Trends Trends 2005 Good Practices in Corporate Reporting 6 th annual publication 

The framework for good corporate reporting

Market Overview - how the landscape looks like Competitive Environment Market factors and dynamics affecting especially the corporation’s current and future business Regulatory Environment Changes, challengies Macro Environment Interest rates, oil price, demographics etc. affecting the corporation’s business

Strategy and Structure - how to compete within this landscape Goals & Objectives A clear statement of strategic long/medium/short term goals and objectives Governance Commitment to transparency and how the requirements are met and managed Risk Framework High level overview of how risks are managed Organisational design How the current structure is designed to fulfill the strategy

Managing for Value - explanation of critical risks and resources and how they are faced and managed Physical assets Financial assets Customers People Innovation Brands & Intellectual assets Supply Chain

Performance - the non-financial and financial ability Economic Internal and external measures of value creation Operating Performance in terms of non-financial outcomes Environmental, Social & Ethical In the light of their importance to strategic objectives Segmental Internal, based on geography/business unit/product area, measures for value creation and operating performance

Reporting trends Move from ‘guidance’ on reporting to ‘mandatory’ Burden of corporate reporting is growing heavy Underlying concepts of new regulation are welcome: focused on investors’ need to view performance through ‘the eyes of management’ Externally reporting performance information should be consistent with internal management reporting Learning to report within IFRS in Finland -But IFRS is not enough

Recurring themes play out in explicit requirements Contextual information that enables a more complete understanding of current and prospective financial results and position Expanded information on both financial and non-financial performance measures Forward-looking information for assessing prospective performance Information on key performance indicators that companies use in managing their business … but little guidance on what good corporate reporting ‘looks like’

How Trends 2005 can help Offers insights into how forward thinking companies are embracing the increasing demands for greater transparency Provides practical guidance to companies and the preparers of corporate reports to navigate the burden of recent corporate reporting legislation and regulation worldwide Provides good practices examples drawn from the external communications of 42 companies worldwide – demonstrates how to make effective links between the reporting of strategy and performance

Each example gives detailed guidance Expert commentary from PricewaterhouseCoopers Indicates which elements of the framework are addressed in each example, and what aims they fulfill

Who will benefit? Standard setters and regulators -A view on how companies should be reporting and the issues they face Preparers of corporate information -A practical framework which provides a starting point to shape external communications Investors -A proposed framework to access financial results within the context of total corporate performance Other interest groups -Current and future management and other employees -Auditors, researchers, other analysts

PricewaterhouseCoopers This framework and publication provides the practical guidance needed to make effective links between the reporting of strategy and performance, not just fulfilling the legislative requirements.

Provides a practical framework for preparers of corporate reports