Functional Focus
KBR’s functional departments keep our business moving. In Functional Focus, we highlight these departments and tell you about how their work affects you and benefits KBR. This quarter, we’re excited to spotlight KBR Investor Relations and the vital work they do to build relationships and communicate to the investment community the amazing things our people do every day.
Building Connections
Investors play a crucial role in helping determine a company’s success. That’s why the importance of establishing connections within the investment community, and successfully conveying why a company is worth investing in, cannot be overstated.
To attract the right investors, companies must distinguish themselves from the pack, and not just with solid financial reporting. Certainly, investors are looking at the numbers — book of business, work in the pipeline, models, value, growth opportunities and so on — and making sure the business is executing and reaching targets. But more is required to help people make the decision to invest in a company, and that’s where the all-important work of an investor relations department comes into play.
The financial results matter, of course, but investors really care about future value and opportunities for growth, and the way we tell that story is crucial.”
ALISON VASQUEZ, VICE PRESIDENT OF INVESTOR RELATIONS
KBR’s small-but-mighty Investor Relations team — part of KBR’s Finance function — is tasked with the giant-sized responsibility of building and maintaining relationships with analysts, investors and the broader investment community, and effectively and transparently communicating KBR’s successes and strategy to the market, all in order to attract a loyal investor base.
“The financial results matter, of course, but investors really care about future value and opportunities for growth, and the way we tell that story is crucial,” said Alison Vasquez, Vice President of InvestorRelations. “Over the past few years, we’ve drawn on our relationships with our investors, listened to their feedback, and adapted how we communicate to the investment community. They have a vested interest in us. They believe in the direction KBR is going. They see how we’ve successfully executed our strategy. It’s our job to take that and help other investors understand why we’re a compelling opportunity.”
Investor Relations works primarily with two groups —investors and independent research analysts. The analysts write reports that combine a detailed view of the company’s financial outlook, value and growth opportunities with economic and specific industry knowledge. They provide these reports to investors to make the case for the company as a sound investment opportunity. As KBR has evolved, it’s become paramount to engage research analysts who are purpose-fit for the company we are today — a provider of high-end, differentiated, technology-driven solutions.
An additional element of the work Investor Relations does is liaising the company’s management team with the investment community. Active engagement between the two is critical and helps build credibility and strengthen the level of trust and confidence investors have in the company’s ability to execute its strategy.
Telling KBR’s Story to the Market
Perhaps the most important element of Investor Relations is active engagement with the investment community. In order to win investors over, KBR has to stand out from the crowd. This is accomplished through an innovative blend of strong financial data, high-end marketing and on-point, consistent communications.
“An investor might be looking at 100 opportunities, investing in 30, and actively keeping tabs on another 20,” said Vasquez. “Differentiating yourself is critical.”
Investor Relations relies on several tools to communicate with the market. First is the Investor Relations website. It’s a veritable one-stop shop for financial information, recent presentations, press releases and videos, including KBR President and CEO Stuart Bradie’s appearance on “Mad Money” with Jim Kramer. The website is an invaluable resource for helping interested investors learn more about the company — and doing so with full transparency.
Visit the Investor Relations website.
Throughout the year, KBR Investor Relations also hosts several events highlighting KBR’s strategy and outlook, recent wins, and strong financial and operational performance, and showcasing our amazing people and the valuable work they do. These include quarterly earnings presentations, individual investor meetings and conferences, and high-profile investor relations events, such as Future Forward this past March. This live virtual presentation — which was enthusiastically received by the investment community — featured members of KBR’s management team discussing topics such as the company’s commitment to environmental, social and governance (ESG) principles, our people strategy, and exciting growth accelerators across the business.
These events and the deliverables presented are the result of a dynamic, cross-functional collaboration between Investor Relationsand KBR Global Marketing and Communications.
“What investors see from a marketing and communications perspective is so important,” said Vasquez. “As with a job interview, so much hinges on first impressions. If you look polished, it gives you more credibility. Our partnership with Global Marketing and Communications has taken us to a whole new level. All of our deliverables are of the highest quality. Everything looks and sounds professional, and those things matter to theinvestment community.”
Another key internal partnership is with KBR Corporate Governance. Along with Investor Relations and the management team, Corporate Governance — primarily Adam Kramer, Vice President, Corporate Secretary and Sustainability— has a direct role in investor engagement. Kramer employs a proactive approach to engaging top shareholders on high-priority topics such as governance, executive compensation and ESG — critical areas for serious investors. In addition, Kramer has been instrumental in pivoting KBR’s classification and trading codes, which are assigned by third-party research and financial firms to reflect the kind of business we are today. This is vital, as it ensures KBRis classified in the appropriate peer group and industry for investors interested in investing in specific sectors.
Our investors are generally happy. They are enthusiastic about our strategy and management team and are highly complimentary of the ways we engage with the market. We have a long path ahead to attract a stronger base of on-strategy investors and to achieve full valuation for the company, but we are making good progress.”
ALISON VASQUEZ VICE PRESIDENT OF INVESTOR RELATIONS
And the results of all these efforts?
“Our investors are generally happy,” Vasquez said. “They are enthusiastic about our strategy and management team and are highly complimentary of the ways we engage with the market. We have a long path ahead to attract a stronger base of on-strategy investors and to achieve full valuation for the company, but we are making good progress. A new investor said to me recently that he views KBR as ‘a premier government business with a tremendously valuable sustainable technology portfolio.’ The message is definitely resonating!”
It’s undeniable that Investor Relations’ connection to and communication with the market are essential to the health and success of the company. But ultimately, said Vasquez, it’s KBR employees who should feel pride in the outcomes. “The work we do wouldn’t matter much without a clear, powerful core message, which is that KBR is a team of teams doing great things, and those things matter to the rest of the world.”
