Dentsu Institute, Inc., which realizes the evolution of companies and society through technology, has formed a project team to provide comprehensive consulting in the three areas of “financial,” “non-financial,” and “IR” for the purpose of supporting the improvement of value of Japanese companies. The team will also begin offering a strategic IR support program, “IR For Growth,” from today. By integrating financial and non-financial value and building a consistent growth story, the team will contribute to the realization of strategic IR.
With growing interest in “cost of capital” and “corporate value,” an increasing number of companies are focusing on IR communication aimed at investors. However, it is said that about half of listed companies have a PBR (price-to-book ratio) of less than 1.0, and it is becoming increasingly important for management to link business operations aimed at increasing mid- to long-term corporate value with IR communication that resonates with stakeholders.
In order to increase corporate value, collaboration among various stakeholders is necessary, including not only the management team but also the corporate planning department, investor relations department, business department, public relations department, etc. However, in listed companies where functional differentiation is progressing, there are many cases where the cross-organizational process from strategy formulation to execution is not sufficiently promoted, and there is a tendency to seek partners who can provide integrated support and promotion across departments.
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We define IR activities as activities that ensure that corporate activities in both financial and non-financial areas are carried out based on a consistent growth strategy and story, that generate sustainable results, empathy and expectations, that communicate these accurately to stakeholders both inside and outside the company, and that lead to increased corporate value.
“IR For Growth” is a program that combines the assets of domestic Dentsu Group companies with the specialized knowledge of partner companies to support companies’ IR, as well as provide consulting on both financial and non-financial aspects, and help improve medium- to long-term corporate value. We support capital strategies, existing business transformation, new business creation, M&A and PMI (post-M&A integration process) aimed at “improving financial value,” as well as organizational culture transformation, employee engagement improvement, organizational human resources and recruitment strategies, and sustainability promotion aimed at “improving non-financial value,” while integrating financial and non-financial value to build a consistent growth story, thereby realizing strategic IR activities.
Going forward, we will continue to contribute to the business and corporate growth of our clients by supporting transformation in various departments and areas.
SOURCE: PRTimes
