We have picked out some inspiring examples in a couple of the most important areas of the annual report, to provide you with inspiration for your upcoming report.
Business model - strategy
The compact "Business Overview" provides a summary of value creation, a customer-centric approach and agile business model, and a summary of strategy execution.
Trends in the Specialty Chemicals Value Chain, a Business Model that sets out Input and Output, good insights into value creation in each business area.
Among those rather rare annuals charting market position explicitly, as well as competitiveness and the income model.
Daiichi Sankyo's report is called "Value Report". The 2019 version includes a great display of the Value Creation Process on pages 3-4.
Straightforward and well-backed CEO letter.
Seven questions asked to the President & CEO about the group’s Strategy. The first answer is a clarification of the group’s raison d’être.
Chairman’s letter to the shareholders comes first in the digital version. It reaffirms the commitment to wholesale.
An annual report entirely structured around messages, from the CEO, the CFO, the COO, the CTO, the CAO, and from Outside Directors.
Smooth handover reported between the departing chairman and the new chair-designate.
Thorough review of risk management guidelines, process, implementation, radar, insurance, profiles and responsibilities. Internal control explained in the governance section.
Smith & Nephew
Risk management life cycle set forth. Principal risks include examples and report on actions taken, with risk tolerance and link to strategy. Plus a timeline for next year risk management.
Risks with major impact at the business area and/or group level.
Likelihood and impact of risks (from Inherent to Residual) smartly charted.
Risks as well opportunities summed up in a two-page spread telling about management and strategic focus areas involved.
Risk factors, control and management
Including management discussion and analysis (MD&A) and directors’ report.
Comprehensive Group management report beginning with Fundamentals and ending with an Outlook. In between: a thorough integrated piece backed with numerous tables and graphs. A plus for the online format.
Stands among those still rare annuals (except for some in Nordic countries) writing comments near financial statements, i.e. a plus point for analysis.
Outstanding MD&A and overall operating and financial reporting. Check e.g. Growth & Capital Allocation, consistent review of performance for areas, Guidance and Sensitivities, Balance Sheet Analysis, Sources and Uses of Liquidity and Capital Structure and Management.
A Chief Financial Officer’s report addresses most aspects of financials, not least the structure of net debt and liquidity and debt profile, with strong table support.
Explanations of significant changes in financial position are put clearly and very useful. Likewise, the company reports about liquidity and financial resources with a high degree of precision.