Winter 2009 IR BEST PRACTICE AWARDS 2009

Journal of The Investor Relations Society Issue 65 Winter 2009 IR BEST PRACTICE AWARDS 2009

A Razzle-Dazzle report with Winners and Photos + a special feature on BEST PRACTICE REPORTING with six articles and latest guidance for IROs

SEE CONFERENCE | LETTER FROM AMERICA INDUSTRY NEWS 2010 DETAILS IR COURSES | CHAIRMAN’S 2010 MESSAGE INSIDE Save the date!

IR in the new decade The 24th IR Society Annual Conference

Tuesday 20 April 2010 the Brewery, Chiswell Street, London EC1

Keynote speaker: Xavier Rolet, Chief Executive of the London Stock Exchange

For further information, please contact the Society on 020 7379 1763 INFORMED WINTER 2009/2010

CONTENTS

4 CHAIRMAN’S LETTER Raising our voice in the 2010 debate Richard Davies, IR Society chairman

5 NEWS FROM THE SOCIETY A sparkling awards evening in Chelsea – News in brief – Buy-side seminar discusses markets – Yes, it’s official, we are now tweeting and linking – Rolet to BEST PRACTICE open 2010 conference – Two new regulatory moves in REPORTING governance practice – Survey shows greater IR role IR BEST PRACTICE AWARDS 7 NEW MEMBERS List of new members and successful CIR students 17 – 31 Details of the 12 award- winners plus photos 8 A PERSONAL VIEW 33 The Thomson Reuters Extel The end of the noughties UK IR Awards – winners Michael Mitchell, IR Society general manager 34 – 35 Selected photos of the event 10 INDUSTRY NEWS Selected recent IR industry developments: A SPECIAL FEATURE ISC announces its code of responsibility for investors – Global supervisors address risk 17 Overview management flaws – FRC revises guidance on going The IR Best Practice Awards concern assessments – FSA sets out rules on liquidity Michael Mitchell, The Investor Relations regulation – FSA publishes feedback to Turner Society Review – Fund managers pay premium for good IR: survey – ‘A telling performance’: a survey of narrative 19 Narrative reporting reporting Why less is more... Rosie Ware, Deloitte 12 LETTER FROM AMERICA 22 Legal issues Activists keep powder dry How to ensure compliance Mike Reilly, Hally Enterprises Inc Kathryn Cearns, Herbert Smith 24 Corporate communications Taking control in the new age 36 IR SOCIETY EVENTS & COURSES Adrian Parker, SAS Professional development dates for 2009 27 New technology Grasp the XBRL opportunity Mark Nashman, Clarity systems 40 IR SERVICE PROVIDERS DIRECTORY 29 Report production Managing the workflow Marianne Young, CtrlPrint 42 USEFUL ADDRESSES and 30 Workshop IR SOCIETY BOARD Creating effective reports Claire Forrest, Emperor Design

IR SOCIETY 3 CHAIRMAN’S LETTER WINTER 2009/2010 INFORMED

A New Year letter from the chairman

The Investor Relations Society Bedford House, 3 Bedford Street, London, WC2E 9HD Tel: 020 7379 1763 Raising our voice Fax: 020 7240 1320 www.irs.org.uk in the 2010 debate

THE MANAGEMENT TEAM ear colleague – I hope that your new have been spreading much wider than Michael Mitchell year begins in a happier place than, banking in recent weeks – we are at the General manager D [email protected] perhaps, the past year did. At the time of start of a systemic review by government writing, markets are booming, although of the ways that companies interact with Richard Knight how much of this depends on quantitative investors. Communications and membership manager [email protected] easing remains in doubt. Encouragingly, The regulators are examining two key headhunters tell me that recruitment is areas: how company boards monitor the Patrizia Martinoli Financial controller ‘on the up’ in the IR sector so things are views of investors on an ongoing basis, [email protected] looking better than earlier this year. and whether there needs to be a strength- Scarcely a week goes by without a ening of the role of the chairman and/or Rachael Simmonds Head of marketing and professional new consultation document from a the non-executive directors (NEDs) in development UK or European regulator regarding liaising with investors. Worryingly, much [email protected] capital markets. The issue of corporate of the discussion of these matters fails to governance in terms of what will take into account the existing role of IR THE OFFICE HOLDERS remain self-regulating and what will practitioners in managing the relationship become statutory is an issue that between company boards and sharehold- Richard Davies should concern everyone working in ers. While the Society welcomes more Chairman [email protected] the IR industry. The recently pub- support for the IR process in terms of lished final draft of the Walker Review boards’ understanding of its strategic role John Dawson includes some interesting fine-tuning in the company’s business, giving more Deputy chairman [email protected] of existing guidelines on corporate responsibility to the role of chairman, governance which could affect us all. when there is a dedicated IR function in Ian Arnold Treasurer The issue of engagement between place, seems an impractical and unneces- [email protected] issuers and investors has become the hot sary response. topic for regulators and those that advise Hazel Jarvis Company secretary them. This interest derives from the belief Taking steps [email protected] that the failure of the banking sector, and It is vital that the IR Society has its voice subsequently the larger economy, was a heard in these debates at this time. Since For a full list of the IR Society board and the committee chairs, see last editorial page. failure of corporate governance, a large the last edition of Informed, with the sup- part of which was the failure of share- port of the Society’s board, I have taken holders to monitor the activities of bank several steps to help ensure this happens. INFORMED boards, who in turn failed to supervise Firstly, I felt it important that we, as a Hannah Buck adequately the activities of their own board and as a Society, are clear about Advertising companies. The implications of this view our purpose, so that others in the industry [email protected]

Alastair Murray Editorial assistant [email protected]

Alex Murray Publisher [email protected] We wish our members and Informed is published on behalf of the readers the compliments of the IR Society by Silverdart Publishing 211 Linton House, 164-180 Union Street London SE1 0LH season, a Happy New Year, and Tel: 020 7928 7770 www.silverdart.co.uk we look forward to a successful Editorial enquires can be addressed either to Michael Mitchell or to Alex Murray. 2010 working with you. Views expressed in this publication are not necessarily those of the Society. © 2009 IR Society.

4 IR SOCIETY INFORMED WINTER 2009/2010 IR SOCIETY NEWS

and beyond can understand what we are, what we believe and what we are trying to achieve. After interesting hours of brain- A sparkling awards storming and debate, we have come up with a new ‘house’ definition of IR, our aims and objectives as a Society and a set of core evening in Chelsea beliefs. You will find these on our website and reproduced on our literature as and he highlight of the investor relations when relevant. Tsocial calendar, the IR Society Best Secondly, in order that we can ensure the Practice Annual Awards and Dinner, took Society is heard outside the IR industry, we place at the Royal Hospital Gardens, have set up a new corporate affairs commit- Chelsea on 26 November amidst a glitter- tee under the chairmanship of Reg Hoare of ing backdrop. Smithfield Consultants. The committee’s Once again The Investor Relations brief is to improve our traction with the Society and Thomson Reuters Extel recog- media, making sure our activities in the area nised those companies and individuals who of policy are recognised in the outside have demonstrated best practice IR. The world; to promote the Society and its activi- Society was delighted to welcome nearly ties internally to our members; and, eventu- 400 guests at the evening who enjoyed a ally, to manage our lobbying campaigns in three-course meal and anecdotes from London, Brussels and Washington. Washington delivered by the awards host Thirdly, in order that we can cover ade- Justin Webb, the former US correspondent quately the vast scope of topics relevant to and currently a presenter of BBC Radio 4’s the IR industry, we are going to set up sub- Today programme. groups within the policy committee, valiant- As we all know, 2009 has been a chal- ly chaired by the tireless Mark Hynes, to lenging year for the financial services indus- look at specific areas such as accounting, try, including within the field of investor trading, governance, reporting and disclo- relations. In this year’s membership survey, sure. I will report more on these changes over 60% of in-house IROs reported that next time in this journal. their budgets had decreased during the last Finally, it is clear that in the fights ahead, twelve months despite similar or even the IR Society needs allies in many quarters increased responsibilities. It was therefore and the next months will see us building important to the Society that we delivered Many thanks to all the companies who bridges to interested parties within and an enjoyable and successful evening for all entered the Best Practice Awards and all without the sector, as well as international- and reports from the night indicated that our guests on the evening who made it such ly with other national IR societies. this indeed proved to be the case! an enjoyable occasion. ■ There is a lot to do but I hope the board and I can call on your support to ensure that IR and the IR Society remains at the heart of the discussions on how we fix a system For more photos and coverage of this event, please which seems at the moment still to be somewhat broken. turn to our special 20-page feature on ‘Best Happy Christmas and a Prosperous New Year to all! ■ Practice Reporting’ – which lists the winners of the

RICHARD DAVIES IR Best Practice awards – from page 15. Chairman of The Investor Relations Society

DELIVERING INDEPENDENT INSIGHT

[email protected] +44 (0) 1354 698189 www.investorperceptions.com IR SOCIETY NEWS WINTER 2009/2010 INFORMED

News in brief Buy-side seminar Members discuss politics and economics with Mark Hoban MP In November, the IR Society heard discusses markets from Mark Hoban MP, shadow financial secretary, on the enior buy-side figures gave their account equity markets were still attractive in face of implications for IR and the City of a Sof the changing nature of their industry strong emerging market performance. potential Conservative government to IR Society members at a breakfast semi- The buyside figures were asked if IROs in when Britain goes to the polls in nar in November. the UK and other developed markets faced 2010. Many thanks to all those who As part of our continued commitment to a shrinking pool of liquidity as a result of attended and particularly Mark ensuring the IR Society provides its mem- competition from high-growth emerging Hoban for giving up over an hour of bers with relevant and topical information, markets. (According to Credit Suisse, his time to discuss his party’s views the event was structured to give IROs and emerging markets have snapped up around and consider questions from the their advisors an essential insight into what 50% of global equity inflows since April.) audience. We would hope that the buyside is looking for as the economy Please read the rest of this event write-up members recognise that this is the moves to recovery. IR Magazine were in at www.thecrossbordergroup.com/pages/191 sort of event that gives a key insight attendance and reported that developed 3/Breaking+news.stm?article_id=13708. ■ into the issues that directly affect them and that at similar events in the future more will attend. If you have any suggestions regarding future events please contact us to Yes, it’s official – we are now discuss! tweeting and linking... To keep up to date, get IR Essentials in print and online t has finally happened! Despite the initial have a (free) account before seeing anything A reminder to all members that they Imisgivings of general manager Michael about the IR Society. At Twitter, you can can download our IR Essentials Mitchell (see ‘And another tweet...’ in his see main our page (below) by visiting guides from the knowledge bank column in the last issue of Informed), the IR www.twitter.com/IRSocietyUK. To become section of the website. Written by Society now has a presence on two familiar a ‘follower’, you need to have a Twitter industry professionals, these guides social networking sites, LinkedIn and account (also free). cover An Introduction to Investor Twitter. At Twitter, we will be posting updates and Relations, Crisis Management: a Please search for us in LinkedIn as ‘The discussions from time to time – if you have strategy for IROs, Narrative Investor Relations Society’ and Twitter as any contributions to make please do so! Reporting – the vital issues and ‘IRSocietyUK’. At LinkedIn, you need to Happy tweeting... ■ Periodic Reporting – a guide for IROs. All these are available on www.irs.org.uk as well as in print. For details of how to obtain printed copies, please see the advert on the inside back cover of this issue.

After many successful events, we say goodbye to Sara Abuzaid At the end of 2009 we say goodbye to Sara Abuzaid, conference and events manager, who is leaving the Society to work within the renewable energy sector. In her time with us Sara successfully organised the 23rd IR Society Annual Conference and IR Best Practice Awards 2009 as well as our regular events. Sara has been a good colleague for us at the IR Society and we wish her well in her new venture! ■

For the best IR events, see the IR Society’s events programme on page 36 and at www.irs.org.uk.

6 IR SOCIETY INFORMED WINTER 2009/2010 IR SOCIETY NEWS/NEW MEMBERS

Rolet to open 2010 conference avier Rolet, chief executive of the be sessions covering the great social media XLondon Stock Exchange (right), will debate, the future of annual reports, making be the keynote speaker at this year’s annual corporate responsibility a sustainable busi- conference which will be held on Tuesday ness function and career progression for 20 April, at the Brewery, Chiswell Street, IROs. Once again we are putting together an Ticket costs are being held again at 2007 London. interesting list of speakers and there will be prices – and there is an ‘early bird’ discount We will be looking at both the macro and the usual opportunities for networking and for bookings paid for before 26 February. micro implications of the world banking cri- hearing about new developments in the IR For details and a booking form visit sis and how this may continue to influence sphere from exhibitors and service www.irs.org.uk or ring us on +44 (0)207 financial communications. There will also providers. 379 1763. ■

The IR Society welcomes new members...

The IR Society is pleased to welcome the Clive Thomas – Nexxar UK Yolanda Lau – JunctionRDS Ltd following new members (the list shows Steven Tolley – Jones and Palmer Roman Luchkovsky those who joined up to mid-November): John Warehand – Inmarsat Poonam Mulji – JunctionRDS Ltd Nathaniel Webb – Panmure Gordon Andreas Pfeiffer – JunctionRDS Ltd Diana Barham – JP Morgan and Co ■ Alexander Pike – BT Patrick Bowes – Old Mutual PLC Rajesh Raghavan Laura Folley – Rentokil Initial PLC ... and congratulates Igor Ustinov – Promsvyazbank JSC Anastasia Fomina Alexey Verenikin – IR Magazine Russia Nick Gilman – John Wood Group CIR candidates Emmulin Wee – Abterra Ltd PLC Victoria Wheelwright – SAS Design ■ Laura Holland – Biddicks The IR Society would like to congratulate Susan Holliday – Swiss Re the following candidates who recently passed Ian Hoy – Beazley Plc the Certificate in Investor Relations (CIR): Certificate in Investor Maddy Kennedy – Lab21 Relations Katie Lyons – Lyons Rankin Ltd Dupe Ania The CIR is the UK’s foundation-level Garry O’Dea – Irish Continental Sharan Dhami – Tullow Oil professional qualification for IR Group PLC Catherine Dolton – InterContinental practitioners and has been updated to Odutayo Oluwatosin – Access Bank Hotels Group include the recent changes to the PLC Vierka Dzurendova – JunctionRDS Ltd Companies Act, as well as details on Laura Schmerl – Ariadne Capital Lydia Eades – Biddicks the Alternative Investment Market Rebecca Silva – The Weir Group Plc Hannah English – SEGRO (AIM) rules. For further information, Matthew Springett – Telecity Group Simona Gambini – Vimetco NV please contact Rachael Simmonds – PLC Helene Godbert – Tulchan [email protected] Sergey Takhiev – NLMK Communications

IR SOCIETY 7 A PERSONAL VIEW WINTER 2009/2010 INFORMED

A personal view by Michael Mitchell

The end of the noughties

ere we are at the end of the first So what are the implications for IROs in Hdecade of the 21st century. A decade the next decade? The demand for informa- that has seen the bursting of two great bub- tion will grow as institutional investors bles – the dotcom bubble at the beginning strive to show that they are abiding by the and the banking one at the end. As we look new Stewardship code. Issuers will need to Michael Mitchell is general manager of back at these events what are the prognos- prioritise their communications efforts and The Investor Relations Society. tications unfulfilled, what are the lessons I believe the Society should be helping by [email protected] we can learn, and what can we expect over developing best practice guidelines. the next ten years? And what will corporate reporting look The internet has probably been the like in 2010? I think that the printed docu- biggest surprise and also disappointment; ments will still be around but they will ital as the perfect storm of an ageing popu- disappointment that huge amounts of focus on the ‘business end’ of the accounts lation and the drive for alpha pushes pen- money cannot be made from ephemeral – the numbers and statutory disclosures. sion funds to abandon domestic equities in concepts, but surprise at the expansion of The internet will be used for the creative favour of bonds and the growth economies. social networking and the impact on busi- side of communication with stakeholders. Will we learn from past experience? ness. On the macro side – inflation will reap- Probably not. Human nature is to follow The dust has not yet cleared from the pear and international tension will contin- the herd so watch out for the next bubble! implosion of the banking system, but what ue as the scramble for the control of scarce Happy Christmas and a prosperous 2010. is clear is that the pendulum is swinging resources escalates. Life will be tougher for We will be exploring these and other top- very strongly towards increased regulation the mature economies of the West. UK ics at our conference on 20 April 2010 – as a result. companies will need to strive to attract cap- make a date to attend. ■

Two new regulatory moves in governance practice

wo important documents were are proposed. There will also be discus- requirement which many companies Tissued in November which will sion as to whether the chairman or the and IROs found somewhat unrealistic. potentially change the way in which full board should be subject to annual However what this does mean is that it IROs interface with investors. re-election. is even more important that companies The ‘Walker Review’ is focused on have an effective IR function which corporate governance in UK banks and Drafting changes feeds back investor concerns to the other financial industry entities, how- Some small but potentially significant chairman so that he can fulfil his duty. ever a number of its recommendations drafting changes to the section on com- Importantly for IROs, it is proposed may be incorporated into the ‘Review munication (previously ‘relations with that the stewardship code for institu- of the Combined Code’ published by shareholders’) mean that non executive tional investors, prepared by the the Financial Reporting Council directors are not expected to have sep- Institutional Shareholders’ Committee, (FRC), where they are applicable to all arate meetings with shareholders but should be incorporated into the code listed companies. The combined code can attend existing meetings as appro- and be overseen by the FRC. The will be renamed the ‘UK Corporate priate. It is now the duty of the chair- FRC will also consider options for pro- Governance Code’ which will make its man to ensure that all directors under- ducing practical guidance on good status clearer, particularly for foreign stand their major shareholders’ issues practice engagement between compa- investors. and concerns. nies and investors. Importantly the principle of ‘comply Previously, the senior independent The Investor Relations Society sup- or explain’ will be retained, but other director (SID) and other directors were ports this initiative and will submit sug- amendments to the role of the chair- expected to maintain contact with gestions to the FRC for inclusion in this man and the non executive directors major shareholders themselves – a guidance. ■

8 IR SOCIETY INFORMED WINTER 2009/2010 IR SURVEY

Survey shows greater IR role

Investor relations professionals are playing a progressively more central role in shaping and articulating corporate strategy, according to the findings of a survey* by the Maitland consultancy, carried out with the help of the IR Society. Emma Burdett reports.

aitland last carried out a far-reaching Minvestor relations survey 10 years ago. Some regard the sell-side as too This time, working with the IR Society, we carried out detailed unattributable inter- stretched to warrant major attention views with over 30 senior IR professionals and in addition to assessing the state of IR sales teams) as well as deepening relation- Guidance and how developments have progressed, we ships with the analysts. The area of providing forecast guidance also also looked at key topical issues and how dif- Increasing regulation and the impact of provoked much comment and was clearly an ferent companies are responding to them. the credit crunch have created new chal- emotive topic. The balance of interviewees This survey was inspired by our observa- lenges. Reactive responses to leaks and were against giving formal numerical guid- tion of the ever increasing demands on com- media speculation have increased signifi- ance, preferring to provide indicative guid- pany IR departments. Pressures on their cantly. With the Financial Services ance around a reasonable range of forecasts time have been pushed to the limit by an Authority’s (FSA’s) re-emphasis on the as well as some narrative steer. How and expanding and increasingly demanding timely release of price sensitive information, where to publish consensus forecasts is also audience, and by intensifying regulation. this trend looks set to continue. an area of some confusion, varying from The external climate has also changed While most companies have adapted to website publication to verbal confirmation. rapidly, with uncertainty greatly magnified the changing regulatory regime, the intro- With companies trying hard to stay within during the recent financial turmoil. duction of some ‘black-letter’ European FSA guidelines and not being tied to having rules, as opposed to a principles based given a formal forecast, the issue then devel- Evolving buy-side framework, has created some conflicts. ops of having to ensure that third party The main changes centre around the evolv- Virtually all interviewees expressed concern providers are picking up all the correct ana- ing relationship with both the buy-side and that the FSA’s push for heightened disclo- lyst numbers – a minefield and a consider- the sell-side. The credit crunch has affected sure might increase, rather than diminish, able time burden. both the quality and quantum of investor share price volatility. engagement. Demands on company time The board from investor meetings have grown expo- Insight Finally, the growing importance of ensuring nentially, yet accessing the ‘right’ fund man- There was also much discussion on how the whole board, including the non-execu- agers remains as challenging as ever. Finding best to provide real business insight for tive directors, is aware of investors’ issues, innovative approaches to investor interaction investors. Some of the larger companies with means that IR is playing a progressively is a major theme, as is the need to develop better resourced IR departments are now more central role in the shaping and articu- understanding in the financial community. focusing on providing as much market data lation of corporate strategy. It may well be Another feature is the dramatic change in as possible, helping investors and analysts that the next step will be a move towards attitude to hedge funds. Once viewed with understand the key drivers behind their main executive board representation for the some disdain and wariness, discussions with business and clarifying why their chosen IR function. ■ hedge funds are now often regarded as valu- strategy is appropriate. This seems to pro- able and constructive. Meetings are often vide some tangible results, but is not a door * The full survey is available at more challenging, with the participants fre- open to all sized companies. www.maitland.co.uk/downloads/research.php quently better prepared.

Sell-side In contrast, IR departments’ attitudes towards the sell-side tends to be more polarised. A significant number of participants regard the sell side as too stretched and time-constrained to warrant significant attention. Others see their role as becoming more important in an increasingly regulated financial world. However, meetings with Emma Burdett is head of investor sales desks are popular, both as an efficient relations at Maitland. use of management time and to combine breadth of access to investors (via the equity [email protected]

IR SOCIETY 9 IR INDUSTRY NEWS WINTER 2009/2010 INFORMED

Industry news briefing Selected key issues for IROs

ISC announces its code of responsibility for investors

n important document was issued For a more detailed examination of the sure, and adhere to a level of risk Awhich will have relevance to all IROs ISC code see http://institutionalsharehold- acceptable to the firm; in the conduct of their relationships with erscommittee.org.uk and select ‘library’. ● compensation programs that conflict- investors. The Society welcomes the new While the code is voluntary, it will oper- ed with the control objectives of the code of responsibility for institutional ate on a ‘comply or explain’ basis. The IR firm; investors announced in November by the Society hopes institutional investors will ● inadequate and often fragmented tech- Institutional Shareholders’ Committee - recognise the mutual advantage to both nological infrastructures that hindered the umbrella organisation of the investors and investees of enhanced dia- effective risk identification and mea- Association of British Insurers, Association logue and scrutiny. The IR Society believes surement; and of Investment Companies, the Investment that for most companies who have a proac- ● institutional arrangements that con- Management Association and the National tive IR programme this code will enhance ferred status and influence on risk tak- Association of Pension Funds. two way communication. ers at the expense of independent risk The code sets out a number of princi- In addition, the Society is working on a managers and control personnel. ples designed to enhance the quality of the code of best practice for members. dialogue of institutional investors with The report then goes on to recom- companies (ie investor relations) to Global supervisors address risk mend ten required areas of continued improve shareholder returns and reduce management flaws improvement being board direction and risk through improved corporate gover- One of the key drivers of last year’s finan- senior management oversight, articulat- nance and company strategy. Below we cial shock was the absence of appropriate ing risk appetite, compensation practices, have highlighted these principles, which risk management amongst financial firms information technology infrastructure, suggest that institutional investors should: whose business models relied on continu- risk aggregation and concentration iden- ous access to financial markets at often tification, stress testing, counterparty risk ● publicly disclose their policy on how excessive leverage levels which pointed to management, valuation practices and loss they will discharge their stewardship wider corporate governance issues. IR pro- recognition, operations and market infra- responsibilities; fessionals have spent the last year dealing structure and liquidity risk management. ● have a robust policy on managing con- with the ramifications of this by placating This is a highly relevant report in the flicts of interest in relation to steward- the markets and reiterating company context of the corporate governance ship and this policy should be publicly objectives amid turbulence and instability. debate and can be downloaded here: disclosed; Now, the financial regulators of the UK, www.fsa.gov.uk/pubs/other/SSG_risk_ ● monitor their investee companies; US, Canada, France, Germany, Japan and management_lessons.pdf ● establish clear guidelines on when and Switzerland have produced a report enti- how they will escalate their activities as tled Risk Management Lessons from the FRC revises guidance on going a method of protecting and enhancing Global Banking Crisis of 2008 designed to concern assessments shareholder value; address the impact of risk management The ever busy FRC has published updat- ● be willing to act collectively with other failings in th e wider context of the funding ed guidance for directors of UK compa- investors where appropriate; and liquidity crisis. The report highlights a nies to assist them when making their ● have a clear policy on voting and disclo- number of areas of weakness including: assessment of going concern. sure of voting activity; and It highlights three principles: ● report periodically on their stewardship ● the failure of some boards of directors and voting activities. and senior managers to establish, mea- ● assessing going concern – directors should make and document a rigorous assessment of whether the company is a going concern when preparing annual and half-yearly financial statements. IR professionals have spent the last year The process carried out by the directors should be proportionate in nature placating the markets and reiterating and depth depending upon the size, level of financial risk and complexity objectives amid turbulence of the company and its operations;

10 IR SOCIETY INFORMED WINTER 2009/2010 IR INDUSTRY NEWS

communications follow a similar pattern worldwide. As Joseph Chia, general man- The strongest concern of respondents ager, Investor Relations Professionals Association (Singapore) states, “Long- was ‘the need for international term credibility doesn’t mean that they consistency in formulation and come to you to tell you good news or they come to you only when they need to raise implementation of the regulatory funds. Long-term credibility is established when you actually communicate with policy response to the crisis’ investors honestly – whether it is good or bad news.” Therefore, we feel it would be of interest for our members and subscribers to view this survey. To do so please contact ● the review period – directors should con- FSA publishes feedback to [email protected]. sider all available information about the Turner Review future when concluding whether the The Financial Services Authority (FSA) ‘A telling performance’ – a company is a going concern at the date published feedback to the Turner Review, survey of narrative reporting they approve the financial statements. which was launched in March 2009 calling Deloitte has published its narrative report- Their review should usually cover a peri- for greater scrutiny of individual compa- ing findings. Isobel Sharp, audit partner at od of at least twelve months from the nies as well as a more systemic macro Deloitte, stated: “Companies have per- date of approval of annual and half-year- approach to regulation. The FSA stated formed better in 2009 than in 2008 in ly financial statements; and that respondents generally agreed with meeting the disclosure demands which ● disclosures – directors should make bal- the analysis of the review and the broad are diverse, disjointed, different and dys- anced, proportionate and clear disclo- approach it proposed. functional. Businesses would be helped if sures about going concern for the finan- The strongest concern of respondents there was a single authoritative document cial statements to give a true and fair was ‘the need for international consisten- which brought together the requirements view. Directors should disclose if the cy in formulation and implementation of in a complete, logical and orderly man- period that they have reviewed is less the regulatory policy response to the cri- ner.” One finding of the findings show the than twelve months from the date of sis’. The FSA will be issuing a further length of the annual report has increased approval of annual and half- yearly finan- discussion paper in October focusing on by another 3% compared with 2008, and cial statements and explain their justifica- key areas such as systemically important by 41% compared with 2005 whilst 84% tion for limiting their review period. firms and the cumulative impact of capital of companies (2008:77%) identified clear- and liquidity reforms. ly their key performance indicators. The full document can be read at Read the feedback at www.fsa.gov.uk/ Further information can be found on www.frc.org.uk under ‘Corporate report- pubs/discussion/fs09_03.pdf www.deloitte.com/view/en_GB/uk/ ing’. services/audit/index.htm – select ‘A telling Fund managers pay premium performance’. FSA sets out rules on liquidity for good IR – survey See also the article on page 19. ■ regulation Fund managers are willing to pay premi- The Financial Services Authority (FSA) um for good investor relations: this was the has set out its rules on firms’ liquidity key finding of a comprehensive and reveal- requirements designed to enhance risk ing survey of institutional investors’ opin- Keep up to speed with IR management practices as part of its general ions on IR at Singapore Exchange (SGX)- investigation into the regulatory and sys- listed companies, undertaken by Dr Mark industry news and IR temic flaws that helped cause the financial Chong, associate professor, corporate crisis. communication practice, of Singapore Society news with the The rules include: Management University in association Informed weekly Bulletin – with Investor Relations Professionals ● an updated quantitative regime coupled Association (Singapore). and it’s FREE! See the IR with a narrow definition of liquid assets; Some 89% of the institutional investors ● over-arching principles of self-sufficiency surveyed stated they were willing to pay a Society website to register and adequacy of liquid resources; quantifiable premium for good IR whilst – www.irs.org.uk. The ● enhanced systems and controls require- clearly valuing good investor relations offi- ments; cers. Another interesting finding was that Bulletin also features the ● granular and more frequent reporting the majority of institutional investors requirements; and (55%) prefer quarterly updates while 18% most recent jobs from the ● a new regime for foreign branches that prefer half-yearly updates and 16% prefer operate in the UK. monthly updates. IR Society Job Zone and While this survey was aimed at the updates on Events and Please read more details on this at Singapore market, the IR Society has www.fsa.gov.uk/pages/Library/Communicat always maintained the principles of best Courses. Don’t miss out! ion/PR/2009/132.shtml practice IR are universal and that investor

IR SOCIETY 11 LETTER FROM AMERICA WINTER 2009/2010 INFORMED

Activists keep powder dry

In his latest column from New the nineties, activists focused largely on governance matters. But in more recent times York, Michael J Reilly looks at letter from they turned their demands to see businesses the changing face of shareholder America sold outright or to call for the spinning off of activism and suggests that much non-core assets. more is to come. The latter trend has been unreasonable in a time of financial crisis. But as conditions shift back and the government puts heavy olling into 2010, companies that have University in Massachusetts which came out emphasis on seeing corporate spending cre- Rrelaxed their concern about activism in 2007 showed a steadily rising rate of ate jobs, perhaps with yet another stimulus need to renew their guard according to peo- activist moves on the preceding five years. As round, you can be sure the purse strings will ple with a close eye on the activist front. The hedge funds multiplied and some began to loosen at the activist table. As they do, along shape of shareholder activism is, like much throw their weight around, a spike appeared; with loosening elsewhere, valuations will else in today’s world, morphing from past 160 actions in 2003. Since then, the number rise. In parallel, companies which have lost patterns, but what we see may not actually has not dropped. their strength will be vulnerable to acquisi- tell us what is coming. Still, larger companies have been relative- tion and companies who have stored capi- A number of organisations keep watch on ly clear of worries about activism. Only four tal will be ready to buy. the pattern of activism, especially as it companies with market caps over five billion applies to hedge funds whose numbers dollars were in the list in 2009; all the rest Staying alert have sky-rocketed. While their impact fell below one billion dollars. This can be So, what is a company to do? The answer recently has largely been felt by small to attributed in large part to three things: the comes down to tried and true business prac- mid-cap companies, that does not mean recessionary times which drained many tices. Namely, maintaining a keenly honed they won’t be setting their sights higher. hedge funds’ coffers; the reluctance of any- strategy and staying alert for the knock at Much higher. one to splash out fresh money in merger and the door which will require a considered “They are keeping their powder dry,” says acquisition (M&A) activity and a general response. Stimulated by an October report one of the leading corporate advisors who fear of the unknown. from RiskMetrics, the international corpo- watches this scene. That allusion to gun- But as is always the case, a reversion to the rate advisory group, an article in the New powder at the ready might be carried a bit mean can’t be too far off. As 2009 closed, York Law Review addresses recent activism. further into the world of firearms by saying there were plenty of signs that stimulus plans “The populist mood of recent proposed that those activists may have set their sights were working, health was returning to the federal legislation in response to the finan- lower, but they have still been at the range, US financial markets, albeit slowly, and cial crisis as well as proposed SEC rules will keeping in practice. since few corporate leaders were spending further encourage shareholder activists on anything, money has piled up. toward increased efforts in the 2010 proxy Rising rate Couple that with the fact that activism season,” the article concludes. In the In 2009 about 280 individual cases of hasn’t gone away, just shifted to a leaner authors’ view, there will be a continuation of activism were tracked. Studies by mode, and the message is that companies traditional governance pursuits, spurred by researchers at the Wharton School of need to keep a wary eye open for the return pension funds and other activists. Business in Pennsylvania and at Harvard of the high-profile demand for change. In For the coming proxy season, they offer advice which applies across the board to activism of every stripe. “Boards of directors . . . should continue to hold steady to their strategic goals. When the reforms are finalized, the fundamentals will remain. With strong leadership, long- term planning, good advisors and good communication, boards of directors are well-equipped to weather the impact of the proposed changes. “Above all else, public companies must remain focused on the long-term best inter- Mike Reilly provides advice on markets ests of the company and its shareholders and and communications through Hally take proactive steps to protect them from Enterprises Inc and its writing and being hijacked and sacrificed to the short- editing division, Globalwriters. term interests of profiteers.” Skype address: GLOBALWRITER Now there is a New Year’s resolution with [email protected] some promise. ■

12 IR SOCIETY any audience any time anywhere in the world

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ADC9DC =DC<@DC<=DC<@DC< HN9C:NHN9C:N B:A7DJGC:B:A7DJGC: A 20-PAGE SPECIAL FEATURE BEST PRACTICE REPORTING

In the following pages, we highlight the award-winners in the successful IR Best Practice awards event, held in late November – and those who won the Thomson Reuters Extel UK IR awards on the same day.

In addition, this feature presents six articles on the current key issues in corporate reporting, from new trends to the legal background and the latest technology.

Whether you attended last month’s event, or were involved in the awards as a nominee, winner or sponsor – or if you have a professional involvement in IR – these topics make essential reading.

***

The 12 winners of the IR Best Practice Awards are shown throughout the feature, from pages 18 to 31. The six winners of the Thomson Reuters Extel Awards are shown on page 33. See Contents on page 3 for a full list of articles in this feature.

IR BEST PRACTICE AWARDS 2009 Attract the attention of the world’s investors

Attract new investors and communicate more clearly with your shareholders, with the FT’s new digital Investor Relations service. With links to your website, downloadable reports, video presentations and slideshows, it gives you maximum exposure to FT.com’s affluent global audience when they’re actively researching investments. Find out more at www.ft.com/irmediakit INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

Justin Webb, a long-time BBC journalist who is now a presenter on Radio 4’s Today programme, was the host of the awards presentation at the Royal Hospital Gardens, Chelsea. Before presenting the awards to the 12 winning companies, he spoke about his recent period as the BBC’s North America editor, including his insights into current US events.

OVERVIEW The IR Best Practice awards

An enjoyable evening at the IR n what has been a turbulent year, it was full reporting requirements of the Iever more important that the facts behind Companies Act 2006. Society’s annual awards event the results were clearly communicated by This is the 9th year that the Society has in November has set the scene companies to the market. 2009 was also the run the Best Practice awards and we for the next reporting season. year when most companies had to adopt the reviewed the categories to make sure that Here Michael Mitchell they reflected the most relevant areas of communication with investors. This year we introduces the IR best practice The awards judging panel included new awards for communication of topics explored by the expert strategy, performance and KPIs and for writers in the following articles. Paul Boyle, Financial Reporting communication of governance and risk. Council Both areas are high on the agenda of most John Dawson, Cadbury (Chairman of investors so it is important to see how com- the Best Practice Committee) panies have handled these issues in their Anthony Hilton, Evening Standard reporting. Liz Murrall, Investment Management The entry and judging process was Association unchanged from last year. Companies and David Paterson, National Association their advisors were invited to submit their of Pension Funds entries for the different awards. Judging was Peter Robinson, Redburn Partners a two stage process. Initially all nominations Simon Thompson, ICAEW were given a score based on a comprehen-

IR SOCIETY 17 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

sive judging matrix which had been developed for each award. Scoring was based on CORPORATE REPORTING the Society’s Best Practice Guidelines which are available on our website. The highest Do’s and don’ts for companies scoring entries were then peer-reviewed by experienced IR practitioners from the ● Do provide context for principal risks and uncertainties – are they increasing or Society’s board and a short-list was submit- decreasing…don’t simply include generic descriptions of risks that could easily be ted to a panel of judges drawn from analysts, cut and pasted into another company’s report. fund managers and users of accounts. ● Do use tables to link principal risks to related actions to manage the risks…don’t Once again we would like to thank the shrink the risk content down to fit the table, instead expand the table to fit the ICAEW for making their facilities available content. for the judging panel. ● When articulating strategy, do ensure that you describe ‘what’ your goals are and ‘how’ you plan to achieve them… don’t make bland statements like ‘our plan is to Best practice reporting grow’ with no further explanation. In the following articles we highlight issues ● Do use your KPIs to demonstrate progress against stated objectives and strate- which companies should be considering in gies…don’t just tick the box by providing a KPI table that does not link to the rest putting together their next annual reports. of the narrative. The main issue to be tackled is length. ● Do explain why CSR is important to the business…don’t include information on Each year accounts have increased in size – employees, environment and social and community that is not important. and as the Financial Reporting Council ● Do include non-financial KPIs to explain how the key drivers of the business are (FRC) reports in its review of narrative monitored…don’t include peripheral measures such as number of employees just reporting ‘Rising to the Challenge’, they to tick a box. found ‘immaterial clutter detracting from ● Do provide a comprehensive explanation of your business model - how you make most important information most frequent- money incorporating discussion of processes, distribution methods and struc- ly in the corporate social responsibility ture…don’t limit this to discussion of just products and services or resort to the (CSR) and risk reporting sections of the nar- use of undefined technical jargon. rative’. At right is a useful summary from the ● Do support your discussion of relevant industry trends with external FRC report. The full report can be found on evidence…don’t be afraid to quantify the trends instead of relying on bland state- the FRC website – www.frc.org.uk. ■ ments like ‘the outlook for our industry is good’.

IR BEST PRACTICE AWARDS • THE WINNERS

Best communication of strategy, Winner: Morrisons 1 performance and KPIs in the annual report The judges felt that overall there is This is a new category for the awards. The judges were still room for companies to explain looking for a clear statement of a company’s strategy and an their strategy and the relevance of explanation as to how it will enable the company’s objectives their key performance indicators to be achieved. They also wanted to see clear linkage more clearly, demonstrating how between strategy, performance and key performance they drive their business day to day indicators (KPIs) throughout the annual report and how and help them differentiate them- KPIs have been chosen and their relevance to the business. selves better within their sectors. All the short listed companies had made worthy efforts, but Morrisons set out the most important drivers of performance very clearly which helped them differentiate themselves well in a very competitive sector.

Morrisons is the UK’s fourth largest food retailer with 403 stores and nine million customers per week. The group sources and processes most of the fresh food that it sells though its own manufacturing facilities. www.morrisons.co.uk

Award sponsor: Hugin, now part of Thomson Reuters

(From left to right) Justin Webb, Penny Baxter of Salter Baxter (on behalf of Morrisons) and Badr Boukili of Hugin Group.

18 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

NARRATIVE REPORTING Why less is more...

Preparing annual reports is becoming ever more complex and troublesome for UK companies. Rosie Ware of Deloitte looks at recent developments in narrative reporting and outlines some solutions to the common problems highlighted by a recent survey.

hen narrative reporting by UK listed Wcompanies is subject to so many com- The average length of an annual report peting disclosure regimes, it is no surprise that the end result is lengthy. It also runs the has increased by 3% since 2008 and by risk of failing to communicate a clear and consistent message. Deloitte’s 2009 survey 41% since 2005 of narrative reporting in annual reports, ‘A telling performance’, finds that the average acknowledged for some time, but in recent ‘Louder than words’, recommends eight length of an annual report has increased by months has received increased attention. guiding principles for reducing complexity. 3% since 2008 and by 41% compared with This year the Accounting Standards Board Unfortunately the ‘calls to action’ proposed 2005. The results suggest that what compa- (ASB) – which is part of the Financial in this paper are unlikely to result in change nies need is one complete, coherent and log- Reporting Council (FRC) – has also carried in the short-term, particularly as most call ically ordered guide to narrative reporting, out a survey of narrative reporting, ‘Rising for further projects and investigations. rather than having to struggle with the raft of to the challenge’ (referred to in the previous With no immediate relief on the horizon, regimes and rules. article), with a focus on effective communi- there is little consolation for those preparing The increasing length and complexity of cation and presentation and cutting clutter. for the 2009/10 reporting season. However, annual reports is a problem which has been The FRC, in its June discussion paper they need not despair entirely, as some help

IR BEST PRACTICE AWARDS • THE WINNERS

Best communication of governance and risk in Winner: Marks & Spencer 2 the annual report This award is all about the best This is another new award category which focuses on the reporting of governance and not a increasingly important area of governance and risk. The judgement on governance itself. In judges wanted to see a clear summary of the company’s this respect, the judges felt that all governance framework and evidence of integration of companies could do better and corporate governance standards throughout the business. would look for further improvements in 2010, with an emphasis They also looked for a clear discussion of risks, on going beyond the boiler plate explanations. Marks and highlighting those which are specific to the operations. Spencer tackled its own issues on governance in a clear way, presenting its reasons openly and constructively enabling investors to form a clear understanding of the company’s viewpoint – whether they might agree or disagree with the conclusions.

M&S is one of the UK’s leading retailers, with over 21 million people visiting its stores each week. It employs over 75,000 people in the UK and abroad, and has over 600 UK stores, plus an expanding international business. www.marksandspencer.com

Award sponsor: The Bank of New York Mellon

Justin Webb, Anthony Clark of Marks & Spencer and Chris Hanley of The Bank of New York Mellon.

IR SOCIETY 19 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

is at hand to navigate the current complex tapestry of requirements. Through an Avoid the temptation to include only examination of the narrative reporting of 130 listed companies published between positive aspects of the performance August 2008 and July 2009, ‘A telling performance’ covers the pitfalls lying ahead for for the year those unfamiliar with the many rules gov- erning the front half of the annual report. So what are some of the common problems identified from the survey and how tainties, avoid presenting a list of generic risk current economic environment is likely to be might these be resolved? headings without any focus on the impact a factor which could affect the future devel- such a risk would have on the company’s opment, performance and position of the Difficulty interpreting the requirement business were it to materialise. Best practice company’s business. To provide meaningful to provide “a fair review” of the is to include the nature of the risk, the disclosure, include a description of how the company’s business potential impact and planned mitigation. trends and factors identified would affect the The business review should be balanced and The discipline of providing disclosures future development, performance and posi- comprehensive and consistent with the under each of these headings for each risk tion of the company’s business. numbers presented in the financial state- should avoid falling into the trap of produc- ments. Avoid the temptation to include only ing a generic list of risks that could affect any Too many key performance indicators positive aspects of the performance for the company. There is no magic number. Be pragmatic year. Remember the order of the annual and ensure that users are not overloaded report and consider what users will have Lack of detail on trends and factors with data which will serve only to hide the read before they get to the business review likely to affect the future development, true ‘key performance indicators’. This is a section. Ensure that cross references are performance and position of the good example of the importance of quality clear, specific and do not distract from con- company’s business over quantity. As with principal risks and veying the message. There should be a read across between these uncertainties, a useful mechanism is to disclosures and the disclosures on principal include disclosures on the definition, calcu- Principal risks and uncertainties are risks and uncertainties. However, for trends lation and use of each KPI in the business. too generic and factors, it may be appropriate to disclose This process would usually identify those When disclosing principal risks and uncer- more generic elements. For example, the measures which are superfluous.

IR BEST PRACTICE AWARDS • THE WINNERS

Best communication of corporate Winner: BASF 3 responsibility in the annual report The judges favoured The judges were looking for a clear summary of the companies that really company’s corporate responsibility (CR) strategy and an integrated their corporate honest discussion of how this could impact the business. responsibility reporting into A genuine integration of this strategy into the business the business review. They review and evidence that the CR strategy is embedded commended Rolls Royce for a into the corporate culture and is ‘owned’ by the board very good report, but BASF, were also needed. the winner by a considerable head, made a formidable attempt to integrate its social and corporate reporting throughout its annual report. UK companies could learn a lot on how to bring this challenging aspect of reporting to life from this report.

BASF, based in Germany, describes itself as ‘the world’s leading chemical company’ with about 97,000 employees in many countries. In 2008, BASF posted sales of €62.3 billion and income before special items of approximately €6.9 billion. www.basf.co.uk

Award sponsor: Richard Davies Investor Relations

(From left to right) Justin Webb, Dr Volker Seidl of BASF and Caroline Henry of Richard Davies Investor Relations.

20 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

Inclusion of non-financial KPIs which sider the summary information in conjunc- Liquidity Risk: Guidance for Directors of are not relevant to the business tion with the rest of the annual report, UK Companies 2009’. Avoid the temptation to include disclo- ensuring that a consistent message is given The good news from ‘A telling perfor- sures on non-financial KPIs simply and that highlights provided in the summa- mance’* is that companies have performed because it is ‘fashionable’ to do so at pre- ry information achieve similar prominence better in 2009 than in 2008 in meeting the sent. For example, if disclosures of mea- in the narrative. numerous disclosure demands. sures relating to the environment, employ- While following these hints and tips alone ees or social and community issues are not Fragmented and inconsistent won’t guarantee a great read, it should key to the business, then there is no harm disclosures on going concern improve the logical structure and consisten- in saying so. Cluttering the annual report References to going concern can appear in cy of an annual report, so that compliance with irrelevant KPIs is not helpful to the three areas of the annual report, namely the with the relevant requirements does not users. narrative reporting, the financial statements come at the cost of communicating effec- and the auditors’ report. Check that these tively a company’s message. ■ No explanation of the link between disclosures are consistent and that appropri- strategy and objectives ate cross references are included as recom- * This report is available for download at To assess properly the performance of a mended by the FRC’s ‘Going Concern and www.deloitte.co.uk/audit. business the readers of the annual report should have a clear understanding of the objectives of the business and how these objectives are translated into the business strategy. A further step to enhance transparency would be to link the strategy to the key performance indicators.

Summary information lacks structure and purpose Rosie Ware is a senior manager Consider the summary information provid- within national audit and ed on a stand-alone basis and ensure that it accounting at Deloitte. tells a relevant and coherent story highlight- [email protected] ing statistics and developments. Then con-

IR BEST PRACTICE AWARDS • THE WINNERS

Winner: Powerflute 4 Most improved annual report The judges acknowledged This award is given to the company which, in the opinion that if you are a larger of the judges, has made the biggest improvement to its company making a relatively annual report, relative to the previous year. Credit was good job it is much harder given to companies who had taken the greatest strides to to show a meaningful improve their previous annual reports, bearing in mind improvement, and so they their size and budgets. commended Xstrata for its efforts, but Powerflute came from a low base and is now producing a very creditable report with many best practice features.

Powerflute Oyj is a packaging group with established positions in Nordic semi-chemical fluting and coated woodfree papers. The Group has two principal trading subsidiaries Savon Sellu Oy and Papierfabrik Scheufelen GmbH & Co. KG. www.powerflute.fi

Award sponsor: PrecisionIR

(From left to right) Justin Webb, Kevin Bruce of 85Four (on behalf of Powerflute) and Tom Pugh of PrecisionIR.

IR SOCIETY 21 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

LEGAL ISSUES How to ensure compliance

As corporate reporting comes under increasing scrutiny by regulators and legislators, Kathryn Cearns of Herbert Smith examines the legal framework for the annual report and accounts in 2010.

very year brings changes to the legal Eenvironment in which the annual report Company Cumulative requirements and accounts (ARA) is prepared and 2010 All companies that are not classed Directors’ Report to contain a Business will be no exception. While substantive as small companies Review: CA 2006 S 417 (1)-(4), (6)-(8), (10) changes are few, some are important. But the big issue is still narrative reporting, even All groups that are not classed as Business Review must be prepared for the though the new business review rules have small groups group: CA 2006 S 417 (9) been in place for a while. Quoted companies and groups Business Review must contain additional infor- The Financial Reporting Review Panel mation: CA 2006 S 417 (5), (11) (FRRP), which reviews the accounts of listed and large unlisted companies, is focussing Listed companies and groups Management Review required: DTRs 4.1.5, on this and other key areas, which should 4.1.8-11 inform the approach companies take. A reminder of the powers and procedures of inform the members … and help them to being done well (eg, too much clutter). And the FRRP is timely. assess how the directors have performed the FRRP has said it will focus on the busi- their duties under Section 172 (duty to pro- ness review in its inspections of annual Narrative reports mote the success of the company).” reports. All companies that are not small must pro- Why is narrative reporting such an issue The FRRP has also made public state- duce a business review in their directors’ this year, when the Companies Act and ments about its inspection of business report (S 417 CA 2006), but requirements DTR rules have been in place for a while? reviews, including that it expects to see vary according to size and status (see the Partly because there is an increasing empha- information on how risks are being man- table, above right). The requirements came sis on narrative reporting as the financial aged, not just disclosures of principal risks. into force on 1 October 2007, applying to statements themselves have become more It is important to bear in mind the powers accounting periods beginning on or after complex and voluminous, accessible in full of the FRRP. While the focus was on only that date. Listed companies, as well as fol- only to professional analysts. the financial statements themselves, the lowing the full rules in the Act, must follow Another reason is the increasing scrutiny power of the FRRP to require restatements the Disclosure and Transparency Rules in of narrative reports by regulators, and it is of accounts was at the forefront of the DTR4.1 to provide a management review. important to bear in mind that the safe har- minds of directors. It is, however, within The two sets of rules overlap substantially as bour over reports in S 463 CA 2006 does the FRRP’s powers (under S 459 CA to content, but are not identical. not protect against regulatory scrutiny. The 2006) to require internal documents to be Note that the requirements in the list are Financial Reporting Council (FRC) is on a disclosed by reporting companies that will cumulative, so that listed companies must crusade to improve financial reporting gen- tend to highlight if the Business Review follow the DTR rules and all the rules in the erally. Both the FRC and the Accounting does not accurately reflect how a company Companies Act that apply to the other com- Standards Board have published surveys is managing its business and what its key panies further up the list. and reports on narrative reporting (see ASB drivers are. Companies should bear in mind the pur- PN349), commenting on what is being done Undoubtedly regulators now expect pose of the business review, which is “to well, but importantly what is generally not large companies to look at their business reviews not as a compliance exercise, but rather as an important means of communication that delivers clear messages about how the company is performing and what its future is. The 2010 reporting season is likely to see the FRRP looking closely at companies that are not making the grade. Beyond business reviews, the FRRP Kathryn Cearns is the consultant focuses on specific industry areas (see FRC accountant at Herbert Smith PN116), but it will also look very carefully LLP and chairman of the at impairments and related disclosures financial reporting committee of (impairments of assets, including goodwill, the ICAEW. are seen much more frequently in a down- [email protected] turn). Any company with going concern

22 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

issues to disclose or any use of the true and Regulators now expect large fair override to depart from law or standards will also draw attention. companies to look at their business

A few other legal issues reviews as a means of communication Finally, there are a few other legal changes affecting the financial statements. Most of the rest of Part 15 of CA 2006 on accounts still follow UK standards, and other groups pany where it is not reflected on the balance comes into force for accounting periods still on UK standards, the full detailed rules sheet and the risks and benefits are material beginning on or after 6 April 2008, so on the accounts will apply. to the company. There are some issues in December and March year-end companies Very little detail has changed. There are complying with this. First, what is material? are now facing their first year under the new new rules on related party disclosures (SI It is probably best to stick with the account- Act. 2008/410 Sch 1 para 72) but these are ing approach to materiality, in the sense of The details which were in the schedules to already covered by accounting standards. what will make an impact on the reader of the 1985 Act are now in secondary legisla- More thought should be given to the new the financial statements. tion and for larger companies the main requirement to disclose off balance sheet Secondly, the Act does not define an source is SI 2008/410. Much of the detail arrangements (OBSA) under Section 410A OBSA. The Urgent Issues Task Force has relating to formats and accounting rules do CA 2006. Small companies are exempt and produced some guidance on this (see ASB not apply to companies using international medium-sized companies have reduced dis- PN328), and many arrangements will be financial reporting standards (IFRS), closure, but both IFRS and UK GAAP covered by accounting standards (e.g., oper- although there are rules that do apply, companies are affected. ating leases). But to ensure compliance with including requirements on directors’ reports Disclosure is required of the nature and the law, companies need to set up a process and so on. purpose of the arrangement and the finan- to ensure they have captured all OBSA and For listed companies whose subsidiaries cial impact of the arrangement on the com- correctly disclosed them. ■

IR BEST PRACTICE AWARDS • THE WINNERS

Best practice corporate websites

These awards recognise the leading websites of companies in result, a much higher focus is placed on making the the respective market sectors. Key criteria include company corporate site a truly engaging user experience, with clear details, financial information, news, shareholder information messaging, easy access to key information, and a very and corporate governance. The website should offer a truly transparent and simple structure. Recognition was also given engaging user experience, with clear messaging, easy access to companies that used the web as an opportunity to explain to key information, and a transparent and simple structure. some of the less understandable aspects of their business, whether products, processes or financial details. Some the In the next few years, websites are set to overtake hardcopy best sites reviewed were outside the FTSE100 and the judges annual reports as the key means of communicating historic felt that while a lot of good progress is being made, we still information and key strategic messages to investors. As a have plenty of opportunities to improve further.

Best practice corporate website: 5 Winner: BASF International The judges commended Swedish Match for their efforts, but BASF’s winning website displayed excellent navigation, clear company messaging and good use of technology. Company and financial details were displayed particularly well.

Award sponsor: IR Magazine

(From left to right) Justin Webb, Dr Volker Seidl of BASF and Janet Dignan of IR Magazine.

IR SOCIETY 23 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

CORPORATE COMMUNICATIONS Taking control in the new age

Corporate communication continues to evolve at an ever quickening pace both in form and content. Adrian Parker of SAS explains how to take control and embrace the opportunities of the changing digital landscape.

he digital age has had a profound effect Ton society, altering the way we communicate, think, organise our time and look for We are seeing the death of the highly information. The internet is an enabling technology enhancing the capabilities and designed printed annual reports that reach of content generators and users alike – many companies still produce every control and influence now rests on both sides of the equation. year – the change is now happening But the question remains, are corporate communicators embracing the opportunities this transformation represents and do they really understand the full potential and Evolving digital trends being phased out and investment is being possible pitfalls of this brave new world? We are seeing some distinct digital trends heavily biased towards online communica- What’s happening in the corporate report- emerge in corporate reporting, the first of tion channels. These are dynamic, interac- ing arena demonstrates the benefits of taking which will come as no surprise. tive and much more intuitive for sharehold- firm control of the opportunities, while the The change in legislation around elec- ers. recent episode of American Airlines and Mr tronic communication with shareholders is Obviously this approach is not right for X (discussed later in this article) illustrates having a dramatic effect on print runs and every company and the transition away from the dangers of underestimating the changing the increased time and investment being print will take time. But we are seeing the environment. made in digital communication. Look at death of the highly designed printed annual Losing control can in the worst case sce- some of the decisions we have taken with reports that many companies still produce. nario have a sudden and unhappy effect on our clients this year; bulky, colourful annual It has been talked about for a few years, but the bottom line. reports with very high production values are the change is now actually happening.

IR BEST PRACTICE AWARDS • THE WINNERS

Best practice corporate website: 6 Winner: Laird Small Cap and AIM The judges took the view that Laird’s website sets out the company’s strategy well and was well designed and easy to get around.

Laird is an electronics and technology company employing some 10,000 people in operations in North America, Europe and across Asia. Its products provide and enhance connectivity, helping people, organisations and devices to communicate by voice, visual communication and data transfer. www.laird-plc.com

Award sponsor: IR Magazine

(From left to right) Justin Webb, Amanda Welland of Laird and Janet Dignan of IR Magazine.

24 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

Research conducted last year by SAS Each client has their specific needs and channel is free from the burdens and with Thomson Reuters Extel Surveys into challenges but, in basic terms, with this restrictions of the auditor’s pen, it’s institutional investor needs, revealed that model we produce an extra, unaudited, another piece of corporate communica- while the hard copy report was used to non-statutory online channel that sits tion that happens to appear at the same ‘some extent’ by 87% of institutional alongside the print and online annual time and be referenced by the audited investors, the dominance of the web is report. channels. However, in our experience, clear. 100% of investors use the online This enables clients to break free of the keeping your auditors in the loop about annual report, IR website and corporate old reporting formula and take full your intentions early on prevents any dif- website as an ongoing source of company advantage of the online medium. They ficulties later in the process, particularly information. can integrate messages from their wider if you are planning to cherry pick and re- Furthermore, the corporate website is communications agenda to provide a use some audited facts and figures. used by nearly 90% of investors to support stronger, more cohesive approach to all With this freedom of communication their investment decisions. stakeholders - not just investors. comes the ability to express opinions and This was underlined again more recently provide contextual information that at an SAS research session with a group of Realising the benefits would generally never reach the narrative brokers and fund managers, most of whom There are a number of reasons why this of the annual report. were under the age of 35. One of the prin- approach works so well. Next, as a digital channel, facts and cipal trends that emerged was that they Firstly, an unaudited, non-statutory stories can be brought to life using video work almost entirely online. They view printed annual reports as statutory documents of record, for which they have no space on their desks. Their days are frantic and web-based communications and tools provide the speed and flexibility they are looking for and enable them to gain insights more quickly. Another much more interesting trend is the appetite for augmenting the two audited corporate reporting channels – the annual report in print and online – with a third non-statutory online channel. This model is something that we have now adopted for a Adrian Parker is a client partner few clients, most recently for Diageo’s at design and communications ‘Great Mix’ online review that can be found company SAS. at diageoreports.com. We predict others are likely to follow suit in the next few years. [email protected]

IR BEST PRACTICE AWARDS • THE WINNERS

Best practice corporate website: Winner: Go-Ahead Group 7 FTSE 250 Go-Ahead’s website was well designed, easy to negotiate and included helpful information and useful videos about the company. It drew all of the aspects of the company together and brought the company to life. Any investor or analyst wanting to fully understand the business should find relevant information on this site.

Go-Ahead provides passenger transport services operating in the UK bus, rail and aviation services sectors. Employing around 27,00 people, almost 1 billion passenger journeys are undertaken on its bus and rail services each year. www.go-ahead.com

Award sponsor: Equiniti (From left to right) Justin Webb, Catherine Garland of Go-Ahead Group and Simon McGregor of Equiniti.

IR SOCIETY 25 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

and other rich media. This helps enhance the user’s experience of the site and pro- The long-term winners in the digital vides the insight and authenticity that key City audiences demand. world will be those organisations that Finally, it provides real value for money, particularly for companies with large retail take control and embrace the shareholder bases. You can reach hundreds opportunities of thousands of shareholders, providing them with an engaging experience for a relatively modest budget. If you have digital assets generated for other audiences it also gives you the opportunity to re-use them, providing even better value for money, and a more integrated approach the organisation is complicated and the digital world has come, breaking down across all stakeholders. culture makes it difficult to get things barriers interlinking business, economic done – a reasonable response, you may and social communities. The internet has A word of warning think. changed the way the corporate world So there is no doubt the digital revolu- Within hours Mr X had been tracked connects with its stakeholders forever. tion is providing useful tools and solu- down and sacked. Dustin Curtis went on However, it has also given those stake- tions for those in the corporate world to write about his shock at the sacking - holders the opportunity to challenge the who choose to take control of the oppor- “AA fired Mr X because he cared. They authority of the information providers, tunities. However on the flip side, digital fired him because he cared enough to broadcast their own opinions and in communications can be difficult to con- reach out to a dissatisfied customer and some cases effect real change in percep- fine if the influence of users is underesti- help clear the company’s name in the tions and reputations of the companies mated. This is illustrated very clearly by best way he could”. involved. the tale of American Airlines and Mr X. Unfortunately for American Airlines, Over the next few years the long-term In the summer of 2009 a US-based the cause has since been adopted by the winners in the digital world will be those web interface designer and blogger called global blogosphere. At the time of my organisations that take control and Dustin Curtis posted a piece online crit- writing, googling ‘Mr X American embrace the opportunities. icising the airline’s website design and Airlines’ returned 210,000 results. They will combine traditional commu- demonstrating how much better it could Passengers are blogging to say they are nication approaches with new media look even with a few easy fixes. His post choosing other airlines and encouraging techniques, and crucially, they won’t was commented on anonymously by Mr others to do the same and the American underestimate the ability of the internet X, a member of American Airlines web Airlines employer brand has taken a and its millions of users to seize control design team explaining that, although he bashing. for themselves and de-rail the best of cor- and his colleagues do the best they can, This one example shows how far the porate intentions. ■

IR BEST PRACTICE AWARDS • THE WINNERS

Best practice corporate website: 8 Winner: Imperial Tobacco FTSE 100 Imperial Tobacco has produced a consistently high standard website over the years and found new ways of improving the user experience consistently. In every area, other web managers can learn something from this site.

Imperial Tobacco is an international tobacco company with products available in over 160 countries worldwide. www.imperial-tobacco.co.uk

Award sponsor: Equiniti

(From left to right) Justin Webb, Renny Jones of Imperial Tobacco and Simon McGregor of Equiniti.

26 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

NEW TECHNOLOGY Grasp the XBRL opportunity

UK companies will soon be required to step up their use of online filing with new XBRL technology. So why not get ahead of the game and transform your financial reporting, argues Mark Nashman of Clarity Systems.

BRL is the new hot technology to Ximprove the exchange of business By using XBRL tags, analysts and information. It has been adopted in dozens advisors can more quickly summarise of jurisdictions all over the world, including the UK, to increase transparency in financial and communicate the numbers reporting. This means XBRL is now impacting the IR community. But what is XBRL? Why is it important? Well, company accepted by all, it’s easier for equity analysts, XBRL – short for eXtensible Business accounts, annual reports and other statutory financial planners and other advisors to Reporting Language – has been developed disclosures and filings come in many shapes quickly summarise and communicate a in unison by accounting and technology and sizes, with different terminologies company’s latest financial numbers to share- associations across the world to bring greater accompanying tried-and-true finance terms holders and potential investors. transparency and clarity to the world of cor- and definitions. By tagging these numbers Besides getting the numbers right, the porate financial reports. with XBRL tags whose definitions are equally important task of explaining your

IR BEST PRACTICE AWARDS • THE WINNERS

Grand prix awards: Most effective overall annual report (printed and online)

These awards recognise both online and printed accounts With the growing importance of the website, the judges were and are the grands prix of the IR Best Practice awards. The looking for integration between the two modes. Overall the annual report is still the first port of call for shareholders and judges felt that FTSE 100 companies could learn from the potential investors, essential for communication between best of the FTSE 250 entries. The online versions are companies and their investors. becoming more user friendly.

Most effective overall annual report 9 Winner: BASF (printed and online): International The judges felt that the reports of the runners up were just too dense and difficult to navigate. BASF, the clear winner made excellent use of charts and graphs, tabs and colour coding to help the reader through a comprehensive, albeit lengthy, tome, and developed an excellent on line version.

Award sponsor: (From left to right) Justin Webb, Dr Volker Seidl of BASF and Deutsche Bank Jane Taylor of Deutsche Bank

IR SOCIETY 27 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

company’s vision by providing the context onwards, for accounting periods ending ting this omnibus document into filing to events, activities and decisions, using after March 31, 2010. To facilitate these shape. So why not leave it to outsiders to detailed notes to the accounts and foot- new rules, both entities are enabling their also apply the XBRL tags to the final sub- notes to the numbers, will remain the own online submission processes and tech- mission? purview of senior executives, accountants nologies to receive accounts in iXBRL. Many accounting and finance profes- and their IR advisors for years to come. sionals regard this as a recipe for disaster, XBRL just makes it easier for all to under- The task at hand as collaboration and review between stake- stand what’s going on with a company’s But preparing interim management state- holders is difficult once the numbers leave operations. ments, corporation tax returns, annual the shop, and external preparers lack the By applying XBRL tags to both the reports and other corporate disclosures in internal controls necessary to ensure data notes and the numbers, the cause of trans- myriad formats has, to date, not happened accuracy while minimizing risks. A general parency is better served. automatically. consensus is emerging that it is best to In addition, iXBRL, a close cousin of Most of these, including their XBRL- keep the financial reporting process, XBRL, truly delivers a ‘single version of tagged and validated versions, have been including ‘the last mile’ of preparing, out- the truth’ because the ‘machine-readable’ created by using manual processes involv- putting and filing the documents, within XBRL tags are hidden underneath an ing laborious cut-and-paste of a multitude the company. HTML ‘human-readable’ version of the of Word and Excel documents into a single In fact, in a November 2009 case study financial report. This single file will meet document. At many firms, an IR profes- on financial statement production at the objectives of both those preparing and sional has tasked his or her commercial industry giant United Technologies those analysing a company’s results in a printer or design firm with the job of get- Corporation (UTC), Gartner, Inc advises single document. But you say you’re happy doing a single HTML-formatted report and filing it the good old-fashioned way? Why rush into this XBRL exercise? In practice, one will have little choice in the matter. UK regulators and oversight authorities have moved rapidly to mandate the use of iXBRL, as evidenced by the joint statement in September by HM Revenue & Customs (HMRC) and Companies House (see www.hmrc.gov.uk/ Mark Nashman is the president mct/returns/ct0021.pdf). It lays out in and chief technology officer of detail the need for companies to file their Clarity Systems, Inc. accounts and Company Tax Returns elec- [email protected] tronically using iXBRL from April 2011

IR BEST PRACTICE AWARDS • THE WINNERS

Most effective overall annual report Winner: May Gurney 10 (printed and online): Small Cap and AIM The judges commended Next 15 for the quality and promotion of its on-line accounts, but May Gurney pipped it to the post with the quality of its printed report which was well laid out and made good use of colours to aid the presentation of data. KPIs were well explained. More attention to the online report would help secure their position.

May Gurney is an infrastructure services company, helping clients in the public and regulated sectors deliver sustainable improvements to front-line services across the UK. www.maygurney.co.uk

Award sponsor: Deutsche Bank (From left to right) Justin Webb, Andrew Slater of May Gurney and Zafar Aziz of Deutsche Bank.

28 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

clients: “taking back in-house the current REPORT PRODUCTION XBRL outsourced approach will be cost- effective for many firms… this will also help organisations develop a strategy for future increased disclosure requirements.” Managing the (For more information, see www.gartner.com) The emergence of automated, integrat- workflow ed reporting solutions as exemplified by those in use at UTC and others is good news for IR professionals who, given the The familiar printed annual report is still with us – and thriving. constraints on their budgets (as detailed in Here Marianne Young of CtrlPrint offers a guide to the best way to a recent IR Society membership survey), produce the annual documents efficiently. cannot afford to ignore new ways of increasing efficiencies while reducing risks. s much talk as there has been about top publishing (DTP) software (usually Forward-looking firms and their finance Awhat annual reports should be made QuarkXPress or Adobe InDesign). And and IR departments are ahead of the of in terms of delivering the right message, then the headache begins. Among all the XBRL curve mandated by the UK author- using the most effective visuals and com- phases of the production, the review cycle ities, availing themselves of integrated posing copy that could move the London is probably the most challenging of all. XBRL software solutions that control and Stock Exchange to their feet, there has What happens within the walls of the automate the entire external-report cre- been as little said about the daily grind of agency, between the typesetters, the project ation and production process, including actually producing this printed matter. managers and the clients is better off left iXBRL output. Only the insiders know and dread what unsaid. Diverse companies across a range of looms ahead. It’s almost an open secret Whether the corrections are handed industrial sectors, including British that no one dares speak of. The sleepless back and forth physically on printed proofs Airways, LV=, Shire, Severn Trent PLC nights, endless corrections, the occasional or via PDFs, the correction cycles are slow, and Standard Chartered PLC, have lever- banter born from the stress that has slowly painful and at times, inaccurate. This is aged the power of technology to arrive at and inconspicuously seeped in day after because the people responsible for the cor- repeatable, ‘one version of the truth’ doc- day after day. rections almost never correct the original uments, while reducing the risk of factual There are a few things that need to be file. errors; late filings, insider leaks and gener- dealt with in the beginning of the annual The corrections usually change hands al non-compliance violations. reporting season. First is the finalization of three times at least – first from the original Isn’t it time for you to take a look at the the theme, or the communications strategy. source, passed to the project manager, and latest in reporting solutions, heading into Next is putting it in place in a layout appli- then to the typesetters. Before it goes back 2010? ■ cation, or what is typically known as desk- to the client, the project manager needs to

IR BEST PRACTICE AWARDS • THE WINNERS

Winner: Most effective overall annual report Provident Financial 11 (printed and online): FTSE 250 The judges felt that all three shortlisted entries were good and many FSTE 100 companies could learn from the way that they set out their strategy, KPIs and performance during the year. Provident Financial’s report demonstrated a clean, user friendly design, with particular reference to the sections on strategy and KPIs and married the hardcopy to a very effective online report, well embedded with their web-site as a whole. All-in-all, a very consistent report.

Provident Financial supplies personal credit products to the non- standard lending market. It serves over two million customers through a network of more than 300 branches, administrative offices, call centres and web sites. www.providentfinancial.com

(From left to right) Justin Webb, Ken Mullen of Provident Award sponsor: Black Sun Financial and Sallie Cooke-Pilot of Black Sun.

IR SOCIETY 29 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

make sure the corrections are accurate. And tioned, “…quickly deployed solutions that WORKSHOP we’re not even talking about how the correc- automate a business process yield the high- tions are actually tracked. est returns”. Keeping that in mind, a major Let me break it down even further. overhaul seems to be almost like hitting a Imagine if you were on the brink of a dead- nail with a sledgehammer. While most peo- Creating line. And the final review cycle is 15 minutes ple are inspired by the grandness of a full away. A change has been requested… you solution, there is in fact, a more down-to- put it through the typesetters… you tap your earth approach to easing the seasonal pain. effective fingers hoping that they can get back to you in ten minutes (that is, apply the change, Simple create a PDF and print it out). Compare it The basis is simple, the solution much sim- reports to having the files at your fingertips, and pler. It’s about knowing what challenges are having the capability of being able to apply in need of a response. Is it handling correc- the change on your own, on the spot and tions, review cycles? Is it managing docu- update the actual file. ment versions? Is it monitoring deadlines? With her IR Society workshop Of course, there are bigger challenges out experience, Claire Forrest Disconcerting there but which one is the most imminent offers a guide to best practice in What is disconcerting is that for the past one? Which one needs to be addressed as decade or so the attempts to make annual soon as possible, and in the most cost-effec- developing your annual report. report production more efficient and less tive way? painful have come from all directions. And Next, take a look at what is already in ith the recent publication of the yet, it has not reached a stage where the peo- place. Learn the tools by heart and take full WAccounting Standards Board’s ple involved in the process are pleased advantage of its capabilities. Find out how (ASB) review of narrative reporting by UK enough with the workflow. Yes, it’s all about the myriad of tools we call computer soft- listed companies, ‘Rising to the challenge’, the workflow isn’t it? Whether it’s the project ware integrate, and how to best handle and much has been written about what consti- manager setting up scheduled meetings, or exchange information (in the form of file tutes best practice corporate reporting, but the strategist making sure that everything is formats). much less on how to actually achieve it. in order before she calls it a day, the gaps Understand the requirements that are put This was at the top of the agenda for the between the task and the completion of the in place by the SEC and take the shortest delegates gathered for the Investor Relations tasks stare each and everyone in the face. route to delivering that. It may not be 7th Society (IRS) ‘Annual Report Best Practice At one end of the spectrum, the IT indus- heaven yet, but it is a step in the right direc- Update’ workshop’ in November. try has exerted fair attempts at standardizing tion. The ASB introduced its report by declar- the way corporate communications is done. An interesting proposition would be a sys- ing “Preparing a good quality annual report Information technology plays a big role in tem that addresses the core issues found that communicated effectively all the impor- the daily lives of professionals, and more during review and corrections cycles, and tant information is a major intellectual and often than not, is widely underestimated, yet doesn’t disrupt the normal workflow logistical challenge”, recognising that the underused and even misused. And although during the production of an annual report. volume of information now required means the ideal is to have one source of informa- An inconspicuous system that is responsible that the traditional structure of chairman’s tion for publishing across different media for the document versions, for tracking the statement, chief executive’s statement, oper- (that being the web, the mobile, and print), changes that are applied to each version of a ating and finance review no longer works. it is easier said than done. document, and for providing access to assets The ASB could have legitimately added It takes significant effort from the solution anytime, anywhere. ‘design’ to their list of challenges as this has provider, as well as the client to implement With most technological platforms open- become a critical element in presenting the major changes in the existing systems, ing up for extensibility and with the internet additional information now required in an deploy training, and turn things around. maturing and becoming more reliable, ser- interesting and engaging way that holds the That being said, it is still the ideal. How a vices are made available on the cloud – cer- reader’s attention. This formed an impor- company can get there is another story. tainly an approach and a solution worth tant section of the workshop where dele- A research paper from Gistics once men- looking at. ■ gates assessed best practice examples and reviewed how good design principles had been used to best effect. The key areas where good design principles had the most impact included:

At a glance Communicating what the company does, its size and scope and business model, early in the annual report is critical. Strong use of imagery, diagrams and typography can cre- Marianne Young is a business ate high impact spreads that explain the development manager for company’s activities instantly. Colour can CtrlPrint. be used effectively to deliver a clear summary of the key business segments, products [email protected] and services, locations and performance.

30 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

IR BEST PRACTICE AWARDS • THE WINNERS

Most effective overall annual report Winner: Tullow Oil 12 (printed and online): FTSE 100 Tullow Oil integrated relevant content and honest disclosure with good design. The company discussed its industry and markets effectively and linked its performance and growth opportunities to the company’s vision and strategy. The online and printed versions worked well together. Last year Tullow had the most improved annual report and accounts, this year it has pipped the others to the Grand Prix.

Tullow Oil plc is an independent oil and gas exploration company with licences in 22 countries, and operations in Africa, Europe, South Asia and South America. www.tullowoil.com

(From left to right) Justin Webb, Chris Perry of Tullow Oil and Award sponsor: Black Sun Sallie Cooke-Pilot of Black Sun.

Key performance indicators (KPIs) tion is presented in densely packed text. A Financial reviews The ASB found that in many annual defined hierarchy of titles, supported by The most natural place for charts, graphs reports, KPIs appeared as isolated tables meaningful headings and subheadings and and tables is in the financial section of the with no link to the rest of the report and lit- complemented by bold typography and pull business review. This is reflected in the stan- tle discussion. The best companies linked out quotes can guide the reader through the dards within the reports shortlisted for the KPIs to strategy and explained each mea- content. IRS awards but not in the vast majority of sure along with a discussion on progress Bullet points are useful to cater for the reports. Charts showing performance of key towards targets. speed reader and can be used to reinforce metrics over time, breaking down costs and Using a table to link KPIs to objectives key messages. debt, tracking order intake over the year can can create a visual alignment of KPIs to all communicate context and achievement strategy and provide a simple framework to Risks and uncertainties more effectively than a couple of tables that capture a high volume of information on The ASB urges companies to focus on the just contrasted this year with last year. ■ progress. Many companies already have a principal risks and stop listing everything history of performance results where presen- they could think of, from swine flu to Top tips for effective design tation in a bar chart would tell the story at a changes in global accounting practices, to glance. Tints, panels and colour can be used avoid clutter and deterioration into boiler ● Always include a high impact ‘At a to present the content clearly. plating. Glance’ spread to explain to any new It supported the use of tables to present reader what the company does. ● Strategy the principal risks but was quick to point out Don’t fill pages with densely packed With most organisations covering strategy in the these should expand to accommodate text. Even if the content is well written, greater detail, strategy sections are becoming the discussions on risk, rather than the risks very few people will read it if it looks daunting. Use titles, meaningful head- longer and in many annual reports, informa- curtailed to fit into the table! ings, sub-headings and pull out quotes to highlight key messages. ● Use graphs, charts and tables wherever possible, particularly in the financial review section. Also consider these for the presentation of risks and risk management and to demonstrate alignment between strategy and KPIs. ● Improve navigation of both online and printed annual reports by improving Claire Forrest is the course presenter indexing and introducing quick on the IR Society’s ‘Annual links/page references to other relevant Reporting Best Practice Update’ content throughout. This is particular- workshop and a client partner at ly important in online reports where Emperor Design. users don’t tend to work through [email protected] sequentially.

IR SOCIETY 31 UK & CONTINENTAL EUROPE 2009 David Barrett at +44 20 7251 7521 or email David Barrett at+442072517521 oremail [email protected]. STUDY PERCEPTION INVESTOR WINNING COMPANIES WINNING IRSTRATEGIES AVAILABLE NOW IR MAGAZINE,PLEASECONTACT SECTOR PEERSINEUROPE. ACTIVITIES AGAINSTYOUR THE LEADINGCOMPANIES FINANCIAL COMMUNITY FIND OUT WHICH ARE FINDOUTWHICHARE DISCOVERWHAT THE BENCHMARK YOURIR TO ORDERYOURCOPY, EXPECTS FROMYOU. OR TO SUBSCRIBE TO OR TOSUBSCRIBE IN IRANDWHY. INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

The Thomson Reuters Extel Survey IR Awards 2009

his was the second successive year that Thomson Reuters Extel TSurveys provided the data and analysis for the UK IR Awards, with all nominations based solely on the weighted votes from fund mangers and sell-side analysts covering UK equities. These results were based on the data and views collected by Thomson Reuters Extel Surveys in the 2009 Pan-European Survey. and sell-side votes based on the ranking of the brokerage firm in the In total over 400 buyside/sell-side institutions contributed to the Extel 2008 Pan-European Survey. UK results, out of a total of over 1500 institutions voting in the pan- A more detailed report, listing the top 25 in each category, plus European Survey as a whole. extensive trends data on IR activities in the UK, including IR budgets, All votes received were weighted – with fund management nomi- team salaries, one-on-ones, and much more besides, is available from nations weighted based on pan-European assets under management, Thomson Reuters Extel Surveys at £500. ■

1 Best CFO at IR: Small Cap 5 Best overall IR for a UK company: FTSE 250

Winner: Allan Watson – Optos Winner: ARM Holdings The award winner was not present to collect the award.

2 Best CFO at IR: FTSE 250

Winner: Tim Score – ARM Holdings

(From left to right) Ian Thornton of ARM Holdings and Steve Kelly of Thomson Reuters Extel

6 Best overall IR for a UK company: FTSE 100

Winner: BAE Systems (From left to right) Tim Score of ARM Holdings and Steve Kelly of Thomson Reuters Extel

3 Best CFO at IR: FTSE 100

Winner: Colin Day – Reckitt Benckiser

The award winner was not present to collect the award.

Best overall IR for a UK company: Small 4 Cap (ex FTSE 350)

Winner: Optos (From left to right) Sejal Lerland of BAE Systems and Steve The award winner was not present to collect the award. Kelly of Thomson Reuters Extel

IR SOCIETY 33 BEST PRACTICE REPORTING WINTER 2009/2010 INFORMED

Champagne, confit of goose and treacle tart with cream - plus a fiendish Lego game...

34 IR SOCIETY INFORMED WINTER 2009/2010 BEST PRACTICE REPORTING

... all that and serious networking at the awards dinner in Chelsea on 26 November!

IR SOCIETY 35 EVENTS WINTER 2009/2010 INFORMED

The events shown below are scheduled over the next few months for IR Society members. For Events further information, visit www.irs.org.uk. If you have any queries, or you would like to book a place, call the Society on 020 7379 1763.

FIRST HALF 2010

Please note, further details of these events will be announced in IR ANNUAL CONFERENCE: IR IN THE NEW due course. For the latest information please see our website DECADE www.irs.org.uk. Tuesday 20 April The Brewery, Chiswell Street Keynote speaker: Xavier Rolet CEO of the London Stock IR SEMINAR: BEST PRACTICE – WHAT’S NEW FOR Exchange 2010 Thursday 14 January Join us for a panel discussion looking at issues facing compa- IR WEBINAR: SETTING AND EVALUATING KPIS nies producing their reports in 2010. FOR IR Tuesday 11 May What tasks should you set yourself as an IRO? How can IR NOW LUNCH: TOPIC TO BE CONFIRMED these be measured? These are essential techniques to help Tuesday 26 January you improve the value of your contribution to your company.

IR WEBINAR: PREDICTIONS FOR THE NEW DECADE IR NOW LUNCH: TOPIC TO BE CONFIRMED Tuesday 2 February Tuesday 18 May As we move into the new decade what will be the macro issues facing companies and the micro issues facing IROs in their job of communicating with the market. IR WEBINAR: UPDATE ON VOTING AND SHARE- HOLDER ENGAGEMENT Tuesday 8 June IR INFORMER BREAKFAST: IR ROADSHOWS AND In the light of the move to more engagement by sharehold- PRESENTATIONS ers, what has been their record in the current voting season? Thursday 11 February An update on best practice for arranging roadshows and presentations. IR NETWORKING: AGM 30TH ANNIVERSARY PARTY Tuesday 15 June IR WEBINAR: WHAT THE POLLSTERS ARE SAYING A glittering occasion to celebrate the 30th birthday of the Tuesday 2 March Society. In the run up to the election what are the pollsters saying about the possible outcomes and what might the implications be for the city and industry. IR INFORMER BREAKFAST: TOPIC TO BE CON- FIRMED Tuesday 29 June IR NETWORKING: WINE TASTING AND QUIZ EVENING Tuesday 9 March IR SEMINAR: CORPORATE GOVERNANCE Another chance to show your intelligence whilst learning Tuesday 6 July about the finer points of enjoying wine. An update on developments in the light of the various reviews and consultations on corporate governance and a discussion of the implications for IROs. IR NOW LUNCH: PRESENTATION TECHNIQUES Tuesday 23 March Learn about how others see you and how to present yourself in the best possible way.

If you have any queries about IR Society events, or you would like to book a place, please call the Society on 020 7379 1763.

36 IR SOCIETY Study for Success 2010 CIR programme

The Certificate in Investor Relations (CIR) has been established for over six years in the UK, and more recently in Russia and Malaysia. The aim of the CIR is to ensure an appropriate level of factual knowledge of regulatory requirements and of the financial and market environment. Updated quarterly, the material is kept in line with current regulations to ensure candidates are examined on current practice. The full syllabus can be obtained on request from the IR Society or downloaded from the Society’s website (www.irs.org.uk).

Dates for 2010:

CIR Revision Course CIR Exam 19 January, 16 March, 18 May, 13 August, 15 September 29 January, 26 March, 28 May, 20 August, 24 September and 16 November and 26 November

For more information: email visit or call [email protected] www.irs.org.uk +44 (0)20 7379 1763 IR SOCIETY COURSES WINTER 2009/2010 INFORMED

The IR Society provides a comprehensive programme of training courses as Courses well as half and full day seminars. For further information, visit www.irs.org.uk.

PROFESSIONAL DEVELOPMENT PROGRAMME – 1

● Level 1 INTRODUCTION TO FINANCIAL MARKETS FOR IR ● 26 January ● 14 September This course gives you a basic introduction to investor relations and the financial ● 18 March ● 21 October environment in which IR professionals work. It explains how the financial markets ● 20 May ● 2 December operate and are regulated. ● 1 July

● Level 1 IR WORKING WITH THE CITY ● 15 April This interactive day of workshops presented by senior practitioners explores their ● 7 October day-to-day roles and helps you understand their interaction with companies. This course builds on the aspects covered in ‘Introduction to financial markets for IR’.

IR COMMUNICATION TOOLS AND TECHNIQUES ● Level 1 ● 11 February Investor relations is communications. This interactive day of workshops presented by ● 5 August senior investor relations executives explores the most current communication tools ● 4 November and techniques relevant to investor relations practitioners in their day-to-day roles.

● Level 2 EFFECTIVE INVESTOR TARGETING ● 9 February Gain an understanding of how to effectively target investors nationally and ● 14 October internationally, through using practical tools and leveraging external advice and resources. Understand how to maximise the investment in brokers, sales teams and other service providers and get a perspective on the key requirements for executing a successful roadshow.

● Level 2 DEMYSTIFYING COMPANY ACCOUNTS – MODULES ONE AND TWO ● 23/24 February If you are working in investor relations or financial PR you need to understand ● 11/12 May financial statements and be able to answer questions from analysts, investors and the ● 29 June financial press. This two part course will help you achieve this by providing ● 7/8 September foundation knowledge in accounting. ● 10/11 November

● Level 2 IR REGULATION & COMPLIANCE ESSENTIALS ● 25 February This course provides essential information and updates for both new and ● 27 April experienced IR professionals. Delegates will familiarise themselves with the current ● 1 September legal and regulatory requirements affecting disclosure and investor relations. ● 2 November

● DEBT, DERIVATIVES AND BONDS – THE IR PERSPECTIVE Specialist ● 24 June course To understand the importance of alternatives to equity investment including derivatives, corporate bonds and other financial instruments and the need to communicate with and address the concerns of such investors.

● Workshop INVESTOR RELATIONS FOR PERSONAL AND EXECUTIVE ASSISTANTS ● 23 March NEW TO 2010! Executive assistants and board level personal assistants who come into ● 17 November contact with investors and external advisors need to understand the dynamics of the financial markets. Who should they prioritise for meeting and phone calls? What information can be disclosed and how can they support senior management.

● Level 2 WRITING AND PRESENTATION WORKSHOP – FOR IR ● 12 October Half-day This is an interactive course which will help to make sure your writing is clear, efficient and authoritative. Understand what makes a document readable. Learn how to get your message across succinctly. Touch up on good grammar and punctuation. Put these into practice in writing press releases, IR documents, company fact sheets and more.

● Level 2 IR REGULATION UPDATE COURSE ● 20 January (Edinburgh) Half-day To provide attendees with an update of the latest changes in regulation and best ● 30 June practice. This half day course will bring you up to date with latest rules and ● 19 October regulations.

● Level 2 OPTIMISING YOUR MEDIA RELATIONS ● 28 April Half-day Its easy to get the wrong headline, but how can you use the press to develop your corporate profile in a positive way? Attendees will hear from three different perspectives and participate in practical exercises.

● Level 2 ANNUAL REPORTING – BEST PRACTICE IN PRACTICE ● w/c 20 September The Companies Act 2006 introduced many new requirements for the annual report Half-day London and Edinburgh and changes the way companies can communicate with shareholders. Find out how best practice is emerging as companies deal with the requirements of the enhanced business review in practice, including tackling the CSR requirements.

38 IR SOCIETY INFORMED WINTER 2009/2010 IR SOCIETY COURSES

If you would like to join the Professional Development programme, call 020 7379 1763 or email Rachael Simmonds at [email protected].

PROFESSIONAL DEVELOPMENT PROGRAMME – 2

● Workshop BEYOND THE TRADITIONAL INVESTOR (NEW TO 2010) ● 4 March Half-day This course is designed to offer an overview of how both Hedge Funds & Sovereign Wealth Funds operate in today’s global financial market place. It will offer an insight into the thinking behind some of the investor behaviour which has attracted much comment in the financial press – not all of it well informed.

● Workshop IR FOR FINANCE DIRECTORS AND SENIOR EXECUTIVES (NEW TO 2010) ● 9 March Half-day If you are listed or considering to list, the public market demands compliance not only with the range of new and constantly changing legal requirements but also with the expectations of stakeholders, analysts, and the media. This evening course will provide you with a unique opportunity to understand how to make the best use of IR resources, what IR can do to help to increase liquidity in your shares, reduce the cost of capital for your organisation and optimize the use of management time.

● Workshop HOW TO ADD VALUE TO YOUR IR PROGRAMME (NEW TO 2010) ● 10 June Half-day The course aims to help IROs to develop their position and credibility within their organisation by explaining how to create added value from the IR function and position the role at the heart of the executive decision making process.

CIR REVISION COURSE ● 19 January ● 13 August To revise the CIR Study Guide and assist candidates with any questions they may have ● 16 March ● 15 September on specific sections of the syllabus. ● 18 May ● 16 November

Time to move up? Need to find an IRO?

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Reach the best candidates for your IR vacancy – place your listing in The Investor Relations Society’s Job Zone on the website at a very modest cost for a month and you will instantly target the best qualified group of IR professionals in the UK and Europe. It works!

If you are likely to be a regular advertiser or would like to raise your corporate profile in this market, we Call 020 7928 7770 can offer you a special package, subject to availability – just call us on 020 7928 7770 or email Email [email protected] [email protected].

IR SOCIETY 39 IR SERVICE PROVIDERS DIRECTORY WINTER 2009/2010 INFORMED

ANNUAL REPORTS SERVICE – www.precisionir.com Find your annual reports, registrars service BUSINESS WIRE – www.businesswire.com press release distribution provider here

The Informed IR Service Providers Directory features those leading organisations who offer key services to the IR community and shows the categories in which they have chosen to appear.

This section is published in parallel with the service provider CANTOS – www.cantos.com section on the IR Society website – www.irs.org.uk. If you internet services, webcasting would like your organisation to be included in this section (and therefore also on the IR Society website), please contact Hannah Buck at Silverdart Publishing – [email protected] – or call 020 7928 7770.

Key to IR SERVICE PROVIDERS by category

ADR DEPOSITARY PRESS RELEASE CAPITA – www.capitaregistrars.com SERVICES DISTRIBUTION investor relations Business Wire ANNUAL REPORTS Annual Reports Service PUBLICATIONS Capita IR Services provide fast and secure Imprima Group Informed online access to bespoke share register IR Magazine analysis for clients and their advisors throughout the UK and other jurisdictions. CRM DATABASES Alison Owers IRSOFT REGISTRARS Managing director, Capita IR Services Our experienced team of analysts can RD:IR Annual Reports Service Tel: +44 (0)207 954 9783 produce detailed reports providing [email protected] information at Registered Holder, Beneficial www.capitaregistrars.com Owner and Fund Manager level. INTERNET SERVICES SHAREHOLDER Cantos RESEARCH global3digital Clare Williams Associates The Group Investor Perceptions CLARE WILLIAMS ASSOCIATES – Hemscott IR PrecisionIR www.clarewilliamsassociates.com PrecisionIR RD:IR investor relations, shareholder research, website development INVESTOR RELATIONS SHAREHOLDER SERVICES Capita PrecisionIR Clare Williams Associates PrecisionIR SHAREHOLDER Investor relations and investment ● Market perception studies. communication services: we provide an ● Investment communication across a RD:IR TARGETING independent, experienced and skilled range of channels. RD:IR fund manager’s perspective with an ● Bespoke research support and training. IR FOR SMALL CAPS established track record. ● Flexible tailored approach. T: +44 (0) 141 419 9900 RD:IR TELECONFERENCING E: [email protected] W: www.clarewilliamsassociates.com Premiere Global Services INVESTOR ROADSHOWS Vcall RD:IR Vcall WEBCASTING Cantos LANGUAGE SERVICES Premiere Global Services CLS Communication Vcall To be included in this IR Service OPINION RESEARCH WEBSITE DEVELOPMENT Providers Directory, please call PrecisionIR Clare Williams Associates RD:IR global3digital Hannah Buck on +44 (0) 20 7928 7770 The Group Hemscott IR or email [email protected]

40 IR SOCIETY INFORMED WINTER 2009/2010 IR SERVICE PROVIDERS DIRECTORY

CLS COMMUNICATION – www.cls-communication.com IRSOFT LTD – www.irsoft.com language services CRM databases

The IR.manager Investor Relationship GLOBAL3DIGITAL – www.global3digital.com Management platform helps in-house IR teams internet services, website development and IR advisors easily and efficiently manage relationships with investors, analysts and the Arnaud D Robin media. Tel: +44 (20) 7060 4700 IR.soft: Software solutions for optimal Investor global3digital is an online corporate [email protected] www.irsoft.com RelationsTM communications agency which has been designing and developing corporate Peter Kemp websites for over 200 public companies Tel: +44 (0) 20 7292 1450 for more than a decade, underpinned by PRECISIONIR – www.precisionir.com [email protected] our industry renowned 24/7 support & investor relations, internet services, opinion research, www.global3digital.com knowledge outsourcing services shareholder research, shareholder services

PrecisionIRPrecisionIR providesprovides a rangerange ooff onon aandnd ooff-linefffff--line productsproducts and serservicesvices to hhelpelp companies obtain THE GROUP – www.the-group.net TM internet services, website development thethe bebestest resuresultslts ffromrom ththeireir IR commcommunications.unications. OurOur MMediaedia PPartnerartner NNetworkettwwork rraisesaises yyourour pprofileroffile withwith investors,investors, ourour communicationscommunicaattions toolstools hhelpelp targettarget yyourour message andand our feedbackffeeedback hhelpselps yyouou measuremeasuure the effectivenessefffeectiveness ooff youryour IR effefforts.foorts. IMPRIMA GROUP – www.imprimagroup.com Annual reports LQIR#SUHFLVLRQLUFRPZZZSUHFLVRLQLUFR LQIIRR#SUHFFLVLRQLUUFRP ZZZZSUHFLVRLQLUUFRPP

Take control of your annual report with Imprima. Save time with secure, online, PREMIERE GLOBAL SERVICES – www.premiereglobal.com collaborative drafting. Show off your teleconferencing, webcasting brand with high quality design and print. Reach your investors anytime, anywhere with an interactive version on your website. RD:IR – www.rdir.com Call John Paul Murphy +44 (0)20 7105 0344 CRM databases, investor relations, IR for small caps, investor roadshows, opinion research, shareholder research, shareholder targeting INVESTOR PERCEPTIONS – www.investorperceptions.com Shareholder research

DELIVERING INDEPENDENT INSIGHT

[email protected] +44 (0) 1354 698189 www.investorperceptions.com

VCALL – www.vcall.com IR MAGAZINE – www.irmagazine.com investor roadshows, teleconferencing, webcasting publications

TURNING THE CORNER

The next issue of Informed – Spring 2010, If you would like to contribute an article or issue no 66 – will carry a special feature on editorial suggestion to Informed, please ‘Turning the corner’, looking at the progress contact Michael Mitchell on 020 7379 1763 made by markets and the IR community in or email [email protected]. recovering from the 2008/2009 credit crunch and the ensuing recession. For advertising and general publishing enquiries, contact Hannah Buck at Silverdart In addition there will be a feature on Publishing on 020 7928 7770 or email Scandinavian markets from an IR perspective. [email protected].

IR SOCIETY 41 USEFUL ADDRESSES/IR SOCIETY BOARD WINTER 2009/2010 INFORMED

Useful addresses THE BOARD The following contact details may be useful to you in various aspects of your professional life. Richard Davies (Chairman) Richard Davies : Investor Relations Association of British Insurers Institute of Chartered Secretaries and Events committee chairman 51 Gresham Street Administrators Membership committee chairman [email protected] London EC2V 7HQ 16 Park Crescent +44 (0) 20 7600 3333 London W1B 1AH John Dawson (Deputy chairman) www.abi.org.uk +44 (0) 20 7580 4741 Cadbury PLC www.icsa.org.uk Education committee chairman The Association of Corporate Treasurers Best practice committee chairman 51 Moorgate Institute of Public Relations [email protected] London EC2R 6BH Corporate and financial group Tel + 44 (0) 20 7847 2540 2 Greenways Ian Arnold (Treasurer) www.treasurers.org Pembroke Road Finance committee chairman Woking, Surrey [email protected] The Association of Investment Companies GU22 7DY Michael Mitchell (General manager) 9th Floor, 24 Chiswell Street, +44 (0) 1483 771 932 The Investor Relations Society London EC1Y 4YY www.corporate-financial.com [email protected] +44 (0) 20 7282 5555 www.theaic.co.uk London Stock Exchange Hazel Jarvis (Company secretary) 10 Paternoster Square J Sainsbury The Association of Private Client London EC4M 7LS [email protected] Investment Managers and Stockbrokers +44 (0) 20 7797 1000 114 Middlesex Street www.londonstockexchange.com Emma Burdett London E1 7JH Maitland +44 (0) 20 7247 7080 The National Association of Pension [email protected] www.apcims.org Funds Richard Carpenter NIOC House, 4 Victoria Street Merchant Group Accounting Standards Board London SW1H 0NX Conference committee chairman 5th Floor, Aldwych House +44 (0) 20 7808 1300 [email protected] 71-91 Aldwych www.napf.co.uk London WC2B 4HN Rebecca Ford +44 (0) 20 7492 2300 The Panel on Takeovers and Mergers The Group www.asb.org.uk 10 Paternoster Square [email protected] London EC4M 7DY The Department for Business, Innovation +44 (0) 20 7382 9026 Reg Hoare and Skills www.thetakeoverpanel.org.uk Smithfield Group [email protected] 1 Victoria Street London SW1H 0ET Pensions & Investment Research Mark Hynes +44 (0) 02 7215 5000 Consultants Limited Transparency Matters www.bis.gov.uk 4th Floor, Cityside Policy committee chairman 40 Adler Street [email protected] Financial Reporting Council London E1 1EE 5th floor, Aldwych House +44 (0) 20 7247 2323 Claire Jenkins 71-91 Aldwych www.pirc.co.uk [email protected] London WC2B 4HN +44 (0) 20 7492 2300 Quoted Companies Alliance Karen Keyes www.frc.org.uk 6 Kinghorn Street Logica CMG [email protected] London EC1A 7HW Financial Services Authority +44 (0) 20 7600 3745 Gary Leibowitz 25 The North Colonnade www.qcanet.co.uk SAB Miller Canary Wharf [email protected] London E14 5HS UK Society of Investment Professionals +44 (0) 20 7066 1000 90 Basinghall Street Al Loehnis www.fsa.gov.uk London EC2V 5AY Investis +44 (0) 20 7796 3000 [email protected] Institute of Chartered Accountants in www.uksip.org England & Wales Keith Russell Chartered Accountants Hall Travelport [email protected] PO Box 433 London EC2P 2BJ Lisa Williams +44 (0) 20 7920 8100 Debenhams www.icaew.com [email protected]

42 IR SOCIETY Professional guidance from The Investor Relations Society IR Essentials A series of publications focusing on key IR skills

1 An introduction to 2 Periodic reporting 3 Narrative reporting 4 Crisis management investor relations – a guide for IROs – the vital issues – a strategy for IROs

The IR Essentials series of guides is published by The Investor Relations Society in association with industry experts to provide advice on key topics which concern investor ‘ relations professionals. Our aim is to give up-to-date guidance on best practice and to provide a useful reference resource for users at all levels in the profession. ‘ We aim to publish guides on new topics on a regular basis and to update existing publications as necessary. IR Essentials supplements our existing training course materials and the Certificate in Investor Relations study guides.

Price: £15 each – or a set of all four for £45 (FREE to Standard Plus members of the IR Society)

To purchase IR Essentials, please contact Richard Knight at [email protected] or call 020 7379 1763

The IR Essentials series is produced by Silverdart Publishing on behalf of The Investor Relations Society

IR SOCIETY 43 Distribution services

Online services

Broadcast services

Client services create value through communication

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