We used to be afraid of financial communication. But that was before we met Bertrand Deronchaine, Director of Shareholder Relations, EVP Communications Wholesale & International Networks (W&IN) at the Orange group He sheds light on this communication discipline: best practices, key moments throughout the year, and its clear connection to all other areas of communication. An interview without statistics!
Hello Bertrand, thank you for sharing your insights! What is your vision of corporate communication?
For me, the boundaries between the different disciplines that make up corporate communication are becoming increasingly blurred. It's becoming more and more difficult to differentiate them. Moreover, I don't like the term "institutional communication" because of its overly formal connotation. corporate communication it is now perhaps the ability to tell a story, the "Storytelling". And especially to to prove how the company is useful to the world around it and can create financial and extra-financial value…
To achieve this, the brand is essential. But telling a story doesn't mean "telling stories." On the contrary, stakeholders (employees, customers, authorities, NGOs, investors, journalists, etc.) demand transparency and clarity. This is close to the concept of reputation. The company must demonstrate its roots in society and its actions within the environments in which it operates. Corporate communication has an essential prerequisite. If it is to be effective, It must develop a clear, understandable strategy that reflects the company's vision in relation to its major challenges.This also requires motivation, a vision shared by all components of the company, its leaders and also the entire community of employees.
How did the communications industry break free to go beyond the minimum service, just the regulatory requirements?
Yes, the financial communication For listed companies, communication is legally regulated by the Commercial Code, by theAMF (permanent and periodic information), national or European regulatory authorities… In this increasingly constrained framework, the question is not “can I communicate?” since “I must communicate”, the minimum being to publish its financial results every quarter.
Nevertheless, some areas of freedom remain, and that is where the REAL challenge of financial communication lies: How can we successfully tell the story and get all the shareholders on board? Financial communication should therefore not be viewed solely as a legal obligation. It is an opportunity to communicate more broadly about what the company does. One way to contribute to tell the story of this community of interests that the company represents.
Telling a story does not mean telling stories.
What is this regulatory framework? What are the prohibitions that must absolutely be avoided?
One of the drivers of financial communication is obviously the stock market price. And of course,The principle is to always guarantee equal treatment between shareholders: privileged information cannot be provided. (This is also a criminal offense!). For a company, ongoing communication consists of communicating whenever it carries information that could affect the stock market price or change the perception of it.
What are your main media outlets? What are your highlights of the year?
Financial communication consists ofa wide range of tools which allow any individual or institution to obtain financial information about a company. There are several communications throughout the year:
- The press release which remains the basis and guarantees equal treatment,
- The institutional site which provides information on the company's vision, history, and current situation,
- The corporate social media accounts LinkedIn and Twitter have also become fundamental. Because digitalization has enabled the immediacy of information and therefore strengthened equal treatment.
- The interventions by leaders, since they embody the company's vision through their interviews and presentations during roadshows (the Investor Days)
- the Reference document (RD), which is a paradoxical document. It is a legal document, very regulated by standards, but quite fascinating if you want to learn about a company, its sector and its market.
- TheGeneral Assembly The Annual General Meeting (AGM) is an important annual corporate communications event, as it provides an opportunity for dialogue between the company and its shareholders, regardless of their status. Furthermore, major decisions—known as resolutions—are submitted to shareholder votes regarding the company's management. Examples include: capital increases, the appointment of a new director, executive compensation, etc.
- the Integrated Annual Report "It's useless" if viewed solely as a retrospective on the past year (its publication often comes well after the annual results). But it regains its full meaning and usefulness if viewed as a corporate communication document, explaining the company's strategy with tangible evidence (indicators, educational diagrams, flagship achievements, or key events). At OrangeIn fact, it is a Integrated Annual Report for the past 3 years, which shows how the Group creates value, both financial and extra-financial, for its stakeholders.
Someone who works in financial communications must not forget that they are, first and foremost, doing communications.
How can we successfully communicate effectively when financial communication is aimed at all stakeholders?
Financial communication has very diverse audiences: there are numerous individual audiences and institutional audiences [editor's note: who have greater power due to their share of the capital]. This is what makes this profession so unique. You can speak to an institutional player in very technical terms, but When dealing with individual shareholders, the job becomes that of a "translator".It's necessary to explain complex concepts in simple terms to a non-professional audience, but without distorting reality. For example, if I talk about EBITDA, it might not mean much to them; however, if I talk about operating profitability, everyone understands. Financial communication is necessarily segmented communication. because the expectations of different audiences are different. However, it is important to maintain the uniqueness and consistency of the message being communicated.
Financial communication is inevitably linked to the company's overall image. How can this consistency be achieved?
Dialogue with other communications professionals within the company is essential. Communications professionals from a specific entity or country typically focus on communicating about their own entity or country, linking it to corporate communications. In my case, the approach is somewhat reversed. Financial communications are directed at the communications professionals of all entities. And it's corporate communications that I illustrate through the activities and achievements of the entities or countries. Dialogue is particularly crucial on topics such as CSR, HR, and innovation. The shared objective is to fuel corporate communication. It is a crossroads numerous skills and expertise which must be enhanced to convey the overall message of the company. That's what makes a story believable.
It's also one of the jobs where you most often have to explain what the company is.
Isn't a good Financial Communications Manager a good financial analyst?
If you don't know how to read an income statement, if you're not familiar with the financial markets, it's a bit difficult… without being impossible. But financial communication doesn't require you to be a financial analyst, because it's a specialized profession. On the other hand You need to be curious to become a financial analyst who can interpret the figures and recognize the most relevant ones.Without financial training, it's rather difficult to become a financial communication specialist. In any case, someone who works in financial communication must remember that they are, first and foremost, a communicator. It's a profession of dialogue, persuasion, exchange, education, and coordination. A good financial communication manager prepares and anticipates their audience's questions. And It is also one of the professions where you have to explain the company the most..
3 things to know about Bertrand!
- Every morning at dawn, he swims. A real fish in the water and a way to drown the stress of the markets!
- He knows how to clink glasses in many languages (having travelled to most of Orange's subsidiaries around the world).
- He is eternally curious. He simply loves meeting people.
