For Andreas Herzog, investor relations is a brilliant job to have. The work is cross-functional, varied and versatile, and as he notes, "the job is different every day“. The 56-year-old came to IR work from banking. After leaving school, he initially trained as a banker, and worked for Equinet (now Pareto) and Concord Investment Bank, among others. But „market making was not 100% my world,“ he says looking back.

Herzog found it more exciting to look at the corporate side, a perspective he found in banking in the Institutional Sales division. „There, too, you bring companies together with investors, and there are parallels to IR work", he says. After training to become a Certified International Investment Analyst and Certified Investor Relations Officer, Herzog switched from banking to the corporate side in 2012, and took over IR work for the financial services provider MLP. Two years ago, he moved from the financial sector to the software industry at GFT Technologies.

At GFT, he is not only responsible for investor relations, but also for corporate social responsibility. „I first became involved with sustainability issues ten years ago, but at that time it was still a marginal topic for small-cap companies,“ he recalls. Increasing EU regulation on sustainability reporting, such as the Corporate Sustainability Reporting Directive, has made the topic much more present in IR work today. „Regulation has increased enormously", he says.

As a technology company, GFT's environmental impact is limited. According to the Head of IR, sustainability plays a subordinate role in bank financing and discussions with investors. „Questions about it come in homeopathic doses at best," he says. Herzog believes it is important to report on sustainability, but in his opinion, current developments are going into too much detail. „It doesn't help any investors if I present them with hundreds of data points.“

Dealing with regulatory issues is now an integral part of the job for IR professionals. „Almost everything in investor relations is set out in a guideline, a law or a stock exchange regulation,“ says Herzog. Being well versed in these is a basic requirement for the job. A good understanding of figures is also helpful. „You can learn how a balance sheet works and which rules apply,“ says Herzog, who is also a lecturer in financial reporting at the Baden-Württemberg Cooperative State University. What you can't learn despite training is "communication itself, and a feeling for how best to approach topics – that develops over the years.“

Professional routine also helps when dealing with difficult issues. In August, GFT, which posted sales of almost 789 million euros and an EBIT of just over 68 million euros in 2023, lowered its growth expectations for the current year. Not a pleasant situation from an IR perspective, Herzog admits. „I came into the office at half past six – and I knew that I would not only encounter affection and good humour that day.“ In his view, however, the most important commandment of good IR work is to communicate transparently, especially when it comes to negative news. „Critical questions are completely justified in a situation like this, and you have to deal with them.“

Last year, the IR team, which is soon to grow to three people, was in contact with more than 400 investors, according to Herzog. This year there are likely to be even more. It is important not only to get your own message out into the world. „Investor relations is not a one-way street,“ Herzog emphasises. It is also about collecting feedback from the capital market and bringing it to management. „As IR people, we also have to sharpen our internal understanding of what capital market participants want.“

A large part of the work now involves reporting and organising the annual general meeting. But Herzog enjoys most the direct exchange with investors and analysts. He believes that close exchange is essential for the SDax company GFT. „As a smaller company, we are in intense competition for capital and the attention of investors,“ says Herzog. IR work must accordingly be set up flexibly. „We always have to stay on the ball, keep in touch, remember ourselves – and also be able to spontaneously fit in a longer conversation.“