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SPRING 09

THE ONLINE REPORT:

WHY ONE SIZE DOESN’T FIT ALL
Welcome to our latest re-think supplement that looks at the most recent developments
in online annual reports. With the concept of best practice being an evolving area we
wanted to take a step back, draw breath, and assess what has actually happened over
the last six months in online financial reporting.

Richard Coope of salterbaxter identifies 10 companies that use their online reports to
solve different business-specific issues. He highlights emerging trends and provides
perspective on what really matters for online reporting in 2009. Stuart Bartram of Aviva,
shares why measurement and tracking is essential in developing a best-in-class online
reporting programme.
TE
TH IN

RE-THINK SUPPLEMENTS
BA
DE E
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www.salterbaxter-rethinktank.com
The re-think supplements are regular feature pieces linked to our online research and debate forum,
the re-think tank. The re-think tank is the place where commonly held views are challenged, new ideas
flourish and boundaries are broken. Because we have a strongly-held belief that most things can be better
– they just need better insight, brighter ideas and more creative thought. You’ll find articles, opinions and
research on the big business and communication issues of the day, from sustainability to more effective
digital marketing. Regular contributors include leading players and thinkers in all the fields we operate –
so you’ll be in good company.

GET I
About salterbaxter TOUC N
Established in 1998, salterbaxter is one of the UK’s leading creative consulting businesses.
H
We advise organisations on corporate branding, corporate responsibility, employee
engagement, corporate reporting and digital programmes.
If you would like to find out more about us, please call or email Louise Dudley-Williams
T: +44 (0)20 7229 5720. E: ldudley-williams@salterbaxter.com
JOIN THE DEBATE: www.salterbaxter-rethinktank.com
RICHARD COOPE : HEAD OF DIGITAL : SALTERBAXTER
1 DMGT DEMONSTRATES DIGITAL
INNOVATION

THE ONLINE REPORT:

WHY ONE SIZE
DOESN’T FIT ALL The issue: DMGT diversified away from UK
newspapers to become a more international
WE ARE LIVING THROUGH AN AGE OF FUNDAMENTAL CHANGE IN
media business. Their reporting challenge was
CORPORATE REPORTING AND THE COMPANIES ACT PROVIDES AN to communicate their digital innovation and how
OPPORTUNITY TO CAST OFF THE RIGID CONVENTIONS OF THE they have moved from a traditional newspaper
business to a diversified media company.
PRINTED REPORT. MANY COMPANIES HAVE BEEN GRAPPLING WITH
The approach: The site includes an interactive
HOW BEST TO USE THIS NEW FREEDOM AND MAKE THE MOST OF Flash banner explaining their diverse business
THEIR ONLINE FINANCIAL REPORTS. portfolio and long-term commitment to ‘Creating
Media Brands That People Love’. The site
ONE THING IS CLEAR – THE DAYS OF ‘ONE SIZE FITS ALL’ FOR includes a dynamic timeline and interactive
CORPORATE REPORTING ARE OVER. PEOPLE WHO THOUGHT OF THE dividend chart showing how the business has
progressed over ten years.
ONLINE REPORT AS A BIT OF A HOLY GRAIL ARE REALISING THERE The result: DMGT are using specific interactivity
IS NO SIMPLE SOLUTION. EACH COMPANY IS APPROACHING ONLINE to demonstrate innovation and strong
REPORTING DIFFERENTLY AND FOLLOWING THE HERD IS NO LONGER performance. Only appropriate site tools are
used to deliver their clear strategic message.
DELIVERING THE BEST RESULTS. The investor response is positive with the report
experiencing a 63% increase in new visits
HERE ARE TEN CAREFULLY SELECTED EXAMPLES OF compared to last year.
COMPANIES THAT HAVE USED THEIR ONLINE REPORTS http://www.dmgtreports.com/2008
TO SOLVE UNIQUE BUSINESS-SPECIFIC ISSUES.

5 SHELL PUTS REPORT FINANCIALS

INTO CONTEXT 6 LEGAL & GENERAL SHOWCASE STRATEGY
THROUGH THEIR SENIOR TEAM 7 INTEGRATING CR INTO BG GROUP’S
CORPORATE REPORTING HUB

The issue: 2008 was a year of turbulent global
markets and extreme fluctuations of oil prices.
Against this uncertain backdrop Shell needed
to explain their overall performance within
a long-term strategic context for investor
audiences.
The approach: The new site has a simplified
navigational structure. A useful download
manager includes detailed Excel spreadsheets
allowing investors to review the raw financial data.
This year the site tools include a ‘Compare to
2007’ button, allowing analysts to review
year-on-year performance data.
The result: Shell clearly worked hard to make
the report information as readable as possible.
Shell sets the report into an appropriate
context by providing useful supporting material,
such as a guide to the Financial Statements,
a ‘Chart Generator’ and Excel downloads for
the Financial Statements.
http://www.annualreview.shell.com/2008/
servicepages/keyfigurescomparison.php
The issue: Legal & General’s challenge was to
address their investor concerns over financial
transparency issues. They had to demonstrate
a clear strategic approach and showcase the
strength of their leadership team.
The approach: The report homepage shows a
revolving carousel introducing the Executive
management team in video format. Clicking on
the images directs users to video introductions
that explain how the business has been
performing. The theme of leadership and a
cautious approach to risk management is
followed throughout the report.
The result: The appropriate use of video creates
a sense of transparency, responsibility and
personal accountability in Legal & General’s
strategic management. It also clearly shows
a unified management team putting strategy
into action.
http://legalandgeneralgroup.com/ara_2007/
servicepages/welcome.html
The issue: BG Group needed to consolidate their
approach to financial and non-financial reporting
to help investors truly assess their overall
business performance. They also wanted to
provide other shareholder information to provide
a broader context to business performance.
The approach: BG Group have developed a
corporate reporting hub, using a single microsite
with consistent navigational principles, that
incorporates the Annual Report, Corporate
Responsibility Report, Summary Financial
Statements and AGM information.
The result: The online reporting centre is a
unique example of how a combined approach
can be used to communicate key reporting
material to stakeholders. It provides a single
point of reference and is a fully integrated
approach to reporting for investors.
http://www.bg-group.com/OnlineReports/ara/
index.html

CT
CONTA
CONTACT: ldudley-williams@salterbaxter.com : salterbaxter, 202 Kensington Church Street, London W8 4DP. T: +44 (0)20 7229 5720 US
JOIN THE DEBATE: www.salterbaxter-rethinktank.com
2 AVIVA RECOGNISES RETAIL INVESTORS
WANT SOMETHING DIFFERENT
The issue: Integration was the main issue Aviva
had to deal with this year. Financial information
had to be collected from 27 different countries
worldwide, whilst the business re-branded under
the ‘one Aviva, twice the value’ proposition.
The approach: Aviva kept it simple. The report
has an intuitive navigation and easy to read
interface design. There is a specific section
addressing retail investor concerns, called
‘Recognising the needs of our customers’
and a private shareholder section for future
e-communication. Users can also download
their own report pack and review the Financial
Statements in Excel format.
The result: Aviva has cleverly thought through
the requirements of their retail and institutional
shareholders. The structure, content and
functionality of the site has integrated well with
the new Aviva brand. See Stuart Bartram’s article
overleaf for more details.
http://www.aviva.com/files/reports/2008ar/index.
asp
8 TELIASONERA EMBRACES
MULTILINGUAL MULTIMEDIA
The issue: Teliasonera is a mobile and fixed
network services provider to the Nordic and
Baltic countries. As a dual listed company on the
NASDAQ OMX and Helsinki stock exchange it
needed to find innovative ways to communicate
its report content in multiple languages to
international investors.
The approach: The online report is published
in English, Swedish and Finnish. The report
provides an audio commentary making it
accessible to an international audience. An
interactive map provides country specific data,
in particular their expansion into the emerging
markets of Russia, Turkey and Spain.
The result: Incorporating regional differences into
one online report structure makes the report a
unique experience for online audiences. Expect
more international companies to use multilingual
multimedia like this in 2009.
http://www.teliasonera.com/annualreport/2008
CONTACT: ldudley-williams@salterbaxter.com : salterbaxter, 202 Kensington Church Street, London W8 4DP. T: +44 (0)20 7229 5720
JOIN THE DEBATE: www.salterbaxter-rethinktank.com
3 VODAFONE CREATES CLARITY
FROM COMPLEXITY
The issue: With the printed report running at
160 pages, Vodafone’s Director of Corporate
Affairs, explained that the challenge for the
online version was ‘not to let the weight of all
that information obscure the message… people
need to find the information if they want to drill
down further’.
The approach: Vodafone has worked hard to
tell a complex story simply to their institutional
investors. The homepage is presented within a
portal interface, providing quick access to deeper
content. The excellent ‘Business Overview’
depicts in simple design terms how the Vodafone
business is structured and how the international
operations connect.
The result: Vodafone provided page-turning
PDFs in the past, however institutional investors
required a more bespoke approach. The latest
online report adds clarity and context for these
investors and provides simple options to explore
deeper content.
http://www.vodafone.com/static/annual_report/
index.html
9 CENTRICA MAKES IT CLEAR
AT FIRST GLANCE
The issue: The challenge for Centrica was to
encourage private shareholders to view this year’s
Annual Report online. The focus was to clearly
explain the Chief Executive’s strategy to be the
leading integrated energy company to both
specialist and non-specialist investors.
The approach: Centrica focused on keeping
their report simple to read and easy to navigate.
It includes a clear and simple overview of
Centrica’s integration strategy using an intuitive
Flash animation. The ‘At a Glance’ section
provides a snapshot that explains the integrated
nature of their business.
The result: The online report skilfully balances
the needs of both retail and institutional
audiences. It succeeds in this by helping
investors to ‘self-serve’ the information they
need through clear information architecture,
supportive FAQs and helpful additional
shareholder information. It is also reassuringly
easy to navigate.
http://www.centrica.com/files/reports/2008ar
4 USERS ARE KEY FOR THE
BRITISH LIBRARY
The issue: The British Library’s remit is broad
and their user groups diverse. They needed
to identify new ways to show how the expertise
and knowledge gained by users transformed
into tangible solutions.
The approach: The online report features video
clips of the Library’s users talking about how
the Library inspires and supports them. The
Chief Executive’s video statement offers a
behind-the-scenes insight into how the Library
works. Report readers can also ‘Add a comment’
or use an interactive poll to respond to the
report content.
The result: The British Library has won the
Best Annual Report (Public and Voluntary
sector) at the Accountancy Age Awards for the
last three years. Many listed companies are now
incorporating these interactive techniques to
engage report users.
http://www.bl.uk/about/annual/2007to2008/
10 BARCLAYS BRAVELY OPENS
UP TO EXTERNAL SCRUTINY
The issue: Barclays has come under intense
pressure for greater disclosure from regulators
and investors alike. The challenge for the bank
was to be more open and transparent to rebuild
shareholder confidence, in particular to the
bank’s approach to risk management.
The approach: The latest online report includes
remarkably frank videos from the Chairman and
CEO. Users are welcomed to the site and
immediately asked for their opinions. The site
includes an excellent ‘Your view’ section where
users are asked to post questions directly to the
Chairman. It provides FAQs, a site survey and an
invitation to join a shareholder workshop to help
Barclays improve their future online reporting.
The result: Barclays have taken the leadership
step of opening up to external scrutiny. This
brave approach is likely to set a precedent for
future online reports and reflects their overall
external tone to these unprecedented times.
http://www.barclaysannualreport.com/ar2008
CT
CONTA
US
THE ONLINE REPORT: WHY ONE SIZE DOESN’T FIT ALL CONTINUED
SO WHAT CAN WE LEARN
FROM THESE OBSERVATIONS?
1. You can’t achieve everything, so focus on what matters to your business
and its stakeholders – each company has a different investor profile and
a unique business issue that needs solving. Companies clearly need a
tailored approach and should evolve a reporting programme over time.
2. Don’t forget to tell your story – find compelling ways to explain your
report narrative online. Flash animations, interactive maps and multimedia
help to bring that story to life. Keep your messages consistent and relevant.
Consider contextual information for your retail audiences, where appropriate.
3. Deliver what investors want quickly – investors are impatient so make
it easy for them to find the information they need. Focus on usability and
provide additional format options, such as Excel downloads of Financial
Statements, to help analysts compare performance within your sector. If
budget is limited then use simple PDFs, but avoid the dynamic page-turning
PDFs at all costs (they’re not compliant with accessibility guidelines).
4. Integrate – look at simple ways to integrate your suite of reports
into a Corporate Reporting Centre with a distinct URL (ie. www.
barclaysannualreport.com). Be consistent with the information you
share and provide quick links to contextual investor information.
5. Measure success – spend time to understand how investors use your
report. Track where they have come from (Registrars email, from your own
site, Google search, etc.) and research for how long they stay on your site.
FINALLY A FEW WORDS OF CAUTION
Don’t be seduced by distracting ‘bells and whistles’ – avoid unnecessary
functionality that detracts from the user experience. Technology should
be used to help the user gain a better understanding of the company.
Watch out for website restrictions – many companies suffer from restrictive
corporate website templates that make their report content difficult to
navigate. Consider developing a report microsite independent from the
corporate website.
Be clear who reads your report online – work on building a long-term
engagement with your shareholders through your e-communications. Offer
surveys, ask for feedback and run usability workshops to understand what
investors really want to see from future online reports.
Avoid a tick box approach – ticking the so-called best practice boxes for
online reports without due consideration to your unique business issues
will only lead to investor disappointment.
Reassuringly the approach to online reporting is now starting to reflect the
various audience needs and the different problems that companies want
to solve. We expect to see a marked improvement in the quality of online
reporting in 2009. Best practice will eventually emerge but it will be based
on online innovations that are appropriately used to enhance stakeholders’
overall experience and understanding of a company’s strategy.
N
TI
About salterbaxter
GE UCH Established in 1998, salterbaxter is one of the UK’s leading creative consulting businesses.
TO We advise organisations on corporate branding, corporate responsibility, employee
engagement, corporate reporting and digital programmes.
If you would like to find out more about us, please call or email Louise Dudley-Williams
T: +44 (0)20 7229 5720. E: ldudley-williams@salterbaxter.com
JOIN THE DEBATE: www.salterbaxter-rethinktank.com
STUART BARTRAM : SENIOR MANAGER, CORPORATE INTERNET & DESIGN :
AVIVA PLC
FROM GOOD TO GREAT:
HOW SITE ANALYTICS
ARE HELPING TO
IMPROVE AVIVA’S
ONLINE REPORTING
AT AVIVA WE ARE KEEN TO CONSTANTLY IMPROVE
OUR ONLINE REPORTING, AND MEASUREMENT
PLAYS A KEY ROLE IN HELPING US UNDERSTAND
HOW READERS USE OUR HTML ANNUAL REPORT.
FEEDBACK AND USER TRACKING ALSO
PLAY A PART IN DETERMINING
WHO, WHAT, WHERE, WHEN.
Visitor numbers to our online annual report has consistently risen and since
2005 visits have been up 52% year-on-year. The 2008 online annual report
site received 19,719 unique visits, or to put this in context, this amounted to
2.5 visits every hour of every day.
Interestingly, 75% of people visiting the Aviva online annual report site also
downloaded the PDF of the printed report. That tells us that investors still
want to refer to a paper version, no matter how compelling the interactive
features of the report are.
The most popular area of the report site, after the homepage, was the
financial statements, followed by the overview and business review. As
the financial section was the most visited area of the site we felt it was
important to provide this section in a compelling way for this specialist
audience. Unsurprisingly, the ability to view the financial statements in
Excel was popular amongst institutional investors.
How users get to the online report is also revealing. We know 74% of traffic
to the report was directed from the corporate site. This tells us that we need
to make the report link as prominent as possible on the corporate
homepage. Whilst the initial visit length to the site was good it was felt more
could be done to make the content more relevant for returning visitors.
In response to user feedback we have made sure the corporate and investor
sections are both aligned with the annual report and accounts story. We
have also provided contextual links throughout the corporate site to help
increase traffic to the report and show how the performance of the business
is integral to the corporate structure of our main website.
By measuring statistical results we know that access to the online report
was both wide and deep, with report users entering and exiting through the
main site. The feedback we get is helping us to keep it simple and provide
investors with content in the most appropriate ways. Reviewing site analytics
and understanding our users’ online behaviour is providing us with valuable
insight to improve our overall online reporting programme.
These types of metrics are not the ‘be all and end all’ for us, but we know
they give us deep insight into how readers actually use the online report.