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December 1, 2009

The Changing Face of Annual Reports

Filed under: Annual Reports — janine @ 11:07 am

It’s an interesting year for investor communications professionals as they look at different options for their annual report. The last couple of years have seen companies testing the waters of Notice & Access and looking at different formats and mediums of communicating with their investor base. Most decisions are based on ways to save costs as well as initiatives in place to showcase corporate and social responsibility. Many companies didn’t want to be the first to try new approaches but this year more than ever we are seeing our clients finally spread their wings and venture into new territories of the annual report landscape.

Mentus recently hosted an online annual report event to discuss the different approaches to taking your annual report online.  Some of our clients produced solely an online annual report while others did a combination of print and online.  The decision was based not only on the objectives of the senior management but more importantly the percentage of institutional vs. retail investors. Those companies with a large institutional shareholder base do not necessarily need a print version and are seeing real value in the online annual report.  A number of companies still want their shareholders to receive some type of printed piece so they are considering printing a more environmentally friendly annual report with a complementary online version. Of course, there are still those companies who will continue to produce only a print version but with print you can’t take advantage of the interactive components that can add real value like videos, Flash animation and downloadable financial information.

Each company has to decide what is the right vehicle to tell their story and there are many more choices than there used to be.  Start the brainstorming process early, involve your agency and don’t forget to ask questions along the way.

August 24, 2009

Notice & Access

Filed under: Annual Reports, Design, Environment — leasa @ 10:27 am
I recently had the opportunity to speak with Rick Howe, Director of
Corporate Communications at BioMed Realty Trust on his views regarding
implementing Notice & Access. Here is what he thinks….
What motivated your company’s move to Notice & Access?
The primary motivations for BioMed were to more actively and effectively
communicate BioMed’s business strategy and operating and financial results
for 2008, improve the company’s environmental stewardship, and realize
potential cost savings.
What formats did you provide to your shareholders?
BioMed sent a postcard to notify stockholders of our online annual report
URL, posted an interactive online version with extensive video content on
our website, and distributed a print version of the annual report as
requested and as required by SEC rules.
Did you also create a print format? Why?
Yes. A printed version of the annual report was provided in order to ensure
that all investors had access to BioMed’s 2008 Annual Report and to comply
with the SEC’s notice and access rules.
How did Notice & Access change the process of creating the annual
report?
The decision to provide a postcard, online annual report and a printed
version, coupled with the multi-media content in the online version,
required a much higher level of communication and collaboration with Mentus.
Add to that the simultaneous implementation of BioMed’s improved interactive
website, which added to the complexity of the process and magnified the need
for all manner of communication and consultation.
How does the annual report reflect your company’s social and corporate
responsibility?
Sustainability was behind our decision to convert BioMed’s annual report to
an online format. In addition to the environmental benefits of using less
paper, along with the cost savings for our business and shareholders, the
online format offered a level of interactivity that is not possible on paper
and enabled us to communicate the details of our business more effectively.
How did shareholders receive the annual report? Was feedback positive?
While we did not receive a substantial volume of comments, all of the
feedback on our online annual report was positive.
What challenges/success did you experience with Notice & Access and
moving the annual online?
The primary challenge was keeping track of all of the moving parts,
including our first online annual report, video updates and revisions,
postcard, printed version, and revamped website. Our original hope was to
launch all of these pieces in March, but the broad scope of these
interconnected parts pushed the implementation to mid-April. In spite of
these challenges, the annual report was delivered in accordance within
mandated SEC timeframes and the website went live concurrently with
virtually no technical problems at implementation or since.
Were there tangible financial benefits to going online?
The total cost of the entire annual report package (postcard, online annual
report, printed version, transfer agent and broker fees) was approximately
15% less than previous years without Notice and Access.

I recently had the opportunity to speak with Rick Howe, Director of Corporate Communications at BioMed Realty Trust on his views regarding implementing Notice & Access. Here is what he thinks….

What motivated your company’s move to Notice & Access?
The primary motivations for BioMed were to more actively and effectively communicate BioMed’s business strategy and operating and financial results for 2008, improve the company’s environmental stewardship, and realize potential cost savings.

What formats did you provide to your shareholders?
BioMed sent a postcard to notify stockholders of our online annual report URL, posted an interactive online version with extensive video content on our website, and distributed a print version of the annual report as requested and as required by SEC rules.

Did you also create a print format? Why?
Yes. A printed version of the annual report was provided in order to ensure that all investors had access to BioMed’s 2008 Annual Report and to comply with the SEC’s notice and access rules.

How did Notice & Access change the process of creating the annual report?
The decision to provide a postcard, online annual report and a printed version, coupled with the multi-media content in the online version, required a much higher level of communication and collaboration with Mentus. Add to that the simultaneous implementation of BioMed’s improved interactive website, which added to the complexity of the process and magnified the need for all manner of communication and consultation.

How does the annual report reflect your company’s social and corporate responsibility?
Sustainability was behind our decision to convert BioMed’s annual report to an online format. In addition to the environmental benefits of using less paper, along with the cost savings for our business and shareholders, the online format offered a level of interactivity that is not possible on paper and enabled us to communicate the details of our business more effectively.

How did shareholders receive the annual report? Was feedback positive?
While we did not receive a substantial volume of comments, all of the feedback on our online annual report was positive.

What challenges/success did you experience with Notice & Access and moving the annual online?
The primary challenge was keeping track of all of the moving parts, including our first online annual report, video updates and revisions, postcard, printed version, and revamped website. Our original hope was to launch all of these pieces in March, but the broad scope of these interconnected parts pushed the implementation to mid-April. In spite of these challenges, the annual report was delivered in accordance within mandated SEC timeframes and the website went live concurrently with virtually no technical problems at implementation or since.

Were there tangible financial benefits to going online?
The total cost of the entire annual report package (postcard, online annual report, printed version, transfer agent and broker fees) was approximately 15% less than previous years without Notice and Access.

May 27, 2009

A Day in the Life…

Filed under: Annual Reports, Clients, Mentus Water Cooler — gary @ 2:46 pm

The day begins with a check of my iPhone, and I’ve already got 15 emails at 5:45 am. It’s going to be a wild one today. Friday, in the midst of annual report season. Coffee & toast, check the headlines, shave, shower, kiss my wife goodbye on her way to work (she’s a Special Ed. Teacher), get my 10-year-old daughter up, fed and to school. Don’t forget her lunch. Then zoom, fight the traffic, walk my girl to class and give her a quick hug and “I love you” even though “that’s SO not cool, Dad,”  but she smiles and I zoom off to work.

John is usually the first one in, but today I get in earlier and turn on the lights and printers. Strangely quiet. That’s about to change dramatically. We have 3 annual reports slated to ship to the printer today, if we can get final sign off.

Adrenalin starts to flow as I check my emails and start making some last minute Photoshop changes. . . remove some wrinkles here, a zit there, and whiten teeth throughout, after looking at loose color proofs we ordered to balance color. Almost feel like a father on graduation day when I send annual report files to the printer. . . I want everyone to look their best!

Mid-morning calls from hungry print vendors who claim they are the best thing since apple pie. . . we already have the best printers, but thanks! Emails with last minute text changes. . . the chart numbers on inside front cover have changed and several text changes on page 3 and page 4. I rebuild the cover file with spine included, just as it will look on press. Double check that all files are CMYK and high resolution and another spell check, just in case. Print out lasers, have our Acct. Exec. proof, then PDF to client for approval of changes. Client signs off 1 hour later, and this one is almost there.  Collect, save all files to disk, including photos, illustrations, and fonts and burn the DVD. Print out lasers and create a laser dummy so that printer has a good reference for annual report. Write notes on margins with special concerns and tech. information that will save time for prepress dept. I package all and drop off for FedEx First delivery.

Meanwhile, trail mix from Trader Joe’s and water. . . doesn’t look like there’s time for a real lunch today; too much going on. Melissa calls me over and says she just got approval on the second annual report that is due out today and can I look over her printouts one last time. “You bet!”. . . but take a phone call first from our AE on the third annual. . . changes coming back in ½ hour. . . be ready! This is all coming together. Adrenalin rush number 2.

I proof Melissa’s files and find only one mistake. . . spell check didn’t pick up because it’s a real word and was in the original MS Word file provided. Person’s title should be “former CEO” not “formal CEO”. . . unless he’s just a real well-mannered, traditional guy that just wants to be known that way! Client confirms the error and Melissa corrects.

Run upstairs to check for new FedEx delivery and yes, box is there with printer proofs for another annual report that is in progress. I review proofs and all looks good. . . give to creative director to review before he hands off to our Acct. Exec. to bring to client for their review.

It’s noon and laughter explodes from the lunch room. I detect the smell of a fresh pot of coffee as I breeze by on the way downstairs to my desk. Latest changes to 3rd annual report have been emailed to me and our AE has written up the changes on our internal revision form so that  I have something to proof against when I’m done. Not too bad, except now copy is running long on page 4. I adjust top of columns slightly to match up with top of graphic on page 2 and it all fits and spread actually looks better than before. Phone call from vendor, “yes it will be there today!” Print out lasers of edits for proofing and hand to AE.

Melissa has her files approved and I write up purchase order with all specs. . . # of pages, final size, paper, inks, binding, ship and arrival dates, etc. and fax to printer so they can get paper ordered and project stays on schedule. Melissa’s AR needs to be at printer today, so she FTPs her high res. files to the printer, and the adrenaline keeps flowing. I send a low res. PDF file to printer for reference and we also FedEx a backup disk of files and color laser dummy so they will receive the next day.

My wife calls and asks if I can pick up my daughter at soccer practice after work. I quickly calculate the odds and give her a “Sure, no problem” and now I have even more incentive to finish the third annual report and make FedEx. All is in sync and the pace is now humming when I get the call at 3:30 pm that the client has 4 pages of changes. I calmly make each change and check off each as I do them. Run spell check and have Karen check as well. All good. PDF to client. At 4:45 pm they give us the go ahead and I gather the files, burn a disc, and print lasers for the printer, package for FedEx and jump in my car. Race to FedEx for the third and final deadline of the day. I have 10 minutes to spare before they close for final drops. As I park my car, it occurs to me that I’ve beaten the curse of Friday the 13th. . . today has gone very smoothly, despite all we had to accomplish. I sigh, and the door handle of my 1991 Acura Integra promptly breaks off in my hand. Yikes! Quick, roll down the window and open the door from the outside, run inside and drop off the package with minutes to spare. Not bad. I’ll take a broken handle over not making FedEx any day. Heavy sigh. On to soccer. Tomorrow is a new adventure.

May 14, 2009

GoGreen

Filed under: Annual Reports, Economy, Environment — tracy @ 4:57 pm

In this economy a lot of companies are seeing red. Some are even feeling blue. We tend to see it as a good time to go green. 

In years past, going green with a company’s annual report often meant sacrificing quality and risking the perception the company was not doing well. Annual reports are changing. Good quality recycled paper is now available, new SEC requirements are defining what and how we communicate, the question becomes how can we put this change to work for you and your company?

It is easy to recognize that today’s annual reports are often overlooked or considered irrelevant. As such, companies are challenged to tell their story in a way that excites, informs, inspires action and breeds confidence. Although many companies rely on a 10-K wrap for this purpose, these can fall woefully short inspiring action and, in some cases, actually work to dissuade interested parties from investing in the first place.

We are helping companies to establish a new standard or approach to investor communications, one that is not limited by a static 10-K wrap format. Our GoGreen format delivers greater value to the stakeholder with the promise of a dynamic, updated dialogue with your investors. This value is amplified by GoGreen’s ease of content portability (readily shared, forwarded, and printed).

It’s been great to see our clients adopt GoGreen to varying degrees. We believe companies, whether public or not, are only a few years away from taking part in this new mobile communications generation. GoGreen can be the bridge to a new communications and investors vista.

April 15, 2009

Annual Report Season

Filed under: Annual Reports, Economy — leasa @ 12:33 pm

What a crazy annual report season. All my clients this year saw their budgets slashed & a real need to tell their stories. So in an ongoing effort to help them I came up with three viable solutions using our GoGreen method.

First, move to an online report & consider Notice and Access (N&A). By switching to an online report and using N&A you can save a significant amount in printing fees. This policy literally saves trees; stops the release of pulp and paper pollutants into the environment; and saves on the amount of fossil fuels and water that is typically used in the printing and transport of annual reports. BioMed Realty and Extra Space Storage adopted N&A and they both created smart and compelling online reports this year. www.biomedrealty.com/08AR and www.extraspace.com/annualreport/2008

If you do not feel comfortable with an online report, try a hybrid approach. Although Leap Wireless took advantage of N&A they chose to print a small booklet to share their story & lead investors to an online report to receive more information. The booklet is “6 x 9” in size and is a 16-page self cover document. All 16-pages can be printed on a single recycled sheet through the press. This demonstrated Leap’s effort to provide a transparent and balanced account of the Company’s achievements while being environmentally conscious. They saved 7 full grown trees & 580 lbs in greenhouse gases ~ very cool! You can visit Leap’s website to view this hybrid approach. www.leapwireless.com/ar08

Finally, do less, not nothing. The form 10k for all intents and purposes is a dated and tedious document. By sending it out alone it can send the wrong signal, especially if it is in stark contrast to previous annual reports. I think it can sometimes imply a more distressing financial scenario than is appropriate. Make your annual report do more in fewer pages &/or simplify the design & printing. So many companies make their annual report look like a glossy brochure. Zions Bancorporation also implemented N&A, but did not design an online report because they felt strongly they needed to send out a printed report to answer some tough question the bank had been receiving and explain the move to N&A. The book is 8.5 x 11 ~ but by choosing a design concepts with little photography (just photography of Harris Simmons, the President & CEO), using fewer pages and by printing on FSC-certified recycled paper they were able to see a significant savings over last year’s budget. Also, in my humble opinion, I believe this simple, clean approach is more appropriate for the times. www.zionsbancorporation.com

I hope these ideas help. Feel free to share your tips on what your company did this year with their annual report and to save money.

In the weeks to come we will be speaking with some IRO’s who used N&A and moved their report online and get their thoughts about the process and how it is being received by investors.