Online reporting – bit slow on the take up

Online reporting – bit slow on the take up

2008 represented a golden opportunity for Australian companies to embrace the benefits of online reporting, following the industry-shaking change in Legislation that went through in mid 2007. Sadly the take up so far has not been as thorough and fast as we had anticipated. There is a fair degree of caution and reticence to make changes to a time honoured print-based process that has been in place for decades.

As the company that introduced HTML reporting to Australia in 2001, we have a great headstart over our competitors, and an obligation to spread the good word about best practice annual reporting to the 2,000+ listed companies in Australia. Later in the year we will be producing a more in depth formal review of what has happened with online reporting in Australia in 2008.

Here were some key messages we have been pushing so far this year:

> HTML is the obvious choice for fast and effective access to information online.

> Interactive PDF versions of printed reports will slowly disappear.

> It makes sense to leverage the HTML medium and adopt video to provide a more convincing and expressive presentation by key players, that static photos cannot achieve.

> If the Chairman and CEO don’t feel comfortable in front of a video camera, consider audio files.

> Printed Shareholder Reviews of around 28 pages in length satisfy the requirement of keeping in touch with shareholders now that 80-90% are happy to access annual reports online. Some companies are mailing them to all shareholders.

> HTML reports can be produced quickly if financial tables are presented as images.

> XBRL is anticipated to be mandatory in 2010 in Australia, which means that all financial tables will need to be in HTML, not images. (see the 10 July blog post)

> Print quantities below 500 are likely to cost less when printed digitally than by the traditional litho process.

> Digital printing is more environmentally friendly than litho printing, particularly with less paper wastage.

> Many companies are resorting to bland, low cost, black & white printed full reports to mail to those shareholders who still request a hard copy of the annual report. Once shareholders receive these unexciting black & white reports in their mail box, they are less likely to want one again in 2009, unless they are really looking for the fine detail in the financials. By that time they may also have seen the company’s pdf-beating HTML annual report which will encourage them to transfer their attentions online.

> HTML reports can easily be enhanced with Flash animation if a more expressive and marketing-oriented online report is required.

> It is now relatively easy and cost-effective to also produce half year reports in HTML for consistency of delivery and ease of use.

> Traditional print designers are slow in advising their clients on the best course of action and don’t seem confident embracing the online medium.

If you are one of the 2,000+ listed companies who still haven’t made a decision as yet and are experiencing sleepless nights, give me a call on 02 8256 3999 or email lyn@heywood.com.au for details of our upcoming workshops.

Lyn Heywood is a Director of Heywood Innovation.

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