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© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Black Sun plcNarrative Reporting October 2007
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Agenda
Principles of good reporting
Best practice examples
Benefits of increasing transparency
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Principles of good reporting
Reflect a director’s view of business
Focus on matters relevant to ‘stakeholders’
Have a forward-looking orientation
Complement and supplement financial statements
Be comprehensive yet understandable
Be balanced and neutral
Be comparable over time
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
StrategyBest practice examples
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Principal risks and uncertaintiesBest practice examples
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Principal risks: Carphone Warehouse
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Principal risks: Friends Provident
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Forward-looking orientationBest practice examples
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Step change in the overall quality of reporting
Although some have encountered difficulties, many have embraced new requirements
Disclosures moving to meet best practice standards
Narrative becoming clearer and more cohesive
Greater alignment between market environment, strategy, drivers of value and KPIs, risks and future outlook
Overall communications becoming much more accessible
Best practice summary
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
Internal benefits of increasing transparency‘From the inside out’
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
86% agree that clearer linkages between strategy, business objectives, KPIs, risks and future goals were realised
66% believe that reporting KPIs has helped the Board become clearer on which KPIs are right for their business
62% felt there was greater alignment between the Board on principal risks
Benefits of increasing transparency
© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007
In summary
Statutory obligations altering how companies are communicating
Recent research confirms considerable improvement Better narrative reporting can lead to better run businesses Market pressure probably as likely as regulatory scrutiny to
move companies towards further disclosure Reports are potent platform to reinforce and communicate
the investment story A lot has changed and a lot will continue to change…
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