Eurostars

Total, the French oil and gas giant, cleaned up at the IR Magazine Continental Europe Awards 2005, winning five trophies. Chief among the gongs was the grand prix for best overall IR by a large-cap company. But the Total IR team, headed by Jérôme Schmitt, also won awards for best corporate literature, best use of the internet for IR, best investment community meetings and best IR by a French company. 

‘These awards were made possible by the dedication and active involvement of Total’s top management,’ says IR manager Philippe Hergaux. ‘Our day-to-day goals are to improve transparency, quality of service to analysts and investors, business knowledge and consistency of communication.’ 

Total was way out in front in several categories, with one analyst commenting: ‘Total’s reporting is the best by so far that I can’t think of another to follow it.’ Given the volatility of the oil sector, investor meetings are crucial, and Total was commended for the quality of its dialogue with analysts. One analyst singled out the company for its regular deployment of senior management: ‘Total always has all the top management available at meetings – not only the CEO and CFO, but also the directors of exploration and geophysicists.’ 

The Total IR team was acclaimed for its encyclopedic corporate governance literature. ‘Everything you need to know about corporate governance is easy to find in Total’s published material’, commented another analyst. Praise was also heaped on CEO Thierry Desmarest for his contribution to Total’s 0.5 and ‘brilliant’. 

German utility E.ON picked up two awards: best IR at a German company and best IRO for Kiran Bhojani. One analyst described Bhojani as being ‘like a second CEO’, while another paid tribute to his remarkable enthusiasm. ‘It’s great to meet someone who loves his job and actually believes in what he’s doing,’ the analyst continued. ‘Kiran Bhojani heads up a great team and covers all the vitals: inspired stuff,’ comments another. 

Bhojani believes the key to his success lies in good teamwork and looking beyond the figures. ‘It’s not just about knowing the numbers in your company; it’s about knowing everything that affects the company,’ he explains. ‘You also need strong commitment from management. And you need support from your own team – and your family.’
Looking ahead, he thinks the biggest challenge for IR is to gain a place at the board. ‘German companies have to understand that investor relations should be represented at the board level,’ he says. 

E.ON’s CEO, Wulf Bernotat, was also praised for the assistance he provides to the IR team. ‘He has a genuine understanding of what’s required for IR – he’s a great communicator with a good story to tell, and he’s always there to support the excellent IR team,’ commented one respondent to the IR magazine-commissioned Investor Perception Study, Continental Europe 2005/2006, the independent research on which the awards are based. 

Spelling out strategy
Luxembourg-based Arcelor also stood out at 2005’s IR Magazine Continental Europe Awards. Four significant gongs, including the grand prix for best overall IR and best IRO in the small to mid-cap category, were presented to the steel giant. 

Martine Hue, head of IR, says Arcelor’s IR team increased its activity on the institutional side in 2005. ‘We were able to be closer to our investors both in terms of answering phone calls and improving disclosure,’ she notes. 

Arcelor’s sector has seen high turnover among sell-side analysts in recent years, Hue adds. As such, the company has become a kind of ‘university’ for the sell side, with the IR team helping to educate analysts on the company’s cyclical and complex industry. 

As IR magazine went to press, Arcelor was involved in a bidding contest with Germany’s ThyssenKrupp to acquire Hamilton, Ontario-based Dofasco. The takeover tug-of-war is receiving a great deal of press attention but Hue’s team is well practiced in the art of high-profile M&As. And Hue, who has been with the company for 16 years, began her career in Arcelor’s M&A department. 

She emphasizes the importance of providing institutions and analysts with basic timelines for deals. ‘You have to try to disclose what people call strategy – give a rough timing,’ she says. ‘You cannot disclose that you plan to acquire a certain company and when, but [IR] needs to work very closely with the strategy and M&A departments.’