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Held in partnership with Creating Connections Creating a connected output Ronel Buys – Accounting Consulting Services Associate Director, PwC Sallie Pilot – Director of Research and Strategy, Black Sun Linda Buchler – Managing Director, Ince Agency

Held in partnership with Creating Connections Creating a connected output

Held in partnership with Creating Connections Investor Perspectives

Held in partnership with Creating Connections Held in partnership with Creating Connections Poll question Which source of information do you think analysts rely on most? (pick one) a)Investor presentations b)Annual Report/10-K/20-F c)Dialogue with management d)Company website Click here

Held in partnership with Creating Connections Investor perspective Which information sources do investors use most? Source: PwC’s global survey on investors’ views on integrated reporting

Held in partnership with Creating Connections Investor perspective Which data sources do investors use most? (top 3) Financial information Information about a company’s strategy, and resource allocation Info on risks and opportunities Governance information Environmental social and human capital info 1stAnnual Report Investor presentations Dialogue with Management Annual Report 2nd Preliminary Results Announcement Dialogue with Management Annual ReportProxy Statements Sustainability report 3rdInvestor presentation Annual ReportInvestor presentations Dialogue with Management Website Source: PwC’s global survey on investors’ views on integrated reporting

Held in partnership with Creating Connections Investor perspective Source: PwC’s global survey on investors’ views on integrated reporting

Held in partnership with Creating Connections Investor perspective Source: PwC’s global survey on investors’ views on integrated reporting

Held in partnership with Creating Connections Investor perspective How important is each piece of information investors receive and how effective is it? Source: PwC’s global survey on investors’ views on integrated reporting 87 63

Held in partnership with Creating Connections Investor perspective Source: PwC’s global survey on investors’ views on integrated reporting

Held in partnership with Creating Connections Held in partnership with Creating Connections The power of language and design

Held in partnership with Creating Connections Held in partnership with Creating Connections Background

Held in partnership with Creating Connections

Held in partnership with Creating Connections Tullow Oil’s challenges and objectives  Challenges  Experienced huge growth in the past decade resulting in increased need to communicate with shareholders and increasingly with wider stakeholders  Need to demonstrate ‘licence to operate’ and the value created  Objectives  Create a better, more cohesive and concise Report with stronger links between information  Use the Report as a tool to tell the company’s story  Use reporting to compete effectively with peers  Reach out to investors and wider stakeholders  Drive integrated thinking within the company, using the reporting process to drive change  To find a better way to ‘tell our story’, while remaining in the regulatory framework

Held in partnership with Creating Connections Held in partnership with Creating Connections Poll question

Held in partnership with Creating Connections Poll question What does your company’s business model mostly represent? a) Value creation b) Evolution of capitals c) Business activities d) Other Click here

Held in partnership with Creating Connections Poll question Biggest challenge telling the company’s value story: a) Hard to articulate b) Conciseness is a challenge c) Consistency across channels d) Internal buy-in Click here

Held in partnership with Creating Connections Held in partnership with Creating Connections What could the journey look like?

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections What could the journey look like Source: Black Sun PLC

Held in partnership with Creating Connections Held in partnership with Creating Connections The journey so far… Group activity

Held in partnership with Creating Connections The journey so far…  No business model  First articulation of the business model Source: Tullow Oil plc

Held in partnership with Creating Connections The journey so far…  Development of the business model  First articulation of how value is created  Evolution of the business model  Evolution of the value creation story Source: Tullow Oil plc

Held in partnership with Creating Connections The journey so far…  Expansion of the business model to a ‘special feature’  Integration of value creation discussion  Inclusion of business model ‘special feature’  Outline of the oil lifecycle Source: Tullow Oil plc

Held in partnership with Creating Connections The journey so far – restructuring the 2013 Annual Report  Used the business model as a basis to restructure 2013 Report  Reporting around the seven strategic priorities to ensure continually linkage to the core business  Aimed to create a more logical and cohesive flow to the information  Use of the ‘wheel’ device through the report for signalling/labelling and link back to business model  Roll out of business model across other communication channels, including a video Source: Tullow Oil plc

Held in partnership with Creating Connections The journey so far – outcomes of 2013 Report Internal engagement – Support throughout the business with increased engagement from the Exec and the Board Creating concise summaries – much easier than expected – No strict materiality process in place this year, but key investor feedback helped to shape each section More readable and interesting document – Clear set-up pages and digestible summaries that could be used as a standalone document More concise report – Slimming of content and strict word counts Supporting video – Use of video to explain and promote Report Integrated online approach – Integrated the Report into ‘Investors’ section, reducing time and spend, with better results and viewing figures

Held in partnership with Creating Connections Held in partnership with Creating Connections Poll question

Held in partnership with Creating Connections Poll question Most significant benefit of formulating the business model for your company? a) Telling the company’s story b) Competitive advantage c) Stakeholder communication d) Drive integrated thinking Click here

Held in partnership with Creating Connections Held in partnership with Creating Connections Top Tips

Held in partnership with Creating Connections Top tips for your communications 1 Think integrated Develop an integrated approach to all communications across all media Be consistent and relevant about information at year end and throughout the year 2 Set out key messages Reflect a Director’s view of the business Focus on matters relevant to ‘stakeholders’ Have a forward- looking orientation 3 Stay focused Be both comprehensible and understandable Be balanced and neutral Be comparable over time 4 Build up your story over time Build, report and reinforce key themes and messages Set timings for statements and announcements and communicate to investors and other stakeholders 5 Reflect your culture and values Reinforce what makes your organization different Tell your organization’s story

Held in partnership with Creating Connections Video -

Held in partnership with Creating Connections Held in partnership with Creating Connections Round up

Held in partnership with Creating Connections Held in partnership with Creating Connections Opportunity not obligation…

Held in partnership with Creating Connections Held in partnership with Creating Connections Effective stakeholder engagement through various digital mediums

Held in partnership with Creating Connections Held in partnership with Creating Connections Consistency a single input and multiple outputs measure effective communications of information across all media channels Documentation with Using analytics to Source: Ince

Held in partnership with Creating Connections Integrated annual report and supporting documentation Print Consistency of information Financial and retail shareholders RegulatorsCustomersStaff Business partners Financial advisers Feedback Input Online XBRL Regulatory News services Mobile Source: Ince

Held in partnership with Creating Connections Held in partnership with Creating Connections Case Study one

Held in partnership with Creating Connections Case study 1: Background – Multiple output The compilation, editing and checking of an integrated report is complicated The printed report is supported by other reports in various digital and other formats Proofing and tracking of documentation in multiple outputs carry risks requiring long hours Consistency of information across all outputs is required simplified? How could this process be Source: Ince

Held in partnership with Creating Connections Held in partnership with Creating Connections Case Study two GrowthPoint

Held in partnership with Creating Connections Case study 2: Background – Stakeholder engagement Current integrated annual report communication from the listed entity to the stakeholder is a one-way channel Communications between an organization and its stakeholders is only effective if feedback is received Substantial measurement for effective investor relations strategy is required measure How did we this for GrowthPoint? Source: Ince

Held in partnership with Creating Connections Held in partnership with Creating Connections The journey so far… Group activity

Held in partnership with Creating Connections Case study 1: Group discussion What does your current process involve? (integrated report first, then ads, then HTML, etc.) How many outputs (integrated report, html, tablet, etc.) are supported by your master files (Word and XLS)? How do you ensure consistency of information, facts and figures across all outputs without running them a separate projects? Source: Ince

Held in partnership with Creating Connections Case study 2: Group discussion Do you currently have an effective stakeholder communications programme in place? Do you use different media channels for different stakeholder groups? How do you measure the impact and effect of corporate communications (to shareholders)? What do you do with the feedback – if relevant? (improvement?) Source: Ince

Held in partnership with Creating Connections Held in partnership with Creating Connections Solutions and outcomes

Held in partnership with Creating Connections Case study 1: Solution Tag Word and Excel files or link through XML code to design outputs = one Word and Excel file document as master document Single input in native language Multiple output across various mediums with consistency of information Design templates Master Word and Excel files placed in secure SharePoint Working on Word and Excel file by the issuer is still possible PRINTTABLETWEBPPTXBRL Source: Ince

Held in partnership with Creating Connections Case study 1: Outcome Changes to master Word and Excel are pulled through and viewed immediately on all output files No delays in proofing No checking of multiple output files No risk that changes will not be incorporated No duplication Changes made anywhere and anytime All versions live at sign off Saving time and cost on proofing Source: Ince

Held in partnership with Creating Connections Case study 2: Solution Various digital and media channels available to measure effective communications Feedback and stats were provided to GrowthPoint to see how and where changes could be made for more effective communication Adobe analytics were used Source: Ince

Held in partnership with Creating Connections Case study 2: Outcome Growthpoint issued their IAR, a personalised and an sms with the URL of the IAR Click through to Growthpoint’s web page provided the following results: s sent SMS sent URL click through Average duration on site (minutes) 209 Questions asked to CEO Time spent watching video: 17.1 min Analytics allowed for a tailor made solution to be in place in year two Source: Ince

Held in partnership with Creating Connections Held in partnership with Creating Connections In Conclusion