Hearing Silence Where There Once Was Sound: Julia Bock's Unanticipated Absence from Her Phone
"Phone call went unnoticed by me"
Meet Julia Bock, the Head of Investor Relations (IR) at K+S since October 2021. Though you might think she's a workaholic, her story isn't filled with endless hours of crunching numbers and making calls even on weekends. That's because, from July 2014 to September 2018, she spun a different yarn as the head of K+S's corporate secretariat.
Before her stint in the corporate secretariat, Bock (born in 1983) served as the Senior IR Manager from January 2011 to June 2014, and after her return in October 2018. Her detour into corporate secretaryship showed her the fire that burned in her heart for IR, the personal connection she craved with people.
She missed the tactile, human aspect found in shareholder meetings, where she could pass along vital information. "There, I was more of an information receiver," Bock admitted. Yet, her time in the department was vital, helping her understand the dance between the board and the supervisory board, bringing valuable insights to her later work.
Personal connections and a pulse-racing variety are what Bock cherishes most about her work. The ever-changing landscape of the capital market and K+S's unique challenges keep her on her toes. "It's never the same," Bock summed up, "and the question about its normal state is so difficult to answer."
But there's one thing Bock could do without—the fight to get information. "I hate having to fight to get even trivial information," Bock shared. With private investors owning a single share and large investors hoarding 11 million shares, K+S's vast shareholder base means Bock handles questions from all angles.
Private investors tend to ask about stock performance, while institutional investors probe areas like valuation, such as why multiples are poor compared to competitors or why the stock price is significantly below book value. The stock's performance has been slipping since April 2022, trading at around its lowest level since May 2021.
Julia Bock, unstoppable force of investor relations at K+S
Private investors own roughly 40% of K+S shares, making them a vital yet long-term-focused fraction of the shareholder base. In contrast, funds with a short-term perspective don't quite fit the mining company's timeline, where crucial decisions have long-term consequences. Bock pointed to K+S's potash mine in Bethune, Canada, with proven reserves equating to a 150-year mine life and hidden potential pushing that number well past 250 years, as an example.
When it comes to shareholder preferences, private investors favor dividends, while institutions lean toward share buybacks. However, the tax disadvantages associated with dividend distributions compared to buybacks are less of a concern to private investors, who crave regular cash flow.
K+S is currently prioritizing two major projects: Werra 2060 and ramping up production at Bethune. Werra 2060 aims to increase the complex's competitiveness and extend its mine life while reducing production costs by 20%. Yet, as the importance of sustainability declines, profitability takes center stage.
For the past two years, sustainability has been crucial to investors. Nevertheless, international investors now call for proof that sustainability goals translate to solid economic gain. "Activities that promote sustainability must now be accompanied by progress in profitability," Bock caution.
Bock also wants to dispel the common misconception that K+S is a high-cost producer in Germany, arguing that the company is, in fact, competitive at the customer's door, thanks to its attractive logistics. A topic that used to generate questions is now but a distant memory for the IR team: environmental and nature conservation controversies.
CEO Burkhard Lohr, who has led K+S since May 2017, has worked tirelessly to achieve an environmental peace and avoid harmful effects like production cuts, Bock reports. Lohr's predecessor, Norbert Steiner, was known to be less amicable in his approach to these matters.
Alignment with CEO Lohr
Lohr is Bock's primary partner in shaping the contents of her work, following the traditional K+S practice of anchoring communication with the CEO. The CFO and other board members may be involved based on the topic at hand. In terms of its structure, the IR team consists of three members: Bock, Nathalie Frost, and Esther Beuermann, all of whom share the responsibility for managing various aspects of the role, from the annual general meeting to private shareholders and analysts.
Significant shifts in IR over the years
Reflecting on her 15-year career in investor relations, Bock has witnessed profound changes in the field. Reporting responsibilities have soared, particularly in matters of sustainability, as expected. However, a seismic shift Bock hadn't foreseen came in the form of investor contact that no longer explicitly relies on research houses due to developments like MiFID II. "That's a significant change," she admits, adding that IR experience and an extensive network are now crucial factors in driving investor interest.
Born and raised in K+S's heartland
Bock's fate was sealed in the structurally weak region of north-eastern Hesse, where K+S is a significant employer and training provider. After obtaining her Bachelor of Business Administration from the Frankfurt School of Finance & Management and completing a traineeship at Commerzbank, Bock embarked on her career in K+S's IR department in 2006. Since 2010, she has held the title of Chartered Financial Analyst, awarded by the CFA Institute in Virginia, USA.
Beyond her work in IR, Bock remains active, primarily focused on her family (including her two sons, aged 6 and 11) and volunteer work. She has long been involved in children and youth activities in the evangelical church in Großenritte-Altenritte, southwest of Kassel, and currently helps a Ukrainian refugee family navigate the complex German bureaucracy.
- With her background as the Head of Investor Relations at K+S, Julia Bock understands the importance of personal connections in the field of finance.
- Prior to her role as the Head of Investor Relations, Bock served as the head of K+S's corporate secretariat, which provided valuable insights for her later work.
- Julia Bock's work in investor relations is influenced by the ever-changing landscape of the capital market and K+S's unique challenges.
- Short-term funds don't fit K+S's timeline, as the company makes crucial decisions with long-term consequences, such as the Werra 2060 project aimed at extending the mine life and reducing production costs.
- Sustainability has been crucial to investors in the past, but now they require proof that these initiatives lead to solid economic gains.
- Bock and CEO Burkhard Lohr work closely together to shape the contents of her work, following the traditional K+S practice of anchoring communication with the CEO.
- Throughout her 15-year career in investor relations, Bock has witnessed significant shifts, including a decrease in explicit reliance on research houses due to changes like MiFID II.
