Presentation about the future in Online annual reporting.

1. Online financial reporting
Trends, reader benefits, and cost efficient
production

2. Agenda
 The reader
 The brand
 To reach out
 Efficiency
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3. The reader
A diversified target group
Annual Report
2008
Society Small Employees Vendors Customers Journalists Government Large shareholders, Analytics
shareholders Partners Institutional
investors
Non-professional readers Professional readers
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4. The reader
… leads to a complicated product
ÅR
ÅR ÅR
Annual Report AnnualÅR
Report ÅR
AnnualÅR
Report ÅR
AnnualÅR
Report ÅR
AnnualÅR1980
Report
1980 1985
1980 1985 1990
1980 1985 1990 2000
1970 1980 1990 2003 2005
Legal document + Company- + Environment, CSR, + Legal requirements + Corporate
presentation sustainability by IFRS governance
 Is this the best format for efficient communication?
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5. The reader
Example: Electrolux 1950-2008
Number of pages
200
CSR
178
Corporate
governance 158
150 138
IFRS 122
114
Environmental 98
100
reporting 85
80
76
60
56
48
50
15 24
0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
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6. The reader
Satisfy the needs of the target groups!
Large shareholders,
Small Vendors Institutional
Society shareholders Employees Partners Customers Journalists Government investors Analytics
I want to I want I want a What is the I don’t
What is the Financials for I just need
learn more even more printed board’s believe
dividend? your vendor? an overview!
about x about x version! payment? in this!
Click for more Click to their web There is a Third party confirms
information! site! printed version! this, click here!
Use the search Click to this specialised Watch the CEO Use the search
function! external web site movie instead! function!
 The web format holds a lot of information without compromising the overview
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7. The reader
The traditional way of thinking
 We think in terms of ”cover”, ”double spreads”, and the
CEO’s letter to shareholders
 We understand structures based on the dimensions of a
paper sheets, and the print process. The broadband explosion
in Sweden in 2006
 We are not as comfortable with the 80%
online-medium 70%
60%
50%
40%
None of us is ”web native” 30%
 But the ones after us are… 20%
10%
0%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Precentage of Swedes 9 – 79 years old using
the Internet an avarge day
(mediebarometern, Nordicom)
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8. Agenda
 The reader
 The brand
 To reach out
 Efficiency
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9. The brand
You are judged by your web presence
 The web is the company’s first point of contact with
stakeholders (whether you like it or not)
 It hosts a vital part of your brand-building
 For market communication, The web dominates the
capital market
this is common practise
100%
90%
80%
70%
60%
50%
40%
 Why shouldn’t this be the case for the 30%
financial communication as well? 20%
10%
0%
Domestic Financial Analysis Bloomberg Website of
news papers databases from brokers terminal current
company
Do you use any of the following sources when searching
for financial information about listed companies?
(H&H Webranking 2007)
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10. The brand
Number of companies with online reports
70%
60%
50% +48%
40%
2007
30%
2008
20%
+67%
10%
0%
FTSE100 FTSE250
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11. The brand
Development of digital annual reports
Usability
Increased reach with social media
PDF
Image based
Increased Internet
HTML
penetration rate and new
technologies (XBRL, video) Google Docs now
supports PDF format
Moderate improvements
of HTML reports
AR on CD Rom Increased functionality of
Acrobat reader
Indexed PDF files
Distribution via Internet
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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12. The brand
Brand building by multimedia
 Video offers story-telling with a personal touch
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13. The brand
Increased understanding by interactivity
 Detect trends in a complex 10-year overview
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14. The brand
External sources for depth and
accountability
Wikipedia provides pedagogical, independent information about
the new technology 4G
teliasonera.se gives information Comparisons with earlier annual External linking to independent research centers for drill down
about the current directors reports is easy analysis with high accountability
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15. Agenda
 The reader
 The brand
 To reach out
 Efficiency
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16. To reach out
The web was invented to share information
 An annual report online does not need to be ordered. It is always accessible.
 It is published simultaneously to all stakeholders.
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17. To reach out
Reach a broader audience with online media
Printed report Readers of a printed report
• Shareholders is the ”traditional” target group
• The number of readers is limited by the size of
the circulation of copies.
Online report Readers of an online report
• Shareholders + potential shareholders, other
 stakeholders on multiple markets
• Distribution is free of charge
Annual Report
2008
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18. Agenda
 The reader
 The brand
 To reach out
 Efficiency
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19. Efficiency
Proven platform and process according to a
traditional annual report project
Production tools
1. Microsoft Word
 Editable by the client
 Track-changes function
2. H&H AR 2.0 Platform
 Access to the Word documents via
a project web site
 File version management
Output
1. Online report
 Content and structure is controlled
automatically by the Word
documents
2. Print-ready PDF
 The Word documents are
converted to PDF: No additional
desktop-publishing tools is needed
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20. Efficiency
AR 2.0, ready-made and proven functions
 Designed ”the right way”
 Expertise in financial communication
 Extensive experience in AR usage
 Many web specialists
 Production advantages
 Ready-made and tested decreases risk
 Cost effective
 Improved each season
 Based on statistical analysis, surveys, and innovation
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21. Efficiency
Examples of ready-made functions
Enlargeable charts, down- Expandable table rows for
loadable to Excel or high- drill down analysis, and
resolution downloadable to Excel.
Column layout with horizontal scrolling Notes opens in popup
for improved readability. Can also be windows, directly accessible
supplemented with a screen reader. from the main tables
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22. Efficiency
Detect potential improvements for next year
 Statistical analysis for content improvement
 How many readers? Which countries and companies are they from?
 Which chapters are most interesting? What should we improve for
next year?
 Is the CEO movie too long?
 What do Google visitors search for?
 Statistical analysis for improvement in structure and function
 H&H compiles statistics for all AR 2.0 productions to continously
improve and develop the standard functions.
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23. Efficiency
Content re-use in a new dimension
 Re-use subsequent years
 Templates, functions, etc, is only developed once
 Re-use on the corporate website
 The content is created for the web medium from the start, and can
therefore easily be transferred to the corporate website
 
Annual Report Corporate website
2009
… … …
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24. Efficiency
Shared content, example
Annual report Corporate website
Company description
Description of the year  The company in brief  Image bank News flow
 The year in brief  Vision, strategies  CSR,  Press releases
 CEO statement  The share  Contact info / sales offices  Other news
 Financial tables  Operations  Employees  Calendar events
 Auditors’ report  Organization  Financial tables  Vacancies
 Report of the directors  Corporate  Definitions  Report archive
Governance
 No need of parallell web projects = better economy
 Decreased risk of mixed messages = better communication
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25. Summary
 The reader
 AR 2.0 gives new opportunities to meet the needs of different target groups.
 The readers of tomorrow will prefer the web medium
 The brand
 You are judged by your web presence, whether you like it or not
 AR 2.0 enhances the understanding of your company by pedagogical functions
and hyperlinking to deeper sources.
 To reach out
 The web medium is superior as a distribution channel
 Online media reaches new areas of the capital market and potential shareholders
 Efficiency
 The AR 2.0 process is designed according to the traditional AR process
 AR 2.0 provides proven functionality that are improved continuously
 Statistics provides exact feedback for optimal improvements
 Synchronizing AR  Web gives better communication to a lower cost
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