By Martin Dunzendorfer, Frankfurt
"FAILED TO HEED PHONE'S RING"
Julia Bock, Head of Investor Relations (IR) at mining giant K+S, doesn't hesitate to admit - she missed her phone ringing. Not the usual ring of a work call, but the sound of that phone interfering with her weekends and vacations. Bock, born in 1983, joined K+S in 2006, and since then, her heart has been beating for IR. However, her stint in K+S's corporate secretariat, from July 2014 to September 2018, showed her the power of personal connections and the thrill of diverse work.
"In corporate secretaryship, whose leadership was transferred to me in 2016, I was more of an information receiver," Bock confesses. However, the time in the department provided invaluable insights into the interplay between the board and the supervisory board, which positively impacted her IR work later on.
Julia Bock values the personal contact with shareholders, analysts, and stakeholders, as well as those interested in K+S. This sentiment resonates with IR professionals worldwide. The second major attraction for Bock is the variety in her work. "There are always new special situations, new challenges," she says. "It never gets boring."
There's one aspect of her daily work that Bock could do without: fighting to get information. According to Bock, they get requests from shareholders with a single share to those holding 11 million shares, which comprises more than 6% of K+S. Questions about the stock price and weak performance primarily come from private investors with a short-term perspective.
Bock reports that private shareholders hold around 40% of K+S shares. This long-term investment approach contrasts sharply with that of London hedge funds with a short-term horizon. For K+S, a mining company with decisions that often have long-term consequences, this stability is crucial.
Private investors prioritize dividends, while institutional investors prefer share buybacks. In 2022, K+S analyzed which shareholders preferred which approach and found that private shareholders were in the dividend pool, while institutional investors favored share buybacks. Tax disadvantages of dividend distributions compared to buybacks are less important to private investors, as they seek regular cash flow.
K+S is currently investing in two significant projects: Werra 2060 and the Bethune ramp-up. Werra 2060 aims to increase the complex's competitiveness and extend its mine life while reducing production costs by 20%. Meanwhile, the Bethune ramp-up focuses on capacity increase. These projects will strengthen K+S's position, ensuring both ESG goals and cost reduction.
In the past two years, sustainability has been a significant factor for investors. However, internationally, it is becoming increasingly important to justify these efforts while also demonstrating progress in profitability. One common misconception that Bock is trying to dispel is that K+S is a high-cost producer in Germany. Bock emphasizes the importance of selling around the chimney and attractive logistics, enabling competitive prices.
Alignment with the CEO is crucial for Bock. Communication and thus IR are traditionally anchored with the CEO at K+S. The CFO and other board members are involved in the contents, but Bock reports to Oliver Morgenthal, head of the Corporate Communications department.
The IR team at K+S consists of three members: Bock, Nathalie Frost, and Esther Beuermann. Bock stresses the importance of rotating responsibilities, ensuring no one specializes in just one aspect of IR.
Reflecting on changes in the IR field over the past 15 years, Bock notes a significant increase in reporting, particularly in sustainability. She also observes a shift in investor contacts, as the dependence on banks as intermediaries to investors is decreasing. IR experience and a good network are now vital factors in generating investor interest.
Born and raised in the heartland of K+S in Bad Hersfeld, Bock has been an active volunteer in children and youth activities in the evangelical church for many years. Moreover, she's currently supporting a Ukrainian refugee family with the bureaucratic procedures, expressing a hint of criticism towards the complexity of the German bureaucracy.
In addition to her busy professional and family life, Bock enjoys long-distance travel and exploring colorful worlds with her family, despite the challenges posed by young children.
- Julia Bock acknowledges the appeal of education and self-development, as she strives to improve her skills in finance and investing, essential aspects of her business role as Head of Investor Relations.
- In the evolving landscape of technology, personal finance management tools have gained prominence for both institutional and personal investors, helping them make informed decisions about their investments in companies like K+S.
- Besides her success in business, Julia Bock remains committed to community service, applying her problem-solving skills from the corporate world to assist a Ukrainian refugee family with bureaucratic procedures, demonstrating her dedication to education-and-self-development and personal finance beyond the realm of her professional life.
