State of the art for Austrian digital corporate transparency What Austrian companies are the most transparent when it comes to providing

its stakeholders access to core market information? This year’s Austrian 2019-2020 Webranking Webranking results have revealed new challenges for companies to face to keep up with international best practices.

Key insights Webranking 2019-2020 at a glance 1. Webranking is the leading survey of corporate websites based on stakeholder demands. The evaluation protocol consists of 50 criteria and more than 340 subcriteria. 23° international edition 2. The Webranking research 2019-2020 was conducted by Lundquist, in collaboration with Comprend. 14° Austrian edition 3. The research includes the 28 largest Austrian companies, compared to last year’s 20 companies, that are included in the ATX. This is the 14th edition companies ranked in on Austrian listed companies, and the 23rd edition in 28 .

4. This report analyses how these companies are companies ranked globally communicating with their stakeholders via their corporate website and digital channels, and what this 896 means in terms of their transparency. total points for the protocol that covers all aspects of corporate 5. The research poses itself questions such as: 100 communication • How transparent are Austrian companies? responses to our Webranking • Which company most effectively communicates surveys on matters related to finance, corporate 475 governance, and careers?

• Does the company provide a convincing strategy and vision for its future development? Contents • How effectively do companies communicate their sustainability commitment and progress? Austrian performance...... 4 • How do Austrian companies compare to their Three main takeaways...... 6 European and German counterparts? Webranking Austria 2019-2020...... 8 How Webranking works...... 9 Who we are...... 10

Webranking by Comprend 3 Austrian edition conducted by Austrian performance in digital corporate transparency

I. Shuffle at the top after years of stagnation Austrian performance Austrian

The criteria in the protocol are based upon the needs From ranking to rating and expectations of stakeholders – reached at through Webranking’s end goal is not to present a ranking of the the use of annual surveys of investors, journalists and best and worst companies, but to encourage and a culture jobseekers. of transparency that alters companies’ rapport with their stakeholders. This is precisely why this year we decided to Half of the maximum score (50 points out of 100) is present the results as a range of transparency rather a simple considered the threshold at which companies respond numeric ranking, by dividing the companies into classes of adequately to user demand. performance.

The Austrian pass rate has remained steady at around No company has been able to achieve the highest of 43%. Only three companies (BAWAG, Schoeller reputations (5 stars) nor did they reach the second tier Bleckmann, Marinomed Biotech) failed the stress test, (4 stars), but 12 companies make it to the three stars category scoring below 30 points. (between 50 and 70 points).

The top performing Austrian companies in the three star Who passes the stress test? class include OMV Group, , , , Telekom Austria and , all companies that have either often been on the podium or at 11% least in the top Austrian 10. 43% Passed • Erste Group narrowly conceded first place on the podium o OMV Group (65.2 and 65.9/100 points respectively). Held Back Wienerberger (68.1/100 points) goes from second to third place with 63.3 points this year. Failed 46% • OMV Group’s new corporate website makes the company this year’s Best improver by gaining 8.5 points compared to last year The strongest communicators of last from year’s edition have reaffirmed their place on the podium again this year. • New entries make it immediately to the top 10 (there are 12 The main change has been the way we conceptualize new companies this year): , Agrana and Palfinger take companies’ performance: from ranking to rating. advantage of the other companies losing ground

II. Austrian companies improve their governance communications, but lag behind in other areas

In comparison to last year’s results, in which Austrian “There has been an interesting improvement in the area companies had a comparatively high average score, this of Governance, which includes topics such as CEO year the average decreased by 4.8 points. visibility, remuneration and the presentation of information regarding the Annual General Meeting. This shift towards This is a trend that can be observed throughout Europe, improved communication on these specific topic stands due to altogether stricter evaluation criteria in response out particularly, given that all other areas have decreased to increased stakeholder demands. in score.” Caroline Becker Country Manager for Austria

Webranking by Comprend 4 Austrian edition conducted by Comparison between EU, CH, & DE average per section

Homepage

70% Features and functionalities About us 60%

50% Austrian performance Austrian 40%

30% Careers Press 20% Germany 10%

0% Europe 500

Austria Sustainability Reporting

Governance The Share

Investor Relations

III. The Austrian average in perspective: Austrian companies are slightly above the European curve, but struggle to keep up with German counterparts

The European Ranking “Webranking Europe 500” includes Of the four Austrian companies included in the Europe500 the 500 largest listed European corporations based on list, only two companies made it into the top 50. market capitalisation and listed in the EuroStoxx600 index. In fact, Austrian companies do not stand out particularly in the Europe 500 ranking, while Italian and Nordic companies Of the 28 Austrian companies evaluated this year, only dominate the list, taking prime positions in the top ten. 4 were also included in our ranking of Europe’s top 500 companies: Erste Group, OMV Group, Voestalpine, However, when comparing the Austrian average to the . This is only because many Austrian companies Europe500 average, the scores are quite similar, with Austrian are not large enuogh to enter the list. companies slightly outperforming the European average.

46.9 vs 45.1 -4.8 vs -2.1 AVERAGE SCORE OF THE AVERAGE SCORE DECREASE OF THE AUSTRIAN AND EUROPEAN AUSTRIAN AND EUROPEAN COHORT IN COHORT IN 2019 2019 - A 1.8-POINT GAP WITH EUROPE

German companies ahead of the game about corporate governance such as remuneration and A good comparative case for Austrian companies are their investor related details like strategy, where German German counterparts, given cultural similarities. companies are more open than the Austrian.

The German average stands higher than the Austrian, at However, Austrian companies fare better than their about 48.1 points vs. the Austrian 46.9 points. counterparts when it comes to the presentation of the This gap reveals a different approach to transparency on business and the company. their websites, especially regarding information

Webranking by Comprend 5 Austrian edition conducted by Three main takeaways from the Austrian 2019-2020 Webranking results I. Financial communications remain the main challenge for Austrian companies Three main takeaways Three

As was the case last year, Austrian corporate This is forward-looking information that seems communication on financial results continues to be the unsubstantiated without the addition of information lowest scoring section for Austrian companies. about financial targets and achievements, investments & divestments, or the company’s debt profile. This is greatly due to the fact that most Austrian companies prefer engaging stakeholders with traditional investor While 61% present their strategy and 43% present their communications, presenting this information in reports investment story, only about 27% communicate their (which has one of the highest scoring sections, 53%) which financial results on their website. cater primarily to an expert audience.

The lack of Austrian companies that present financial details Austrian companies continue to rely too heavily on is problematic because it indicates a lack of substantiating highly technical reports, companies should point more information. This is highlighted by the fact that many towards engaging their audience through their websites. companies actually present their company strategies and investment stories. Arianna Evans Country Manager for Switzerland

Company Investor Relations Spotlight: Strabag

Strabag’s website is technologically outdated but keeps a detailed and updated IR section that caters to the informational needs of its stakeholders. The well- structured and clearly presented strategy is completed by exhaustive macro-economic trends, financial targets and funding information.

II. Austrian companies fare well when it comes to new focus on R&D

This year’s survey results proved there was a distinct 68% of Austrian companies provide comprehensive stakeholder interest in learning more about what companies information on their past R&D programs vs 34% European are doing to innovate. In this regard, Austrian companies companies. 25% of Austrian companies present their have been able to outperform their European counterparts, approach to digitizing their business vs 18% with many presenting both past and ongoing research and development efforts.

Company Innovation Spotlight: OMV Group

The launch of OMV Group’s brought about a remodeling of their “Our Business” section, which includes intere- sting detail on the company’s business. The information detailing the company’s approach to innovation is included in this section, and is especially well-connected to the company’s overall business con- text and forward-looking strategy.

Webranking by Comprend 6 Austrian edition conducted by III. Sustainability communications: more substance needed

Even when it comes to sustainability, reporting is the main The fact that an impressive 93% present of Austrian pillar for Austrian companies’ communication of their companies present their commitment or approach to results, data, and targets. sustainability is made suspicious by the fact that only 29% of these companies having chosen to publish the outcomes of main takeaways Three In fact, the results for sustainability reporting this year their materiality analyses on their websites. improved slightly, from an already high score, and have reached 86% of the maximum score for this criterium. Given that materiality analyses are integral to the development of a believable and concrete CSR strategy, their However, more data needs to make its way out of the absence casts doubt on the viability of the commitments report and onto the website. presented.

Company Sustainability Spotlight: Telekom Austria

Telekom Austria is convincing with their presentation of a detailed and data-rich sustainability section. The company’s sustainability approach is communicated effectively, and the goals show the company’s commitment to sustainability with the outline of strategic action plan.

IV. Further inspiration

Spotlight on financial information: Spotlight on Careers information: FUNDING COMPENSATION AND BENEFITS

Erste Group presents their funding strategy, debt With its exhaustive information on their compensation structure and maturity profile all together and recently policy and company benefits for employees, updated in a clear and complete manner. Wienerberger goes the extra mile to inform candidates of what to expect when working for them.

Webranking by Comprend 7 Austrian edition conducted by Webranking Austria 2019-2020

The most trasparent companies in Austria Webranking Austria 2019-2020 Austria Webranking

5 stars 4 stars

No company has achieved the required score No company has achieved the required score between 80 and 100 points. between 70 and 80 points.

3 stars 2 stars

Rank Company Difference Point Rank Company Difference Point 1 OMV Group S 65.9 12 Porr Group NEW 49.8 2 Erste Group 65.2 13 Uniqa Group 47.6 3 Wienerberger 63.3 14 Andritz 47.4 4 Strabag NEW 60.4 15 Kapsch Trafficcom NEW 44.9 5 Agrana NEW 58.2 16 Mayr-Melnhof NEW 42.9 6 Vienna Insurance 57.7 17 42.5 Group 18 FACC NEW 40.9 6 Telekom Austria 57.7 19 Frequentis NEW 40.4 7 Palfinger NEW 56.8 20 Österreichische Post 40.3 8 Voestalpine 56.3 9 Lenzing 51.9 10 Verbund 51.3 11 Raiffeisen Bank 50.6 International

1 star No star

Rank Company Difference Point Rank Company Difference Point 21 Rhi Magnesita 38.2 25 Schoeller-Bleckmann 27.5 Oilfield Equipment 22 Valneva NEW 35.8 26 BAWAG 27.5 23 Semperit NEW 33.1 27 Marinomed Biotech NEW 26.1 24 Amag NEW 32.2

Notes How we evaluated the companies

*Companies included in the Webranking by Our sample is made up of 28 companies, listed on Comprend Europe 500 study. the ATX as of June 2019.

The maximum number of points is 100. Company websites were evaluated twice by different rankers throughout July and August, while companies in the Europe 500 top 10 were ranked three times by three different rankers.

Webranking by Comprend 8 Austrian edition conducted by How Webranking works A glimpse behind the curtains How Webranking works Webranking How

The Webranking process Capital Market Survey 1,800+ responses in the last six years 210+ respondents in 2018 of which 90% are analysts and investors (the remaining 10% is made up of fund managers, business SURVEYS journalists, and other) Surveys are the basis of our research, because they help us Career Survey understand what stakeholders 1 responses in the last six years want. 1,300+ 240+ responses in 2019 45% millennial Web Management Survey 60+ responses in all of Europe 64% web managers from blue-chip 6 10 sections PROTOCOL 9 Every year, the protocol is 0 100 total score 4 2 updated based on the stakeholder 247 individual criteria survey responses. 325 EVALUATIONS To guarantee the quality of ~ 900 companies globally evaluations, every website 500 of the largest listed companies in Europe is evaluated twice by two analysts. The best 10 websites 3 28 Austrian company are evaluated 3 times each. 31 countries under the lens

How to find out about the results: Country and sector results are published in RESULTS all of Europe, and in national and specialized In our whitepapers we newspapers. analyze data and identify trends. We publish results Webranking for companies 4 based on country and sector. Request highlights with a summary of your company’s results. It is possible to request an analysis with tailored suggestions as well.

Webranking by Comprend 9 Austrian edition conducted by Who we are

Logotypen med den större symbolen används endast i storlekar upp till 35 mm bredd. Since 1997, the Webranking research helps companies understand how to Comprend, Lundquist’s partner, is an improve their communication to better meet the needs of stakeholders, by international consultancy specialised in online comparing themselves to their international peers. corporate communications. Comprend can Who we are Who we rely on an international presence thanks to It is the only research which, by annually investigating the needs of different offices in Stockholm and London. stakeholders, gives a voice to website users. The Austrian edition of Webranking is conducted by Lundquist in collaboration with Comprend. For further information, check the website: comprend.com Webranking’s role Webranking provides the basis for further strategic work, by providing a framework for content that meets basic disclosure needs. The challenge now is to work to develop a convincing and effective corporate narrative, that goes Lundquist bridges the gap between companies beyond the hard facts and reporting, and provides a forward-looking outlook. and their audiences: that’s because we get to know both intimately. Our objective is to help companies in this next endeavour, moving away from Specialists in corporate communications basic disclosure to defining an effective corporate narrative.For this reason, and sustainability, we are independent, we have launched a new research series which not only evaluates transparency international and trusted to guide companies (substance) but also the ability of companies to engage in effective towards greater transparency and stakeholder communications (distinctiveness and user experience). requirements.

Thanks to our knowledge of stakeholder expectations and the strong Our approach to corporate communications is corporate experience gained over the years, we support companies in defining defined by the international research we carry communication strategies, guiding them toward effective stakeholder- out. Measuring the effectiveness of sites and communications. other corporate channels allows us to identify communication trends and industry priorities.

For more information, please visit: lundquist.it The research behind our approach

.trust .future Wikipedia Blurring Boundaries The .trust research series evaluates The .future research series Since 2008, we have been The new research series was companies’ ability to narrate represents the evolution monitoring the completeness launched in 2018, and is intended their business in a way that of our CSR Online Awards of Wikipedia articles for the to guide companies in the new communicates their leadership launched in 2008. Like .trust, largest Italian, Swiss, Austrian, sustainability reporting landscape. and instils trust amongst their the study evaluates corporate and International companies. The research, which examines stakeholders. Our goal is to websites and social media The study has allowed us to 50 companies in Italy and take advantage of the potential channels, concentrating on two define guidelines to help across Europe, is focussed on corporate communications holds fundamental aspects in creating companies constructively the integration of sustainability in increasing competitivity and trust in companies’ sustainability interact with the Wikipedia themes within the entire reporting inspiring trust. leadership: “Substance” and community. ecosystem. “Distinctiveness”.

To order your tailored Webranking by Comprend 2019-2020 Interactive Report or to have your website evaluated you can contact the Lundquist team:

Greta Castelli Arianna Evans Caroline Becker Project Manager, Webranking Italy Project Manager, Webranking Switzerland Project Manager, Webranking Austria [email protected] [email protected] [email protected]

Webranking by Comprend 10 Austrian edition conducted by Other Lundquist Webranking editions 2019-2020

Webranking Italy - 18th edition Italian companies top the European list this year, with 5 companies reaching the top 10.

Now that many companies have reached a good level of transparency, it is clear that corporate Italy needs to begin to face a new challenge of being more engaging and inspiring greater trust in their stakeholders.

Webranking Switzerland - 16th edition Swiss companies fall behind the European curve this year.

Corporate Switzerland is lagging greatly behind when it comes to sustainability communications, presenting little substantiating information for their commitments, instilling greater trust should also be in their sights.

For more information on what we do and how we can help, please contact:

Joakim Lundquist Sara Rusconi James Osborne Lundquist CEO Content strategist Head of Sustainability and Lundquist Partner and Lundquist Partner t (+39) 339 5013612 t (+39) 347 2457669 t (+39) 349 7937853 [email protected] [email protected] [email protected]