting and forecasting department
Accounting and finance
Use of (IPO or SPO
proceed

Ninety-seven percent of IR teams are in regular contact with the Guidance – next 12 months 78%
accounting and finance department. For 54%, this is on a formal
basis, 52% meet monthly and 13% quarterly.
Rolling mid-term forecasts 73% Acquisiti
Discussions with the accounting and finance department most
often center on reporting, with 91% of IR departments in regular Follow up on ad hoc requests 70%
from investors and analysts Divestitu
contact discussing quarterly reports and 80% discussing annual
reports. Financial requests from investor queries and disclosure Guidance – next quarter 65%
issues follow, being discussed by 75% and 74% respectively. Corporate finance strat

The key input to IR that can be provided by the accounting and Guidance – next half year 40%
Deal fl
finance team is accurate and timely financial data. However,
IR teams do want context, insight and a bit of color for the
presentation of this data.
Strategy
The typical content and agenda of meetings with the Sixty-six percent of IR teams are in regular contact with the
accounting and finance department strategy department. For 41%, this is on a formal basis, 36%
meet monthly and 16% quarterly.
Quarterly reports 91% Corporate governance
Corporate governance
Quarterly reports 91% 84% 84% Trends Trends
issues issues
Annual reportsAnnual reports 80% 80%
Corporate strategy is overwhelmingly the most common topic of
Ad hoc financialAd
requests in
hoc financial requests in 75%
discussion,
Shareholder issues with 97% citing it as78%
Shareholder issues
a key issue.
78%
This is followed
Product strategy by strategy
Product
response to investor andto
response analyst inquiries
investor and analyst inquiries 75%
discussions on M&A and competitor positioning. Just a quarter of
Disclosures Disclosures 74% 74% Customer Customer
Accounting or GAAP
Accounting or GAAP
companies discuss shareholder
Regulator issues
activism.71%
71% relationships relationships
60%
63% 63% Regulator issues
(i.e., IFRS or US(i.e.,
GAAP)IFRSchanges
or US GAAP) changes
Management’s Management’s
judgment judgment 59% 59% The most important outcome of IR’s discussionsMarket
with entries
strategy
Market entries 54%
AGM support and
AGM support and
Half-year reports
Half-year reports 49% 49%
ispreparation
an understanding
preparationof
the company’s
66% strategic
66% goals and their
Critical accounting policies 46%
underlying assumptions. Innovations Innovations 51%
Critical accounting policies 46%
Contingency disclosures 40%
Contingency disclosures 40%

The typical content and agenda of meetings with the

strategy department
Planning, budgeting and forecasting
Positioning Positioning 65% 65% Marketing initiatives
Marketing initi
Seventy-two percent of IR teams are in regular contact with the Corporate strategyCorporate strategy 97% 97%
Reputation Reputation
planning,management and forecasting56%
budgetingmanagement 56% For 50%, this is
department. Media strategyMedia
and strateg
M&A (i.e., whatM&A
is the growth
(i.e., what is the growth
on a formal basis,
Goals 49% meet
Goalsmonthly
46% and 17%
46% quarterly. story?) story?)
77% 77% corporate communication
corporate communi

Discussions
Charitablewith planning,
activity
Charitable 14%budgeting
activity 14%and forecasting are Competitor positioning
Competitor positioning 71% Financial pressFinancial
activity press a
71%
primarily Sponsorship
about guidance. The level, focus and frequency of
Sponsorship
12% 12%
these discussions
programwill depend
program on how regularly guidance is given.
Joint ventures Joint
(JVs)ventures
and (JVs) and
42% 42% Environmental,Environmental,
social and soc
cooperations – cooperations
transactions – transactions governance (ESG), corporate
governance social
(ESG), corporate
Rolling mid-term forecasts and follow-up from investor requests responsibility (CSR) positioning
responsibility (CSR) posit
are also common topics for discussion, although less so among Shareholder activism 25%
Shareholder activism 25%
Asia-Pacific and small cap companies.
Capital strategy and strategy and
Capital 85% 85%
objectives objectives
Risk disclosures
Risk disclosures

Capital marketsCapital
strategy
markets strategy Liquidity management 78%
68% 68% Liquidity management 78%
(i.e., raising
14 | Taking funds)
it to heart: exploring
(i.e., how investor relations is organized
raising funds) in companies pre- and post-IPO Current risks Current risks
 Quarterly reports 91% Corporate governance
84% Trends
issues
Annual reports 80%
Ad hoc financial requests inQuarterly reports 91% Corporate governance Product strategy
75% Shareholder issues 78% 84% Trends
response to investor and analyst inquiries issues
Disclosures Annual reports 74% 80%
Customer
60
AccountingAdorhoc financial requests in
GAAP 75% Shareholder issues
Regulator issues 71% 78% relationships Product strategy
response to investor and analyst inquiries 63%
(i.e., IFRS or US GAAP) changes
Management’s judgment Disclosures 59% 74% Customer 54%
Market entries
Corporate finance Accounting or GAAP 63%
The
AGM typical
support contentissues
and Regulator
preparation
and
agenda
66%
of meetings
71%with the relationships
Half-year reports
(i.e., IFRS or US GAAP) changes 49% legal and tax department
Innovations Market entries51%
Seventy-five percent of IR teams
Critical accounting are in judgment
Management’s
policies regular46%contact with 59% AGM support and
66%
corporate finance. For 45%, Quarterly
this isHalf-year
on a formal
reports basis, 47% meet
49%
Contingency disclosures preparation40%
reports 91% Corporate governance
84% Trends
issues Innovations
monthly and 11% quarterly. Critical accounting policies 46%
Annual reports 80% Contingency disclosures 40%
Product strategy
Corporate response
capitaltostrategy and objectives
Ad hoc financial requests in are the main focus
investor and analyst inquiries 75% Shareholder issues 78%
Positioning 65%
of discussions with the IR department. The next most common
Disclosures 74% Corporate strategy
Marketing initiatives
Customer
97%
subject for discussion
Reputation is capital markets
Accounting 56% strategy, especially
or GAAP 63% Regulator issues 71% relationships
management (i.e., IFRSPositioning
or US GAAP) changes 65%
between Asia-Pacific IRManagement’s
and corporate finance
judgment
departments.
59%
M&A (i.e., what is the growth
Corporate strategy 77% corporate
Marketing
Media strategy and
communication
Market entries
Goals story?) 97%
46%
Discussions about new markets Reputationand new clients are
56%also more
AGM support and
preparation
66%
Half-year reports
management 49%
common in Asia-Pacific;
Charitable activity it14%
is also more common in smaller CompetitorM&A (i.e., what is the growth
positioning 71% 77% Innovations
Financial
Media str
presscorporate
activity comm
Critical accounting
Goals policies 46% 46% story?)
companiesSponsorship
than their larger counterparts. Contingency disclosures 40%
12%
programCharitable activity 14% Joint ventures (JVs) and Environmental, socialFinancial
and
42%
Competitor positioning 71% pr
cooperations – transactions governance (ESG), corporate social
The typical content and agenda of meetings with the responsibility (CSR) positioning
Sponsorship
corporate finance department
program
12%
Joint ventures (JVs)
Shareholder activism 25% and 42% Environmental,
Positioning 65% cooperations – transactions governance (ESG),initiati
corpo
Marketing

Reputation
M&A
Corporate strategy 97% responsibility (CSR)
Capital strategy and 56% Shareholder activism 25%
management 85%
objectives
Fifty-eight
M&A (i.e., what ispercent
the growthof
IR teams are in regular contact with
77%
the Media strategy a
Risk disclosures
Goals story?) corporate communicat
46%
Capital strategy and M&A department. For 36%, this is on a formal basis, 27% meet
Capital markets strategy 85%
objectives Liquidity management 78%
(i.e., raising funds) activity
Charitable 14%
68% monthly andpositioning
Competitor 9% quarterly. 71% risks Risk
CurrentFinancial disclos
press acti
Sponsorship
Capital markets strategy 12% 68%
Acquisitions are overwhelmingly the most common topic for
Liquidity management 78%
program Joint ventures (JVs) and Environmental, social
Organic versus inorganic(i.e., raising funds) 44% Funding issues
discussion,
cooperations followed by71%
– transactions
42%
divestitures and corporate finance Expected Current
risks corporate
governance (ESG), so
responsibility (CSR) position
strategy. The subject of divestitures becomes a more likely key
44% Funding
Shareholder issues
activism 25% 71%
Covenanttopic as market cap size increases; it is most common
Risk matrixin EMEIA
Organic versus inorganic with risk types Expected
New markets or new clients 29% reporting 33%
and least common in Asia-Pacific. The likelihood of corporate
Capital strategy and
New markets or new clients
objectives 29% 85% finance
Use of (IPO strategy
Covenant
or SPO) discussions 33%
reporting lessens as cap size increases and
ProbabilityRisk is
matrix with risk t
of risks
proceeds
24% Risk disclosures
more prominent in Asia-Pacific than other regions.
Legal and
Guidance tax
Capital markets strategy
– next(i.e., raising funds)
12 months 78% 68% Use of (IPO or SPO)
Liquidity management
proceeds
24% 78%
Probability of r
Current risks
The typical content and agenda of meetings with the
Sixty-eight percent of IR teams are in regular contact with legal M&A department Management stock
78% option plans
and tax. For
Rolling 42%,versus
mid-term
Organic is –on
Guidance next 12 months
this inorganic
forecasts 73%
a formal basis, 34% meet monthly
44% Funding issues
Acquisitions 71% 94% Expected risks

and 17% quarterly. Management

Follow up on ad hoc Rolling
requestsmid-term forecasts 73% option
70% Acquisitions
Covenant reporting 94% C-suite
Riskremuneration
matrix with risk types
from investors and analysts
New markets or new clients 29% Divestitures 33%61%
Corporate governance issues are the most common subjects of
discussion betweenFollowIR, and
up on legal
ad hoc and tax. Shareholder
requests 70%
issues is
Guidance – next investors and analysts 65%
quarter
from Divestitures C-suite
Probability ofremuner
risks
61%
the next most common topic, followed by regulatory issues.Corporate finance
Use of (IPO or SPO)
strategyproceeds 24% 58% Employee share plans

The fact that–support

Guidance and preparation
Guidance
next half year 40% for annual general
– next quarter 65%
Guidance – next 12 months 78% Corporate finance strategy 58% Employee share
meetings (AGMs) is a relatively uncommon subject for discussion Deal flow 47% Training of internal teams
on capital market issues
in the Americas (49%) between
Guidance legal
– next half year and tax and
40%the IR, means Management stock
option plans
that the global average
Rolling mid-termfigure does not demonstrate
forecasts 73% how Acquisitions
Deal flow 47% 94% Training of internal t
on capital market is
common it is in other regions. In both EMEIA and Asia-Pacific,
Follow up on ad hoc requests
it is the mostfromdiscussed subject
investors and analysts between the two departments.
70%
Divestitures 61%
C-suite remuneration

Guidance – next quarter 65%

Corporate finance strategy 58% Employee share plans

Guidance – next half year 40%

Deal flow 47% Training of internal teams
on capital market issues
Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO | 15
 Annual reports 80%
Ad hoc financial requests in Shareholder issues 78% Product strategy
response to investor and analyst inquiries 75%

Disclosures 74% Customer

Accounting or GAAP Regulator issues 71% relationships
63%
(i.e., IFRS or US GAAP) changes
Management’s judgment 59% Market entries
AGM support and
66%
Half-year reports 49% preparation
Innovations
Critical accounting policies 46%
Contingency disclosures 40%

Positioning 65% Marketing ini

Corporate strategy 97%
Reputation
56%
management
M&A (i.e., what is the growth Media strate
77% corporate commun
Goals 46% story?)

Charitable activity 14% Competitor positioning 71% Financial press

Sponsorship
12%
program Joint ventures (JVs) and Environmental, so
42%
cooperations – transactions governance (ESG), corporat
responsibility (CSR) pos
Shareholder activism 25%

Corporate communications The typical content and agenda of meetings with the
Capital strategy and
85% treasury department
objectives
Eighty-four percent of IR teams are in regular contact with Risk disclosure
corporate communications. For 44%, this is on a formal basis,
Capital markets strategy
68% Liquidity management 78%
44% also meet monthly andfunds)
(i.e., raising 6% quarterly. Current risk

Discussions with corporate communications tend to focus

Organic versus inorganic 44% Funding issues 71% Expected risk
on message positioning and reputation management. This is
followed by discussions on goals, although this issue is less
relevant forNew IR departments in larger companies
markets or new clients 29% and in the Covenant reporting 33% Risk matrix with risk type
Corporate governance
Americas. Reputation management is the most discussed issue in
Quarterly reports 91%
issues
84% Trends 84
Asia-Pacific, whileAnnualpositioning
reports is less discussed in80%EMEIA than in Use of (IPO or SPO)
24%
Probability of risk
proceeds
the other Adtwo regions.
hoc financial Half
requests inof the survey respondents who chose
response to investor and analyst inquiries 75% Shareholder issues 78% Product strategy 74%

the “other” categoryDisclosures

specifically mentioned the74% coordination
78%
of
Guidance – next 12 months Customer
60%
press releasesAccounting
as a topic for discussion.
or GAAP 63% Regulator issues 71% relationships
(i.e., IFRS or US GAAP) changes Management sto
The main input frommid-term
Management’s
Rolling corporate communications
judgmentforecasts 59% identified
73% by IR AGM support Sales and
and operations
Acquisitions Market
94% entries
option pla
54%
66%
as key is instruction onreports
Half-year the alignment of external
49% messages. preparation
Forty-two percent of IR teams are in regular contact with sales
Innovations 51%
CriticalFollow up on ad
accounting hoc requests
policies 46% 70%
from investors and analysts and operations.
Contingency disclosures
For40%
Divestitures 40%, this is on a61%
formal basis, 36% meet C-suite remuneratio
The typical content and agenda of meetings with the
monthly and 22% quarterly.
corporate communications department
Guidance – next quarter 65%
Trends finance
Corporate are the most mentioned subject
strategy 58% for discussion, followed Employee share pla

Positioning Guidance – next half year65%

by product strategy. In Asia-Pacific, this situation is reversed with
40% Marketing initiatives
Corporateproduct
strategy strategy being
Deal flow
the most
97% common subject. Discussions
47% Training of internal team
Reputation
management
56% about customer relationships are more likely in small cap on capital market issu
Media strategy and
Goals 46%
companies,
M&A (i.e., what is the growth
story?)
while the likelihood
77% of discussions on innovations
corporate communication
increases as cap size increases.
Charitable activity 14% Competitor positioning 71% Financial press activity
The key issues IR needs to know about from sales and operations
Sponsorship
Joint ventures are
(JVs)market trends, opportunities and threats. Environmental, social and
12%
program and
42%
cooperations – transactions governance (ESG), corporate social
responsibility (CSR) positioning
The typical content
Shareholder activism 25%
and agenda of meetings with the
sales and operations department
Treasury
Capital strategy and
85%
Sixty-twoobjectives
percent
91% of IRCorporate
teams governance
are in regular contact with the 84% Trends 84% IR’s ability to build strong
Risk disclosures
issues with investors
treasury department.
80% For 42%, this is on a formal basis, 42% also
Capital markets strategy
meet(i.e.,monthly
raising and 11% quarterly.
75%funds)
68%
Shareholder issues
Liquidity management
78% Product strategy 78% 74% Current risks Strength of the ex

The most74% common issue for discussion is liquidity management, Customer

60% IR having a "seat
71% Funding issues relationships 71%
followed
Organic 63%by
versus funding
inorganic issues.Regulator
Funding issues is a more common
44% issues Expected risks

topic 59%
in Asia-Pacific and also among larger companies. In 59% Market entries 54% Finance’s ability to pr
AGM support and accurate fina
of small
New markets capclients
49% or new companies where IR and treasury are in regular
29% preparation
66%Covenant reporting 33% Risk matrix with risk types
contact,
46%
covenant reporting will be a key discussion topic. Among Innovations 51% The company's ability to pr
accur
mega-cap companies, this is just
Contingency 8%.
disclosures 40%
Use of (IPO or SPO) Probability of risks 3
proceeds
24%
IR assisting in driv
The key inputs treasury can provide to IR are information on
liquidity
Guidance and12debt
– next strategy.
months 78%
65% Marketing initiatives 74%
Corporate strategy 97% Management stock
Rolling mid-term forecasts 73% option plans
56% Acquisitions 94%
Media strategy and 48%
M&A (i.e., what is the growth 70%
77% corporate communication
46% Follow up on ad hoc requests story?)
70% C-suite remuneration
from
16 investors
| Taking and
it toanalysts
heart: exploring how investor relations is organized in companiesDivestitures
pre- and post-IPO 61%
Competitor positioning 71% Financial press activity 60%
 91% Corporate governance IR’s ability to build stron
84% Trends 84%
issues with investor
4% Trends 84% IR’s ability to build strong relationships 88%
80% with investors and analysts
Shareholder issues 78% Product strategy 74% Strength of the e
75%
% Product strategy 74% Strength of the executive team 68%
74% Customer
60% IR having a "sea
CorporateRegulator issues
governance 71% relationships
Customer
63% 91% 84% IR having a "seat at the Trends IR’s ability to build strong re
relationships
60%issues table" 45% 84% with investors an
59%80% Market entries 54% Finance’s ability to p
AGM support and accurate fin
Market entries 54% Finance’s ability toProduct
66% producestrategy
timely, 74% Strength of the exec
49%75% preparation
Shareholder issues 78% accurate financial reports 33%
Innovations 51% The company's ability to p
46% 74% Customer accu
Innovations 51% disclosures 40% The company's ability to prepare timely, 29% 60% IR having a "seat at
Risk and compliance management
Contingency
63% Regulator issues 71% The typical content
relationships
accurate forecasts and agenda of meetings with
the marketing department IR assisting in dr
Finance’s ability to prod
59% Market entries 54%
Thirty-eight percent of IR AGMteams
support are
andin regular contact with risk
66%
IR assisting in driving valuation 20% accurate financ
49% preparation
and compliance. For 46%, this is on a formal basis, 29% meet
65% Innovations
Marketing initiatives51% 74% The company's ability to prep
monthly
46% and 25% quarterly. Givenstrategy
Corporate the growing importance of risk
97% accurate
Marketing Contingency
initiatives disclosures 74%40%
56% and compliance management in most regions around the world,
Media strategy and 48% in driving
IR assisting
we expect this percentage will isgrow
M&A (i.e., what in the future.
the growth
77% 48% corporate communication
70%
46% Media strategy and story?)
70%
corporate communication 43%
Risk disclosures are the most commonly discussed topic,
65% Competitor positioning 71% Marketing
Financialinitiatives
press activity 74%
60%
particularly among larger companies.
Corporate strategy There is considerably
97% 31%
Financial press activity 60%
56% less discussion of current risks in Asia-Pacific (33%). The most
Joint ventures (JVs) and
42% Environmental,
Media strategysocial
and and 48%
important issuesM&A
Environmental,for IR and
social are
what disclosure
cooperations
(i.e., is the growth and profiling of risk.
– transactions
story?)
77% governance (ESG),
corporate corporate social
communication 42% 70%
% responsibility (CSR) positioning
governance (ESG), corporate social 42%
responsibility (CSR) positioning
Shareholder activism 25%
The typical content Competitor
and agenda of meetings with the
positioning 71% Financial press activity 60%
risk and compliance management department Americas
85% Joint ventures (JVs) and
cooperations – transactions
42% Americas
HR EMEIA
Environmental,
governance (ESG),
socialAsia-Pacific
corporate
Risk
and
social
disclosures 42% 74%
responsibility (CSR) positioning
Risk disclosures 74%
Shareholder
Liquidity activism
management 25% 78%
Thirty-two percent of IR teams are in regular contact with HR.
68%
For 38%, this is on arisks
Current formal basis, 24% meet65%
monthly and 18%
Current risks 65% Americas
quarterly.
85% 49%
44% Funding issues 71% 46% risks
Expected 39%
45% 60%
Expected risks 60% 39% ExecutiveRisk disclosures
compensation is the key issue that IR wants to know
74%

Liquidity management 78%

about from HR.
68% Risk matrix with risk types 48%
% Covenant reporting 33% Current risks 65%
Risk matrix with risk types 48% The key area for discussion is management stock option plans,
4% Funding
Use issues
of (IPO or SPO) 71% although Probability
this is discussed
of risks less in Asia-Pacific
38% 60% companies and
24% Expected risks 39%
Probability of risks proceeds38% more in mega-cap companies. Remuneration of the C-suite is less
discussed by small cap companies and hardly discussed at all in
78% Covenant reporting 33% Risk matrix with risk types 48% small cap m
the Asia-Pacific region.
small cap mid-cap large cap mega-cap
Management stock
61%
Marketing
option
Probability of risksplans 38%
73% Management Use of (IPO or
stock SPO)
option plans
Acquisitions
proceeds
24%
61% 94% The typical content and agenda of meetings with the
4% HR department
70%
Forty-one percent of IR teams are in regular contact with C-suite remuneration
78% Divestitures 61% 48% small cap mid-c
marketing.
C-suiteFor 36%, this is on
remuneration a formal 48%basis, 32% meet monthly
and 18% quarterly. Management stock
61%
65%
73% option plans
Acquisitions 94%
Corporate finance strategy 58% Employee share plans 45%
Marketing initiatives are the most common key discussion points,
Employee share plans 45%
40%70% particularly in Asia-Pacific and among mega-cap companies. C-suite remuneration 48%
Divestitures 61%
Media strategy and corporateDeal communications
flow are47%
more likely Training of internal teams
28%
on capital market issues
65%
to be discussed in smaller companies,
Training of internal teams
28% most likely because
on capital market issues
marketing willCorporate
have a finance
closerstrategy
involvement with this 58%issue at these Employee share plans 45%
companies.
%
Deal flow 47% Training of internal teams
28%
on capital market issues

Taking it to heart: exploring how investor relations is organized in companies pre- and post-IPO | 17
Leading the IPO market
We’ve been guiding high-growth companies and business leaders safely through the
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we have worked with have gone on to become major global organizations. Our
experienced teams around the world can help your business prepare for life as a public
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EY can help you:

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18 | Taking it to heart: exploring how investor relations is organized in companies pre

pre-and
andpost
post-IPO
IPO
 Your contacts
Our IPO leaders look
forward to talking to you
in person.
Dr. Martin Steinbach
EY Global and EMEIA IPO Leader
martin.steinbach@de.ey.com

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EY Americas IPO Markets Leader
jacqueline.kelley@ey.com

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EY Asia-Pacific IPO Leader
ringo.choi@cn.ey.com

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EY Japan IPO Leader
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