Interim Managers for transaction based Investor Relations
Case Study
Nemetschek AG - paving the way into TecDAX
As a worldwide leading software company for the architecture, engineering and construction industry, Nemetschek AG went public in March 1999. Besides the times of Germany's Neuer Markt, the company never made it into any of the DAX family prime indices. Despite quite constantly reporting solid figures and a stable market position.
After a management change in early 2012 the company intended to pursue a more proactive path in its communication with capital markets and decided on signing Middelmenne & Cie. to relaunch its IR activities. The defined target was to increase awareness of the company at the capital markets. An Interim Manager from Middelmenne & Cie. was installed as the official Head of Investor Relations & Corporate Communications.
After sharpening the company's equity story, a target analyst and target investor analysis was conducted. Thus during the time from May 2012 to May 2013 it was possible to increase the number of analysts with active coverage on the Nemetschek share from one to a total of seven analysts. At the same time the attendance at capital market conferences as well as the number of roadshows and investor meetings was broadly increased. The total number of investor contacts thus multiplied to more than 500 per year within the first twelve months of collaboration.
Price chart of Nemetschek AG - Jan 2012 / Aug 2014
Besides an increase in capital markets awareness the extended IR activities also resulted in an increase of market capitalization by far more than 50 per cent, clearly outperforming the market. The 12 months average daily turnover of the share considerably multiplied, increasing the TecDAX ranking in this attribute by 20 positions to rank 32 until March 2013.
After 13 months of collaboration, a search for a follow-up Head of IR was finally conducted and the acquired know-how was passed on to the new manager to continue the pursued path. In September 2013 the shares of Nemetschek were finally admitted to TecDAX.