FINANCIAL COMMUNICATION: FRAMEWORK AND PRACTICES - 2019 EDITION

160 Market consensus should be monitored regularly throughout the year, updated prior to the release of any earnings or sales figures and provided to management. These forecasts are collected and published by specialist private firms, which results in varying consensuses. Issuers may regularly update the consensus of the analysts that regularly monitor their shares without necessarily publishing it. The purpose of this is to anticipate the market’s reactions prior to the release of any information, so that the issuer can make any appropriate adjustments to its public announcements. It may be necessary to issue a press release if a significant difference is observed between the consensus and the company’s internal data (see Part 2, Section 2 “Profit warnings”). Market consensuses may be drawn up by Investor Relations officers based on different estimates of which they are aware, or by independent service providers specialised in the dissemination of financial information. Some issuers post the market consensus on their website. Internal consensuses, in which the source of the data used can clearly be identified, have more significance than those carried out externally which have the disadvantage of being inconsistent regarding the indicators used (results before/after non-recurring items, calculations based on a diluted/undiluted number of shares, etc.) and which often include data that may not have been updated. FEEDBACK AND PERCEPTION SURVEYS In addition to the Investor Relations officers’ role of keeping management informed of market reactions and expectations, it is also very useful, following roadshows, conferences and one-on-one meetings with investors and analysts, to obtain feedback or a snapshot of the participants’ opinion as quickly as possible in order to improve financial communication and develop the investor database for subsequent meetings. Participants interviewed are asked by the broker, or by the company itself, about the quality of the answers provided to their questions, their perception of the company’s management, its strategy, any subjects of concern, etc. As part of its market activities, the company may also wish to conduct a perception survey of the financial community. This survey may concern the company’s financial communication or a specific problem such as the pertinence of its strategic orientations or choice of performance indicators.