In this digital era, extensive information about a company is available online from an array of unverified third-party sources. The annual report is a company’s opportunity to nurture its Investor Relations (IR) by publishing its own authoritative information.
Best practices for investor relations communications have evolved along with technology as annual reports expand to include online distribution.
Below are a few tips that could help IR teams with annual report communications.
Seven Tips for Annual Report Communications:
1. Include an effective search function
- Dynamic search functions make the online report interactive, as readers can use drop-down menus from the search box which reference the most frequently-searched terms. A popular search tool provides real-time links to sections of the report that are most relevant, and these links adapt dynamically as the reader continues typing.
2. Simplify the language
- Too many annual reports go unread because they overwhelm the investor with a wall of words. Simplification is key: cut out the corporate jargon and use plain language, especially in the financial reporting section. Even if you integrate your annual shareholder report and Form 10-K information into one document, you can still deliver the required information using straightforward language and an easy-to-read format.
3. Emphasize strategy
- The best annual reports tell a story. Beginning with a brief overview of performance indicators and corporate goals, they go on to summarize strategic priorities and describe annual outcomes of those priorities..
4. Put the bottom line on top
- Whether you create an executive summary or a visually appealing text box, it’s good to put your most compelling achievement at the top of the report. Busy investors may not read all the way to the end, so the visual real estate at the top should be used for the year’s most important take-away.
5. Optimize print and digital media
- This may be the digital era, but investor relations solutions don’t begin and end out in cyberspace. Backing up the online version with a well-designed, printed annual report that investors can hold in their hands will testify to your company’s solidity and integrity.
6. Include a video
- This option highlights one of the major benefits of online annual reports. The chief executive or leadership team are provided with an opportunity to speak directly to investors, giving depth and context to the figures contained in the report.
7. Be consistent
- Investors appreciate being able to easily track and compare progress over time, so it’s helpful to stick with the same basic format year after year. Clever graphics professionals can introduce new design touches, while maintaining the placement of core facts and tables.
As regulations continue to demand greater levels of disclosure, companies must integrate reporting compliance with effective IR solutions..
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
