Annual reporting Best practice 2019

Transkript

1 CORPORATE RELATIONS Annual reporting Best practice 2019

2 Contents Introduction Trends in corporate reporting (in Danish) Best practice 6 focus areas Tips & tricks for corporate reporting steps towards a strong equity story About Corporate Relations (in Danish)

3 INTRODUCTION Annual reporting is undergoing changes. Partly due to demands for compliance with legislation and partly due to demands for greater transparency and relevance among internal and external stakeholders. In general, themes like business model, strategy, CSR, risk and governance are gaining a more prominent position in the annual report. The question is however, whether this means that the annual report has become truly stakeholder oriented both in regard to content and as a target group to the report. Are we like PWC has stated recently in the age of stakeholders? I admit that we see early signs of this development. The business model and strategy presented in the annual report is typically holding a wide focus on stakeholders, companies are increasingly aware of risks in relation to environment, privacy, trends, public relations and reputation, and companies are reporting on results and initiatives regarding e.g. customer loyalty, employee satisfaction, NGO relations and innovative co-creation with partners. Surely, the value creation focus is expanding, and with an increasing focus on using infographic to illustrate complicated strategic models and processes, a wider target group is invited to dig into the annual report. But few Danish companies are really progressive, when it comes to adopting the triple bottom line or the principles of shared value in their annual report. Novo Nordisk and Novozymes are still frontrunners in this game, though many other companies claim their status in this field. However, as this year s analysis of best practice in annual reporting shows, there are many inspiring examples of companies adopting a more stakeholder oriented content focus than seen in earlier reports. But the overall evaluation is still that the annual report is considered a financial document targeting investors, analysts and other financially focused target groups. To most companies, there is still some way to go for the fully integrated, stakeholder report to emerge. CEO and communications advisor Lars Sandstrøm, March 2019

4 10 tendenser i årsrapportering Årsrapportering er en disciplin under stadig udvikling. I de senere år er de største danske virksomheders årsrapporter generelt blevet mere kommunikerende, transparente og relevante. Den aktuelle analyse demonstrerer, at de danske virksomheder er nået langt i opfyldelsen af stakeholders krav og ønsker. 10 tendenser synes at dominere udviklingen af årsrapporter: 1. Større åbenhed og transparens 2. Mere fokus på equity story værdifortællingen 3. Forretningsmodel og strategi som omdrejningspunkt 4. Tendenser og trends i branchen 5. Viden og kompetencer er tilbage 6. Forretningsfokuseret CSR 7. Prioriteret og skarpt risikobillede 8. Forbedring af notesektionen 9. Den info-grafiske fortælling 10. Kommunikation på tværs af medier En artikel om de 10 tendenser samt tendenser på vej, kan findes på

5 Best practice criteria 1 #at a glance #brief #profile 2 #business model #strategy 3 #markets #products #innovation #trends 4 #human resources # knowledge 5 #csr #sustainability #responsibility 6 #governance #risk #management

6 What we are looking for 1 #at a glance #brief #profile Is the vision and profile of the company presented in brief? Are results, business areas, markets and offerings illustrated in a transparent and viable way? 2 #business model #strategy Is the illustration of business model presenting the company s unique position and way of operating. Is the company s role in the value chain concisely illustrated? Are strategy, targets and performance transparent? 3 #markets #products #innovation #trends Is each market and business areas presented in a comprehensive and an easy-to-understand way? Is innovation and product development described and illustrated in a convincing way? 4 #human resources #knowledge Are HR-policies and initiatives presented in the report? Are knowledge management, employer branding, education and training, diversity and employer satisfaction described? 5 #csr #sustainability #responsibility #ESG Are policies, standards and ways of managing sustainability and responsibility concisely described and illustrated? Are targets and results communicated in an open and transparent way? 5 #governance #risk #management Is principles for handling good corporate governance described? Are risks assessed and illustrated in a viable way? Are the performance and work of management described and details of their remuneration?

7 1 #at a glance #brief #profile

8 #AT A GLANCE DSV

9 #AT A GLANCE NNIT

10 #AT A GLANCE SOLAR

11 #AT A GLANCE TRYG

12 #AT A GLANCE SIMCORP

13 #AT A GLANCE DANISH CROWN

14 #AT A GLANCE LEO PHARMA

15 #PROFILE DFDS

16 #PROFILE TORM

17 #PROFILE NOVOZYMES

18 2 #business model #strategy

19 #BUSINESS MODEL NNIT

20 #BUSINESS MODEL SOLAR

21 #BUSINESS MODEL NOVO NORDISK

22 #BUSINESS MODEL PANDORA

23 #STRATEGY CARLSBERG

24 #STRATEGY FLSMIDTH

25 #STRATEGY SIMCORP

26 3 #markets #products #innovation #trends

27 #MARKETS CARLSBERG

28 #MARKETS NOVO NORDISK

29 #PRODUCTS GENMAB

30 #INNOVATION FLSMIDTH

31 #TRENDS NNIT

32 #TRENDS NOVOZYMES

33 #TRENDS DANFOSS

34 4 #human resources #knowledge

35 #HUMAN RESOURCES ISS

36 #HUMAN RESOURCES NETCOMPANY

37 #HUMAN RESOURCES NNIT

38 #HUMAN RESOURCES ROCKWOOL

39 #KNOWLEDGE PANDORA

40 5 #csr * #sustainability * #responsibility * #ESG * *As presented in annual report, not separate report

41 #SUSTAINABILITY DANISH CROWN

42 #SUSTAINABILITY PANDORA

43 #SUSTAINABILITY ROCKWOOL

44 #CSR ROYAL UNIBREW

45 #CSR TORM

46 #CSR LEO PHARMA

47 #RESPONSIBILITY ARLA

48 6 #governance #risk #management

49 #GOVERNANCE NOVOZYMES

50 #GOVERNANCE SIMCORP

51 #GOVERNANCE TRYG

52 #RISK ISS

53 #RISK FLSMIDTH

54 #RISK NOVO NORDISK

55 #RISK SOLAR

56 Tips & Tricks for Corporate Reporting #1 Plan in good time. Involve management, consultants, accountants, IR, finance, risk management and treasury in the concept phase. #2 Consider the concept. Define the main story and message you want to deliver and how. #3 Let the business model guide you. The annual report should demonstrate how your business is positioned for future growth. #4 Define your target group. Consider their needs in regard to messages, media/format, timing and distribution. #5 Be aware of (too many) proofs. Do not start combining text and figures with the designed document too soon you end up with continous iterations and corrections. #6 Use infographics to illustrate key figures, strategy, governance, risk and CSR measures. #7 Be compliant but do not let compliance overrule what you want to communicate to your target audience.

57 Equity story An effective equity story stimulates the imagination of potential investors. The equity story should be included in the annual reporting.

58 10 STEPS TOWARDS A STRONG EQUITY STORY 1 4 The promise Financial performance 2 Business model 3 Strategy and goals 5 Ownership structure 7 Innovation 6 Markets and products 8 Management 9 Sustainability 10 Reputation

59 HVAD TILBYDER CORPORATE RELATIONS? Facilitering af strategiudvikling Udvikling af brand- og kommunikationskoncepter Rådgivning om digital kommunikation Kurser, workshop og foredrag om strategi, kommunikation, ledelse, relationer, web og sociale medier Analyse & måling Strategi & koncept Udvikling & eksekvering Inspiration & læring Interessentanalyser Effektmålinger Best practice audits Visuel og sproglig identitet Årsrapportering Digitale medier PR, kampagner og events

60 ANALYSE AF VIRKSOMHEDENS ÅRSRAPPORTERING Virksomheders årsrapportering er under udvikling. På den ene side oplever virksomhederne stigende krav til compliance, transparens og åbenhed. På den anden side ønsker de at målrette deres kommunikation bedst muligt. Det kræver nye kommunikationsformer. Corporate Relations tilbyder en værdianalyse af virksomhedens årsrapportering. Analysens omdrejningspunkt er virksomhedens årsrapport. Men vi kigger også på andre ønskede kanaler som fx web, profilfolder/magasin, investor-præsentation, CSR rapport og/eller brug af sociale medier. I analysen anvendes en række kriterier, som gør det muligt at sammenligne med en udvalgt peer group samt tilføre relevante eksempler på international best practice. Udfra analysen præsenteres anbefalinger til forbedringer af de analyserede kanaler og medier. Den samlede analyse inkluderer: En analyse af virksomhedens årsrapport. En kvalitativ peer group analyse (benchmark mod 3-4 udvalgte virksomheder). En analyse af 2-3 supplerende medier (fx website, profilfolder, præsentation eller social medie profil). Eksempler på international best practice. Anbefalinger til forbedringer af indhold og kommunikation på de analyserede medier. Analysen gennemføres af rådgiver Lars Sandstrøm. Prisen aftales på forhånd. Den afhænger af opgavens omfang og kompleksitet.

61 UDVIKLING AF ÅRSRAPPORT Corporate Relations hjælper virksomheder med at udvikle årsrapporter, på print og online. Vi samarbejder med bureauer, designere, grafikere, udviklere og projektledere og med virksomhedens ledelse og medarbejdere for at skabe en målrettet, værdiskabende og æstetisk rapport. Corporate Relations primære funktion er analyse, rådgivning og udvikling. Analyse Analyse af struktur, indhold, brugervenlighed, tilgængelighed og æstetik. Analyse af supplerende rapporter, materialer og præsentationer. Sammenligning med indeks, peer group og best practice. Rådgivning Rådgivning om koncept, temaer, indhold og tekst. Rådgivning om produktions-, publicerings- og distributionsform (herunder web). Rådgivning om tendenser og muligheder i investor relations og årsrapportering. Udvikling Udvikling af tekst til årsrapporten (fx på baggrund af interviews eller tekstudkast). Udvikling af ideer og koncepter for årsrapport og øvrig investor relations. Corporate Relations vil typisk arbejde som samarbejdspartner eller underleverandør i samarbejde med kundens interne udviklere eller et tilknyttet bureau. Men vi kan også være hovedleverandører projektansvarlige og sammensætte og lede det team, der skal varetage den samlede opgave.

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