from print to digital – moving the annual report into the 21st century

Corporate reporting - From print to digital

Jonas Jonell, KWD

KWD

1. Information overflow

Can web technology make annual reports comprehensible and customisable to different stakeholders?

Things were easier before

Ericsson Annual Report 1901, 6 pages including cover

Cover Report of directors Income statement Balance sheets Proposed

appropriation of

earnings

Then came the avalanche

1970

Legal

document

1980

Adding of

Company-

presentation

1990

Environment, C

SR,

sustainability

sections added

2003

New legal

requirements

by IFRS

2005

Increased

demands on

Corporate

governance

reporting

2010

New regulations

after the

financial crisis?

Avalanche example: Electrolux 1950-2008

15 24

4856

60

7680

85

98

114122

138

158

178

0

50

100

150

200

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Number of pages

IFRS

Environmental

reporting

CSR

Corporate

governance

Why is this?

It is the most prestigious document from the company

Its usage has broadened, but the format remains

Professional readersNon-professional readers

EmployeesSociety Small

shareholders

Vendors

Partners

Customers Journalists Authorities Large shareholders,

Institutional

investors

Analysts

Is this really the best way to communicate the corporate story?

Can we use the web format to make annual reports comprehensible and customised, like Wikipedia?

Customised information

Different readers have different needs

What is the dividend?

I want to learn more about x

I want to know even more about x

What is the financial situation of your vendors?

What is the board’s payment?

I want to know more about your CEO

I don’t believe in this market figure!

I want a printed version!

EmployeesSociety

Small

shareholders

Vendors

Partners Customers Journalists Authorities

Large shareholders,

Institutional

investors Analysts

What are the main trends?


Search

Quick questions are best answered with the web’s search capability

Besides quick answers, search also provides related information, like policies for dividend or remuneration, throughout the entire report

EmployeesSociety

Small

shareholders

Vendors


Large shareholders,

Institutional

investors Analysts











Drill down

Hyperlinking is the reason for the breakthrough of www in the 1990’s

Use it as internal shortcuts or to external parties, like industry press articles, to the company’s vendors, or to third party market surveys

This will help the reader to understand your company and its context


EmployeesSociety

Small

shareholders

Vendors


Large shareholders,

Institutional

investors Analysts










Rich media

There is an increased focus on the company’s management and the CEO as an individual

The CEO’s letter to the shareholders is an effective way to address the shareholders directly, but a video presentation makes it even more effective and personal.

EmployeesSociety

Small

shareholders

Vendors


Large shareholders,

Institutional

investors Analysts











Customised print

The print media will survive, not only because many authorities still require a physically signed document, but also because many readers prefer a hard copy.

However, an online report can provide tools for creating your own, customised PDF file.

EmployeesSociety

Small

shareholders

Vendors


Large shareholders,

Institutional

investors Analysts











Interactivity

Complex financial information is hard to grasp for a non-professional reader

The web medium has several interactivity features to enhance pedagogy

EmployeesSociety

Small

shareholders

Vendors


Large shareholders,

Institutional

investors Analysts










Interactivity increases understanding

Can you see the trend? Can you see the trend?

http://www.teliasonera.com/2009/en/AR/FinancialStatements/TenYearSummaryFinancialData.html

Summary

The thirst for information will continue to grow, but the web medium is excellent to deal with this

Rich media Search

External hyperlinks

for drill down analysis

Internal hyperlinks for

additional page entries

Custom PDF creation

http://www1.sampo.com/annualreport/2009/

2. Production

How to add another step in an already complex production cycle

A new world for both web agencies and traditional annual report producers

From the web agency point of view

The buyer is not web native

“Let’s publish next week” is not an option

Top management have stronger opinions than usual

Content is horizontal rather than hierarchical in its structure

From the buyer’s point of view

Changes that appear easy might be very difficult to solve

Changes that appear hard might be very easy to solve

How do I keep track of interactivity and internal hyperlinking features?

External hyperlinks, official information from my company? Wikipedia?

But once your organisation get used to the online format, you will also find

production benefits with online annual reporting!

Why don’t wait until things settle down?

Because then the report is old news

To get best value for the investment, publish the online version simultaneously as the printed one

Number of visitors

Average day Day of report Increase

Company X 376 838 +123%

Company Y 3 152 4 649 +47%

Company Z 12 280 21 026 +71%

H&H statistics for three Swedish,

listed companies

Another example of publish timing

Nearly 600 visitors on publish day (simultaneously published)

Note that the online annual report does not die, it is revisited on various investor events

Number of daily visitors on an online annual report

for a large Swedish company

0

100

200

300

400

500

600

700

Launch

Q1 report

Investor dayQ3 report

Summer Christmas

Semi-parallel production process

Complete the graphical design and programming of all templates and special pages in good time before the print version is final and sent to the printer house

After content sign-off, make sure to have the right tools to fill the templates with final content

Include a launch phase in the time plan to ensure quality

Final sign-off print content

Design Programming Content migration Launch

2-4 weeks(synchronized with

print and distribution)3 weeks to 3 months

(depending on graphical complexity)

Despite all preparations, we still suffer from dual processes.

Isn’t there another way?

Opposite approach: Annual Report 2.0

Annual Report 2.0:

To create the annual report directly for the web medium, and get a printed version as a secondary product

The journey towards digital reporting

Draft in MS WordTypesetting in InDesign

Print ready PDFWeb version conversion

Draft in MS WordTypesetting in Word

Print ready PDF and web version

Draft and type-setting in Word

Print ready PDF and web version

phase

1

phase

3

phase

2

Benefits with Annual Report 2.0

Digitalizes your content automatically for multichannel purposes

One single process instead of two

Possible to use web writing style from the start

Sends a clear message that the web is the primary medium, motivating a reduced circulation of printed copies (if any)

A printed version is still available

But its graphical ambitions is reduced, because those who prefer the printed version do not appreciate heavy graphics anyway

This lets you reduce your budget, or target your budget to increase the quality of the web version

Thank you!

Jonas Jonell, KWD

[email protected]

KWD

from print to digital – moving the annual report into the 21st century

Business

avalancheannual report

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market figure

financial situation

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