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| Survey results index |
Chile-headquartered retailer Falabella is rated as Latin America’s best-managed company in this year’s survey of analysts. The Chilean retailer has been expanding its operations throughout the region and is typical of the increasingly common phenomena of multi-Latina organizations. However, Alejandro González, Falabella’s CFO, says that the company has deliberately avoided taking a regional approach to its investor relations strategy. “The retail business is mainly a local business,” he says. “One can plan globally but you must act locally in order to succeed. This implies that our business in Argentina, Colombia and Peru is similar to the one in Chile, yet there are differences – for example culture and weather – that must be considered when explaining the performance of our company to the market.”
However, despite this philosophy the company has recently introduced a newly created position of head of investor relations to increase the quality of the interaction with an analyst community that is constantly evolving and demanding more information. “There are more and better-qualified analysts, which has translated into a higher demand for greater quality of information, says González, who also says that the company applies the same emphasis on service quality in regard to investor relations as it applies in its retail strategy. “In Falabella everyone must have a strong will to serve,” he says. “This is applied to our customers’ service in every business unit and in every country, and it’s also true about the service we provide to the investor community. A good example of this is the involvement of our top executives – including our CEO – in every aspect of the relationship with the market, such as the investor conferences in which we participate as well as in one-on-one investor meetings. Additionally, our company has always had a very strong objective of being clear and transparent with the market on the latest developments involving our business.”
Bradesco is ranked the best-managed company in Brazil, a reflection of the bank’s commitment to communicating with the market. In 2012, Bradesco took part in 459 events with domestic and international investors, including conferences, individual meetings at their head office, conference calls, analyst meetings, events like Expomoney, the Bradesco Open Day and video conferences.
“The investor relations area has been trying to create a closer relationship between Bradesco and our investors, shareholders and analysts in order to understand and answer any doubts or question about the company,” says Luiz Carlos Angelotti, executive director of Bradesco. “This process is not only aimed at pursuing a correct pricing of assets and fair market value for the bank but also to cut the cost of funding by reducing the company’s risk perception and provide the executive board with information from the market to help in its business decisions.”
Bradesco’s focus on technology as a means to deliver competitive advantage in its banking operations also extends to its approach to investor relations.
“We are aware of the great challenges we face and are investing in technology, organic growth, developing our workforce and constantly pursuing ways of improving our operational efficiency,” says Angelotti. “As a result, we believe we are ready to face the challenges of the new economic outlook and opportunities that Brazil offers.”
