Webinar on Online Reporting 2010-10-12

Online reporting: how is technology shaping the future of corporate communications?

Webinar October 12, 2010

Thomas Rosenmayr, CEO at Nexxar

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Welcome to the Nexxar Webinar

Todays purpose: Giving an overview what is going on in Online Reporting

and how this may impact corporate communications

Estimated duration: 1 hour

You may post questions anytime during the webinar

Fritz (Nexxar) will answer, where possible we will try to include them

Video replay will be available on www.youtube.com/nexxardotcom

Slides will be available on www.slideshare.net/nexxar

Main ideas and Q/A will be posted on Twitter using the hashtag #nxr10

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Agenda

What is shaking up the web?

Online Annual Reporting – Status and Update

Corporate Reporting: Online and/or Print?

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Agenda




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Social Media is where growth takes place!

Users spend 23.000.000.000 [23 billion]

minutes per day on Facebook [per 2010-09-29]

With 344.194.152 views the most watched video on

YouTube is Justin Bieber - Baby [per 2010-10-10]

-> Currently adding 7 million per day!

Source: YouTube, Facebook


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2010 20092010

YouTube Twitter0

500

1.000

2.000

2.500

3.000

Google Yahoo!Facebook

Million visits per month


Source: http://siteanalytics.compete.com

Jul2010

Jan2009

Jul2010

1.500

2009

3.172 3.141

2.313

933

231Jan2009

Jan2009

Jan2009

Jul2010

Jul2010

+195% +46% -10%

+128%

Reuters

15 m.+220% 16 m.

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February 2010

Users are older than expected!

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ConsumeConsume

ShareShare

ProduceProduce

ProduceProduce

ShareShare

ConsumeConsume

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ConsumeConsume

ShareShare

ProduceProduce

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Supporting and enhancing each other ≠ Competition

Content Ratio


„Conversational Content“i.e. Twitter, Blogs

„Editorial Content“i.e. Annual Report

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Agenda




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Market analysis – online reports 2010

2010 analysis covers 508 companies [UK, Germany, Canada, Netherlands,

Switzerland, France, Italy, USA, Austria, Sweden, Denmark, Finland]

1. PDF

a PDF download is the only way the report is made available

2. JPG show

JPGs/images of the print report embedded in HTML frames

3. HTML

programmed as full-fledged website

Presentation of Annual Reports online:

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Market analysis: online reporting of 508 companies

PDF1. step HTML

incl. hybrid

Development of formats – HTML, JPG and PDF – since 2003

JPGmeander?

41.4%

36.0%

22.6%

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Market analysis: online reporting within 10 indices

HTML share per index

Amazing difference

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Use of online Reports: Statistical Highlights

German Speaking Countries

46%54%

Website Search Engines/Other

UK/Netherlands

15%

85%

Website Search Engines/Other

Referrer: “Where do users come from”

Seems better received from web

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Use of online ReportsNumber of unique visitors increases Number of unique visitors increases

aboutabout 8% 8% p.a. (last 5 years) p.a. (last 5 years)

Range differs a lot (Range differs a lot (10-10.00010-10.000 per day) per day) Company size, but also promotion on corporate home, press and printedCompany size, but also promotion on corporate home, press and printed

Strongest interest in the first month, but keeps Strongest interest in the first month, but keeps

quite steady. Visits decline just quite steady. Visits decline just 2-102-10% during year, % during year, drops with next Annual Report.drops with next Annual Report.

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Use of online Reports

Average pages per visitor Average pages per visitor

decreased from decreased from 6 to 56 to 5 pages pages

Average visitingAverage visitingtime is time is

currentlycurrently

1.71.7 minutes minutes

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25%25%

65%65%10%10%

Where the clicks go…Where the clicks go…

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29% 16%29% 16% 8% 22% 24% 8% 22% 24%

Q/A: What about mobile Q/A: What about mobile annual reports? ~3%!annual reports? ~3%!

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Does it make sense to offer Notes section in HTML?

An average 12% of users visits Notes section

If Notes are 1st level entry the average increases to 16%

35% of Top 5 search queries go to Notes

An average An average 12% 12% of users of users visit Notes sectionvisit Notes section

If Notes on 1If Notes on 1stst level level

visits increase to visits increase to 16%16%

35%35% of Top 5 search hits of Top 5 search hits point to Notes sectionpoint to Notes section

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XLS Download XLS Download

12%12%

Create PDF Create PDF

5-8% 5-8% (rising)(rising)

PDF Download PDF Download

25%25%

PrintingPrinting

2-5%2-5%(declining)(declining)

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Personalized approaches Personalized approaches (subjects/keywords) are well(subjects/keywords) are well

received (received (10-14%)10-14%) as long as longas they are kept simple.as they are kept simple.

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EveryEvery 8th8th

visitorvisitor ( (13%13%) ) uses interactive uses interactive

charting, viewingcharting, viewing

at leastat least 44 different chartsdifferent charts

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VideoVideo attracts high attentionattracts high attention ( (20-35%20-35%))if positioned well and kept short in if positioned well and kept short in

length. People better than image videoslength. People better than image videos

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20%20% of all visitors use search tool of all visitors use search tool

Glossary usage differs strongly (Glossary usage differs strongly (2-13%2-13%))

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Sitemap, Help, Recommend Sitemap, Help, Recommend

close to non-existing (close to non-existing (<1%<1%))

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Good Practice

How to promote an

Online Annual Report?

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Link prominent fromLink prominent fromyour corporate homepageyour corporate homepage

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Explain advantagesExplain advantageson IR sectionon IR section

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Use all your channels forUse all your channels fordirect links to your reportsdirect links to your reports

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Make sure your reports areMake sure your reports arewell found on search engineswell found on search engines

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Explain in the printed reportExplain in the printed reportwhat online can serve betterwhat online can serve better

Screengrap from PDFScreengrap from PDF

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Good Practice

Use tools to enhance experience!

See links at http://www.delicious.com/nexxar/webinar10

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Agenda




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Will online replace printed Annual Reports?

What supports this view:

Print runs decreasing significantly (UK comp. Act 2006)

Use of Internet increased strongly (generation gap closes)

Technological innovations will fuel web usage furtherXBRL/XML data procession, mobile and offline web

Regulators in favour of online – equal access

Environmental concerns against printing

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What acts against this:

Printed reports communicate more than data (brand, values, strategy)

Long tradition of printed reports, people are used to it

Studies show reading is easier/quicker (contrast)

Regulations: mailing to registered shareholders (Germany)

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Conclusions:

Online and print do serve different needsTaking down notes will always be easier on a printed documentOnline is key for research, data processing and reference (link)

IMHO print and online will coexist and help each other Like radio stayed when TV came up, or trains/cars…

Five years ago people wondered: “Will online stay?”

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Is cross media publishing the future of reporting?

Create, change, delete, check, test: All can be done in one source!

Database, web accessible 24/7, read/write, probably XML

Every specialist gets appropriate access and user rights

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No transformation costs

Handling of changes gets easier

Both print and online at the same time!

Easy reuse of data for different purposes (Controlling, Investor presentations etc.)


Advantages and things that might push this

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Disadvantages and things that might stop this development

Initial costs

Dependency on a technical backbone provider

Potential security threat (data control)

Training for new tool required

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Conclusion

IMHO advantages stronger than disadvantages

Germany: print dominates business model (Regulations)Use of InCopy like Woodwing/K4 or Word/Excel-based tools

UK/US: online focus more multimedia/video less reporting

The Netherlands are leading the cross media way Ahold, AkzoNobel, Philips or TNT already testing waters

Nexxar is currently working to set up a tool

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Online Reporting – Summary

How is technology shaping the future of corporate communications?

Web has grown-up (generation gap closes)Importance of online reporting will increase further(Re-)search, quick availability and procession of data are key

Channels are merging: print/web/mobile won’t be questionIts not one channel over the other!

Communication need has to get back in focus

How can I reach my stakeholder best?

Q/A: Are formal annual reports (print) Q/A: Are formal annual reports (print) falling off the importance scale?falling off the importance scale?

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Introducing Nexxar

We are most experienced: 300 reports since 2003.

We set trends and develop permanently.

We are safe and fast – within 72h.

We stay overnight.

We have a passion to meet your highest requirements.

We focus on our strengths: world class online reporting.

Why working with us?

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Nexxar 2010: 28 customers in 8 countries

Awards Handelsblatt Dt. Standards Jungle Rating IR Web Report Financial Times Radley Yeldar LACP UK IR society Communicate magazine

Long-term oriented:majority more than4 years with Nexxar

A truly global reporting portfolio:

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Intellectual property on ideas and solutions presented are protected by copyright, and may not be reproduced, republished, distributed,

transmitted, displayed, broadcast or otherwise exploited in any manner without the express prior written permission of Nexxar.

NexxarMariahilfer Strasse 71/171060 Vienna, Austriawww.nexxar.com

Contact

Thomas RosenmayrT. +43 1 596 22 68-11F. +43 1 596 22 68-31

[email protected]

Investor Relations

Webinar on Online Reporting 2010-10-12