© Black Sun Plc 2007 Company Secretaries Conference and Exhibition 2007 Black Sun plc Narrative Reporting October 2007

© Black Sun Plc 2007Company Secretaries Conference and Exhibition 2007

Black Sun plcNarrative Reporting October 2007


Agenda

Principles of good reporting

Best practice examples

Benefits of increasing transparency


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


StrategyBest practice examples


Strategy: Imperial Tobacco


Strategy: BG Group


Strategy: Cadbury Schweppes


KPIsBest practice examples


KPIs: Centrica


KPIs: BAT


Principal risks and uncertaintiesBest practice examples


Principal risks: Carphone Warehouse


Principal risks: Friends Provident


Forward-looking orientationBest practice examples


Forward-look: BAE


Forward-look: ITV


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


Internal benefits of increasing transparency‘From the inside out’


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


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…


Opportunity notObligation


Thank you

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Documents

© Black Sun Plc 2007 Company Secretaries Conference and Exhibition 2007 Black Sun plc Narrative Reporting October 2007